Vertical integration key to internet/TV convergence, says analyst.
New vertically integrated offerings and business models will kick-start demand for networked video in the home, experts predict.
A recent study by ABI Research noted that initial offerings have been centred on a computing and home networking model, but that vendors are learning that they must provide end-to-end offerings in order to attract consumers.
The Digital Living Network Alliance (DLNA) supports broad communication between networked devices, and even handset manufacturers such as Nokia have shown how a Wi-Fi enabled handset plays a role in the connected living room.
Microsoft, meanwhile, has been busy with its Extender technology for Windows Media Centre.
Extenders can be embedded in any suitable consumer electronics device, in addition to standalone Digital Media Adapter clients, and are featured in products from Linksys, D-Link and HP.
"While Extender defines a specific implementation, the more generic DLNA devices continue to gain widespread industry support," said ABI Research principal analyst Steve Wilson. "But these have less visibility at the consumer level."
However, Wilson believes that video is the "big fish" and that home networked-based approaches are beginning to take a back seat to efforts by companies that directly link internet services with television.
The analyst noted that companies such as Apple, Netflix and TiVo are using their strong brands to provide more vertically integrated offerings.