Connected Blu-ray Players to Supplant Set-top Boxes

New research from The Diffusion Group indicates the market for Web-based set-top devices will represent just 3% of all Web-enabled CE devices purchased over the next five years. CE manufacturers and Hollywood studios will push consumers toward adopting connected Blu-ray players and video game consoles such as the PS3 and the Xbox 360.

The TDG research indicates that Web-based set-top devices such as the Roku media player, Vudu, Popcorn Hour and Boxee Box, among others, will sell around 30 million units by 2014.

Colin Dixon, author of the report, said that, even though console or player buyers initially intend to use them for disc-based entertainment, “they soon will discover that by simply connecting these devices to the Internet, an entirely new world of entertainment is opened.”

Dixon also said that the belief that consumers were eager to network their PC and Internet media with their TV and home entertainment system “failed to materialize.” Consequently, he added, “the digital media player has languished.”

“The digitization of video is happening, but generally at a slower pace than with music,” said Michael Hurlston, Broadcom VP. “The studios have been more careful than the record labels were about protecting content.”

“I don't see Hollywood moving away from packaged media anytime soon,” said Dixon.