Skip Links

Network World

Jim Duffy

Is Cisco's price-point for its wireless multiroom music system too high?

By Cisco Subnet on Wed, 01/07/09 - 3:00am.
Newsletter Signup

Cisco's much-anticipated media push at CES this week is the launch of a wireless multiroom audio system and a digital media network-attached storage device. But the price point of the wireless system may stun some consumers, particularly in the current economic climate.

The products, branded Linksys by Cisco, is a Wireless Home Audio system that can stream audio files stored on PCs, devices and over the Internet throughout different "zones" set up around the house, writes Keith Cool Tools Shaw in his blog. It uses Wireless-N (802.11n) technology to deliver music throughout the home, and supports Internet music services such as Rhapsody, AudioLounge and RadioTime.

The Media Hub NAS device "gathers, organizes and presents all the digital video, photos and music that users have spread amongst various devices in the home," says Cisco. The Hub also automatically searches the user's home network for other media devices, to present all available digital media to the user in a single location, writes Shaw.

You can read the full details about the products at Shaw's blog.

What struck me is the price of the audio setup, which is made up of separate components priced at $450 for a "Director" wireless music player, $300 for a wireless "Player" that lets users extend digital music from existing stereo systems, a $350 touch-screen "Controller" and and $80 iPod docking station. Even if you buy the cheapest and most basic combo package, it will set you back more than 5-bills. However that is about half the price of the cheapest Sonos bundle.

In an interview with Cnet, Ned Hooper, senior vice president of corporate development for Cisco's Consumer Business Group, said the company is aiming the technology at consumer who want to share media around the house. He said the industry has moved beyond connecting two PCs to the same broadband connection. "We're still in the very early days of this market. There are only about 39 million households in the U.S. that are networked or 'connected' out of a total of about 120 million households nationwide. So, total penetration is still low."

If Cisco is aiming this at the 81 million households that have yet to be 'connected,' are the prices still high?

More Cisco at CES09:

Can Cisco compete in the consumer electronics mass-market?

Cisco to introduce home stereo, video gear at CES

Cisco ain't got the skills to make it in the consumer market

More from Cisco Subnet:
* Cisco adds SSLVPN flex licensing to compete with Juniper’s ICE
* Cisco activates crisis management team as global manufacturing hits new low
How to get your network back online, fast
Your 2009 certification goals vs. the economy
* 2009 prediction: He who makes fully encrypted SD and Micro SD cards wins
* Did you pass the CCDE?
* Under the hood: Cisco unified communications
* Cisco News and Review podcast
Go to Cisco Subnet for more Cisco news, blogs, discussion forums, security alerts, training/book giveaways, and more.

Yes

0

The price is way too high. I could buy a PS3 (or probably soon multiple PS3s) for the price and/or use open source free tools.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • You can use BBCode tags in the text.
  • Lines and paragraphs break automatically.
  • Allowed HTML tags: <p> <strong> <i> <br /> <br> <ul> <ol> <li> <dl> <dt> <dd> <blockquote>

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Welcome, visitor. Register Log in
About Cisco Subnet Blog

The Cisco Subnet blog is written by Network World managing editor Jim Duffy and is the official blog of Network World's Cisco Subnet community. The Cisco Subnet site is managed by Online Community Editor Julie Bort. Cisco Subnet is the independent voice of Cisco customers and is your gateway to daily Cisco news, blogs, opinion, books, prize giveaways and more. Visit the Cisco Subnet home page daily and while you are there, subscribe to the Cisco Alert e-mail newsletter, which includes news and views generated by the Cisco Subnet community as well as Cisco-related stories on Network World and elsewhere on the Web.