Potential of the 'Digital Den'

Nearly two out of three US consumers (64%) say they are not familiar with products that would easily connect their home entertainment systems to the Internet to share music, movies, games, and other digital content, according to Ipsos-Insight. However, 72% say they are interested in such a product and most of these (64%) would be ready to purchase within 12 months at a reasonable price.

This suggests an immediate potential for such products, commonly referred to as 'Digital Dens' but also known as media hubs, wired-Ethernet media players, and wireless digital media players. However, most consumers are concerned about the time and knowledge required to set up such a system, as well as compatibility issues with equipment they already own.

The majority of those interested say they would spend around $50 to $200 to connect their home entertainment systems, which is roughly what they would pay for a DVD player or video game console.

Some products connect stereos with Internet music files, other products link TVs to Internet movie files, and a few do both. Product names include Fireball, Soundblaster, Macsense HomePod and Turtle Beach AudioTron At-100, among others, and survey findings suggest that the lack of big consumer and technology brands behind such products creates uncertainty in the minds of consumers.

Todd Board, Senior Vice President and head of Ipsos-Insight's Technology & Communications practice, says that in the early adoption phase low familiarity and confusion are not surprising. 'With so many brands and product variations, there is a risk that 'translation clutter' is confusing potential customers as to what the products actually do. Not so different from the confusion consumers are encountering with the introduction of things like VoIP, or telephone service via the Internet'.

'Consumers are confused about the equipment, functionality and compatibility of Digital Den products', Board continues. 'When consumers aren't sure how a new technology approach will work, and aren't totally comfortable that it will work, they look to trusted brands as a proxy, a 'guarantor' of product performance'.

Most consumers are worried that they will have to upgrade all of their current electronic devices or change brands in order to plug into a new Digital Den platform. Many are concerned products will be too complicated to set up, while others worry the system may be too complicated to use and that certain types of content would be prevented or protected from sharing between devices.

'Firms looking to enter the Digital Den space need to start with the basics' says Todd Board. 'That is, raise awareness levels, improve consumer understanding and performance trust, and then get consumers excited about the features and benefits of creating a Digital Den'.

1,054 US citizens aged 18+ were interviewed using the Ipsos U.S. Online Express between June 9 and 14, 2004. The company's web site is at www.ipsos-insight.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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