Selling More Than The TV
In this year’s special statistics section, we’ve compiled the latest research from some of the industry’s most respected analysts to give you a clear idea of some of the major trends that will continue to affect your business through the year.
We kick things off with trends in the networked home. While flat-panel TVs are selling briskly, sales prices and margins will continue to drop. They may serve as the center and focal point of the digital home, but they are only one piece to the various solutions that make up the home network. During the last few years, analysts predicted that the average networked home will have at least 16 digital devices attached to it by the end of next year. That’s a lot of devices considering broadband connectivity, the backbone of the digital home, will reach 50% penetration in U.S. homes by the end of this year (or 22.3% of U.S. households last year, five million more than in 2005), reaching 70% penetration by 2010.
That translates to about 350 million devices attached to the home networks globally this year, increasing from 500 to 700 million units by 2011 (Chart 2). A sampling of those networked devices include flat-panel TVs, audio gear, media-optimized PCs and media servers, cost-effective home automation and control, IP-based inside and outside surveillance and security systems, home environment warning systems, VoIP systems, affordable distributed audio systems, full-scale gaming platforms, and a new breed of digital healthcare devices to help the elderly age gracefully, to name a few (Chart 3).