Robi Ganguly’s Big Ideas

The Economist, as usual, does a great job of bringing us back to reality in its article on "The Digital Home" . Sure, it sounds great to be able to have everything networked and seamless in your home (and everywhere, really) and I have no doubt that it’ll eventually become a reality, but I think that there are a lot of people who believe that it’s going to happen sooner than it really will.

They make several points more eloquently than I could:

1. The average consumer doesn’t care about this as much as those of us in the tech/media world believes. I liked the way that a consultant quoted in the article thinks about it, "…adoption is a
   function of the users’ sense of crisis (ie, motivation to change)
        outweighing their perceived pain of switching…".
2. The companies playing in the space tend to think like they’re selling a solution to the customer, rather than the way customers actually buy – piecemeal.
   1. I buy a DVD player and later an Xbox and then maybe later, an MP3 player. I don’t buy them  all at once or even planned as components that have to work together, they should just work together automatically. The caveat, I think, to this method of purchasing is that if any company benefits from it, it’s Microsoft. IF I do care about buying along a set of standards, might as well make sure it works with my computer, which has a 95% chance of being MS based.
3. Vendors are refusing to make their systems interoperable. Some are talking a good game about how they want to, but so far, they’ve inevitably chosen to be proprietary about some part of the solution that they offer. They view it as a necessary part of their strategy, but their strategy backfires, b/c it F’s the consumer and makes it altogether too complex to execute a "digital home".

Despite being a good discussion of some of the challenges facing this broad dream, the Economist does slip up on a couple things:

• As I understand it, Windows Media Center Edition is really taking off of late, to as much as 43% of retail computer sales
• Apple has a control problem. HP might distribute iTunes on their computers but their agreement to make an HP iPod fizzled out quickly. Competing with partners on hardware has to date, been a limiting factor in Apple’s growth
• They don’t explore the possibility that interoperability could expand the bottom lines of the involved players. If a likely scenario is that one winner dominates and owns the market, wouldn’t most companies be better off cooperating and getting a piece of the potential pie, rather than none at all?

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