This is Not Your Father’s Television

For the past three years, the living room has been the center of the digital gold rush. Consumers have fueled the rush as they upgraded to large-screen TVs, audio systems that promise Dolby “surround sound,” and DVD players that deliver super-crisp images.

The living room, in fact, contains many of the highest-margin consumer electronics products. Cable, satellite, and content providers have responded with video-on-demand services. PC makers have responded with a new generation of “entertainment-center PCs” in an effort to boost.....

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