By Paul Gagnon – Director, North American TV Research, DisplaySearch

I just read a CNET blog that announced Belkin was cancelling its wireless 5-port HDMI product, the FlyWire. The device debuted at the 2008 CES and has been struggling towards a market launch ever since. Why? The price started at $1000 and crept up to $1500, which is WAY too high in this marketplace.

Belkin FlyWire

The technology behind the FlyWire was the 5 GHz WHDI system from AMIMON, a presenter at several DisplaySearch conferences. Other wireless HD formats exist, and some are even in-market like SiBEAM’s WirelessHD, which is found in Panasonic’s new 54″ ultra-thin Plasma TV.

But the lesson of this setback is an important one: Any wireless solution will have to be reasonably priced to overcome the cost and limited hassle of connecting wired cables. With HDMI cables costing $20-40 on the low side and in-wall wiring running from $500-$800, the cost is almost the same. Wireless will only be reasonable when its cost falls below concealed wired installation costs. Embedding the wireless capabilities into the components reduces the visible cost, but raises the product cost. Eventually as production quantities rise, costs will fall sharply, but getting past that initial barrier will be the biggest challenge, especially with a non-embedded system like the FlyWire.

Still, wireless connectivity is needed as more devices tie in to our home A/V systems, so keep working on it. It’s a good thing we’re talking about connectivity at our upcoming TV Ecosystem Conference!