Services are helping IT vendors gain ground against consumer electronics (CE) players in the home entertainment market, according to an IDC report.

While CE vendors tend to offer standalone products, IT vendors and broadband service providers (BSPs) have the ability to bundle products with services.

Consumer digital market analyst Sophie Lo said this approach also presented opportunities for the IT channel to increase revenues.

"The digital home market is driven by consumer appetite for home entertainment," she said. "They tend to value control, choices, customisation, content and convenience.

"There is an opportunity for the IT channel to provide consumers with one-stop-shop technical support and customise converged home solutions."

The report - Australian Digital Home Convergence: One Box To Rule All - indicated that TV, mobile and internet were all providing a gateway for IT service providers to get hooked into the home entertainment market.

Lo denied that IT vendors would eventually overrun CE vendors but said the market would continue to become more complex as vendors with different backgrounds fought for market dominance.

In particular, BSPs would gain more traction in digital home development this year by offering Internet Protocol Television (IPTV) and home gateway services, she said.