SpectatorBytes

Over the past 10 years, there has been much discussion about who will win the battle for the set-top box in the home. Hardware manufacturers, cable operators and telephone companies have invested billions of dollars in becoming the gateway for consumption of digital goods in the home. The market belief has been that whoever controls that set-top box would have an opportunity to capture new business opportunities (Video on demand, interactive advertising, new channels, digital asset sales – music, video, etc.)

This belief was driven by two assumptions: 1) Television would be at the center of home entertainment, and 2) Set-top box owner would have the ability to control the services offered through that box.
Given where Internet consumption and mobile devices are heading, it seems that both of these assumptions were wrong. Internet consumption is growing at levels that are quickly matching television. Online video consumption is a major force behind that.

In addition, the emergence of the iPhone and other similar phones, which truly deliver a mobile Internet experience, have quickly positioned mobile devices (including laptops) as the ultimate personal set-top box. If you have kids, you probably know that new generations preferred personal, mobile experiences than TV-centric ones.

So, mobile devices (including laptops), not the set-top box, will be at the center of digital entertainment ecosystem. Owners of these devices and other players in the ecosystem will capture significant value as consumption patterns continue to rapidly shift.

Who would have thought that it would be Apple the company best positioned to win the battle for the set-top box? Did you?