Convergence of PC and CE Worlds to Grow Market for Entertainment Home Networking

The value of networking connectivity in connected CE and PC devices will grow to $5.7 billion by 2008

SCOTTSDALE, Ariz., February 11, 2004 - Developments in computing, consumer electronics, and networking are combining to lead to an explosive new market that will enable audio and video content to be transported around the home, reports In -Stat/MDR (http://www.instat.com). The high -tech market research firm says that the development of whole new product categories such as media adaptors and networked DVD players, in addition to the continued development of networking protocols and technologies such as Ethernet, 802.11x, and 1394, are leading to a new era in home networking.


Though the high -tech market research firm cautions that barriers, such as content protection, legacy products, and the need for consumer education remain, the value of networking connectivity in connected CE and PC devices will grow to nearly $5.7 billion by 2008. A number of key developments have pushed the reality of the networked home closer, including:

*The 2003 formation of the Digital Home Working Group (DHWG), comprised of some of the biggest names in consumer electronics and personal computing. The group is defining a set of recommended standards for PC to consumer electronics networking, with its first guidelines to be published in early 2004.

*The evolution of the physical layer standards such as Ethernet, 802.11x, Ultra Wide Band and 1394 that will enable multimedia home networking.

*Microsoft's announcement of the first "whole -home" version of its Media Center edition.

*New entrants in the consumer electronics business, including Gateway and Intel, which should push established consumer electronics manufacturers.

Despite initial hurdles that need to be overcome, In -Stat/MDR expects the entertainment home networking market to grow significantly as applications, such as online gaming, networked PVR and digital audio, begin to see adoption, and a whole host of consumer electronics devices ship with embedded networking connectivity and processing capabilities.
The report, Entertainment Everywhere: Multimedia Home Networking 2004 (#IN040722RC), examines the emerging entertainment networking market. The report is a comprehensive analysis of standards, new product categories and technologies, along with companies participating in this industry. The report examines different hardware, silicon and software solutions as part of the broader industry value chain, and looks at individual companies` strategies within this context as well.

To purchase this report, or for more information, please contact Courtney McEuen at 281 -246 -4668; cmceuen@reedbusiness.com. The report price is $3,495 U.S. Dollars.

For more information, contact:

Michael Wolf, Director - Enterprise & Residential Services
Phone: (425) 673 -0313
Email: mwolf@reedbusiness.com


Kirsten Skedd, Senior Marketing Manager
Phone: 480 -609 -4534
Email: kskedd@reedbusiness.com

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