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In-Stat/MDR Finds Home Media Server Products Offer Threats, Opportunities for Content Developers

Posted on: Wednesday, 15 September 2004, 06:00 CDT

While the current penetration of home media server products is modest, In-Stat/MDR (http://www.instat.com) projects that worldwide unit shipments of media server products will almost double in 2004 to more than 6 million units. The high-tech market research firm notes that this anticipated growth presents content developers, such as movie studios and record companies, with both threats to their existing business models and opportunities to create new revenue-generating businesses.

Media server products are either a PC based on an operating system like Microsoft's Media Center Edition OS, or they are a consumer electronics device, like an advanced set top box, that offers both broadband connectivity and hard disk drive-based storage. Even though media server products are just beginning to show up in a few homes, the content development community is already expressing concerns about their adoption, particularly in terms of how the products might contribute to digital content piracy.

However, according to Mike Paxton, a senior analyst with In-Stat/MDR, media server products also present some new opportunities. "Increasing consumer demand for media server products also offers content developers some interesting new business opportunities. Among these are the chance to establish new 'Pay-per-View/Pay-per-Listen' services, the opportunity to develop 'co-branded' media server products, and the potential to more accurately track what consumers are actually listening to and watching."

In-Stat/MDR has also found that:

-- Products such as high-end digital cable or satellite set top boxes and networked DVD players will provide the majority of media server product unit shipments through 2008.

-- Unit shipments of PC-based media server products are projected to rise rapidly in the 2006 to 2008 period, as consumers begin to demand that their PCs support a richer and more full-featured media experience.

-- Some content developers are already seizing the initiative in the media server market. For example, The Walt Disney Co. is currently partnering with Samsung on a media server product that delivers the company's "MovieBeam" VOD service.

The report, "Media Servers in the Home: Threats & Opportunities for Content Developers" (#IN0401553CM), examines how both media server products are being developed and marketed, and it provides five-year worldwide unit shipment and revenue forecasts for the products. The report also focuses closely on identifying specific threats and opportunities for the content development community (motion picture studios, television studios, and recording companies) arising from the projected growth in consumer demand for media server products. For more information on this report, please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=212 or contact Erin McKeighan; emckeighan@reedbusiness.com or 480-609-4551. The report price is $2,995.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.

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