There was an explosion of new home networking services and products in 2004-2005, spurred largely by the recent increase in home network penetration. The industry concluded that the market was hot so it turned up its marketing programs. For instance:

• Verizon offered new DSL customers a free home gateway access their recorded shows from any TV in the house.

• DIRECTV, the nation’s largest satellite TV service, announced at the 2005 International CES that it was collaborating with Ucentric to develop a home network DVR. The set-top was expected to perform services similar to TiVo’s home networking program.

• Cable TV operators, such as Comcast and Time Warner, spent millions on TV spots and in-mail brochures to persuade their customers to try cable’s home networking service.

• Leading telephone companies, such as SBC and Verizon, announced plans to offer Internet Protocol-based TV serv ices in late 2005. The telco receivers will contain Internet software that includes nodes for home networks. Viewers will be able to access recorded programs and other features on any TV in the room. Cable and satellite operators are expected to offer similar boxes in later years. “With an IP set-top box, your home has a home network by default,” said Kenny Van Zant, executive vice president of Motive Inc., a Texas firm that works with IPTV companies. “This puts (TV providers) in the home networking business, too.”

• DigitalDeck, a start-up company, introduced a home net working system that lets viewers watch a DVD in any room without moving the disc. The system is priced at $4,500, well under a normal home networking installation.

• CE Vision magazine reported in its November 2004 issue that the housing industry was adding home networks and home theaters to newly built homes and including the cost in the mortgage. “They’re saying, for an extra $10 a month on your mortgage, we can throw in a home theater,” says Michael Timar, Panasonic Consumer Electronics’ national marketing manager for facsimile and IP products. According to the National Association of Home Builders, some 34 percent of builders now offer structured wiring as a standard or optional feature. And the Computer Technology Industry Association (CompTIA) reported that even many mid-level homebuyers would spend an extra $3,000 to $5,000 to outfit new homes with net worked technology.

• The appliance industry also joined the cause, promoting the wired kitchen as a new luxury item. Again, as reported in CE Vision magazine, the new appliances use a mix of old and new technologies, such as barcode readers to recognize food items in the fridge. But the engine of the smart kitchen is a broadband-equipped home network that connects all of the kitchen’s products with the family’s remote devices, such as a cell phone, pager, office computer or laptop. While it remains to be seen if the new industry initiatives will persuade reluctant consumers, they unquestionably will generate more awareness and interest in the technology.