Sales of In-Vehicle Electronics Will Grow to $12.8 Billion, Predicts CEA

Sales of in-vehicle consumer electronics (CE) will grow at a rate of 13 percent in 2008 to more than $12.8 billion, according to a study released today by the Consumer Electronics Association (CEA)®. The study, Automotive Electronics—What Consumers Have and What They Desire, reports that the typical American spends nearly 17 hours a week in his vehicle. As a result, CEA finds that 38 percent of the driving age population intends to purchase and install an in-vehicle CE product over the next year. At the top of the list are remote vehicle starters (15 percent), in-dash navigation systems (13 percent) and car alarms (12 percent). There are also strong purchase intentions for technologies like satellite radio, HD radio and DVD players.

“Given the amount of time that consumers are spending in their cars, it’s not surprising that they’re choosing to outfit their vehicles with the latest in-vehicle information and entertainment technology,” said Steve Koenig, CEA’s senior manager of industry analysis. “These are the products that make being on the road safer and more enjoyable.”

Based on results from this study, consumers are actually more likely to spend money on CE products that are not permanently installed in vehicles than on permanently installed CE products. Clearly, this signals consumer desire for flexibility and multi-location use when it comes to buying CE products.

“Consumers want to the flexibility to take their CE devices in and out of the car,” notes Koenig. “They also want to be able to switch out devices easily as technology shifts and advances. Cars that include solutions that make it easy to connect and power portable CE devices will do well with consumers.”

SOURCE: BUSINESS WIRE

Some buyers surprised by extras needed for HDTV

Fittingly, high-definition tele­vision sets seem to be one of the clear choices this Christmas, but some buyers are finding out it takes more than just a new TV to get that perfect picture.

Retailers are surprised by the number of customers who don't know that not just a new TV, but usually a digital service and a con­verter from the service provider are required to get viewers the HD channels and pictures they want.

The good news is that while there may be additional charges that some buyers don't know about, these may be more than compensated for as prices of the TVs themselves continue to drop.

Prices on the top-end sets have dropped dramatically since last year, making the once-luxury units available to more house­holds. Jeff Samuels, a spokesman for Panasonic, said a popular 42-inch model has a suggested price of $1,400 this year, compared to $2,700 a year ago.

Samuels pointed out that retail­ers set their own prices and can discount models on their own.

HDTVs were popular items for retailers' limited-time sales on the day after Thanksgiving, and retail­ers such as Wal-Mart say the dis­counts will continue.

Retailers say sales are up, and cable providers say subscriptions to the service are increasing. But both said they have been surprised by the number of customers who don't know what is required to get reception.

Lynne Coker, a spokeswoman for Charter Communications, said December is a big month for new high-definition customers.

"It was a trend last year," she said. "It was a huge December for us last year, and we think it will be big again."

But the cable provider has re­ceived complaints from some cus­tomers with HD sets who are dis­mayed to find their picture is no better than what they had before.

"People hear about this," she said. "They think when they get home and plug it in, they will have high-definition TV.

"It is a service high-def TVs are capable of showing, but you have to subscribe."

The HDTV receiver rents for about $7, and the service itself adds less than $5 to the monthly bill, depending on service level. In­stallation is extra, but a self-in­stallation kit is available for about $15 from providers.

People who don't buy HDTVs don't have to worry about losing reception as more providers go to the high-definition signal.

Samuels said there is a differ­ence between digital and HDTV.

"All digital is not HDTV, but all HDTV is digital," he said. Once a signal goes all digital, all sets will require a converter if they are not digital-ready, but the set will con­tinue to work.

At least some retailers figured out the problem and started warn­ing customers. Alabama Power, which operates some appliance and electronic sales centers, now advises every customer of what is required to get the service, accord­ing to spokeswoman Jan Ellis.

"When we sell a TV, we explain to the customer that they can't just go home and plug the TV into the wall and get HDTV reception," she said.

She said about half of custom­ers at Alabama Power stores are unaware of the processes before it is explained to them.

Alabama Power only sells TVs that are high-definition now, Ellis said.

Michael Cohen, who manages the electronics department at Co­hen's on the East Boulevard, said his customers are a little more sav­vy and generally understand the process.

He said the availability of pro­gramming is driving sales of the sets more than dropping prices.

"High-def is on the top of every­body's mind," he said. "The cable companies are adding more high-definition channels all the time."

Charter offers about 20 chan­nels in high-definition, Coker said. She said the company adds more regularly, based on a couple of fac­tors. Channels are added to the high-definition lineup based on customer requests and the avail­ability of a channel in high-defini­tion.

"We want to provide every­thing in high-definition," she said. "We are just the conduit. We get the signals from different chan­nels."

Coker said cable facilities can carry high-definition for all of its channels over its existing lines in the Montgomery area.

Those content providers, she said, have to make their own in­vestment in high-definition equip­ment to produce programming.

Most cable customers in cen­tral Alabama have high-definition available, she said. Still, she said customers should call the compa­ny before investing in a new set.

"Call your cable company and find out what should you do," she advises customers.

She said anyone shopping dif­ferent cable and dish high-defini­tion plans should ask not only how many channels are available, but what programming on each chan­nel is in high-definition. Some pro­viders, she said, only offer high-def programming for a few hours or less each day.

Others offer it around the clock.

Cohen said some customers are buying HDTV now to get ready for a major migration to the signal in the next 15 months or so. Accord­ing to Cohen, all outlets will use HDTV by early 2009.

While cable providers urge cus­tomers to understand how HDTV works before buying a set, electronics retailers say they should also look into how well built a set is and what features it has matters.

"Quality still matters, and there is still a big difference in set quality," Cohen said.

Quality, he said, goes beyond simple screen size and screen den­sity. He said buying a known name brand from a reputable dealer is a key to getting good quality.

"There are about 106 different brands of HDTV," he said. "You have to know what you are get­ting."

He also said style is an issue.

"Thin is in, and everybody wants a sleek TV," Cohen said. "You need to look at more than price.

For people who get the correct set and hook it up correctly, HDTV can be worth it.

"When people get it right, they are sold on it," Coker said.

Source: Montgomery Advertiser, 12/02/07

Target testing online sales of used electronics

Target Corp said on Tuesday that is testing sales of used electronics on its Web site.

Target said on its Web site customers can purchase "pre-owned" Apple Inc iPods, video games consoles and televisions. While results have been positive, it has not made a decision on whether or not it will continue the business.

The discount retailer, on a call with analysts held after it released its quarterly earnings. said it began the test about 30 days ago after seeing that many used electronics returned to its stores in "perfect working order."

On its Web site, it says the used items listed for sales were checked, inspected and refurbished by "either a manufacturer-authorized or Target-managed third party."

"This means they're essentially good as new," the Web site states.

A look at the site on Tuesday showed many used iPods and high-definition flat-panel televisions listed for sale, but there were no used video game consoles available.

Source: Reuters, 11/20/07

Getting ready for a hi-def holiday

As holiday season expectations heat up for sales of HDTV sets and associated products, retailers, broadcasters and the cable industry hope increased floor traffic and newly launched transition information campaigns will lead to better-educated consumers.

The Consumer Electronics Association expects $48.1 billion in retail sales for the fourth quarter. Of this, about 28 percent ($13.5 billion) is expected from sales of audio video products such as TVs, DVD players, VCRs, and home theater equipment, according to spokeswoman Becca Hatton. CEA data indicates that “any type of TV” ranked in the top five wish list items for all adult survey respondents. A concurrent Solutions Research Group study indicated that a third of the Americans it surveyed would like a flat-screen HDTV for Christmas.

THE INTELLIGENCE GAP

Yet despite the cravings, survey after survey indicates that consumers don’t know what HDTV is, let alone the implications of an end-of-TV-as-they-know-it scenario. A recent Best Buy survey reported that although it expected that more than 52 million U.S. households would own an HDTV by year’s end, 41 percent of current HDTV owners “said they understand little to nothing at all about HDTV.”

The NAB has a multiplatform digital-TV-education campaign valued at an estimated $697 million. As a follow-up to a general education program it launched in January, the NAB’s agenda includes PSAs, crawls and news tickers, speeches to community groups, a DTV Road Show, and banner ads on Web sites.

The NAB initiative follows on the heels of a $200 million campaign announced by the National Cable & Telecommunications Association in September.

Meanwhile, the FCC announced a lineup of DTV educational workshops leading up to the analog shutoff in February 2009, and Congress held hearings last month to debate the government’s DTV consumer education efforts, with some legislators calling for the formation of a DTV Task Force to coordinate efforts.

Source: TV Technology, 11/07/07

HD DVD Breaks the $100 Barrier (With a Little Help from Wal-Mart)

If you'd asked me a week ago -- and as a matter of fact, someone did -- I'd have said that you could sum up the high-definition disc war like this: Blu-ray is selling a lot of software, and HD DVD is aggressively pushing hardware. Essentially, each side has banked on either the chicken or the egg.

In scenarios like these, industry observers look for knockout punches (rare), or potential tipping points (a bit more common). We may be witnessing one right now: as part of its "pre-Black Friday" promotion, Wal-Mart will be offering Toshiba's entry-level HD-A2 player (soon to be replaced by the HD-A3) for a mere $98.97 -- making it a lot easier for cash-strapped consumers to get into the HD world at their own pace.

Should Blockbuster start restocking their shelves to take advantage of a potential wave of new HD DVD owners? I guess we'll find out pretty soon.

Source: PC World, 11/1/07

Judgement Day for Movie Theaters

Will technology terminate the future of the cinema -- or is it the key to its survival

"The unknown future rolls toward us," says Sarah Connor after narrowly averting a technological Judgment Day in Terminator 2. It's a scary scenario, and one that parallels the bleak outlook for motion picture theaters. like music before it, the movie theater is battling for its very existence in a highly volatile environment comprised of advances in technology and rapidly changing consumer tastes.

Call it the Digital Revolution. The iPod Age. Whatever you like. A generation where everything is on-demand, portable and downloadable within minutes. YouTube, Netflix, MySpace, iTunes, Movielink, CinemaNow, Tivo, Vlog Central, etc.- they're all changing the way films and video are distributed to audiences.

In its heyday, the movie theater represent- ed the traditional social outing: Dinner and a movie. But today, the theatrical is being replaced with convenience. The big-screen, high definition televisions with surround sound that many people have in their very own living rooms rival many neighborhood movie theaters. In addition, a virtual assort- ment of movies and television shows are available at the touch of a button, download- able to devices smaller than your palm- whenever you want, however you want.

With all the entertainment options and technologies vying for audience attention, today's movie theaters are under attack. Even though box office receipts this year may show some promise, particularly with the number of slated summer sequels (Spider-Man 3, Shrek the Third, Pirates of the Caribbean: At World's End), this is merely a fa?ade, mask- ing immediate dangers.

Theatrical survival will depend upon how well these crucial battles are fought...

Theaters vs. Internet

While the main distribution hub for films has always been the theater, the Internet is leading this revolutionary charge. Laptops, home theater hard drives and por- table devices like iPods are all capable of playing movies-not to mention the assort- ment of new formats, like video phones and digital devices the size of a pen, that are arriving on the market in force.

Theaters vs. DVD

The gap between theatrical and DVD releases was once fixed at six months. But that gap is narrowing-down to four months or less in many cases. Steven Soderbergh's Bubble hit theaters and DVD on the same day. The smaller the gap, the more likely audiences will forego the theater for the DVD. Add to that the huge decline in DVD prices, which are now equivalent to the cost of a single adult ticket on a Friday night. (We haven't even mentioned the diluted effects of DVD piracy.)

Theaters vs. Television

As high definition television prices go down and the amount of high definition content goes up, fewer people need to go to the theater to experience high-quality entertainment. Additionally, with network and cable stations producing more cinematic content, original movies and series like "The Sopranos" and "Lost," the "uniqueness" of motion pictures dissipates.

Theaters vs. Other Entertainment

Video games, online communities, por- table music, home theaters and other forms of entertainment are taking audiences away from the theater. Although last year movie attendance was up 3.3 percent, it has been steadily declining. In 2006 video game sales one again surpassed the movie industry's, $12.5 billion to $9.49 billion.

So what does all this mean for movie the- aters? Are they about to say "Hasta la vista, baby?" Or will they continue to thrive as a unique social experience?

In spite of all the doom and gloom, there is hope. Recognizing that it's no longer a Field of Dreams situation (if you build it with stadium seating, audiences will come), the theater industry must get creative and take more chances to stay in business.

In an all-out effort to preserve the future of the theater experience, here's how some moviemakers, theater owners and industry entrepreneurs are shaking things up.

D-Cinema

The most obvious change, of course, is in the area of digital projectors and digital libraries (known as d-cinema). The addition of digital projectors results in better resolu- tion and a higher quality image. In conjunc- tion with high-speed technology and stor- age devices, theaters will be able to request and receive "virtual prints" in a matter of minutes, increase their programming flex- ibility, encrypt the prints and help prevent the threat of piracy and save on transporta- tion fees without the risk of damage.

The roll-out has officially begun. It's a slow and onerous one, however, due to lack of standards, varying technologies competing with one another in an attempt to meet DCI specifications and, most significantly, the high cost associated with the upgrade. An old projector might set you back $30,000, but it will last 30 years; the cost for a digital projector is $120,000 to $500,000-and there's no telling how long such emerging technology will last.

Currently, a little over 1,500 screens operate with digital projectors. According to John Fithian, president of the National Association of Theater Owners (NATO), the transition to digital for the nearly 40,000 screens in the United States may take approximately 10 years.

Cinema with a Twist

if you live in Massachusetts or the surrounding area, you're probably already aware of the cinematic experience known as "Cinema de Lux." One of the most cutting- edge cinematic experiences today is derived from National Amusements, a world leader in cinema with over 1,500 screens in the U.S., U.K., Latin America and Russia. With Egyptian or 1950s themes, its theaters pro- vide a unique and glamorous atmosphere for watching movies, live entertainment and upscale dining.

Says spokesperson Wanda Whitson, National Amusements is "focused on put- ting the 'wow' back into the movie-going experience... [making our] theaters a com- munity entertainment destination."

The sixth largest exhibitor nationwide is always exploring new options-a baby grand piano greets patrons in the lobby, ushers lead moviegoers to reserved, leather seats in the Director's Hall and a bartender serves up wine and cocktails from the movie lounge, replete with plasma televisions and sporting events.

Recognizing the power of video games, Enrique Martinez has created the concept of Cinegames, a small theater at the Yelmo Cineplex in Madrid that has transformed computer game play into a community event.

A hybrid movie theater with HD projec- tors, vibrating seats, game pads, laser and black lights, smoke and dozens of 17-inch screens attached to individual chairs, this theater shows movies while also providing audiences with games and entertainment. Such games as the futuristic "Battlefield 2142" and realistic and arcade driving games such as "GTR2" and "Trackmania United" are all available on the big screen.

Recognizing the need for theatrical change, moviemakers are putting the "theater" back into the movie theater. Director Guy Maddin, whose recent Brand Upon the Brain! represents a throwback to the silent movie era, incorporates a live orchestra, five-person sound effects team, castrato and celebrity narrator a la Isabella Rossellini, Alanis Morissette or Crispin Glover. Says Maddin, "Anything can go wrong with these crazy elements; every performance is always different."

A black-and-white teen detective serial with a smashing debut at the 2006 Toronto Film Festival, Brand Upon the Brain! is slated for more live per- formances this summer at The Music Box in Chicago, The Village East in New York and The Egyptian Theatre in Los Angeles. If it catches on, it may captivate and energize audiences in the same way midnight show- ings of The Rocky Horror Picture Show have in the past.

Innovations

More recently, theaters are adapting to the widely popular innovations that 3-D and IMAX technologies provide for the presentation of films. Unlike anything you could replicate in your home theater, the IMAX experience boasts the largest of screens (up to eight stories high) and some of the most crystal clear images and crisp digital surround sounds you'll ever hear or see.

The growth is phenomenal, as moviegoers seem to be flocking to these large screens in record numbers. Take, for instance, The Polar Express, which grossed $121 million on 3,500 2-D screens while the IMAX 3-D experience grossed $40 million on just 68 screens! Obviously, moviemakers must use IMAX cameras and theaters must have IMAX projectors, screens, sound and DMR. But many of the year's biggest blockbusters are expected to have an IMAX print. Recent films such as Night at the Museum, 300 and Spider-Man 3 have been shown in this large format, to be followed this summer by Harry Potter and the Order of the Phoenix.

Like IMAX, many auteurs such as James Cameron are innovating and pushing the technical boundaries of the static cinematic experience. Combining IMAX technology and using stereoscopic digital 3-D, Cameron is stretching the limits of moviemaking and performance capture with his own 3-D HD cameras. "I've made the decision to shoot all the movies I direct in the future [in 3-D]," said Cameron at NAB 2006. Such technol- ogy will be on display soon, with the upcom- ing releases of Avatar and Battle Angel.

4-D amusements

Along those same lines, if you've ever experienced R.L. Stine's "Haunted Light- house 4-D" at SeaWorld, Universal Orlando's "Shrek 4-D" or Disney-MGM Studios' "Muppet Vision 4-D," you may have witnessed one future of motion picture cinemas, one closer to a lively amusement park ride than a static experience. Replete with water shots, rapid bursts of air and varying smells to tickle the senses, these 4-D amusements are highly interactive and could easily land in your neighborhood the- ater with just the right technology.

So what is the future of the theatrical experience? Will theaters succumb to ever- changing technology, the Internet, DVDs, home theaters and the endless stream of film distribution capabilities? Or will they adapt and change, evolving into something extraordinary?

The key to survival is understanding the theater's primary purpose: To provide a communal experience that cannot be repli- cated at home, like watching the latest com- edy with a packed house of raucous viewers rolling in the aisles or a scary movie with strangers jumping at the sound of a creak. Ponders Maddin, "What activity, other than a shooter-drinking contest, is a better first date than going to the movies?"

Innovations such as these may help usher in the theatrical experience of the future. But only if theaters adapt and change with the times. If they do, they just might avoid Judgment Day-the day when technology terminates the movie house.

Sleek Design Penetrates High-End Gadgets

If ``big, bold and cheap'' were the keywords drawing in customers in the past, it now seems that ``small and sleek'' is the catch phrase causing consumers to open their wallets to purchase high-end gadgets.

This results in a seemingly endless fine-tuning of design thresholds in all aspects _ from miniaturization and materials to consumers' overall sensory experience.

The so-called ``look and feel'' phrase is being casually tossed about nowadays, yet it sums up the essence of what people seek in their electronic devices, such as handsets and flat panel televisions, and how intimately we now interact with them.

Color, sleek design and sensation are increasingly driving the lucrative consumer electronics market.

Market analysts say design has already become the main differentiator in the highly competitive consumer electronics market, which reflects the increasingly dynamic role of electric items in our daily lives.

``Robust sales of premium phones, including Ultra Edition, played a key role in selling 42.6 million handsets in the third quarter, a quarterly record. This brilliant achievement comes with the strength of our outstanding design,'' said Choi Chang-soo, executive vice president of Samsung Electronics' telecommunication division.

``Samsung has gained worldwide recognition quickly in design,'' he added.

Samsung's latest Ultra Edition II handsets are the outcome of the company's steady design-oriented strategy reflecting consumer demand.

``I was inspired by the recent trend of layered clothing. Each layer covers another and it forms an outline. The phone looks as if it is covering something too. I also tried to show smooth curved lines in the overall look,'' Kim Jin-soo, a senior designer of Samsung Electronics mobile telecommunication team, said in a recent interview with Samsung's newsletter.

``I can say product design constitutes five main categories _ minimalism, soft minimalism, organic minimalism, retro minimalism and emotional expressionism. I think more specified minimal styles will be the main pursuit of product designers, given the increasing number of high-end buyers,'' said Kim Eun-young, a designer from Samsung's mobile team.

Experts say ``minimalism'' implies being pure, restrained, cool and seductive, while ``soft minimalism'' represents discreet and sophisticated. ``Organic minimalism'' explains fluid and sculptural, and ``retro minimalism'' stands for modest, humane and familiar. ``Emotional expressionism,'' which looks somewhat old-fashioned, cites playful and cute.

``But what is important is that such main categories could be incorporated into one main concept _ `sleek','' said Kim Sung-eun, a graduate from Milan-based design school Domus Academy.

The unique and slim design of LG Electronics' minimalist Black Label series enabled emotional interaction with the user and boosted its popularity.

The Chocolate phone, which has drawn keen interest with more than 14 million being sold since its global debut in 2005, resembles a bar of dark chocolate. When it is slid open, its touch sensitive keypad turns red and its LCD screen, which sleeps when not in use, lights up. Another hit, Shine phone's glittering silver mirror exterior also turns into an LCD screen when the keypad slides open.

``We have created a new segment of the market with design,'' said Chang Ma, who is in charge of design strategy at LG's mobile communications division.

`Bordeaux' TV's High Popularity

The sleek and simple concept is not confined to smaller devices.

With a curved base that resembles a crystal wine glass, Samsung's LCD TV, nicknamed ``Bordeaux,'' has been selling like hot cakes around the world as consumers capitalize on its exquisite design as well as quality.

``Do you know why there is speculation that Haier, a Chinese electronics giant, may have copied the incursive design of the Samsung TV? One definite reason is that its design appeals to consumers,'' said a Samsung official who declined to be named.

The robust sales of the TVs, reaching more than 2 million in the six months following its debut, are regarded as the main contribution to Samsung digital media division's brilliant performance in the July-Sept. period.

Samsung will exhibit the industry's slimmest 40-inch full-HD LCD TV at the ``FPD International'' fair in Japan. The fair is one of the three major display exhibitions around the world, and is being held from Oct. 24-26.

``Striking looks, exclusive feel and slim design of high-end electronic gadgets, combined with their uncompromising performance and function, attract fashion-conscious consumers and multimedia enthusiasts,'' said Choi Gee-sung, president of Samsung's telecommunication unit.

Source: The Korea Times, 10/25/07