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In an endeavor to foray in to the digital media market, Western Digital Corporation (WDC - Analyst Report) has launched WD TV Play, a versatile media player. This player, when connected to a user’s high-definition TV (HDTV), allows playing popular internet channels, along with personal photos, music and movies from different networked channels.

The device, which extends the existing portfolio of media players, offers a new app-based user interface allowing customers to customize their entertainment experience. The gadget is priced at $69.99.

This device is particularly easy to setup and has full remote control featuring pre-programmed buttons, proving one touch access to the media apps. Companies across the globe welcome new technologies and innovative media options at an affordable rate.

Sensing this opportunity, companies like EMC Corporation (EMC - Analyst Report) and Seagate Technology Plc. (STX - Analyst Report) are initiating marketing strategies to capitalize on this line of business. The media player market is expected to grow in the range of 13% to 15% range over the next two years.

Moreover, Western Digital is coming up with a host of hardware and software solutions, which are particularly designed to make storage easier and more readily available. Additionally, we believe that after the acquisition of Viviti Technologies (formerly Hitachi GST) for $3.9 billion in cash and 25 million shares of the company, WDC has strengthened its foothold in the data storage business. Although the brands compete separately, the deal should strengthen the company’s revenue base in the future.

Apart from its association with larger media and personal computer companies, we are also encouraged by Western Digital’s growing exposure in the small and medium business (SMB) space. Recently, the company expanded its SMB product suite. We believe that the company is well positioned to capitalize on the increasing IT spending trend from the SMBs, which bodes well for Western Digital.

Currently, Western Digital has a Zacks Rank #3 (Hold).  Other stocks worth considering are Xyratex Ltd.  , with a Zacks Rank #1 (Strong Buy) and Hutchinson Tech. (HTCH) with a Zacks Rank #2 (Buy).

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