Personal computers are evolving into entertainment centers for the home. I'm Fred Fishkin with Bloomberg Bootcamp. Just about all of the big PC makers see the trend coming and are coming out with products... focusing on digital music and movies. At Compaq... a new line of MyMovieSTUDIO Presario 7000 computers comes equipped with software for editing digital movies... .and hardware to let users create their own DVDs. Compaq's Mei Chan...

"DVD-R technology allows you to record on a DVD disc and share the content with your friends and family on a DVD set top player and DVD ROM drives in a PC."

The bundle, including a high end Pentium 4 system with the DVD-R drive and a monitor will sell for about 24 hundred dollars starting next month. When it comes to music, Compaq is planning to introduce what it calls the iPAQ Music Center... .

"It has a 20 gig hard drive, a CD ROM in it and this connects to your TV and your receiver to bring digital music, home entertainment actually, to your living room."

Product manager Nita Miller. The iPAQ Music Center can digitally store about 400 CDs... and can also play Internet radio broadcasts from around the world. Using a home phoneline network, the music can be shared throughout the house... or downloaded to an iPAQ handheld music player. The Music Center should be available for under a thousand dollars this spring. Bootcamp, I'm Fred Fishkin, Bloomberg Radio.