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Implications of Cisco Home Media Strategy

Rutberg and Company offers analysis of Cisco's emerging strategy within the consumer electronics sector -- In the enterprise market, Cisco's entry into a product category typically presents formidable challenges to private companies in that category. However, we believe that Cisco's entry in the consumer electronic markets presents a relatively positive scenario for certain private companies, including even those with competing products and services.

In general, home media networking uncertainties include what the home media network architecture will look like and what roles will be performed by service providers, consumer electronics companies, and individual consumers. In a Cisco/Linksys-driven scenario, the consumer purchases and builds the network elements, and as such retains influence if not control over the network's content and service offerings.

Given Cisco's open-platform approach, private companies, such as those offering home networking products or over-the-top content services, will have an opportunity to participate in the home network, whereas they may not be able to in a service provider-driven scenario.

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