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Profit pool among broadband households to approach $90 billion by 2010 as revenues and profits are redistributed among a host of new players.

Dallas, TX (PRWEB via PR Web Direct) April 20, 2005 -- Companies serving US broadband homes are now pocketing more than $50 billion in annual profits, according to new research from The Diffusion Group, a leading digital home and connected consumer research consultancy. "Control Points and Profit Distribution in the Networked Digital Home," TDG's latest report, suggests that this market will approach $90 billion by 2010, driven by rapid improvements in digital home technologies and innovative new service models.

"The digital home revenue and profit pool is comprised of several 'clusters' of products and services, each with its own unique set of control points," said Predrag Filipovic, consulting analyst with TDG and the report's author. "These control points are essentially bottlenecks or value chokepoints in the digital home ecosystem where various entities exercise control over the distribution of revenue and profits generated by four distinct service clusters: voice communications, productivity/data communications, entertainment, and home control and management."

These cluster control points are enabled by a wide variety of devices distributed through a variety of channels. As broadband and home networking diffuse into more US households, ownership of these control points will shift from traditional incumbents to new cross-cluster entities that are looking to leverage new technologies to enter once strictly demarcated market spaces. Filipovic continues: "As ownership of cluster control points shift, so too does the way in which revenue and profits are dispersed."

Additionally, revenue and profit pools will be impacted by the types of home network architectures that become dominant. The three most common network architectures include:
1.    The heterogeneous system (defined by separate ecosystems for each service cluster);
2.    The hub-controlled system (defined by a central gateway or server that controls system functioning and content distribution); and
3.    The fully distributed system (an application-driven architecture that assumes the presence of both server/client and peer-to-peer systems where the hub is a non-controlling or "dumb" device).

TDG's new report on the digital home market space, "Control Points and Profit Distribution in the Networked Digital Home," investigates how new technologies and service models will alter revenue and profit distribution by both cluster and industry segment. The report also offers strategic insights into how different value chain players including CE, PC and service provider companies should position themselves to win out in the battle for control point ownership.

For more information about TDG's new report, "Control Points and Profit Distribution in the Networked Digital Home," visit TDGs website (www.tdgresearch.com). Additionally, those interested can download "The Distribution of Profits in the Networked Digital Home: Owning the Control Points," a free topic paper that presents a new paradigm for understanding the evolving business dimensions of the digital home.

About The Diffusion Group (TDG Research)
The Diffusion Group is a consumer technology research and strategic marketing firm built by a team of seasoned consumer technology analysts. Our mission is simple: to provide timely, actionable intelligence designed to best position new consumer technologies for rapid diffusion. TDG is committed to providing market research and strategic consulting services based on conservative, real-world analysis and market forecasts grounded in consumer research. For more information about The Diffusion Group, visit our website at www.tdgresearch.com.

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Source :  http://www.prweb.com/releases/2005/4/prweb231550.htm