Web video benefits network, computer companies
Cisco, HP, Sony to win as PCs go to the living room
By Danny King -- Video Business, 7/22/2008
JULY 22 | Cisco, Hewlett-Packard, Microsoft and Apple are among the companies most likely to benefit within the next few years as more U.S. consumers use the Internet to watch movies and TV shows, while TV makers such as Sony will eventually gain business as wireless devices allow direct TV connections to the Internet.
Networking, software and computer companies will pull business from multichannel service operators such as cable and satellite companies as customers turn to online video providers like Hulu and Veoh for their entertainment, ABI Research said in a report this month. More so-called “all-in-one” personal computers will be placed in people’s living rooms instead of offices, ABI said.
Computer makers have a few years to capitalize on the growth in Internet content-watching by making such “all-in-one” devices until TV-makers begin integrating Web-connecting components into their sets, according to Steven Wilson, principal analyst at ABI.
“Use of TVs connecting directly to the Internet will grow faster eventually, but it’s really very early in the market today,” said Wilson. “The PC to TV connection today is made by these Digital Media Adapters, PCs directly, game consoles or some similar type of box. However, these really only are picked up by a small part of the consumer marketplace and haven’t been able to penetrate much beyond that.”
Already, companies such as Panasonic are building TVs with Ethernet ports that can connect directly to a handful of Web sites. And last week, Amazon.com said it struck a deal with Sony in which owners of its Bravia liquid-crystal display TVs can buy a component allowing them to stream any of the retail giant’s 40,000 video titles.
“Network companies that can respond—like Cisco, Microsoft, Sony, Apple—are all fighting for a place in the living room,” said Wilson. “Broadband distributors will compete with traditional distributors—DVD rentals, telco, cable and satellite operators.”
