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DATAQUEST: “A THIRD OF U.S. HOMES WILL HAVE PC IN
1996”
There has been much made of the impending debut
of the set top box that will provide users access to movies on demand,
video games, and other content on digital video disk, as well as Internet
access. Market research firm International Data Corp. says much of this
has been marketing hyperbole, but there is a market brewing for low-cost
Internet access devices.
By the year 2000, the Framingham, Mass. researcher predicts there will
be five categories of this product (see chart for a breakdown of market
share for each):
• PCs: General purpose PCs with Internet access
• Internet PCs: Low-priced PCs (diskless or disk-limited) optimized
for Internet access
• Internet terminals: products designed by today’s terminal
vendors for Internet access
• Set-top boxes: TV signal decoders that work with (likely) wireless
remotes to access the Web through the cable TV plant
• DICE (digital interactive consumer electronic) machines: video
games, digital video disk players, CD-I players, etc.
Several emerging trends promise to spur development in this market.
One trend is the increasing availability of low-cost silicon to build
set top units. Another is the increasing availability of connectivity
to tie the box to appealing content.
However, the real question is what will the consumer buy to perform
the function. Will it be a video game that provides internet connectivity
and decompression hardware to play digital video disks? Will it be a
dedicated set top box that provides cable, direct broadcast satellite,
and Internet connectivity.
This month Apple Computer Inc. of Cupertino, Calif. and Bandai, Ltd.
of Tokyo will debut the long awaited Pippin game box. The two are aiming
the solution squarely at this emerging market (see story on page 2 for
more).
However, some personal computer manufacturers believe a dedicated PC
is the only solution with the computing power and storage capacity to
enable all the function promised. This group points to the large infrastructure
of manufacturers investing in making the PC platform the lowest price
performance solution on the market. The target price for this solution
is $1,200 with CD ROM modem, and direct TV drive.
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| WORLDWIDE UNIT
SHIPMENTS OF INTERNET DEVICES, YEAR 2000 |
| PCs (general purpose) |
76.4% |
| Internet PCs |
2.6% |
| Internet Terminals |
3.2% |
| Set Top Boxes |
6.0% |
| DICE |
11.8% |
| Source: International Data Corp. |
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