01.13.06

2006: The year of IPTV?

Posted in Investing at 6:16 pm by admin

The way that we watch TV and consume entertainment has changed dramatically from where it used to be only a few years ago. With personal video recorders and downloaded TV shows exploding on the market, consumers have the mindset that they should be able to watch what they want to watch, and they should be able to watch it now.

Video on demand is only starting to reach consumers recently, and primarily through the cable companies. The price of fiber cabling is dropping dramatically, and it is predicted that within 2-3 years the general population will have the option to inexpensively have their home wired with fiber lines. Competition will be fierce between the telephone and cable companies, forcing competitive rates for multiple phone lines, broadband Internet, and video on demand TV all through one fiber channel to the home. Consumers will enjoy a whole new multimedia experience, and be willing to shell out even more than the current average of $200/month on entertainment.

One such company that cought my attention in this growing sector is Harmonic Inc. (HLIT), which is currently a leader in design, manufacture, and sale of digital video systems for transmission of digital video over fiber optic systems and IP networks. If you want to learn more about what they do, check out their website or click here for Yahoo! Financials. I am currently holding a core position in HLIT and am hoping to see some growth in 2006 as VoD really starts to ramp up and enter mainstream.

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