Home networking needs help to grow: study

The concept of the networked home where computers and entertainment devices seamlessly merge is still a long way off, according to a recent survey by Port Washington NY-based market intelligence firm NPD Group. While thousands have already connected their PCs and DVD players, that phase may be ending according to Darrel Ryce, director, NPD Group Canada. "As we get into the followers, I think adoption is probably going to be a little bit slower," he says. "What we’re showing is that only 9% of those who currently don’t have a network indicate they’re going to have one installed in the next 12 months." "Most of things that are happening now through are what we’d call traditional IT things - sharing Internet access, sharing files between computers and the printer," Ryce says. As a result, the survey disregarded the networking of two or more computers in a home, focusing rather on the integration of traditionally separate computers and entertainment systems through a router. It did, however, include printers linked to PCs as a form of home network. Out of more than 5,200 Canadians surveyed, 42% of computer owners reported already having a home network in place, either wireless or Ethernet-based. The most popular format for a home network involved one or more printing devices, with 62% of home networks including them, while only 15% of home network owners reporting they had a DVD player or TV incorporated into their system. However, an additional 31% said they would link a DVD player or TV to their home network in the next year. The tasks people are using home networks for also reflect a mindset of keeping computers and home entertainment separate. Ryce says large numbers of home network owners report using their set-up to listen to music or view still photos. "That’s not a big surprise, because those are things we’d typically do on a PC. It’s when we get into viewing videos and pictures on a TV from a PC that those numbers really start to fall off - people just aren’t doing those types of things. Those functions or features are there today, we just don’t have very many consumers who are taking advantage of and using those functions and features yet. I think it really goes back to education, marketing of the product, and the product’s capabilities." Then, there’s the networking technology itself. "About 56% of those Ethernet-networked, another 34% of those wireless or Wi-Fi, so there’s 90% right there that are not relying on phone line or power line," Ryce says. Since some users employ two or more networking technologies for redundancy’s sake, multiple responses are possible, leaving phone line-based networks with a 19% share and power line-based networks with a 2% share. Ryce adds future growth will most likely occur in the wireless segment. Ryce adds that uncertainty about emerging standards may be deterring some consumers from buying the equipment needed for a home digital network. "We may have consumers who are sitting back saying ‘OK, this looks really cool, but in six months’ time is this going to be obsolete and there’ll be something new and wonderful that will help me do all these things?’" he says. Then, there are those who are just plain uninterested. "The number one reason that 72% of those indicated is that they don’t have an immediate need," Ryce says. "That’s going to be a definite barrier with regards to penetration."

Home networking needs help to grow: study

News | 10/27/2005 4:00 am EDT

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