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Most recent entries in the new home to this blog include daily updates from the Consumer Electronics Show (CES) in Las Vegas.

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Christine Persaud

CES 2009: Focus on the Affordable

This year's CES, which takes place from January 8-11 in its usual spot, Las Vegas, NV, will undoubtedly serve as host to fewer visitors, and carry a much more restrained focus, so to speak, than in previous years. The reason is obvious: the state of the economy. But this isn't to say that there won't be plenty to see. On the contrary, we'll just see the focus shift to products, technologies, and features that might not have played such an important role before.

For one, this year's event will probably see more emphasis placed on affordable gadgets, like portable navigation and media players, over big-ticket items. If a company is promoting a big ticket flat panel TV, speaker system, or what not, bet your bottom dollar that his pitch will focus on an aspect of the product that will help to save energy and consequently, money.

But energy savings isn't the only place that manufacturers can hang their affordable hats: things like Internet TVs could negate the need to buy a separate, large display monitor for your computer; while the new slew of Internet radios might encourage people to spend less on digital music and CDs. Then of course there's the age old argument that, when you have a fantastic home theatre system at home, why would you need to head out to the movies (or elsewhere) on a Friday night? Taking that into consideration as well, I wouldn't be surprised to see things like high-tech board games and other home entertainment gadgetry being pitched to passers-by.

More affordable gadgets as a whole will see greater presence at this year's event: everything from rechargeable batteries that help save the environment and dollars to video games and systems; one area that is still doing well despite the economic situation. Other small-ticket items like portable navigation devices, MP3 players, and iPod-related fare will be hot with retailers looking to offer consumers a greater selection of items that won't hurt their pocket books.

Don't take this to mean, however, that makers of the more expensive and sophisticated technology will be twiddling their thumbs on the show floor because retailers think consumers won't be investing for the first part of this year. CES will still serve as a time to learn about the new technologies, find out what's what, and make at least preliminary, if not final, decisions on what to bring in store.

As some other reports have pointed out, CES could also serve the dual purpose of helping business partners avoid additional travel. Many dealers meet with vendors after CES, often times traveling to their offices (or vice versa) to make plans for the year. CES could, in many ways, take the place of this extra travel costs: let's find out everything we need to know at the show now, then make final decisions by phone, e-mail, or video conference later.

Anecdotally, after asking around, I've heard speculation that attendance to this year's CES will be down anywhere from 15 to 40%. When we're looking at Canada specifically, this will be hard to tell. It's safe to assume that most custom A/V dealers won't be attending the show since CEDIA is really their "beat". Major manufacturers and retailers will likely be sending a smaller complement of staff down. But smaller companies may see this as an advantage, sending their usual roster of staff, both on the dealer and and manufacturer/distributor side, in order to ensure that they don't miss a beat.

At this point in the game, all we can do is wait and see. We'll keep you updated through reports straight from the show floor. Stay tuned!

Happy New Year! What Lies Ahead?

Another year, another 365 days. What do we have to look forward to in the consumer electronics industry in 2009? We'll find out much of this at the 2009 International CES, which commences next week in Las Vegas. But there is still plenty that we can safely anticipate.

When it comes to flat-panel TV technology, this could be the year for OLED. Sure, Sony has already been selling its portable (and stunning!) model for more than a year; but might we see larger-format displays utilizing the technology in homes this year?

In the cellular arena, new carriers will commence operations by around Q3/Q4. What will this mean for existing carrier business? What's more, can new entrants even sustain themselves through this troubling economy? After all, building an entire cellular network is a costly venture! Google's Android format will also hit the phones market in full force by the end of this year, leaving much to the imagination on the apps and software side.

Internet radios are also poised to make waves. It's an interesting paradox: while many other devices encourage us to buy digital music online then stream it to our home audio systems, these radios base their differentiating factor on, in part, free, Internet radio content. Could they result in a drop in the sale of digital music? Probably not, since people still like the play their own collections. But these radios do point toward a larger trend in the industry: the connection of the PC to the overall home theatre system.

On that front, many people are excited to see what the PC companies are up to this year. What's up Microsoft's sleeves? Intel? And with Steve Jobs absent from this year's Macworld (which will be the last Apple participates in), will 2009 be a quiet year from the Mac, iPod, and iPhone maker?

We can't, of course, ignore the state of the economy, which will inevitably lead to tough times ahead. But this doesn't mean technology development becomes stagnant, nor that people lock themselves up at home never to visit a retail store again until times get better. Shopping through the holidays, and especially on Boxing Day, proved that Canadians still have a relatively positive outlook that we'll get through the financial crisis.

Still, 2009 is poised to be an exciting year for this industry, as always. Stay tuned next week, where we'll be reporting to you from CES!

Gearing up for CES...and the Adult Expo?

It's not even Christmas, yet everyone in this industry is already gearing up for the 2009 International CES in Las Vegas. You're weeding through hundreds of e-mail product pitches and meeting requests. Setting up booth tours and plotting out a daily plan that allows you to cover as much ground as possible, and meet as many clients (and potential clients) as a day and evening will permit. Are you attending, and have you created a schedule yet?

Judging from e-mails requesting that I come see a nifty new gadget, or advising that on-site interviews can be set up with key manufacturer executives, it's clear that there will be plenty to see at the show. The most puzzling e-mail request I received, however, originated from an exhibitor at the Adult Expo, which runs concurrent to CES, inviting me to register, and visit their booth at that show. Two things initially crossed my mind. First: where do they see a tie-in between my industry and theirs? And second: how on earth did this person gain access to my e-mail address since the two expos have nothing to do with one another other than sharing the same city as their venue?

The person was pitching an iPhone application that optimizes adult films for viewing on the portable device's screen. Ahhh, now I get it. There is a clear tie in. Still: would traditional CE journalists cover this?

In many ways, when you think about it, the adult industry is a huge part of the consumer electronics industry. A few years ago, people were even predicting that X-rated films could very well be the deciding factor between which format won the high-definition DVD war - Blu-ray or HD DVD. In fact, this particular firm claims to have been filming in HD for the past 5 years! There are lucrative opportunities there, that's for certain. But you're walking a fine line if you consider covering this side.

With that said, while the Adult Expo won't be on my radar during CES (as if we don't have enough ground to cover already!), it'll be interesting to see how that area of business could eventually become further entwined with CE; especially with HDTVs, the Internet, and downloadable content making waves as the way of the future for content of pretty much every kind. Yes, including the adult kind.

As for CES, many still wonder whether attendance at the show will be down. It probably will be, but I doubt to very noticeable proportions. Exhibitors will have booked their booth space a year in advance, which means there will be just as much product on the show floor. From an attendee perspective, we'll most definitely see fewer feet roaming the aisles. But it will still be a packed show floor. And if some of those people decide to take the Adult Expo up on their offer and mosy on over to those exhibits at the Sands Convention Centre, so be it. But rest assured that the only scantily clad "booth babes" you'll see in the mainstream media will be holding a gadget of some sort, or standing nearby a line of flat-panel TVs.

What Will They Think of Next?: Convert Apple Earbuds into Headphones

While I'm not an Apple iPod owner, and I would advise anyone who has one (or any MP3 player, for that matter) to invest in a better set of headphones than what comes in the box, I can't help but recognize the cleverness of this product. Called BudFits, it turns the cheesy, white earbuds you get with your iPod into over-the-ear headphones that fit more securely, and won't annoying fall out of your ears.

If you have ever purchased or own a Bluetooth headset, you probably noticed that most come with a variety of different sized ear hooks that you can loop through a hole on the headset to wear it comfortably around your ear. Essentially, this is what EarBuds are: flexible, rubber hooks that you loop through each Apple earbud, to then secure them around your ears.

The company claims that, in upgrading to new 'phones, you "lose the coveted Apple image associated with Apple earbuds." Indeed, seeing those signature white cords hanging from someone's ears and into their jacket or backpack certainly cries "iPod". But I think at this point, the prestige has more to do with which iPod you have and what you have on it; not just the fact that you have one (who doesn't, these days, present company excluded, of course). Bottom line: the iPod earbuds might say "iPod, but they don't exactly scream "quality listening experience".

With that said, invest in a pair of new headphones, for goodness sakes. But if you want an affordable alternative to use at the beach or any other spot where you don't want to get your expensive 'phones diry or fear losing then, the BudFits are a neat stocking-stuffer idea for just US$9 per pair. www.budfits.com

Can Vegas Sustain Another CES?

Trade shows, especially in the technology industry, often gravitate to the grand city of Las Vegas. Why? The location is always upbeat, the space accommodating, and the area fairly central to most. But anyone that's traveled to an event there over the past few years knows that the costs are also exponential, and only getting larger. If you go to Vegas for a show like CES, you're liable to pay upwards of $300/night for a hotel room that would normally run for half that. A good meal is tough to find for a reasonable price (although plenty of fantastic meals are to be had if you're willing to fork over the dough for them!) And drinks? You're lucky to find anything, and I mean anything with even just a drop of alcohol for less than $10. But with the economy in the state that it's currently in, will Vegas be able to keep up its perceived price gouging of trade show-goers?

The next massive show to arrive in Sin City is indeed CES this January. At this year's CEDIA EXPO, which took place in Denver, CO, many were rumbling that CES would be jumping ship to another city once its contract was up. The reason? Pricing was getting ridiculous in that great city known as Lost Wages. Some claimed that this wasn't entirely true: the CEA was just bluffing in an effort to get Vegas to wake up to the incredible loss the city would experience if events companies started moving their business elsewhere. Neither of these rumours have ever been substantiated, but we have seen evidence that Las Vegas definitely needs to, and might already be, waking up to the effects economic uncertainty can have.

Visit the official CES Website (http://www.cesweb.org/), for instance, and you'll see a ton of hotels highlighted in bright yellow, signifying that they're offering reduced rates for show attendees. The most dramatic is the Excalibur, where a room that was $219 has now been reduced to just $141.

Aside from the show, the downturn the city is suffering from is becoming quite apparent. According to the Las Vegas Meetings and Travel Website from the Conventions and Visitors Authority, the number of visitors during the month of September was down 10.1% when compared to September 2007. In August, visitors were down 4.3%. The number of attendees at conferences was down 10% in Sept. and a whopping 22.3% in August; while the number of conferences actually held during those months was down 17.9% and 7.2%, respectively when compared to the prior year. Airline passengers arriving to or leaving from Vegas was also down: 9.9% in August and 13.2% in September. On average, all of the aforementioned figures were down at least 4% throughout the entire year of 2008 when compared to '07.

Meanwhile, even the gamblers are pinching their pennies. A recent Reuters report indicates that Vegas gambling is down for the ninth month in a row, while the take for casinos has dropped US$58 million from one year ago to an astonishing US$1 billion! Company shares on the stock market are also plummeting: Las Vegas Sands Corp. dropped from US$122 to just US$6; MGM Mirage from US$93 to US$11; and Wynn Resorts Ltd. from US$139 to under US$44.

While you won't see relevant companies opting out of attending CES this year altogether, you will see a cut back in the number of employees going down to the show. This means fewer flights, fewer dollars acquired from hotel room bookings, fewer dollars spent gambling, and fewer food and drink sales. Booths at the show will likely remain as big and flashy as they always are, but it's very possible that companies will be scaling back on even booth space as they consider bookings for next year's show.

What does this mean? The city of Las Vegas should really be pro-active in addressing all of these concerns, for both visitors and potential business partners that are looking to hold their conventions, events, and parties there. CES isn't moving to another location just yet, and has never announced that it is looking to do so either. But everything could tumble like a deck of cards if Vegas doesn't start proving itself a worthy, and reasonably-priced, home for convention-holders and goers to spend their money.

[Photo: Las Vegas News Bureau (LVCVA)].

CES: Huge Leaps or Status Quo?

As anyone in the CE industry knows, CES, North America's largest technology trade show, is fast approaching. Returning to Las Vegas this January, the show will feature everything from the latest in consumer electronics, computing, wireless technology and other portable gadgets, digital imaging, and entertainment. You name it: if it's a really influential, really cool, and attention-getting device or technology, it'll be at CES. But just as quickly as all the facets of the technology industry are coming together in harmony, so, too are they branching off in various directions. Because of this, does CES still have the same clout that it used to?

When you think about it, the show, despite its massive magnitude, is surrounded by several other smaller, more focused events. In September, CEDIA EXPO is where the custom A/V companies congregate, while PMA EXPO, held in March, is the show for the photo industry. If you're looking at wireless, whether we're talking handsets, software, apps, or business systems, April's CTIA WIRELESS event is a must-attend. Do you work on the commercial side of things? Then InfoComm is the show for you! So where does this leave CES?

Sure, CES gets the most media attention, and the most visitors, especially internationally. Because of this, many companies hold out for the iconic show to make major announcements. But what if you don't have that much happening in a year? If you're a flat-panel TV maker, for example, you can't hold back the following year's big items until January. Then what will you show at CEDIA? Hey, here's my old stuff. Thanks for coming. See you at CES! (?) Likewise, a camera maker might wait until March to make its big announcements at PMA, but then what do they show at CES? Do you divy up the line-up, showing off some teasers at CES followed by the grand reveal at PMA? Granted, it makes absolutely perfect sense to display the same products at CES that you did at CEDIA or PMA or whatever show floats your boat, because the smaller-scale events certainly don't target the same, massively mainstream audience that CES does. But if your dealers, partners, and specifically targeted media members were already at that other show, is CES worth it for the remaining exposure you're going to get?

The answer to this, of course, depends on a number of factors. How much does the rest of the exposure mean to you? What percentage of your dealers attend CES but don't attend the other targeted show(s), whether that be CEDIA, PMA, or what have you? How important is your message to both targeted and mainstream audiences? And finally, how major is the new product or technology that you're featuring this year? Even if it isn't a "revolutionary" breakthrough as so many companies claim the smallest adjustment to represent, the more exposure your company gets, the better. Exposure is everything. As they say, people might not notice you were there, but they'll certainly notice that you weren't.

With that said, while the 2009 CES might very well be a "status quo" year where we don't see any mind-blowing technologies introduced like we might have in previous years (Blu-ray and HD DVD, flat-panels TVs and 1080p, digital photo frames, and satellite radio, to name a few), it still remains a worthy event to attend if you're in the industry.

**Speaking of those in the industry, I'd love to know your favourite spots in Vegas to take dealers/clients, hang out for a drink or two, or relax during down time. If you send your top recommendation(s) to me via e-mail at cpersaud@marketnews.ca, we'll compile a "top spots" list to publish in the mag and/or online that you can peruse and get some ideas. Because hey, just as much as the show is about learning about products, it's also about wining and dining your dealers, potential dealers, and American/overseas affiliates. Here are a few of my recommendations to get you started:

Japonais in the Mirage Hotel: it serves a fusion of Japanese and French food, and has sushi dishes that are absolutely amazing. The ambience is great, and service is impeccable.

Cirque de Soleil’s LOVE at the Mirage: It’s an exciting, captivating show that’s worth experiencing at least once, especially if you’re a Beatles fan.

The Shadow Bar in Caesar’s Palace: Having stayed in that hotel for the past three years, it’s almost become like my “local bar” a few times every year. It can, in many ways, be considered the new Bugsy’s Bar because it often ends up being a meeting place for Canucks. You’re sure to run into some Canadian industry members there.

And of course who can forget Canada Night at Caesar’s Palace: It’s the event for the Canadian consumer electronics industry. No invitation is required, and all are welcome. We’ll see you there on Friday, January 9, 2009 at 6 p.m.! Click Here for more details.

The deadline to send me your suggestion(s) is November 20, 2008.

Measuring the Importance of the Trade Show

In this industry, there are so many trade shows, that it's often times difficult to keep up. Some take place in local, Canadian city venues, while others are all over the U.S., most often in Las Vegas (which is beginning to look like our second home!) How pertinent is it to attend such shows?

From our perspective as journalists, it's obviously of high importance to attend. We need to report on the products, see them, try them out, learn about them, and ask the necessary questions that allow us to properly educate and inform our readers. But what about retailers? Manufacturers? Installers? Distributors? Is it better to attend local shows, or the major ones, like CES, CEDIA, PMA, E3, and CTIA, to name just a few?

It really depends on the particular show, and what any given person's exact role is. Many industry members have told me that small, local events make more sense, cost less, and allow for better business deals when dealing with existing partners. But if you're looking for a fancy new line to distribute, or a cool new product to offer through your retail store, often times the neatest start-up companies can't afford to see you, and need you to come to shows like CES or CEDIA to see them. Sure, you'll have to weed through aisle after aisle and booth after booth of products you're not interested in, knock elbows with the crowds walking by, and invest in a new pair of comfortable shoes to cover all the necessary ground, but that's the price of doing business.

But don't completely rule out the "big" shows as useful events for maintaining your existing relationships. The other day, one industry member commented to me (upon discussing a particular trade show that we were at) that you're often not noticed when you're there, but it's definitely noticed if you're not. In that respect, sometimes it's necessary to attend shows just keep up appearances, so to speak. If you see your local rep every week, that's great, but so what? If his boss, and his boss's boss from the U.S., or even an international location, sees you down in Vegas for CES or Denver for CEDIA, that looks better on him, and, in turn, on you and your organization.

When it comes to smaller-scale, local events, they're equally as important for both fostering existing relationships, and nurturing new ones. One industry member told me that he might meet with 1,000 people at a major trade show, while only a handful are actually qualified. Meanwhile, he could speak to just 50 individuals at a small, local event, yet most, if not all of them, are good, qualified leads.

So what's the answer? Trade shows certainly are important, both big and local. They do get expensive and time consuming, so it's important to pick the ones most pertinant to you and your customer base. Most important, however, are the intimate meetings, one-on-ones, and of course, the occasional glass of beer (or wine!) to wash down all that business talk!

Which shows are most important to you?

Trade Show? Yes Trade Show? No

The Custom Electronics Design and Installation Association (CEDIA) had industry members talking this time one year ago when it confirmed the addition of a second trade show, which would take place in April, and cater to architects, designers, builders, IT/security managers, and other professional trades. (CEDIA's "regular" show takes place every year in early September, and is targeted to custom A/V integrators). Now, the association says that it's nixing the second show, due to "market conditions" and "member feedback", and continuing with a more intimate round-table forum that helps unite architects, builders, and interior designers with custom A/V professionals.

This move isn't surprising. It's no secret that, with every trade show comes huge costs, both in terms of money and time. Not only does a company have to budget for flights, hotels, and food for every employee that's sent down to the show, they also have to give up valuable in-office/in-store time. Trade shows certainly serve an important role, in terms of introducing and demonstrating new products and technologies, and educating installers and salespersons. But with regional training, and smaller, more intimate dealer events that manufacturers and distributors hold throughout the year, how many trade shows can one company factor (and justify) into its schedule?

As it is, many custom A/V companies I've spoken to are finding it difficult to justify attending both CEDIA, a show specifically tailored to the custom A/V market; and CES, the largest consumer electronics show of the year. Some have informed me that they've opted out of participating in CES simply because its scope is so broad that there's little point. Although having a presence at the show helps boost a company's profile, they end up seeing the same dealers and partners that they met with a few months earlier at CEDIA.

On the other side of the coin, I've had others tell me that they will continue to participate in both shows simply because CES is the largest technology show, obviously attracting a lot of media attention; and often serves as a platform for the biggest product launches of the year. Of course, as custom A/V becomes more and more a part of the "regular" family home theatre set-up, companies might find themselves shifting back toward CES; or, on the flip side, CEDIA might find itself expanding floor space more and more to companies involved in things like home networking, appliances, and computers.

With so much perceived concern over even just these two existing shows, it's no surprise that integrators drew the line at another CEDIA. Why not extend the September CEDIA to include a day for architects and builders to show their faces? From a media perspective, just one CEDIA is also a good thing. There's only so much floor-space one's mind (and feet!) can cover in a year!

Is CEDIA Becoming a Mini-CES?

Many have expressed the opinion that CEDIA EXPO is becoming like a smaller version of the International Consumer Electronics Show (CES). There’s no question that the focus is custom, custom, custom. But as the custom installation business increasingly involves things like home security, lighting, automation, and music streaming, the breadth of products and technologies on display has expanded considerably.

In fact, two of the most prominent product categories I’ve noticed on the floor this year are media servers, and home security. There’s someone offering up what they deem the latest and greatest in music servers on pretty much every corner on the show floor, from Harman Kardon, to Sony, and Sooloos. In terms of security, I’ve seen everything from the standard video surveillance system, to a neat system that includes a “magic mirror”. Place the mirror in your living room, and a talking genie pops up on its surface to verbally alert you when someone has arrived at the front door. Not only does the genie let you know that someone is a-knockin’, but a security camera outside displays a live feed onto the mirror, so you don’t even need to get up from the couch to see who it is. Nope, I’m not kidding.

The bread and butter of CEDIA EXPO remains custom audio/video. But as things like video cameras, computers, and interior design pieces like drapes, lighting, and furniture, are more often finding themselves part of a system design in the home, the show attracts new and exciting vendors. The consensus among those I’ve asked is that this year's show is better than last, with tons to see and experience.

Industry members, stay tuned to Marketnews Magazine for in-depth coverage of the show.

HD Player Race: Dual-Format Discs, or Dual-Format Players?

During the 2007 International CES, Warner Bros. announced what many anticipated could be the solution to the ongoing high-definition DVD format war: a Total High-Definition Disc (THD) that would consist of a Blu-ray version of a title on one side, and the HD DVD version on the other. These discs were set to hit the market in the second half of 2007, but now Warner is delaying production. Why? Because only two movie studios offer films in both formats: Warner (no surprise there) and Paramount Pictures. Given this fact, the existence of a dual-format disc can't be justified at this point.

According to the Associated Press, Warner has decided not release THD discs until each studio delivers at least 10 titles in both formats. The firm feels this is more likely to happen by early next year, then by the end of 2007.

In an ideal world, the best solution, would be one, unified, high-definition format. But failing that, THD could represent the best of both worlds, and, most importantly, a win-win situation for the customer.

From the player manufacturing end, a few companies have also taken steps to end the format war. LG Electronics announced a dual-format, Blu-ray/HD DVD player at the 2007 International CES in Las Vegas. Although the first-generation player is limited in its ability to accomodate interactive menu features of HD DVD discs (it offers complete playback of Blu-ray), its very existence solidifies a strong point: why should consumers have to choose?

Meanwhile, Samsung Electronics has also announced that it will debut a dual-format player in time for this year's holiday season, although there has been no confirmation if the player will be available in Canada or not.

Assuming that a unified format is far from existence, the HD format war will likely become a chicken-and-egg race going forward: will more dual-format players come out of the woodwork, eliminating the need for a THD disc altogether? Or will single-format players continue to dominate, encouraging studios to back both formats?