Service takes over in the networked world

The home entertainment industry's attention is now turning to the opportunities for a host of new services delivered through networked devices. Because of digital networks, the boundary between the manufacturing and service industries are being eliminated. No longer will devices sit in the living room, with, at best, one-way contact to the outside world. In fact, consumers may soon think first about what service to subscribe to, rather than what product to buy, as is already the case with cell phones. Among the first such service-oriented devices to emerge were the hard-disk recorders (HDRs), also called personal video recorders (PVRs). These TV peripherals, containing high-capacity hard drives, hook up to a phone line and require a subscription to a service to operate. Other services discussed in the article include downloadable digital audio, digital camera user services, and Japan's i-MODE cell phone service, DVDs and digital radio are also discussed.