Digital Living Service and Product Revenues to Approach $300 Billion Annually

Growth in IP and mobile access and communications services to spur spending in consumer devices

For Immediate Release

Contact: Jenny Barrett, Chelsey Tyson
Parks Associates
972 -490 -1113
Email: jenny@parksassociates.com; chelsey@parksassociates.com

Digital Living Service and Product Revenues to Approach $300 Billion Annually



Dallas, Texas December 20, 2006 - Rapid consumer adoption of Internet and mobile services will boost U.S. spending in digital living services and products to nearly $300 billion by 2010, according to Parks Associates' Digital Living 2006 Forecasts. This study, which features forecasts and analyses on more than 50 digital lifestyle categories, reports a steady rise in U.S. household spending for these advanced products and services over the next five years, fueled by adoption of broadband and communications services, which will account for $229 billion in 2010.

"Recent investment and developments in such services as broadband access and television, including the shift to digital and IP delivery of communications and entertainment services, have given rise to a host of new digital living products and services," said Kurt Scherf, vice president and principal analyst with Parks Associates. "As we close the first decade of this century, the companies and service providers that can build strong links between access, content, and end -user platforms will capture a substantial share of this multibillion dollar industry."

Digital Living 2006 Forecasts reveals that revenues for digital entertainment services - including gaming, music, and on -demand video - will be among the strongest -growing categories over the next five years. The influx of these services will in turn drive the sale of media centralization and distribution solutions in U.S. households. Between 2006 and 2010, revenues from media servers will grow 140%, and the number of connected entertainment solutions will increase substantially during the same time period. By 2010, more than 30 million households will have a network that bridges numerous products and extends the entertainment experience to multiple rooms in the home.

Digital Living 2006 Forecasts provides five -year U.S. household forecasts across five broadband product and service categories: Broadband & Communications, PC/CE Digital Media Platforms, On -demand Entertainment Services, Home Security, and Home Control. Within these five categories are forecasts for more than 50 subcategories of individual products and services, including multichannel television subscriptions (cable, satellite, and telco TV), households with home networks (data, multimedia, and entertainment), and subscribers of bundled services. Home controls and home security revenues include projections for new housing growth and forecasts for both hardware and labor. The project features a comprehensive report with analyst commentary and interactive forecast models that provide in -depth explanation of the methodology for each category.

Digital Living 2006 Forecasts is available through Parks Associates' Client Service program. For more information about Digital Living 2006 Forecasts, contact Parks Associates at 972 -490 -1113 or sales@parksassociates.com or visit http://www.parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, multiclient studies, consumer research, workshops, executive conferences, and custom -tailored client solutions. Parks Associates is also a reliable resource for industry, local, national and international press, providing data, analysis, and insight on all aspects of the "digital living" markets.

Parks Associates hosts several fall events and co -hosts CONNECTIONS™ and CONNECTIONS™ Europe (in partnership with the Consumer Electronics Association) each year. In addition, Parks Associates produces the publication Industry Insights two times per year in conjunction with the CONNECTIONS™ Conference series.

http://www.parksassociates.com | http://www.connectionsconference.com | http://www.connectionseurope.com | http://www.connectionsindustryinsights.com

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