Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Consumer Electronics Industry Evolving into Service-Driven Model
Jan 6, 2005
 Printable format
 Email this Article
 Search

The consumer electronics (CE) market is transforming into an industry driven by the provision of services, according to a recent report from ABI.

The research firm says that two models have historically dominated the personal enjoyment of audiovisual media. Both models required the consumer to buy a piece of equipment that would reproduce content in a form that could be heard, seen, or both, it said.

On the broadcast side, consumers simply bought a radio or a TV, and services were free (excluding the UK, with its annual TV license supporting the BBC). For about a decade, this was a widely-accepted model, ABI says. Cable TV was something completely new, offering premium content for increasingly higher subscription fees.

On the other side were "packaged media." Consumers could buy a cassette player, a CD player, or DVD player, but they were useless until the user invested in the tapes or discs that held the content.

Today, according to Vamsi Sistla, ABI Research's director of residential entertainment technologies, the marketplace is witnessing a profound change, as widespread connectivity means that previously "packaged" content is increasingly delivered on a subscription or service basis. Now, says Sistla, even portable entertainment such as MP3 player downloads is turning into a service-driven business.

"We're not saying that packaged media are going to die out completely," notes Sistla, "but this is the way the industry is shaping up. And the larger message is that the CE industry must work more closely with the service-provider industry. They are both vying for the consumer's dollar, but they will both lose out if issues of standardization and obsolescence are not dealt with more quickly than they have been in the past."

Back to Daily News

 

Daily News

...........................................................

Dec 19, 2014: Whirlpool Corp. provides guidance for 2015

Dec 19, 2014: Panasonic to showcase built-in appliances at LivingKitchen 2015

Dec 19, 2014: New residential construction in November 2014

Dec 19, 2014: 2014 U.S. steel production up 0.7% from 2013

Dec 19, 2014: Strong North American PCB Order Growth in October

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: Appliance Magazine Market Insight Annual Subscriptions
November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows