Content reigns in ‘digital home’ scenario

Remember the phrase, "Content is king"? At one time, Internet video services, interactive TV shows and other new media initiatives seemed set to drive the economy. Although the idea seemed to die with many of the unsustainable business models of the dot-com era circa 1995 to 2001, new endeavours to make homes more tech-enabled could return content to its throne. Content is the heart of the "digital home" – houses in which electronic devices, heating systems and even appliances are interconnected – judging from comments made at the Digital Home Summit, a Strategy Institute conference held in Toronto, February 21 to 22. Tim Woods is vice-president, ecosystem development at the Internet Home Alliance (IHA), a non-profit group researching home networking technologies made up of such firms as Cisco Systems Inc., General Motors Corp. and The Walt Disney Co. He said content, not tech, is the most important driver of home electronics adoption. In the IHA’s numerous research projects, "we approach it not from the technology, but from the emotion," Woods said. "If anybody asks you to sell the technology, run screaming." One of the IHA’s projects scrutinized the seamless transition of digital audio content from the house to the car and vice-versa. The study looked at digital rights management strategies, the technology required and potential business models; the group is analyzing the data and mulling next steps. Ron Eisses of IBM Canada Ltd.’s digital media and entertainment unit said increased broadband availability, advanced networking and a growing range of access technologies encompassing TVs, PCs, wireless handsets and portable gaming consoles have raised the bar for content creation. "We are starving for content," he said. But the digital home faces many obstacles. For one thing, it’s expensive to wire houses for pervasive audio-visual output and appliance interconnectivity. Digital home systems can cost tens of thousands of dollars, according to conference participants. As well, plenty of confusion surrounds the concept. Should consumers turn to homebuilders for digital home systems, or should they use a bespoke digital home system provider? Will a media-focused PC be the system’s hub, or will the TV set? Rick Nadeau, VP of market firm Decima Research Inc., Decima Reports Inc.’s sister company, presented survey results portraying consumers’ opinions of the digital home. The study suggest the digital home has an uphill battle ahead: just 11% of respondents said they were "very familiar" with the concept; 46% said they were "somewhat familiar" with it and 43% said they were "not familiar." But 65% of respondents said they might acquire a digital home system down the road. "Canadians are intrigued by the concept," Nadeau said. "They can see themselves adopting it in the future." The most popular digital home service seems to be safety and security, with 64% of respondents saying they might purchase a system. Energy-management systems were the next most popular, followed by stereo connections and TV connections to the network (see chart on previous page). Despite lack of familiarity with the digital home concept, system installers seem to be doing well. Blair Robin, president of Automated Home Technologies, which specializes in building digital home networks, said his business is booming: "I haven’t advertised in six years. It’s all word-of-mouth." The IHA’s Woods agreed with audience members who said consumers don’t quite know what they want from a digital home system, or how they should acquire one. But he reiterated an earlier point that entertainment is the hook, perhaps more so now than ever before. "Consumers are saying, ‘I want this.’ Five years ago they weren’t saying this at all," he noted.

Content reigns in ‘digital home’ scenario

News | 03/07/2006 5:00 am EST

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