In the U.S. market, the percentage of broadband households owning and connecting at least one product besides PCs to the Internet has increased 45 percent between 2010 and 2011. Today, approximately 40 percent of all U.S. broadband households own at least one Internet-connected device, with game consoles accounting for 75 percent of these products.

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“The connected home” is a term used frequently but often defined ambiguously. Consumer electronics manufacturers, the PC industry, pay-television service providers and broadband providers are driving the development of the connected home, for obvious reasons, as the interplay of these elements expands the businesses for all these players.

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Blockbuster and Samsung recently announced that Blockbuster OnDemand will be available on select connected HDTVs, Blu-ray players, and home theater systems starting in the fall of 2009. Samsung will offer connected Blu-ray players and home theater systems with both the Netflix and Blockbuster online services.

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Two different types of media uses are propelling the vision for a connected consumer electronics home. These two concepts — media server and cloud media — increase the value of television as well as other devices by increasing the ability to discover, aggregate, access and display different types of media. They are two very different scenarios, differentiated mainly by where the content ultimately resides.

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Broadband penetration has increased — over the past three years, the UK, Italy, Spain, Germany and France have added roughly 50 million new broadband households — and brought social media usage up along with it. Currently, almost 40 percent of broadband households in those countries use a social networking site at least monthly.

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