New Research from The Diffusion Group Defines Battle Lines for Control of the Digital Home

(PRWEB via PR Web Direct) April 29, 2005 -- The digital home revenue and profit landscape will be determined in large part by which players dominate key "control points" in the digital home, according to "Control Points and Profit Distribution in the Networked Digital Home," the latest report from The Diffusion Group, a leading digital home research consultancy.

"Most of the profits generated in this new market will be driven by services and applications, not by innovations in enabling devices," said Predrag Filipovic, Ph.D., consulting analyst with TDG. "Redistribution of revenue is inevitable and will be determined in large part by which service segments can gain and maintain ownership of the various control points."

Dr. Filipovic cited several examples of these control points, including:
* Network access – the physical link to the home;
* Media access, including protocols and formats – including digital rights management or DRM, asset management, and video standards;
* Delivery and application platforms – including content delivery, device management, and operations system and support software/middleware; and
* Unique and defendable IP – including content creation and imaging technologies, as well as operating systems.

As convergence technologies work their way deeper into the broadband homes, competing players will have the chance to solidify market position and extract higher profits from the total pool – a pool that is expected to grow from $50 billion in 2005 to more than $90 billion by 2010.

TDG's new report on the digital home market space, "Control Points and Profit Distribution in the Networked Digital Home," investigates how new technologies and service models will alter revenue and profit distribution by both cluster and industry segment. The report also offers strategic insights into how different value chain players including CE, PC and service provider companies should position themselves to win out in the battle for control point ownership.

For more information about TDG's new report, "Control Points and Profit Distribution in the Networked Digital Home," visit TDGs website (www.tdgresearch.com).

About The Diffusion Group (TDG Research)
The Diffusion Group is a consumer technology research and strategic marketing firm built by a team of seasoned consumer technology analysts. Our mission is simple: to provide timely, actionable intelligence designed to best position new consumer technologies for rapid diffusion. TDG is committed to providing market research and strategic consulting services based on conservative, real-world analysis and market forecasts grounded in consumer research. For more information about The Diffusion Group, visit our website at www.tdgresearch.com.

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