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Music Will Extend Home Networks Beyond The PC, Reports Jupiter Research
Latest Jupiter Home Networking research to be presented at 7th annual Plug.In Forum July 8-9 in New York City NEW YORK, June 19, 2002 - Jupiter Media Metrix (NASDAQ: JMXI), the leader in Internet and new technology analysis, today reports that although the ability to share Internet access across several PCs will dominate the home networking market in the near term, music will emerge as the surprise killer application. According to an upcoming Jupiter Research Home Networking Report that will be presented at the Plug.In Forum July 8-9 in New York, one-third of broadband users are interested in installing a home network to listen to PC music files on a home stereo. The second most popular application for home networks is "home automation," (32 percent of broadband consumers) or the ability to control lights and even a thermostat through a PC. Jupiter defines home networking as a technology used to connect multiple standalone devices to one another for the purpose of exchanging data at broadband speeds across one or more rooms of a home, and for sharing a connection to the Internet or other digital data services. "Sharing broadband connections between multiple PCs will drive early adoption of home networks, but music will take it mainstream," said Joe Laszlo, senior analyst with Jupiter Research. "Jupiter's latest research reveals an unexpected degree of consumer interest in delivering PC-based music to a stereo. The music industry must get involved now and work to shape consumer expectations and design devices that will make music fans and content owners happy." Two Networks Will Surface While Jupiter analysts see two discreet home networks emerging - one PC-based and utilitarian, and the other media-centric and focused on the TV-set-top box - nearly one-third (29 percent), or 23 million, U.S. online households will have a PC-based home network by 2006 - up from approximately six million in 2001. Jupiter analysts advise equipment manufacturers and broadband ISPs to plan strategies around two home networks, addressing the needs of consumers who will adopt networking technologies on a piecemeal basis as their needs require. "Home networking technologies have proliferated and are hitting increasingly consumer-friendly price points. However, consumers will adopt home networking technologies as their needs require, and as applications justify them, with PC-based networks leading the charge. Vendors that provide online content and applications should start to evaluate the opportunities created by extended connectivity in the home," Laszlo said. Multiple PCs Prevail in Broadband Households While a majority (58 percent or approximately six million) of U.S. broadband households have more than one PC in active use, nearly one-third (28 percent or three million) already have some kind of home network. Moreover, a remarkable one in four broadband households has three or more PCs in use, according to a December 2001 Jupiter Consumer Survey. Given these findings, Jupiter analysts believe there is a robust potential base of homes that might be interested in home networking. In contrast, dial-up households will not be strong home network candidates, as a mere five percent had some kind of network at the end of 2001. Better Consumer Education Will Jump-Start Sales Jupiter analysts believe there are four key impediments that stand between consumers and the desire to install a PC-based home network: high cost, complexity of network set-up and maintenance, complexity of technology choices (wired, wireless) and uncertainty about sources of information and distribution channels. Therefore, for the next 18 months while networking technologies are relatively new to consumers, Jupiter advises home network players to: **Educate consumers by responding to key concerns of cost and complexity. **Focus on concrete, PC-centric networking functionality to define a clear value proposition for consumers. **Sell networked applications (i.e., firewalls, home security, music sharing, or gaming), not networking technology because applications matter far more than technology for mainstream consumers. Companies interested in purchasing the upcoming Jupiter Research Report - entitled "Home Networking: Seizing Near-Term Opportunities to Extend Connectivity to Every Room"- can call toll-free at 1-877-464-6627 or visit www.jmm.com.
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