Networks in the Home: Connected Consumer Electronics

This report examines the market potential for network-capable consumer electronics products, profiles early adopters and use cases, probes the requirements for connectivity technology and home networking infrastructure, and forecasts market demand. It is a comprehensive industry analysis featuring rich consumer data from Parks Associates’ latest surveys.

“Advances in silicon technology have improved the performance and lowered the cost of ownership of network-capable consumer electronics,” said Harry Wang, a research analyst at Parks Associates. “Consumers with a high-bandwidth home network are beginning to dip their toes into this emerging product category. But to fulfill the promise of whole-home entertainment, much more needs to be done by CE manufacturers, software developers, service providers, and content owners in the areas of network management, hardware-software integration, rights management, and user interface design.”

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The Bottom Line

1.0 Notes on Methodology
1.1 Consumer Data
   1.2 Definitions
   1.3 Scope of Report

2.0 The Roles of CE Devices in the Connected Home
2.1 Broadband Internet and Home Networks
      2.1.1 Wired versus Wireless: Adoption and Trade-offs
      2.1.2 Consumers’ Preference for Home Networking Technologies
   2.2 Overview of Key CE Devices and Market Adoption
      2.2.1 Fixed CE Devices with Integrated Networking Capability
      2.2.2 Digital Media Adapters
      2.2.3 Portable CE Devices
   2.3 CE Devices and Connected Entertainment
      2.3.1 Hub or No-Hub
      2.3.2 Content Distribution Choices: Streaming, Sync, Download, and Managed Copy
      2.3.3 Current Applications of Connected Home Entertainment

3.0 Technical Prerequisites and Cost Implications
3.1 Silicon Processor
      3.1.1 OEM’s General Requirements for Silicon Chips
      3.1.2 Processor Core and Design Architecture
      3.1.3 Trends in Embedded Processor Design
      3.1.4 Industry Organizations and Standards
   3.2 Home Networking Silicon Components
      3.2.1 Wi-Fi Silicon
      3.2.2 802.11n/MIMO
      3.2.3 Power Line Communications (PLC) Technology
      3.2.4 Coax IC
      3.2.5 HomePNA Chipset
      3.2.6 Industry Organizations and Roles in Standard Formulation
   3.3 Storage Medium
      3.3.1 Hard-Disk Drive
      3.3.2 Flash Memory and Solid State Disk
      3.3.3 Next-generation DVD standard
      3.3.4 Storage Technology Trends
   3.4 Integration Software
      3.4.1 Value Proposition of Integration Software for Connected Entertainment
      3.4.2 Critical Issue for CE Vendors: Make or Buy
      3.4.3 Development of Industry Standards and Guidelines
   3.5 Content Protection and Rights Management Technologies
      3.5.1 Hardware-based Content Protection Technology
      3.5.2 Software-based DRM Technology
      3.5.3 DRM Interoperability
   3.6 User Interface
      3.6.1 Remote Controls
      3.6.2 Graphic User Interface
   3.7 Bill of Materials, Pricing, and Consumers’ Total Ownership Costs
      3.7.1 Bill of Materials: Cost Drivers and Pricing Trends
      3.7.2 Margin Analysis
      3.7.3 Hidden Cost: What’s the Total Ownership Cost for Consumers?

4.0 The Role of Content Service Providers
   4.1 Cable Service Providers
   4.2 Satellite Service Providers
   4.3 Telco Service Providers
   4.4 Internet Service Providers

5.0 Consumer Demand Drivers and Usage Behaviors
5.1 Consumer Media and Device Usage Behaviors
   5.2 Factors Influencing Demand for Connected CE Devices

6.0 Industry Snapshot
6.1 The Connected Home: the Battleground Where All the Bets Go
      6.1.1 Intel’s ViiV and AMD’s LIVE!
      6.1.2 Apple: An Untold Underdog Story?
      6.1.3 Microsoft: Flexing the Muscle inside the Digital Home
      6.1.4 Big Four CE Manufacturers
      6.1.5 Set-top-Box Manufacturers
   6.2 Cross-Industry Interoperability Solution: DLNA
   6.3 Content Owners: Releasing Fresher Content at Consumers’ Convenience

7.0 Market Forecasts and Implications
7.1 Forecasts of Connected Entertainment Households
   7.2 Forecasts of Shipments for Network-Capable CE Devices
   7.3 Market Implications, Opportunities, and Recommendations

Resource Book

1.0 Consumer Broadband and Home Network Usage

2.0 Demographic Attributes and Media Habits of Home Networked Households

3.0 Media Servers and Adapters for Connected Entertainment

4.0 Company Profiles
   4.1 Consumer Electronic Device Manufacturers
      4.1.1 Amino
      4.1.2 Cisco (Scientific Atlanta and Linksys)
      4.1.3 D-Link
      4.1.4 HUMAX
      4.1.5 Hewlett Packard
      4.1.6 Motorola
      4.1.7 NETGEAR
      4.1.8 Pace Micro
      4.1.9 Koninklijke Philips Electronics NV
      4.1.10 Panasonic/Matsushita Electric Industrial Co., Ltd.
      4.1.11 Pioneer
      4.1.12 Roku
      4.1.13 Samsung
      4.1.14 Slim Devices
      4.1.15 Sonos
      4.1.16 Sony
      4.1.17 Thomson S.A.
   4.2 Silicon Manufacturers
      4.2.1 Advanced Micro Devices, Inc.
      4.2.2 Airgo Networks, Inc.
      4.2.3 Broadcom
      4.2.4 Cirrus Logic
      4.2.5 Freescale Semiconductor
      4.2.6 Intel
      4.2.7 Intellon
      4.2.8 Micronas
      4.2.9 Sigma Designs
      4.2.10 ST Microelectronics
      4.2.11 Texas Instruments
      4.2.12 Zoran Corporation
   4.3 Software and Technology Solution Providers
      4.3.1 BridgeCo
      4.3.2 Digeo
      4.3.3 DigitalDeck
      4.3.4 EnCentrus
      4.3.5 GlooLabs
      4.3.6 Mediabolic
      4.3.7 Microsoft
      4.3.8 NDS Group PLC

The Bottom Line

U.S. Broadband Internet Adoption, Home Network Penetration, and Types of Networks
Hybrid Home Network is the Most Popular Choice
Comparison of Key Wired and Wireless Home Networking Solutions
Changes in Consumers’ Preferences for Home Networking Media
Network Storage Technologies and Major Vendors
Types of High-end Video Servers
DMA Vendor Types and Recent Market Developments
Portable CE Devices with Wi-Fi Networking Ability
Media Delivery Choices and Technologies
Use Scenarios of Media Center PCs
Number of Media Servers Sold Per Dealer
Silicon Design Architectures: Pros and Cons
Key Silicon Components Used in Fixed CE Devices and Leading Vendors
Silicon Design Trends
Wireless Networking ICs and Product Implementation
Pre-n Chipset Vendors and Product Features
Powerline Communication Silicon Vendors and Product Features
Vendors of Silicon Products for MoCA Standard
Hard-Disk Drive Form Factors, Capacity, and Applications
Cost of Storage Medium Continues to Drop
Comparison of Blu-ray and HD DVD Formats and Supporters
Comparison of Different HDD Interfaces
Technologies to Enhance HDD Data Safety
Profiles of Leading Middleware Integrators
Comparison of NMPR and DLNA
Comparison of Different DRM Standards
New Remote Controls for Networked Home Entertainment
Estimated Costs of Home Networking Silicon
Estimated Consumer Electronics Component Cost
Different Types of Internet-based Multimedia Content Services
Demographic Profiles of Multimedia Network Households
Multimedia Households’ Entertainment Device Ownership
Multimedia Network Users Are a Prime Target for Advanced Video Services
Content and Applications Shared on the Home Network
Usage of PC Connection to TV/Stereo
Devices Likely to be Connected to the Home Network
PC’s Appeal as an Entertainment Platform
Key Adoption Barriers for Media Center PCs
Home Network Installation Problem Compromises Connected Entertainment Experience
Estimated Growth of Home Networks in the U.S.
Forecast of U.S. Connected Entertainment Households
Forecast of Connected U.S. Households by the Type of Network
Estimated Network Entertainment Nodes in the U.S.
Breakdown of Cumulative Shipments of Network Entertainment Nodes
Forecast of Cumulative Shipments of Network-enabled Fixed Entertainment Devices

Resource Book

Growth of U.S. Broadband Internet Households.
Types of Home Networks
Home Network and Broadband Experience
Networking Media Preference: 2001-2005
Preference for a Hybrid Network on the Rise
Networking Media Preference among Different Households
Home Network Installation Problem
Types of Content Shared in Home Networking Configurations
Percentage of Internet and Networked Households with Digital Content Stored on PCs/Hard-Drive Devices
Age Distribution of Households with Different Home Networks
Income Comparison of Households with Different Home Networks
Gender of Head of Household with Different Home Networks
Ethnic Diversity of Households with Different Home Networks
Marital Status of Households with Different Home Networks
Education Levels of Households with Different Home Networks
Housing Types of Households with Different Home Networks
Family Size of Households with Different Home Networks
Ownership of Multiple PCs among Households with Different Home Networks
Entertainment Device Ownership: Multimedia-Networked Households
Entertainment Device Ownership: Data-Networked Households
Entertainment Device Ownership: Non-Networked Households
Multiple DVR Households: By Network Types
Purchase Intention of PC and CE Devices of Multimedia-Networked Households
Purchase Intention of PC and CE Devices of the Data-Networked Households
Purchase Intention of PC and CE Devices of Households with No Networks
Purchase Intention of Networking Devices among the Multimedia-Networked Households
Purchase Intention of Networking Devices among Data-Networked Households
Purchase Intention of Networking Devices among Non-Networked Households
Perception of Connected Entertainment among Different Network Households
Time Spent on TV: Comparison of Different Types of Networked Households
Digital Media Habits: Single-platform Entertainment vs. Cross-Platform Entertainment at Home
Digital Video Service and Home Networks
On-demand Programming and Home Networks
TV Programming Preference among Multimedia-Networked Households
TV Programming Preference among Data-Networked Households
TV Programming Preference among Households without a Home Network
Preferred Media Server Form Factor
Current Awareness and Penetration of Media Center PCs
Top Benefits of Owning a Media Center PC
Purchase Intention of Media Center PCs
Digital Media Adapter Applications’ Appeal among Consumers
Households’ Purchase Intention for Digital Media Adapter by Household Income, Gender, and Age
Interest in Purchasing a Digital Media Adapter by Ownership of and Interest in Adopting a Home Network
Appeal of and Likelihood of Purchasing a Digital Music Adapter and Digital Video Adapter

Publish Date: 3Q 2006

Pages: 199

Authored By:
Harry Wang - Senior Director of Research

Executive Editor: Kurt Scherf
Published by: Parks Associates

© July 2006 Parks Associates
Dallas, Texas 75230

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America.

Parks Associates has made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.

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