Skip to main content

U.S. IP-enabled Connected Home Forecast


The connected home era has finally arrived, according to the latest research from Strategy Analytics. US sales of IP-enabled devices in 2005 rose by over 500 percent to 16 million units, as consumers rushed to buy IP-enabled games consoles, entertainment PCs and digital video recorders. This report, "Quantifying the Digital Home Opportunity," predicts that by 2010 US households will own more than 330 million IP-enabled devices that will be able to share and access music and video across home networks.

"Connected," or "IP-enabled," devices allow consumers to share content and entertainment applications across a home network. Major technology providers, such as Cisco/Linksys, Intel and Sony, are heavily promoting a new era of digital consumer electronics built around the connected home network. Early success stories include portable gaming devices from Sony and Nintendo, Microsoft's Xbox 360 and TiVo's latest DVRs.

Peter King, Connected Home Devices Service Director, said, "Consumer technology vendors who ignore the fundamental industry shift toward IP-enabled devices will be left behind. Our research finds that 7 percent of the digital consumer electronics market was IP-enabled in 2005, compared to only 1 percent in 2004. This trend will continue during 2006 as more and more manufacturers add connectivity to flat panel TVs, DVD players, digital cameras and cellphones. But technology vendors must analyze each market segment on its own merits: connectivity will penetrate some segments faster than others."

David Mercer, Digital Consumer Practice VP, adds, "The digital home industry will be transformed as new entrants embracing the connected home take share from established players. Successful vendors will focus on helping consumers overcome the complexities of installing and using networked entertainment devices."

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the