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Sunday, October 24, 2004Steve Neiderhauser covers the point spoken on The topic "The convergence of home entertainment and technology" by Michael Greeson, President of The Diffusion Group, about trends in digital entertainment - What's worked? What hasn't? Where is digital entertainment heading? Neiderhauser provides an outline of Micheal's speech .
• Home entertainment and technology are converging. TVs and other home entertainment products are using CPUs, disk drives, and memory.
• The PC is no longer in replacement mode -- today, when you buy a PC you're able to keep it for three or four years. So, how will PC companies grow revenues? New business models are needed.
• Dell's supply chain is its business model. A model that will no longer produce additional revenues by itself.
• HP is a company that creates products (it spends millions on R&D), and yet HP made a deal with Apple to resell the iPod. It takes a unique set of skills to make digital media products.
What does this mean for companies that make PCs? They need to move to the intersection of media and technology if they wish to grow revenues.
On examining the above points and the happenings in eht insdutry, the stars are starting to align in Apple's favor. The convergence of technology and media means that Apple will be creating product that are easier to see, touch, and hear. And, in turn, its products become more viral. No one ever walked down the streets of New York with a G5 tower tucked under his arm while calculating a return on investment; however, even the New York media comments about the number of people walking to work in Manhatten with white iPod earbuds plugged into their ears. As we move into the media-technology era, a larger percentage of Apple's vaunted design skills will be on display, and experienced through digital media products. With an iPod you can hold it in your hand, pass it around a party and add songs to a playlist.
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