Reinventing Television: make way for broadband content in the living room entertainment center.

According to a new report from The NPD Group, the home theater is fast evolving from a closed system confined to limited programming feeds and store-bought discs to one that exploits broadband access, so consumers can store and play digital entertainment content. NPD’s Connected Home Theater report counsels technology manufacturers that emerging consumer interest, more widespread broadband access, and the opportunity to open a portal for future services all merit the pursuit of new solutions that offer digital content and broadband access within the main home entertainment center.

According to Ross Rubin, director of industry analysis for The NPD Group, “faster Internet access, new content sources, and the evolution of the PC as a multimedia repository promise to change the features and functionality of devices in the home entertainment center. This in turn will lead to new opportunities and challenges for manufacturers, as well as more choices, and possibly greater confusion, for consumers.”

NPD found that 17 percent of consumers overall (and 25 percent of consumers with a home network) were interested in a device that could access PC content from the home entertainment center. Additionally 19 percent of consumers overall (and 24 percent of consumers with a home network) were interested in a product that could access broadband entertainment from their televisions. When looking for new products to help them do so, 44 percent are looking toward consumer-electronics manufacturers for the solution, while 32 percent believe PC companies will have the answer.

“Companies vying for a prominent position in the broadband-enabled living room must embrace a unique combination of great video quality, strong ease of use, and content flexibility, said Rubin. “They must also find ways to differentiate their video offerings from those of cable and satellite services.”

The Connected Home Theater report analyzes consumer awareness and interest in devices that bring digital content to the main entertainment center, such as Apple TV and Windows Media Center Extenders. It also evaluates the potential for devices that can embed broadband entertainment access, such as televisions and videogame consoles.

Methodology: Data for NPD’s Connected Home Theater report was based on a survey sent to a U.S. representative sample of 15,000 U.S. adults. In addition to the survey data collected, device-specific sales data and consumer tracking information was integrated into the final analysis.

For more information at http://www.npd.com