DVD Players, Not PCs, Will Run Home Networks by 2010, Says Gartner

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Egham, UK, August 4, 2005 � New research from Gartner said that as home networks grow in popularity, consumers want entertainment devices like DVD players and set-top boxes to be part of them. These devices will develop into multimedia servers because they have distinct advantages over PCs.



"DVD recorders will become the core component of home networks, allowing consumers to watch movies, TV programmes and listen to music in any room of their home at any time,� said Paul O�Donovan, principal analyst at Gartner. � Movies, TV programmes and music downloaded from the internet�as well as personal video and audio content�will be stored and played back on devices around the home using this new breed of DVD recorder. Ease of installation and use are the key elements for adoption by consumers and it will be the consumer electronics manufacturers, rather than the PC vendors, that will dominate this market. However, they will not be available in retail stores at mass-market prices until 2010 as vendors and technology suppliers will require time to develop common standards of connectivity and interoperability."





Why are consumers interested in home networking?



· Many homes already have wireless or wired networks that link several PCs and allow a printer and broadband connection to be shared by the PCs

· Consumers are increasingly using broadband to download audio and video �entertainment content� from the Internet to their PCs � but PCs are not always the most convenient device on which to listen to music or view video

· Consumers have a need to transfer entertainment content to devices like hi-fi equipment, TVs, DVD players, video cassette recorders, MP3 players and even third-generation mobile phones. They also want to transfer photographs from digital cameras and video from camcorders

· As a result, there is a growing need to link many different types of consumer electronics equipment and PCs so that entertainment content can be easily transferred in the home





Why will DVD players run home networks?



The PC is an excellent device for storing and manipulating multimedia content from a variety of sources, but:



· A PC is a complicated piece of equipment

· PCs require powerful processors and other components to perform tasks like decoding video and audio content efficiently. The average PC uses almost 100% of the resources of a 2GHz processor to decode a DVD movie, compared with a dedicated multimedia processor in a DVD player, which may be running at only 200MHz

· A simple cost comparison of the semiconductor dollar value inside a PC, compared with the average DVD player, finds the PC 86% more expensive in component costs

· Unlike the PC, most consumer electronics equipment rarely requires software and drivers, if at all, and the consumer electronics industry has a clear advantage over PC-based networking in terms of ease of installation





When will DVD players run home networks?



· Some DVD products are already network-enabled with wired or wireless Ethernet ports

· Enhanced DVD recorders contain �codecs� that compress audio and video content to manageable file sizes, reducing the bandwidth required to move content between devices � codecs also act as the �bridge� between a PC and other consumer electronic devices

· Gartner believes that the consumer electronics industry will not agree on industry-wide connectivity standards for digital audio and video equipment before 2007-2008 � meaning that high-volume home networking products will be available in retail stores at mass-market prices by 2010

· Once industry standards are in place, the product that is most likely to succeed in consumer-based home networking is the DVD recorder/player with integrated hard disk, personal video recording functionality and some form of LAN connectivity, evolving to become the home multimedia server







About Gartner

Gartner, Inc. (NYSE: IT) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has over 3,900 associates, including more than 1,100 research analysts and consultants, in more than 75 locations worldwide. For more information, visit www.gartner.com.
 


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