Consumer Interest In Home Networking Capabilities On The Rise

CEA Research Finds Entertainment And Information Features Gaining Popularity Among Consumers

14-May-01

According to the results of a Consumer Electronics Association (CEA) survey, entertainment features of home networks, such as distributed video and Internet audio, have grown nearly as popular with consumers as the safety and efficiency applications that have sustained the industry. Home networks facilitate communication among the appliances, home systems, entertainment products, and information devices in a home so they can work cooperatively and share information. The proliferation of digital products and content has created many new applications for home networks. CEA's online survey of 1,100 adults ages 18-65 was conducted during March 2001 to gauge consumers' awareness, attitudes, and opinions toward the emerging applications of home networks. The survey found that 53 percent of participants were somewhat to very interested in having the ability to listen to a single source of music from any room in the house. Fifty-eight percent expressed interest in watching a central video source - such as a DVD player in the living room - on televisions in other parts of the house, and 36 percent were interested in video conferencing using televisions or computer monitors within the home. There also was significant interest in applications that linked different types of products and systems in homes. Forty-six percent indicated they would like the volume of their stereos or televisions to be lowered automatically when the phone rang, and 49 percent wanted the caller's name and number to appear on their television screens. A home computer network that provided simultaneous Internet access to multiple computers attracted interest from 42 percent of respondents, while 41 percent would like to use their stereos to listen to music from the Internet. While there is significant interest in the entertainment and information features home networks provide, the safety, convenience, and energy efficiency functions remain most appealing to consumers, according to the survey. The most popular options were a lighting system with a vacation setting to turn lights on and off, giving the house a ""lived-in"" appearance while out of town (61 percent) and a system that automatically sets back a home's water heater and thermostat to save energy (65 percent). Sixty-five percent also wanted separate thermostat controls for each room in the house to make it comfortable everywhere and save energy. ""Consumer demand for the features of home networks is high, especially among Internet users,"" said Dave Hill, Vice President of Business Development for Panja Inc. and Chairman of CEA's Home Networking and Information Technology (HNIT) division. ""But making consumers aware that the features they want are already for sale remains a hurdle for the industry.""Approximately one-third of the survey participants indicated that they had seen or heard something about home networks during the previous 12 months. Out of those, the majority (62 percent) received their information from television and from newspapers or magazines (43 percent). Relatively few received their information from a source that was likely to sell home networking products. Thirty-six percent found information on the Internet and only three percent had seen anything in a retail store. Furthermore, 22 percent said they would not know whom to call for installation of a home network.""CEA's HNIT division has undertaken several initiatives to help consumers learn about and purchase the home networking products that provide the functions they clearly want,"" said Gary Shapiro, President and CEO of CEA. ""Through ongoing research, industry relations and consumer outreach, we hope to widen the path from the consumer to the products that can enhance their lives.""The complete study is available free to CEA member companies. Non-members may purchase the study for $499 by visiting www.eBrain.org, or sending an e-mail to info@ebrain.org.

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