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Networked entertainment to be biggest driver of the networked home over next five years

While the biggest driver of the home network over the past three years has been broadband sharing, that is about to...


April 4, 2003  


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While the biggest driver of the home network over the past three years has been broadband sharing, that is about to change, according to research firm In-Stat/MDR.

The company predicts that 2003 will be the year of networked entertainment, as new products emerge to fuse the entertainment center with the home network.

Bridging devices that connect TVs and stereos to the PC through an Ethernet or Wi-Fi connection are coming from companies such as Sony and Linksys, while media servers that store and play rich content over a home network are shipping from a number of consumer electronics companies, it said.

These new products will help propel the overall home networking market, as the market grows from US$1.8 billion in 2002 to US$5.3 billion in 2007. Media networking, while accounting for just six per cent of the market in 2002, will make up 49 per cent of the revenues for total home networking by the end of 2007.

“The emergence of converged network products is due to the acceptance of traditional home networking,” says Mike Wolf, a Director with In-Stat/MDR. “The need for networking connectivity to enable new and compelling applications such as on-line gaming and networked digital audio will grow across demographics and geographies throughout the forecast period.”

In-Stat/MDR has also found that:

* Service providers are waking up to the importance of the home network. Both telcos and cable service providers are starting to offer managed home networks to their
broadband customers, and

* North America will continue to lead in overall home networks through 2007. The total number of installed home networks will grow from 9.2 million in both U.S. and Canada in 2002 to over 28 million by the end of 2007.


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