Essay about Digital Home Convergence

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Digital Home Convergence Overview As technology and entertainment converge inside the home, major players in various industries are taking different strategies in planning for the future. The concept of the “digital home” will likely take one of two forms: a closed wired entertainment network (PVRs, OnDemand) or an open wireless data network (web, email, VOIP, IPTV). The closed model is already being offered in many homes across the country, but as technology advances, the open model will become the standard. It is important to understand how both technology and entertainment are companies are strategizing to control the “digital home”. Based on research in this report, it appears that four things are likely to occur. First,…show more content…
Microsoft Microsoft is taking several approaches to its “digital home” strategy. The first thing it did was to release the Media PC Center in 2002. HP was the first to build a PC set-top box to run this software. Other hardware companies have been working to make the box look more like a television companion than a PC. Microsoft’s goal is to train consumers to consider buying a PC set-top box when they are upgrading their entertainment system. The current problem with this strategy is that the boxes are priced too high ($1900). In addition, Microsoft is going to incur significant pioneering costs in creating a market for these new “entertainment PCs”. In the event that this set-top PC does not become the standard, Microsoft is also creating strategic alliances with other hardware and broadband companies. They are developing software for Comcast PVRs and LG DVD recorders. They will receive $400M from SBC for the use of Microsoft TV Internet Protocol Television Edition. Basically, they are placing bets hoping that one system will standardize. In the words of a marketing manager at Microsoft, “There is no one size fits all choice”. Apple Apple is currently repositioning itself as a media software and consumer electronics company due to the success of iTunes and the iPod. They were the first company to develop a successful synergy between consumer electronics and media delivery software. It is not unrealistic to expect some form of this strategy to

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