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To: J Fieb who wrote (39495)3/26/1999 5:27:00 PM
From: John Rieman  Respond to of 50808
 
Smart Settops, Dumb TVs............................

The integrated TV 'has no future'
Electronics Times

The TV will be reduced to a dumb monitor and attempts to launch integrated digital TVs will flounder badly, says a report* from market researcher Strategy Analytics (SA).

David Mercer, SA's interactive home services director, bases his sceptical analysis on previous performance of integrated TV products and the greater convenience of set-top boxes for technology and service upgrades.

Mercer said: "The strategies of TV manufacturers have reflected their needs rather than the needs of the marketplace. The TV has effectively been a dumb monitor for many years, and the arrival of digital will not change this.

"Examples {of integration} include VCRs, PCs, pay TV decoders and disc players. But these policies have nearly always failed."

SA also argues that service providers will continue to favour set-top boxes because of their need to build audiences quickly without waiting for consumers to change TVs.

* Set-top Boxes and Dumb Monitors. See www.strategyanalytics. com for further information.

Market penetration European and US integrated digital TV and set-top box penetration (%)

Europe US

IDTV STB IDTV STB 1999 neg 8 0.1 16 2000 neg 13 0.3 23 2005 1 49 6 63 Source: Strategy Analytics

(Copyright 1999)