Implications for the Consumer Electronics Vendors

The expected explosion in the networked audio segment would have implications to the three major stakeholders of the eco system. We looked at the implications for the music industry and the broadcasters. In this post we will focus on the possible implications for the consumer electronics (CE) vendors.

CE vendors play a crucial role in bringing the music to the home. The growth of networked audio is directly dependent on the the no.of devices available in the market, its price point and ease of use. The vendors themselves will have to overcome the following challenges:

• Networked audio products would need strong sales support and consumer education to raise consumer's interest.
• Ease of use, high quality UI and robust wireless operation will be necessary to move the market from niche to high volume.
  
• Consumers expect to have more convenience and immediacy (no need to boot up a PC for example), therefore the existing wireless handheld devices should act as internet tuners.
• Consumers tend to already have devices that can access internet (Smartphones, PMPs and ofcourse PCs) and would be sensitive to price for adding another device/feature especially at a time when the world is recovering from the downturn.
• Whole Home Audio (WHA), is unlikely to appeal to the mass and may be a overkill. 
• Networking should add value to the existing products (internet radio, AVRs, speaker docs etc.,). This would ensure faster convergence so that more and more products will offer both docking and networked connectivity.
  

Thank you very much,


RamP!
ramp.ramp@gmail.com