• by Ross Fadner , January 7, 2005

In the world of digital media, the notion of "convergence" has proven elusive. But at this year's Consumer Electronics Show in Las Vegas, Gary Shapiro, president and CEO of the Consumer Electronics Association, declared that in 2005, "Convergence is now real."

At the show, Shapiro, Microsoft Chair Bill Gates, and Intel CEO Craig Barrett demonstrated how consumers will soon be able to move content seamlessly from one media device to another. The key components linking these devices will be wireless network technology and a common operating system such as Microsoft's Windows Media Center.

Intel's Barrett walked the audience at CES through a demonstration of what he calls the "Entertainment PC," which acts as the central media hub in the digital home, allowing consumers to store, create, and distribute content throughout the home network. Barrett said this kind of functionality is less than 12 months away from being a reality.

The "Entertainment PC" could be the set top box on a high-definition television, for example, that allows users to store movies, music, photos, or home videos. It also has personal video recorder functionality, letting users record and store movies and programming for later use, as well as real-time messaging. For example, users can instantly access their home security system when they hear the doorbell ring.

All wireless-enabled devices, from video game consoles to cell phones to digital cameras, will be able to communicate with the "Entertainment PC," so if a consumer on a business trip wanted to record a favorite program but forgot to set it before leaving home, the consumer would be able to do so via cell phone. Or if a user was playing a game, and was outbid for an item he wanted on eBay, an alert message would appear, asking if the user wanted to raise the bid.

Ease of use is key to making these functions work together, said Barrett. He added that there should be no more than one remote control--if that. One networked computer he showcased worked via motion sensor technology, allowing the demonstrator to use his hands to scroll and point to the various options.

The Consumer Electronics Association's Shapiro acknowledged that all this consumer control is threatening to "less agile industries," most notably the cable and broadcast sectors, which depend on advertising revenue. "It is a fact that our industry introduces new technologies that threaten existing business models," he said, singling out personal video recorders and on-demand functionality, voice over Internet protocol, and peer-to-peer file sharing networks in particular as disruptive new innovations for established industries.

In fact, a major focal point at this year's CES is to ensure that a pivotal U.S. Supreme Court decision from 1984 is not overturned. The case legitimized selling VCRs, even though consumers could use them to make illegal copies. To that end, the Home Recording Rights Association has set up a booth to collect signatures from CES' 120,000 industry participants to help defend the principles of the groundbreaking law.