Driving the Digital Den By Jon Iverson August 2, 2004 — The advent of ubiquitous online digital audio file availability, not to mention a growing number of ways to effectively use a computer to organize and store a media library, has prompted futurists to begin declaring this the eve of the "digital den" era.

While we must recognize that few high-end audio companies will take part in or drive the initial phases of this predicted transition to a hard-drive–centric media life, there have been exceptions: notably products from Linn, Sutherland, and others.

But what of the major consumer electronics brands that we've come to know and love (okay, some of you know and loath them)? According to a recent survey conducted by Ipsos-Insight, the landscape may be changing. Radically.

Ipsos' Todd Board explains, "New media hub products will change the way people experience music and digital entertainment content in their homes. As more consumers migrate to broadband and pay for digital content, they will seek known brands to help them integrate digital content with their home-entertainment systems. At the same time, our data seem to suggest that, now more than ever, companies that have reigned as top performers in certain product or service sectors are at risk of competition from cross-over industries, like Apple in the digital music category."

According to the study, consumers associate Microsoft (54%) and Sony (52%) as key players in delivering the "Digital Den experience." When asked their preferred brand for a "home media hub", Sony (21%) emerges as number one, followed by Dell (15%), Microsoft (13%), and HP (9%).

Board notes, "What's interesting is that once you get past the Sony and Microsoft halos, it's the PC companies like Dell and HP that consumers will look to for media hub products and services, more so than well-entrenched electronics companies like Panasonic and Samsung. Pipeline companies, like the telcos, cable companies, and Internet companies, are not far behind as the preference for 9% of consumers.

"Sony maintains a positive brand image among US consumers, With a solid product offering and the right marketing strategy, Sony has the potential to lead the emerging digital den marketplace, but not without competition and, at least as importantly, not without some collaboration with others who want to play in this space.

"While the digital den has yet to take final shape, the diversity of brands considered by consumers leads us to believe that they seem to see a media-hub–type product that follows the model of a Internet-enabled PC, where you buy the equipment from one brand and then sign up for the service with another brand.

"The tech landscape is littered with the failed promises of the 'next big thing' about to happen. While acknowledging that, we do see a critical mass of market interest in the digital den model. It's helped by Apple's iMac, by overall consumer staying power post-recession, and—perhaps most importantly—by a renewed tech sector focus on what consumers want to buy, as opposed to what engineers want to make."