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Opportunities & Exposures: Technology
The Long View
Michael Tchong
12/01/2004

The rise of HDTV is also spawning the convergence of TV and computers. Consumers are now toying with home theater PCs (HTPCs). When demand increases for these devices, manufacturers will have to fill a growing need for “silent-running” PCs preloaded with a slew of home entertainment software. Samsung has produced a wireless home networking device dubbed the Home Media Center, which allows HDTV to be streamed over the air throughout the home to TV sets in other rooms. When wireless serving is added to HDTV devices, most likely in late 2005, the trend toward the integration of digital devices in the home will gain even greater momentum.

Whether or not all this hardware will actually be able to connect is up to the software companies, which are writing code intended to seamlessly manage these wireless, Internet-driven, remote-controlled consumer devices. The demand for this software will continue to escalate. Advances in the software-powered HDTV user interface will bring us a television that knows its owners’ viewing patterns. Digital TV start-up MyDTV is one company leading the field of this HDTV personalization.

Within a few years, software companies promise we will be able to tell our HTPC to, for example, look out for black-and-white Sherlock Holmes movies and record them, except when they do not feature Basil Rathbone. Video recorder manufacturers, particularly TiVo, are promoting the development of the HTPC. With thousands of channels on the horizon, demand will grow for software that maps the entertainment landscape, so-called interactive program guides such as Gemstar-TV Guide’s iGuide.

Even a once lowly element is experiencing unprecedented demand as HDTV moves into our lives. Indium, a soft, silvery-white metal used for decades in solder, is an important ingredient in the LCD screen that serves as the basis for HDTV. While geologists believe it to be as abundant as silver, mines in Belgium, Canada, China and Japan produce only 400 tons a year. Just two years ago, indium was worth $50 per kilogram; this year spot prices have soared into the $700 range. 

Michael Tchong is founder of Trendscape, a San Francisco-based consulting firm.

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