Timely analyst thought pieces on issues pertaining to digital media, home networks, and consumer electronics.

HP Exiting HDTV Business
Author: Michael Wolf, Research Director, Digital Home
Wed, 5 Nov 2008 13:21:25 EST

Looks like HP is learning the lessons Dell and Gateway learned quite some time ago, that its hard for a PC company to make a business in pure-play living room consumer electronics. What was interesting about HP's business was their focus on next-generation network connected HDTVs, adding Media Center functionality and IP connectivity to all of their devices. I don't think this exit is so much a judgement on the idea of Internet connected HDTVs as it is on the ability of a PC OEM to enter a business that is much different than its core PC business.  PC brands, particularly around high-end systems like an HDTV, haven't been successful at transferring their brands.

HP's MediaSmart TVs have been fairly well reviewed, but that doesn't translate into having consumers buy them. I often advise these types of vendors to start a wholly new brand when they are entering the market, since this allows consumer to develop their own fresh connotations around this new brand, instead of bringing whatever connotations have been associated with brands that may scream "IT" or "PC" rather than "great living room experience".  After all, who would have thought three years ago Vizio would gain a substantial amount of HDTV market share in the US,. while HP, Dell and Gateway would all flounder?

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