Vertically integrated solutions key to Internet-Television convergence, according to report

January 25, 2008 – Vertically integrated solutions and business models will prove key to the successful convergence of networked video from the Internet and living room TVs, according to a new report from ABI Research.

The report, entitled “Digital Video Adapters in the Living Room”, adds that so far initial product offerings have been centred on a computing and home networking model, but vendors are starting to learn that they need to provide end-to-end solutions in order to attract new consumers.

“While Extender [for Windows Media Center] defines a specific implementation, the more generic DLNA [Digital Living Network Alliance] devices continue to gain widespread industry support,” said Steve Wilson, Principal Analyst for ABI Research.  “Today, however, these have less visibility at the consumer level.”

The research firm goes on to say that it believes home networked-based approaches are “beginning to take a back seat” to efforts being made by companies that directly link Internet services with television, adding that companies such as Apple, Netflix and TiVo are leveraging their strong brands and providing more vertically integrated solutions.