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Demand for online video driving home networks

Over 75% of broadband-enabled households in the US now use home networking technology, according to a new report from The Diffusion Group, which sees a correlation with rising demand for online entertainment services such as Netflix.

The same report also finds that there has been a 26% increase over the past year in the number of broadband households that place their routers in the living room (from 30% in 2010 to 38% in 2011), whilst there has been a 30% drop in the number of broadband households that place their routers in the home office (from 26% to 18%).

“The migration of home network hardware from the home office to the primary living space offers both functional and figurative insight,” said Michael Greeson, Founding Partner and Director of Research at The Diffusion Group. “TDG noted in 2005 that, driven by the incessant desire to optimise their entertainment experiences, consumers would progressively place their network access point adjacent to key net-enabled video entertainment platforms such as game consoles, disc players, and DVRs. In 2012, this is precisely what we observe and most would acknowledge.”

This near-linear relationship “strongly supports” the argument that in-home networks are seen increasingly as a means to connect key living room entertainment platforms to the Internet as opposed to “networking” stationary computers and peripherals, according to the research firm.

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