Plotting Out a Year's Worth of Topics

Anyone who works for a magazine knows that this is the time when everyone puts their heads together to formulate a list of topics, features, and interviews that will appear in the following calendar year's issues. It's called an editorial calendar, and we're now in the final stages of putting together ours for both Marketnews and here's how! magazines. While the fast-paced nature of this business is always on our minds, you never really comprehend it fully until you sit down to perform such a task as this. It's difficult to try and slot applicable topics into various months of the year! How do you truly look to the future of consumer technology, where things can change literally from one minute to the next? It's almost impossible! Nevertheless, we do our best based on projections, expectations, and good ol' intuition.

There are seasons and holidays that dictate high selling times for particular products, for example. Back-to-school is logically during the July/August timeframe, while the holiday shopping season is November/December. Flat-panel sales often spike during the SuperBowl (February) and Black Friday (end of November after the U.S. Thanksgiving). Photo products do well during or just prior to the summer time, since people are either looking to buy digital cameras to take on their vacations, or printing photos like wildfire having just returned from a trip. As for the camera manufacturers; they typically save their major official product announcements for February/March (during the PMA trade show) and October, which is when they all hit like wildfire. Yes, there are enough new digital cameras coming to fruition to result in two major launch times per year! And Boxing Day? Ahh, every retailer of every gadget loves Boxing Day...that is if you're not working a 12-hour shift on the sales floor!

When it comes to highly-anticipated technologies for next year, we can attempt to predict when a few might hit it big. New cell phone carriers, for example, all anticipate having their services up and running by Q3. So it's safe to assume that a lot of attention will be placed on this space come that time; which is also when we can expect to see a flood of Google Android devices hit the market. CES, North America's largest technology trade show, takes place in early January, and naturally, every manufacturer will be making major announcements at that time. Ditto when it comes to the custom audio/video industry and CEDIA; the September-held trade show dedicated to that part of the technology space.

Then there are other "up-in-the-air" items that need to be considered. Will LED become a fierce competitor in the flat-panel arena next year? Can Blu-ray make it for the long-haul? Is Android going to take over the cellular world? Will WiMAX and NFC technology become commonplace? Can digital downloading overtake physical video media? We can speculate all we like, but the truth is that topics have to be reworked throughout the year to best accomodate what's happening. And let's face it: something always happens to shake things up.

In a way, this is a good thing. There is never a time where we have nothing to write about in the technology industry; and never a slowdown in product development. While TV manufacturing might slow down, cell phone manufacturing picks up. As cell phones slow down, PCs and digital content take off. There's always something. The other day, I saw a demonstration on TV of a head-worn device hooked up to a computer that could analyze brain waves and dictate letters of the alphabet that the person was thinking. Entire words would be spelled out on screen, letter by letter, until a full sentence was formulated. The point? It was being used by a man with ALS in order to help him communicate. Now that is truly amazing: there's so much more to technology than we could ever imagine.

What do you predict will be the big topics of '09?

VCR And The End Of An Era

By Lee Distad

JVC announced this week that it has ceased production of VCRs. Once existing global inventory is sold through, that’s it.

This is especially newsworthy not only because VHS was such an enduring and successful format, having sold over 900 million units since 1976, but also because I (and I’m sure lots of other people) thought that the company had stopped making them long ago! Granted, it’s not a complete extinction. JVC will continue to make DVD/VCR combos for the near term.

At the risk of sounding overly sentimental, like many other lifers in the CE business, I have warm memories associated with VCRs. The first piece of electronics I ever sold was a Sony VHS VCR. Back in those days, you could make a tidy living just on the commissions from VCR sales. Tapes, too. I still remember pitching the advantages of higher grade and thus more expensive VHS tapes when selling them by the case.

For that matter, as late as the year 1999, I was still selling as many as 100 Betamax cassettes a week, believe it or not. I had four long-time clients in my client binder who were die-hard Betamax owners, and every time my store got a delivery of tapes, I would call each of them up. Whichever of them got to the store first would buy up the lot! They knew each other and all knew the score. It was like a little game between them.

A lot of years have passed since then, and we’ve seen so much technological progress in CE in even the last five years alone. It makes me wonder what technology I’m going to get all sentimental about 20 years from now.

Acronyms: Confusing the Customer

The topic of confusing acronyms came up in a meeting yesterday, and got me thinking about the CE industry and the product sale. It's obvious that a salesperson should "dumb things down" in order to make sure the customer doesn't stare at him like a deer in headlights. But how many CE-related acronyms do we unknowingly take for granted that the average customer understands?

"HD" is the most common. You'd think by now that everyone under the sun knows what "HD" stands for, but the truth is that some don't. Then there's "PVR" or "DVR". The other day, a friend of mine asked me what "SLR" stood for because she had no idea.

Keep in mind that the actual words might not be important to know as long as the customer understands what you're describing. For example, as long as he knows that an LCD is a flat-screen TV, or a DVD is a circular disc that plays movies, then the actual term isn't 100% necessary. Two other examples: JPEG and MP3. No one really needs to know what they stand for as long as they understand what the terms are in reference to. But then there are others. "Who's your ISP?" a retailer might ask a stunned mother of three. "Huh?"

There's a simple way to avoid this: just use the words! Acronyms are meant to shorten sentences and simplify language for people who understand them. If the person doesn't, acronyms only make things more difficult. And that's the key. It could be a really simple word, but using the acronym might mistakenly intimidate someone, and make him think it means more than it is. So rather than say JPEG, just say "a type of digital image called JPEG", or even simply "photo". (The exact terminology will, of course, depend on the context).

It's important to note that you should always know your audience. If you're sitting among a group of CE industry members, well, you're pretty safe to follow the anything goes policy. But at a family dinner, you might want to go light on the alphabet soup.

With that said, for anyone who is interested in the meaning behind the acronyms noted above, here they are (along with a few others you might commonly hear or read about thrown in for good measure):

HD: High Definition. Basically, this refers to the resolution of a TV.

PVR: Personal Video Recorder. This is a device that has a built-in hard drive on which you can record TV programming.

DVR: Digital Video Recorder. Same as above, although the term DVR might be better suited toward a device that is separate from your cable or satellite TV box. For example, TiVo is a great example of a DVR. A set-top box from Bell TV that has recording functionality built right into it is probably better referred to as a PVR. The terms really are interchangeble in my books, though.

SLR: Single Lens Reflex. These are those big (although increasingly getting smaller) digital cameras that have interchangeable lens.

LCD: Liquid Crystal Display. This is a type of display, and refers to the process in which it's made and operates. While LCD can be used to describe anything from your cell phone's screen to that of a calculator, it's most commonly used in this industry to describe flat-panel TVs.

JPEG: Joint Photographic Experts Group. This just refers to the type of compression used in digital images that bear this extension (e.g. blog.jpg). It's the most common photo file type out there.

MP3: Moving Picture Experts Group Layer-3 Audio. Similar to JPEG, this is a type of compression for audio files. As with JPEG, it's arguably the most popular file type.

ISP: Internet Service Provider. This refers to the company that provides your Internet service. For example, Rogers, Videotron, or Bell.

VoIP: Voice Over Internet Protocol. This is a type of communication that lets you make voice calls using the Internet rather than a landline phone connection.

USB: Universal Serial Bus. This is a universal method of connecting a variety of portable devices. If you own a laptop, you'll probably see a couple of USB ports (small and slighty square-shaped) where you can plug in everything from a digital camera to an MP3 player. In the mobile phone industry, mini USB (a smaller version) is quickly becoming a standard as well.

GUI: Graphical User Interface. This one, usually actually spoken as "goo-ee", is the graphical menu that pops up on a device, whether it be a PC, touch-pad control, or TV. The term is most typically used, however, to describe the guide that appears on your TV when you're searching for programs via cable or satellite TV.

Feel free to add your own in the comments section below!

Visiting Akihabara in Japan

It's likely than when Eddy Grant was belting out the lyrics to the 80s tune Electric Avenue, he was thinking of Akihabara, a small town in Tokyo, Japan that serves as the destination for anything and everything electronic. OK, so he probably wasn't thinking of this high-tech area, but the Japanese do call it "Electric Town", clearly stated via a sign that greets you upon arrival. If you thought you've seen a lot of technology in one spot, I can almost guarantee that you haven't seen anything like Akihabara.

My first stop was a popular tourist shop called Laox. It looked pretty standard, with digital cameras, camcorders, and knick knacks occupying the relatively small space. No big deal - I see the same sorts of stores walking down Yonge St. in Toronto. Luckily, I was with someone who had visited before, and walked me to the back, where a discrete elevator opened to reveal the option of 6 other floors. Wow! They were all filled with knick-knacks that any tourist would like - fans, kimonos, playing cards, T-shirts, and the like. Moving over to a huge department store had me stopping in awe at the entrance to snap photos. The best way I could describe it would be 1,000 Best Buys or Wal-Marts jammed into one. Aisles upon aisles of electronics. Again, I found myself face to face with a sign that outlined 8 floors of goodies. One for gaming, one for home A/V, one for pretty much anything you might be looking for. To navigate just this one store would have easily taken a full day, and then some. One neat tidbit I learned from walking around? Japanese books actually open from the opposite side, so they're read back to front. Who knew.

I wish I had had more time to explore Akihabara, but my quick glimpse was definitely an interesting one. You probably won't be saving any money by purchasing something there versus in Canada or the U.S., nor will you find the stores filled with too many items that you can't find at home. And I can't fathom anyone shopping there as a regular destination spot. But the sheer magnitude of the area and the stores within it is eye-opening, and worth visiting at least once if you're ever in Japan.

I was really surprised to see how Westernized Tokyo has become. For every restaurant, shop, or street sign that appeared in Japanese, there was another one right beside it declaring the English translation. A short visit to a Macy's-like department store in the Shinzuku area (about a half hour subway ride from Akihabara) reminded me of any old department store in Toronto. Except instead of the standard "welcome" greeting, I received the same with an inviting Japanese smile.

It's important to note that the situation wasn't like this everywhere, such as in the Hot Springs hotel that we visited in Matsumoto where the majority of staff did not speak English, nor was there any (gasp) wireless Internet access. This was a nice change, though, as we were all able to truly appreciate the experience instead of pounding away on BlackBerries.

I can imagine that visiting Tokyo as a whole isn't quite as intimidating as it was 20 years ago. Thankfully in my case, the language barrier has been eased just a bit. Domo arigato!

HDTV: Who Knew Football Was SO Powerful?

The RetailBRIDGE cites a study that claims 5.5 million U.S. TV viewers purchased HDTVs during the holiday season and football's Superbowl in February 2008. To put this number in perspective, 28 million U.S. households in total own HDTVs. This means that 20% of the current HDTV population in the U.S. jumped on board during the Christmas season and Superbowl timeframe. Wow!

There are obviously other factors that come into play here: amazingly low prices during those few months (and even still today!), the upcoming FCC transition to all-digital TV, and growing consumer knowledge about HDTV overall. But a major surge in sales during those 3 months is great news for the industry; and just reinforces the importance of the holidays and sports. It's incredible when you think just how important gift-giving and sporting events are to the CE business.

The study, which was conducted by Frank N. Magid Associates, reports that one-quarter of the U.S. population now owns an HDTV; and almost 10 million homes now have at least two HDTVs. 30 million Americans say they plan to buy an HDTV this year, and virtually all of them say they'll go HD.

As more and more consumers begin to understand HDTV, and the sources that are required to obtain content, the format is poised for major growth. When will we reach 100% penetration? Judging from the way things are going now, I think we'll get pretty darned close by 2009.

For those who aren't familiar with how to get HD, here's a quick recap of the requirements:

1) Buy an high-definition TV (720p, 1080i, or 1080p, with the latter being the "best" quality possible; but all three technically representing HD-quality)

2) Buy an HD source, like a cable or satellite set-top box, Blu-ray disc player, or Sony PlayStation 3.

3) To access high-definition programming via cable or satellite TV, contact your provider and subscribe to the high-definition channels you want. In most cases, the provider should have some sort of HD add-on pack that includes most, if not all, of the available high-def channels. If you want to watch a high-definition DVD, you must buy a Blu-ray disc and play it back in a Blu-ray player. If you buy a standard DVD movie, it will not become high-definition if you play it back in your Blu-ray player; although it will be upscaled to a better quality image.

That's it, and you're off to enjoying HD content in all its glory!

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?

CTIA WIRELESS: Viva Las Vegas!

Although it’s my third time in this city this year, Vegas never gets old to me. There’s something about the air that rejuvenates you the second you arrive, even considering the three-hour time difference between Toronto and here. The weather is gorgeous, and the city is full of talk about the CTIA WIRELESS show, which officially begins tomorrow. Tonight is a big “pre” show event where a group of companies will exhibit in a smaller, more intimate venue (which is often times much more appealing than the crowded and loud show floor). I’ll have tons of great information from that show tomorrow. But before the event has even begun, I’ve already seen my first demo!

Nokia cleverly arranged a car service that gave the company the opportunity to show off its new Nokia Maps 2.0 software (now in beta version) by actually navigating us to the hotel. Although the functions the software offers aren’t new in the portable navigation category, per se, it’s amazing to see how quickly the mobile phone category is ramping up its offerings. Powered by Nokia, the service offers the standard address searches and favourites, but adds a new walking mode that does things like avoid one-way streets, and displays little “bread crumbs”, described the rep, as you walk along your route. The mapping software itself is more robust, with over 15 million Points of Interest (POI), and various viewing modes. It’s worth noting that Nokia showed off the software on the U.S. version of its new N95 handset, which is quite a nifty looking device; not to mention that it includes a whopping 8 GB of internal memory! And the screen itself showed off the vibrant colours of the map in all their glory. The device navigated us to our hotel safe and sound. Hopefully we’ll see this phone in Canada some time soon!

So there you have it. Before I even reached the hotel, I was one step closer to seeing what neat gadgets and technologies are in store at the show. Now it’s time to enjoy 20-degree weather!

Is Technology Becoming too Invasive?

A string of stories that relate to Internet security have been hitting the newswires as of late: from Facebook's ad program that was tracking people's Web activity, to Passport Canada's Web glitch that momentarily revealed personal information about applicants. This has me thinking: have some forms of technology become too invasive?

We all know about things like cookies that Websites plant onto your PC to then track your online behaviour. In fact, some people are OK with this, and even join Web panels that use their surfing information to determine the most popular Websites, or to help create targeted marketing campaigns. But what about other areas of technology?

Take GPS systems and software that can track where someone is at all times during the day, for example. Sure, this is a great method for companies who pay workers to go out on the road: how else can you ensure that they aren't making two-hour stops to a buddy's house; or that they did in fact travel as far as claimed in an expense report? Here's an idea: trust your employees to begin with, or don't hire them!

Here's another example. I just received an e-mail pitch about software that would notify parents via a cell phone message whenever their child makes a cell phone call or sends a text message to an unknown phone number. Not only does the parent receive a notification, but if it's a text message, he/she will receive an entire copy! In theory, this is great; especially with kids these days becoming increasingly active on the 'net, and conversing with people that could very well be Internet predators. But if I were a teenager and found out my parents were doing such a thing, I'd be livid. What's worse, I'd probably want to rebel at that point, feeling that my parent's simply didn't trust me.

Although it's great to discover how sophisticated tracking and monitoring features can be today, should such products be available for the consumer market? If you ask me, we're just asking for a society that is un-trusting and skeptical.

Armani Goes High-Tech

Back in May, I wrote an entry here about the colliding worlds of fashion and technology. Not only are products getting sexier looking, but CE manufacturers are now commissioning experts in fashion and aesthetics in order to advise them on the creation of more appealing designs. Meridian worked with Ferrari on its high-end, $3,000 F80 tabletop radio. LG Electronics worked with world-renowned fashion designer Prada for its KE850 phone. And Bang & Olufsen has relied on designer David Lewis since the 1960s to create the majority of the modern and funky products for which the company prides itself. Now, leading fashion designer Giorgio Armani is joining the foray by helping Samsung design a line of luxury portable and home CE products.

According to a press release, the products will be sold through Armani's direct-controlled retail network and "upscale consumer electronics stores" in major European countries as of November, with plans to expand distribution to other markets in 2008 (I doubt this will include Canada, but you never know!)

The first product to be introduced is, not surprisingly, a mobile phone. Since your phone is the one tech item that's always with you, it makes sense for it to be the most fashionable! The Giorgio Armani-Samsung luxury mobile, unveiled during Milan Fashion Week at the Armani/Teatro on September 24, is, of course, super-thin (10.5 mm, to be exact). A luxury LCD TV will debut in January 2008.

This just reinforces the fact that design is not only paramount in technology, but creating a luxury CE item has become an artform unto itself. Which designer is next to jump onto the tech fashion bandwagon?

Future Shop Jumps on Social Networking Bandwagon

Online social networking is a growing trend: more and more people are using the Web to communicate, share, and get information. In recognition of this, Future Shop has jumped on board with its own, online community forum. I doubt Facebook or MySpace is shaking in its Web-networking boots, but from a retail perspective, it’s great to see a Canadian company take a bold step in fostering open, customer communication.

An industry conference I recently attended in NYC alluded to the importance of such open communication. “Invite conversation instead of demanding attention,” recommended John Batelle, founder of Federated Media. He aptly calls the current state of affairs the “Conversation Economy.”

Customers can visit the Future Shop forum (accessible via http://www.futureshop.ca/), and chat with others about products, ask questions, share stories, and throw in their own two cents. Available in both English- and French (there’s a separate forum for each), the conversations are monitored by an Avatar (i.e. a virtual “host” and product expert).

Several topic categories are available, ranging from gaming, to home theatre, and car audio. There’s even a spot for general, “off-topic” feedback. For example, one visitor posted “product suggestions”: stuff she’d like to see stocked on Future Shop shelves. Following the initial post, 10 others chimed in with their own “wish lists”. Sure, it isn’t realistic to think that Future Shop buyers are agonizing over these requests, taking notes, or getting on the phone right away to add SKUs to store shelves. But to allow such an open discussion helps consumers feel like they have a voice.

I took a quick look at the site. Currently, the top question is whether one should choose the PlayStation 3 or the Xbox 360. So far, 23 responses have been posted, each with a clear opinion. The "featured" question is a debate between Blu-ray, HD-DVD, and “standard” DVD. Sure, not all of the opinions are fully educated ones: some are based on fact (via references to legitimate publications like Twice or Marketnews!), some on opinion, and others on sheer misinformation. Many even originate from Future Shop sales associates across the country, who clearly identify themselves. Each comment can also be rated on a scale of 1-5. But every opinion is valuable, whether it prompts someone to pipe in and clarify with facts; or allow someone to play devil's advocate.

The point is: people are talking about technology. And that’s always a good thing for the industry.

Ready for a Full Meal, or Just a Media Snack?

I’ve heard the term “media snacking” several times over the past month. So what is it? Media snacking is the act of grabbing quick “bites” of content. This can include things like short video clips, text messages, tunes, or even blogs like this one. If you're reading this right now, you're snacking!

Most would think that media snacking on mobile devices in particular is just for kids: after all, what working adult has time to engage in such activity? Think again. According to a survey conducted by Leger Marketing on behalf of Palm Canada, 60 per cent of adults are active in mobile entertainment, nibbling on bits of media more often than they even have time to do.

Ironically, the reason adults are raiding the mobile ‘fridge is because of lack of time, and being so overloaded. Most professionals do not work a typical 9-5 day (27 per cent say they work at least 10 hours!), and are finding themselves more often than not on-the-go. Snacking on media is a way to help unwind during the day.

What are mobile adults snacking on? Survey says: tunes and text messages (44 per cent); video clips (19 per cent); and radio (33 per cent). Social networking Websites like Facebook and MySpace are also being visited from portable devices, which is something I can personally attest to, having logged in many times during lunch or while on the road (only as a passenger, I swear!)
Once they’re at home, it appears that many people still can’t manage to put away the BlackBerry until the morning: the temptation to check and respond to e-mail is far too great for any road warrior to fend off. Almost a third of the people even admitted to responding to e-mails while eating dinner; and close to 40 per cent confess to working while attending social or family gatherings (remember Ari during Yom Kippur on the latest episode of Entourage?).

Media snacking is great. But it’s important to ensure all this techno-wizardry doesn’t consume our lives: 24/7 is too much, 9-to-5 is too limiting. I feel it all boils down to balance. If you know when to shut down your connection, you’ll value the nature of mobile technology much more.