Consumer Electronics Not Just About Cool Products Anymore

Forrester: The same consumer technology industry that is selling digital devices at a record rate is failing miserably at selling the additional products, services, and content that bring those devices to life. The result is that consumer technology companies today are leaving $3.8 billion in lost revenue on the table. Stop selling standalone products and start selling digital experiences that integrate products, services, and content in a way that's easy for consumers to buy, install, and use. This strategy has the potential to provide an additional $13 billion in revenue in 2010.

• 80 percent of the 18 million Web-enabled

  mobile phone households don't buy data services. The revenue gap by 2010: $5 billion.

• 50 percent of consumers who own HDTV sets don't subscribe to HD programming. The revenue gap by 2010: $3.4 billion.

• Only one in four consumers who own an MP3 player buys music online. The revenue gap by 2010: $3 billion.

• One in three digital camera owners doesn't print these photographs anywhere. The revenue gap by 2010: $1.6 billion.

Consumer technology sales are broken. Consumers are being forced to assemble the different components of their digital lifestyle themselves, and they're not equipped to do it. Retailers' traditional approach of lining up racks of products at the lowest price isn't cutting it. Digital experiences are too complex, and technology is changing too rapidly.

Today, Apple Computer, with its highly successful and tightly integrated iPod and iTunes, is the only consumer technology company that has perfected the digital experience playbook. And while Apple is unique in being able to control software, hardware, and content, Companies like AT&T, Best Buy, Hewlett-Packard, Tweeter, and mobile retail newcomer IMO beginning to offer other digital experience solutions.

More: Sell Digital Experiences, Not Products, Publ 20060103