Home networking 'Killer App' is coming: Network Media Nodes

21 October 2003 Boston, MA Lightwave Europe -- More than one-third of U.S. households have audio and photo content libraries on their PCs. And 7 million households have feature-length Internet movie libraries. This activity correlates with rapid broadband growth and the maturation of home networking. Market analyst Yankee Group believes this "killer app" combination has major implications for the comms industries.


- 18.5 million U.S. homes to have Media Nodes by 2007

21 October 2003 Boston, MA -- More than one-third of U.S. households have audio and photo content libraries on their PCs. And 7 million households have feature-length Internet movie libraries. This activity correlates with rapid broadband growth and the maturation of home networking. Market analyst Yankee believes this "killer app" combination has major implications for the comms industries.

Consumer electronics (CE) manufacturers, PC OEMs, and other digital media stakeholders are about to change this. Connected media adapters or media nodes will enter the market beginning in late 2003. These devices will enable consumers to play back PC-based content through their televisions and stereo systems.

"Consumer digital media libraries will continue to swell, driving demand for media nodes, particularly among networked homes and consumers over age 25," says Dominic Ainscough, senior analyst for the Yankee Group's Media & Entertainment Strategies research and consulting practice.

"During the next 18 months, PC and home networking hardware manufacturers will capitalise on faster product cycles to drive the market, but traditional consumer electronics manufacturers will challenge them by integrating network functionality into established entertainment device categories."

These vendors will fill a void in the Internet media and consumer electronics marketplace. This new product category will stabilize declining revenue in volatile sectors such as home theater. This is the killer app home networking stakeholders have been waiting for to drive use of home networks. Market growth will follow home network penetration, ultimately reaching 18.5 million homes by 2007.

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