CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 3, 2005--
Cable, Games, PC, and Software Industries Lead the Way -- Several
Cross-Industry Alliances and Acquisitions Will Emerge
Ten industries, including consumer electronics, PC, content,
games, telecommunications, and cable, are vying for control of the
digital home. According to "The Battle For The Digital Home," a new
report from Forrester Research, Inc. (Nasdaq: FORR), while some
industries are better positioned for success, all must focus on
capturing and controlling new revenue streams through key
cross-industry partnerships and acquisitions.
Forrester's evaluation places each industry into one of three
categories: leaders (cable, game, PC, and software industries);
challengers (content, portal, and telco industries); and long shots
(consumer electronics, retail, and satellite TV industries). The
report makes recommendations for each industry on changes that can
advance market position in the digital home -- an environment in which
devices connect to one of two networks: a closed, wired entertainment
network for digital TV and video on-demand and an open, wireless data
network for Web browsing, email, music, photos, and Voice over IP
(VoIP).
"Businesses in every industry must fight to protect their assets,
retain customers, and stave off competitors. Ten years ago, cable
companies owned TV in the living room. Today they compete with
satellite TV -- and they'll soon compete with telcos -- for
customers," says Forrester Research Vice President Ted Schadler.
"Companies that master skills like experience design and customized
delivery will lead the way by creating services and products that earn
consumers' loyalty."
There will be no winner-take-all industry in the battle for the
digital home. Success will reside with businesses that partner outside
their industries to establish six new power positions that will
control the lion's share of consumer spending: personal entertainment,
intelligent devices, application-device combinations, immersive
experiences, collaborative experiences, and core services.
Because the digital home power positions traverse industry lines,
Forrester sees many partnerships forming during the next three years.
Potential digital home alliances include:
-- A joint venture between the NFL and FOX to create an immersive
experience where sports fans can choose viewer-selected camera
angles and split-screen content.
-- Sony's acquisition of Clear Channel to combine Sony's music
and devices business with Clear Channel's radio stations to
offer personalized time-shifted digital radio.
-- Google's acquisition of TV Guide's interactive program guide
allows it to deliver a best-in-class personalized media
application -- video search.
-- A partnership between Microsoft and BellSouth, Verizon, and
SBC to provide an operating platform for IPTV.
-- Disney's acquisition of Electronic Arts. With EA's sports
games, Disney/ESPN becomes the premier sports brand on PCs,
TV, and game consoles.
-- Apple's acquisition of TiVo, providing Apple with a service
platform for TV and video on-demand.
"The Battle For The Digital Home" is available to WholeView 2(TM)
clients and can be found at www.forrester.com.
About Forrester Research
Forrester is an independent technology research company that
provides pragmatic and forward-thinking advice about technology's
impact on business. Business, marketing, and IT professionals
worldwide collaborate with Forrester to align their technology
investments with their business goals. Forrester offers products and
services in four major areas: Research, Data, Consulting, and
Community. Established in 1983, Forrester is headquartered in
Cambridge, Mass. For additional information, visit www.forrester.com.
(C) 2004, Forrester Research, Inc. All rights reserved.
CONTACT: Forrester Research, Inc.
Erica Cantwell, 617-613-5713
ecantwell@forrester.com
SOURCE: Forrester Research, Inc.
