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Thursday, January 06, 2005

Broadband Redefines The Consumer Electronics Industry

we recently covered in this blog, Bandwidth Is Microsoft's Enemy wherein we covered along with bountiful availability of bandwidth, the nature of platfor would change substantially. vnunet writes, the consumer electronics sector in transition as service driven model begins to dominate. Excerpts with edits and my comments added:

The consumer electronics industry is experiencing a "profound change" as fast internet connectivity increasingly allows previously packaged content to be delivered on a subscription or service basis. According to ABI Research, the consumer market is entering a period of rapid transformation as it moves away from the models which have historically dominated the personal enjoyment of audiovisual media.In the past, the market research firm pointed out, consumers bought a piece of equipment such as a radio or a TV that would reproduce network content without additional costs.
The other traditional consumer model, according to ABI, centres on "packaged media" where a phonograph, cassette player, CD player or DVD player would be purchased to play media in the form of tapes or discs at additional cost.Cable TV, however, is disrupting this model by offering premium content for increasingly higher subscription fees.Vamsi Sistla, director of residential entertainment technologies at ABI Research, pointed out that even portable entertainment, such as MP3 player downloads, is turning into a service-driven business. "We are not saying that packaged media are going to die out completely, but this is the way the industry is shaping up," he said."And the larger message is that the consumer electronics industry must work more closely with the service provider industry."They are both vying for the consumer's dollar, but they will both lose out if issues of standardisation and obsolescence are not dealt with more quickly than they have been in the past." Broadband, Mobile's first cousin is really creating froth and action in the digital market.

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