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Luggable Media and Sneakernet to Lead the Way for Home Media Networks Reports In-Stat (27/4/2006)

Although there has been much hype about multimedia home networks, low-cost portable storage devices that can move content throughout the home via sneakernet may win the favor of consumers because luggable media provides low-cost, high availability, and convenience, reports In-Stat (http://www.in-stat.com). A variety of popular, low-cost interfaces such as Secure Digital(tm), Memory Stick(R), Universal Serial Bus (USB), and MicroDisk, can serve as luggable media. According to the high-tech market research firm, the worldwide retail value of luggable media is forecast to rise from about US$ 441 million during 2006 to more than US$ 25 Billion during 2010.

"There will be opportunities for movie studios and other professional content companies to get extra revenues by licensing portable versions of their content, as well as by cross-promoting their content," says Gerry Kaufhold, In-Stat analyst. "The portable versions can be used to drive consumers to the packaged goods versions such as DVDs. We expect to see luggable media solutions being tested this year and next, and then hitting the big time during 2008."

Recent research by In-Stat found the following:

-- Luggable media solutions can transfer very large movie files in less than half a minute, they fit in a shirt pocket, and they use no power until plugged in.

-- The luggable media approach puts the "smarts" inside the memory device, including copy protection, digital rights management, encryption, and even conditional access.

-- By 2008, luggable media will begin being popular for making consumers' electronic content portable because storage capacities will top 8 Gigabytes per device.

-- Online service providers will permit download to own options, permitting consumers to download content and quickly transfer it to luggable media devices.

-- Portomedia's retail video kiosk approach provides an excellent example.

The research, "Luggable Media: Sneaker net Can Provide A Stepping Stone To Download, Synch, & Go" (#IN0602971CM), covers the worldwide market for portable media including Secure Digital(SD(TM)), Memory Stick(R), Universal Serial Bus (USB), and MicroDisk. It includes forecasts for annual shipments and sales by device and by region. It also contains analysis of various sneakernet approaches and of the technologies available.

This research is part of In-Stat's Consumer Media and Content service, which focuses first on the changing digital content models, and then how this will influence the evolution of equipment, standards, technologies, services and consumer usage models. The service addresses the acquisition, distribution, and use of digital content (audio, imaging, video, and voice) and how it fits into the consumer's digital entertainment lifestyle. The service explains the opportunities for equipment makers and service providers within the emerging digital home.

www.instat.com