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PC meant to be used in a home theater setting

A home theater PC (HTPC) or media center computer is a convergent device that combines some or all the capabilities of a personal computer with a software application that focuses on video, photo, audio playback, and sometimes video recording functionality. Since the mid 2000s, other types of consumer electronics, including game consoles and dedicated media devices, have crossed over to manage video and music content. The term "media center" also refers to specialized application software designed to run on standard personal computers. HTPC and other convergent devices integrate components of a home theater into a unit co located with a home entertainment system. An HTPC system typically has a remote control and the software interface normally has a 10 foot (3 m) user interface design so that it can be comfortably viewed at typical television viewing distances. An HTPC can be purchased pre configured with the required hardware and software needed to add video programming or music to the PC. Enthusiasts can also piece together a system out of discrete components as part of a software based HTPC. Since 2007, digital media players and smart TV software has been incorporated into consumer electronics through software or hardware changes including video game consoles, Blu ray players, networked media players, televisions, and set top boxes. The increased availability of specialized devices, coupled with paid and free digital online content, now offers an alternative to multipurpose (and more costly) personal computers.

The HTPC as a concept is the product of several technology innovations including high powered home computers, digital media, and the shift from standard resolution CRT to high definition monitors, projectors, and large screen televisions. Integrating televisions and personal computers dates back to the late 1980s with tuner cards that could be added to Amiga computers via the Video Toaster. This adaptation would allow a small video window to appear on the screen with broadcast or cable content. Apple Computer also developed the Macintosh TV in late 1993 that included a tuner card built into a Macintosh LC 520 chassis but quickly withdrew from the market with only 10,000 units shipped. In 1996 Gateway 2000 unveiled the Destination computer, which included a tuner card and video card. The unit cost $4,000 and mostly integrated television viewing and computer functions on one color monitor. By 2000, DVD players had become relatively ubiquitous and consumers were seeking ways to improve the picture. The value of using a computer instead of standalone DVD player drove more usage of the PC as a home media device. In particular, the desire for progressive scanning DVD players (480p instead of 480i) with better video fidelity led some consumers to consider their computers instead of very expensive DVD players. As DVD players dropped in price, so did PCs and their related video processing and storage capabilities. In 2000, DVD decryption software using the DeCSS algorithm allowed DVD owners to consolidate their DVD video libraries on hard drives. Innovations such as TiVo and ReplayTV allowed viewers to store and timeshift broadcast content using specially designed computers. ReplayTV for instance ran on a VxWorks platform. Incorporating these capabilities into PCs was well within the ability of a computer hobbyist who was willing to build and program these systems. Key benefits of these DIY projects included lower cost and more features. Advancements in hardware identified another weak link: the absence of media management software to make it easy to display and control the video from a distance. XBMC was another free and open software project started with re purposing the Xbox as a home theater PC but has since been ported to Windows and Macintosh operating systems in various forms including Boxee and Plex. Mainstream commercial software packages included Microsoft's Windows XP Media Center Edition (2002) and Apple's Front Row (2005), bundled with Mac OS X until 10.7. By early 2006, commercial examples of this integration included the Mac mini which had the Apple Remote, 5.1 digital audio, and an updated Front Row interface that would play shared media. Because of these features and the Mini's small form factor, consumers began using the Mini as a Mac based home theater PC. As digital cable and satellite became the norm, HTPC software became more dependent on external decoder boxes, and the subscription costs that came with them. For instance, MythTV is capable of capturing unencrypted HDTV streams, such as those broadcast over the air or on cable using a QAM tuner. However, most U. S. cable and satellite set top boxes provide only encrypted HD streams for "non basic" content, which can be decoded only by OpenCable approved hardware or software. In September 2009, OEM restrictions were officially lifted for cableCARD devices, opening up the possibility of HTPC integration. The advent of fully digital HDTV displays helped to complete the value and ease of use of a HTPC system. Digital projectors, plasma and LCD displays often came pre configured to accept computer video outputs including VGA, DVI and component video. Furthermore, both the computers and the displays could include video scalers to better conform the image to the screen format and resolutions. Likewise, computers also included HDMI ports that carry both audio and video signals to home video displays or AV receivers. The simplified integration of computer and home theater displays has allowed for fully digital content distribution over the internet. For instance, by 2007 Netflix "watch instantly" subscribers could view streaming content using their HTPCs with a browser or with plug ins with applications such as Plex and XBMC. Similar plug ins are also available for Hulu, YouTube, and broadcasters such as NBC, CBS and PBS.

Standard PC units are usually connected to a CRT or LCD display, while HTPCs are designed to be connected to a television. All HTPCs should feature a TV out option, using either an HDMI, DVI, DisplayPort, component video, VGA (for some LCD televisions), S Video, or composite video output.

In recent years, convergence devices for home entertainment including gaming systems, DVRs, Blu Ray players and dedicated devices such as the Roku have also started managing local video, music and streaming internet content. Likewise, some managed video services such as Verizon's FiOS allow users to incorporate their photographs, video, and music from their personal computers to their FiOS set top box including DVRs. Gaming systems such as the Nintendo Wii, Sony PlayStation 3 and the Microsoft Xbox 360 support media management beyond their original gaming orientation. As computing power increases and costs fall, traditional media devices such as televisions have been given network capabilities. So called Smart TVs from Sony, Samsung, and LG (to name a few) have models that allow owners to include some free or subscription media content available on the Internet. The rapid growth in the availability of online content, including music, video and games, has also made it easier for consumers to use these networked devices. YouTube, for instance, is a common plug in available on most networked devices. Netflix has also struck deals with many consumer electronics makers to have their interface available for their streaming subscribers. This symbiotic relationship between Netflix and consumer electronics makers has helped propel Netflix to become the largest subscription video service in the U. S., using up to 20% of U. S. bandwidth at peak times. Other digital media retailers such as Apple, Amazon. com and Blockbuster have purchase and rental options for video and music on demand. Apple in particular has developed a tightly integrated device and content management ecosystem with their iTunes Store, personal computers, iOS devices, and the AppleTV digital media receiver. The most recent version of the AppleTV, at $99, has lost the hard drive included in its predecessor and fully depends either on streaming internet content, or another computer on the home network for media.

The convergence of content, technology, and broadband access allows consumers to stream television shows and movies to their high definition television in competition with traditional service providers (cable TV and satellite television). The research company SNL Kagan expects 12 million households, roughly 10%, to go without cable, satellite or telco video service by 2015 using over the top services. This represents a new trend in the broadcast television industry, as the list of options for watching movies and TV over the Internet grows every day. Research also shows that even as traditional television service providers are trimming their customer base, adding broadband Internet customers. Nearly 76.6 million U. S. households get broadband from leading cable and telephone companies, although only a portion have sufficient speeds to support quality video streaming. Convergent devices for home entertainment will likely play a much larger role in the future of broadcast television, effectively shifting traditional revenue streams while providing consumers with more options.