Picture Me Perfect

| January 05, 2006, 09:40 AM

Video is a hot topic at this year's Consumer Electronics show, whether streamed (to cell phones), portable (on media players), downloaded (to PCs) or big screen (on high-definition devices and discs). But I see another emerging video trend and not one getting much attention at CES 2006: Video chat.

Apple's most recent iMac upgrade added integrated WebCam and cool, new application Photo Booth. Other vendors are taking a similar tack, of integrating WebCams into computers; for the record, these vendors are not following Apple. Product decision like integrating WebCams was made long ago.

The iMac is an all-in-one computer, as are notebooks. Sony offers integrated WebCams in its VAIO FJ series laptops. In late December, Alienware released the Sentia m3400 notebook, with integrated 1.3-megapixel WebCam. It wouldn't shock me to soon see Apple offer WebCams integrated into consumer notebooks.

I expect integrated WebCams to be an interesting 2006 trend. In 2005, U.S. broadband adoption reached a critical threshold. More people than ever have fast Internet access. Related, notebook prices are almost in free fall. Manufacturers will look for ways of enhancing midrange models with appealing extras. Time also is right, given, slowly growing consumer interest in VoIP (why just talk for free when you can see) and quickly increasing interest in digital image capture (stills and video).

Next question is what will be the business model? Other than manufacturers' enticing midrange notebook or all-in-one desktop computer sales, I have yet to see much effort by vendors to monetize video. But I've got some good ideas on how they should.