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PRESS RELEASE

3 FEB 2004

 

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Consumer Electronics Brands Likely to Dominate in Emerging Media Server Market

Over 70% of broadband households likely to purchase a media server show a strong preference for traditional consumer electronics (CE) brands over their PC counterparts, according to Parks Associates’ Broadband Networked Households project. Moreover, over one-half (51%) picked Sony as their brand of choice for such a device, which would store and distribute content to networked devices within the home.

“With unit sales flattening, PC OEMs hope digital consumer electronics will be their next big opportunity,” said Parks Associates. “Yet it is far from certain that a PC leader such as HP or Dell can cross over to consumer electronics and compete with the likes of Sony. The CE players have been selling dependable and inexpensive devices for decades, and consumers will gravitate toward category-specific brands due to positive prior experiences. This ingrained brand preference will be hard to break.”

At the recent 2004 International CES, both PC and CE manufacturers were offering some version of a home media server. However, among broadband households, a consumer segment likely among the first to adopt such a device, the vast majority held brand preferences for a traditional CE brand, such as Sony, Samsung, Pioneer, or Panasonic, over a more PC-associated brand, such as HP, Gateway, or Microsoft.

Parks Associates’ most recent consumer research initiative, Broadband Networked Households, features data collected from a survey conducted in Q4 2003 of more than 3,300 broadband households. Parks Associates is also preparing to launch Consumers & Emerging Multimedia Platforms, a Q1 2004 primary research project designed to examine consumer perceptions of reliability, brand preference, feature sets, and applications unique to these media platforms.

For more information about either project, visit www.parksassociates.com or contact Parks Associates at sales@parksassociates.com or 972-490-1113.

Go to www.parksassociates.com to download the white paper Service Providers & Residential Gateway Strategy, which discusses some of the technical and market challenges companies must address when deploying such devices.

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, and home control systems and security.

Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS™ Conference series.

http://www.parksassociates.com | http://www.connectionsconference.com | http://www.connectionseurope.com | http://www.connectionsindustryinsights.com

 

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