The industry concurs that entertainment will drive greater interest and adoption of home networking. In the past year, the industry has pumped up its promotion of broadband entertainment services that can be accessed in any room with a home network. For instance:

Home Security Systems Factory Sales
	Dollar Sales (Millions)
2000	1,750
2001	1,820
2002	1,965
2003	2,055
2004	2,150
2005p	2,250

 

Source: CEA Market Research, 1/05

•  New gaming consoles, such as Sony’s PlayStation Portable (PSP), include built-in wireless network features or broadband connections that can be used with a home network system. Jay Horwitz, senior analyst for Jupiter Media, said in 2004 that “as broadband penetration and home networking increase in the U.S., gearing up for connected consoles becomes a much more viable mass-gamer proposition.”

•  GoVideo introduced a Wireless Media Receiver/DVD player, which can access RealNetworks’ “Rhapsody” online music service. Priced at just $199.99, the device enables users to transfer music and movies from a PC to a TV.

•  As noted above, TiVo launched a home networking option that enables DVR owners to access recorded shows in any room.

•  TiVo also announced plans to join with NetFlix, the online DVD rental service, to develop a downloadable DVD service as part of a home networking system.

•  Sonos introduced a multi-part home networking system that lets users access MP3 files and other digitally stored music on any home PC. The system can be used through an Ethernet cable or a wireless link.

The industry will undoubtedly roll out more products in 2005-2006 that will attempt to connect technology to the content consumers’ desire.

Personal Computer Software Factory Sales
	Dollar Sales (Millions)
2000	4,480
2001	5,062
2002	4,961
2003	5,060
2004	5,162
2005p	5,213

 

Source: CEA Market Research, 1/05