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A LAN is a Local Area Network, it usually a physical network, either made up of wires (cat5/fiber optics/rg6) or wireless (802.11a/b/g/n - WEP/WPA/WPA2) devices. Basically it is the actual network between all the devices.

DLNA is a protocol that runs over that network (a specific set of instructions or a language that allows the devices to talk to each other). In this case, it allows a media server to talk to media clients. This is most useful for allowing devices like your PS3/XBOX/DVR etc to stream movies from a computer or "server" somewhere else in the house. Programs that allow this include Serviio and TVersity.

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Q: What is the difference between LAN and DLNA?
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