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Home Control Systems Interest Mass-Market Consumers New Research from The Diffusion Group Finds Strong Interest in Low-Cost Home Automation Solutions (27/6/2005)

According to new research from The Diffusion Group, a leading digital home research consultancy, more than one-half of U.S. Internet households are to varying degrees interested in purchasing a home control system (HCS) to automate the control of home lighting, room temperature and security systems if the price of the solution is less than $200.

Innovations in automation technology, combined with the diffusion of home networks, have helped to bring the cost of home control functionality down to a level where consumers are more likely to be interested in connecting and automating systems in their homes.

The cost to purchase and install home control solutions has historically been prohibitive to mainstream consumers, often costing several thousand dollars for an entry-level package. With recent HCS innovations, however, this is no longer the case," said Dale E. Gilliam III, director of primary research at The Diffusion Group. "The most pressing challenge facing the home control industry today is not one of innovation or technology, but one of pricing: that is, reducing the cost of such systems to a point where a critical mass of consumers will actually purchase the products,"

TDG's research found that although consumer interest in HCS is greatest at prices below $200, higher price levels sustained significant interest. For example, approximately 30% of Internet heads-of-household are to varying degrees interested in purchasing a HCS if priced between $200 and $400, and 20% are to varying degrees if the price is more than $400.

Other important findings of this report include:

* Approximately 7% of U.S. Internet homes are currently automated with HCS solutions;

* HCS intenders (and owners) are quite interested in innovations of media distribution throughout the home - specifically, they are:

* 62% more likely to be comfortable using a PC as the central component to their home entertainment center; and

* Three times as likely to be interested in purchasing a media extender.

TDG's latest report, Consumer Interest in Home Control and Management Solutions, offers an analysis of current HCS penetration among U.S. Internet households, as well as a detailed demographic and technological profile, including ownership, usage, and interests of HCS intenders. The report is part of TDG's ongoing Consumer Snapshot series that profiles specific segments of the emerging digital home and connected consumer marketplace.

www.tdgresearch.com