Audio and Video to Pioneer Multimedia Home Network Market
SCOTTSDALE, Ariz., January 28, 2003 -
While still of limited interest to the typical consumer, audio and video could be what draws the average consumer into home networking, according to In-Stat/MDR. The typical home network today is data-based and PC-centered, and emphasizes sharing peripherals and Internet access within the home. However, the introduction of audio and video promises to create a new market for multimedia home networking technology, with the number of multimedia home network households, worldwide, projected to increase by a CAGR of 210.7 % from 2001 to 2006.
However, according to Brian O’Rourke, a Senior Analyst with the high-tech market research firm, “Moving multimedia streams is much more difficult than moving data. While most home networks today can carry audio with little difficulty, video requires more bandwidth, Quality-of-Service (QoS) guarantees, and content protection.” There are a number of multimedia home network wiring and standards options, including IEEE 1394, 802.11x, Ethernet, coax, power line, ultra wideband, and phone line. “All have strengths and weaknesses for carrying multimedia,” says O’Rourke. “It is extremely unlikely that multimedia, or Audio/Video, home networks will depend on only one of these options, reliance on a combination of standards and technologies will be more likely.”
In-Stat/MDR has also found that:
In terms of devices, it is unclear at this point whether the PC or consumer electronics cluster will take the leading role in the unfolding market for multimedia home networking.
In 2003, DVD players that access the PC for video content to be played over the television will be the first mass market products that enable video-based home networking. Companies such as Oak Technology and Digital 5 are offering solutions that will be available in name brand DVD players in 2003.
The emergence of digital television, particularly high definition television, is expected to be a multimedia home networking driver, particularly in the later years of In-Stat/MDR’s forecast (2001-2006). Just as data-based home networking was boosted by the need to share an expensive broadband connection, so multimedia home networking will be boosted by the need to share expensive digital and high definition television content.
Selling multimedia home networks will require substantial consumer education and marketing. Solutions will have to be simple enough for average consumers to install, or networking companies will have to work with service providers for installation.
In the near term, because of bandwidth and Quality-of-Service (QoS) constraints, it is expected that only compressed video, such as MPEG 2 and MPEG 4, will be networked.
Recent In-Stat research, Multimedia Home Networks: An Evolutionary Process (#IN020018MI), analyzes the strengths and weaknesses of all the standard and wiring options in multimedia home networking. It looks at several products that will help to drive this emerging market, including the Home Media Center PC and Sony Cocoon. A forecast for multimedia home network households through 2006 is provided.
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