Skip to main content

Consumer Media Center PCs Growth Spurt

Current Analysis reports that in 2005, Media Center desktops reached a long-sought breakthrough in consumer adoption, as they increased from an 8 percent share of U.S. retail desktop sales in January 2005 to 48 percent in December 2005.

This was based in large part on the lower price points obtained by omitting the TV tuner hardware component. However, recent Current Analysis data show that TV tuners, which allow Media Center users to receive and record television signals, are making a comeback.

Desktop computers equipped with TV tuners bottomed out in October 2005 with an 8.7 percent unit share but increased each month thereafter, culminating in a 12.8 percent unit share for February 2006.

The television arena is pivotal turf in the war for the Digital Home because it offers the most opportunity for lucrative infrastructure and broadcast content. Viewed in this light, music is in second place in terms of its ability to generate revenue, with photos and radio in distant third and fourth places.

Manufacturers that want the desktop computer to be the center of the Digital Home will want consumers to use TV tuner-clad PCs instead of TiVos, dedicated DVRs or intelligent set-top boxes. The installed base of these respective devices is important: Consumers who already have a TV tuner-clad PC may stick with it even if it doesn�t offer the same ease of use or narrowly tailored functionality of a TiVo.

In turn, video content providers will have a straightforward path to consumers via the PC, and computer hardware and software vendors will get to manage the tollbooth -- not the broadband service provider.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....