ultra 4k white spaces gaming evolves what did you
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ultra 4k white spaces gaming evolves what did you
c o n s u m e r e l e c t r o n i c s M A R C H / A P R I L 2 0 1 2 capture the vision of CES all year ULTRA 4K WHITE SPACES GAMING EVOLVES WHAT DID YOU MISS AT CES? VISIONARY 20th Century Fox Home Entertainment’s Mike Dunn $5.00 The International CES® is coming to Capitol Hill Tuesday, April 24, 2012 6-8 p.m. Rayburn House Office Building Cafeteria (B-357) Washington, D.C. The Consumer Electronics Association (CEA)® will again bring the International CES to Capitol Hill this spring. CES on the Hill will feature products from CEA member companies that relate to critical policy issues. Save the Date! CE.org a publication of MARCH/APRIL 2012 FEATURES 4K Brings Even Higher Resolution to TV Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › BLUETOOTH › Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › BLUETOOTH › .... 8 12 .... Unused TV Spectrum Opens to Mobile Apps White space in the spectrum is expected to create new market opportunities for wireless access. Called ultra, super and extreme: 4K promises to bring about one of the greatest changes to visual communications and broadcasting in decades. 16 .... The Crowded Gaming Market Tablets, smartphones, and Sony and Nintendo’s line-up of portable gaming hardware are all competing in a congested gaming market. DEPARTMENTS 2 SHAPIRO’S SPECTRUM Honoring American Heroes 3 IN THIS ISSUE Fast-Forward 4 THE ECONOMIST Inflationary Concerns? 5 VISIONARY 20th Century Fox Home Entertainment’s Mike Dunn 20 CEA NEWSLINE Association News & Views — Member Link, Retail Insights 28 TECH POLICY Pro-Tech Policy at CES 29 TECH SPEAK CES: Handheld Devices 23 .... It’s a Wrap — The 2012 International CES No one can see it all. Check out the highlights from the 2012 CES. 30 C4 TRENDS Entrepreneurs Connect at CES 31 MARKET INSIDER Global CE Retail Sales 32 JUST THE STATS Global Tech Spending Cover photo courtesy of 20th Century Fox Home Entertainment CEVision.org March/April 2012 1 SHAPIRO’S SPECTRUM ON THE CONSUMER ELECTRONICS HORIZON Honoring American Heroes “Digital Patriots” are American visionaries who have made us better by their leadership in advocating policies that promote innovation. 2 March/April 2012 S teve Jobs changed us with the iPod, iPhone and iPad. But, he also became an iconic tech hero, likely inspiring many children to strive to be entrepreneurs, designers and innovators. Jobs, along with 169 others, is a member (2009) of the CEA Hall of Fame. This legendary group has changed the world and a new class will be inducted on October 16 in San Francisco at CEA’s Industry Forum. But CEA also has another award bestowed only on a chosen few (fewer than 30 to date). There have been 22 Digital Patriot honorees, not counting the Federal Communications Commission (FCC) commissioners that were honored at the 2011 International CES. “Digital Patriots” are American visionaries who have made us better by their leadership in advocating policies that promote innovation. On the private side only Craig Barrett, Michael Dell, Bill Gates, Ivan Seidenberg, and Internet inventors Vint Cerf and Robert Kahn have received the award. A select group of politicians have also been honored. On April 25th in Washington, we will induct three exceptional people: David Rubinstein is best known for founding the Carlyle Group, a successful merchant banking firm. But he also has roots in the tech industry where he helped lead the fight for innovation, ensuring the legality of consumer technology. After leaving the Carter White House, David became a lawyer and assisted CEA efforts running the Home Recording Rights Coalition (HRRC). He attended our weekly meetings, oversaw our grassroots efforts and attended the International CES where he helped manage the HRRC booth. More, he helped shape the legal strategy which produced the Supreme Court Sony Betamax decision, the “Magna Carta” for innovation and our industry. David later bought the last remaining Magna Carta and donated it to the Smithsonian. His love for this nation also extends to gifts to the Kennedy Center (whose board he chairs), paying for repairs to the Washington Monument after it was damaged by an earthquake last summer and his purchase of the Emancipation Proclamation which he donated to the White House. David is a worthy Digital Patriot. CEA will also be honoring a Democratic Senator from Oregon, Ron Wyden. Senator Wyden has been a champion of innovation and the Internet. When the Internetkilling “anti-piracy” legislation sailed unanimously through the Senate Judiciary Committee, it was Senator Wyden who put a “hold” on the bill. He then promised a lengthy filibuster. This action allowed CEA and other groups opposing the bill to regroup and mount a successful opposition. Senator Wyden more than any other legislator (except perhaps Digital Patriot and former CEA Chairman Congressman Darrell Issa (R-CA)) deserves credit for blocking and reversing a legislative steamroller. We will also be honoring Congressman Jason Chaffetz (R-VT). Rep. Chaffetz has quickly distinguished himself as a tech-savvy legislator. During the House Judiciary Committee consideration of the anti-innovation Stop Online Piracy Act (SOPA) legislation, it was Chaffetz who insisted that “nerds” or Internet experts be consulted before Congressional action. He is also a co-sponsor of the OPEN Act, a narrow, effective and targeted way to take down foreign infringing websites. I hope you can join us celebrate these three American heroes. For more information on the Digital Patriots Dinner, visit CE.org. • David Rubinstein Sen. Ron Wyden Rep. Jason Chaffetz CEVision.org ON THE CONSUMER ELECTRONICS HORIZON PRESIDENT AND CEO Gary Shapiro IN THIS ISSUE Fast-Forward SENIOR VICE PRESIDENT Jason Oxman EDITOR-IN-CHIEF Cindy Loffler Stevens MANAGING EDITOR Rachel Horn EDITORIAL ASSISTANT Mark Chisholm SENIOR CREATIVE MANAGER John Lindsey SENIOR MANAGER, CREATIVE DIRECTION Octavio Kano GRAPHIC DESIGNER, CREATIVE SERVICES Ian Shields, Matt Patchett DIRECTOR, MARKETING Jenni Moyer ADVERTISING MANAGEMENT Dan Cole, [email protected] ART DIRECTOR Glenn Pierce DESIGN, PRODUCTION AND PUBLISHING MANAGEMENT TMG| tmgcustommedia.com CIRCULATION MANAGER Gretchen Mitchler EDITORIAL CONTRIBUTORS Gary Arlen, Alan Breznick, Robert Calem, Shawn DuBravac, John Gaudiosi, Michael Grebb, Steve Koenig, Natalie Hope McDonald, Allan Richter, Ron Schneiderman, Susan Schreiner, Murray Slovick, Phillip Swann EDITORIAL ADVISORY BOARD Kari Aakre, Intel; Dave Arland, Arland Communications; Peter Brinkman, Casio; Marcy Cohen, Sony; Gabriele Collier, HDMI; Kristen Cook, BDS Marketing; Danielle Deabler, NPR Labs; John Dunstan, Netgear; Sean Durkin, Dolby Laboratories Inc.; Peter Fannon, Panasonic/Matsushita; Bill Kircos, Intel; Bill Leebens, LM&M; Chris Loncto, Sharp Electronics Corp.; Jim Reilly, Panasonic; David Steel, Samsung; John Taylor, LG Electronics; Adam Yates, Samsung Consumer Electronics Vision is published as a service to the members of the Consumer Electronics Association (CEA) and to key players in the consumer electronics industry. CEA represents more than 2,000 U.S. manufacturers of audio, video, digital imaging, accessories, mobile electronics, home networking, wireless communication, information technology and multimedia products that are sold through consumer channels. The opinions expressed in articles are those of the authors and not necessarily those of CEA. Comments, questions and letters to the editor are welcome. Address responses to: Consumer Electronics Vision, Consumer Electronics Association, 1919 South Eads St., Arlington, VA 22202, tel: 703 907 7600. © 2012 Consumer Electronics Association Articles from this issue may be reproduced in whole or in part, provided full credit is given to CEA. CES® and International Consumer Electronics Show® are trademarks owned by CEA. Consumer Electronics Vision (USPS 022897 Vol. 16, No. 2) is published bi-monthly by the Consumer Electronics Association, 1919 South Eads St., Arlington, VA 22202. Periodicals Postage Paid at Arlington, VA and at additional mailing offices. POSTMASTER: Send address changes to CE Vision, CEA,1919 South Eads St., Arlington, VA 22202. Canadian Publications Agreement No. 41502062. U.S. & Canada - $24.99 a year; $5 for a single issue Mexico - $39.99 a year; $7.50 for a single issue Elsewhere - $49.99 a year; $9.00 for a single issue W e are rapidly approaching the end of Q1 2012. Weren’t we just in Las Vegas for CES? Now it’s nearly time for CES on the Hill and the Digital Patriots Dinner in Washington, DC. Time flies and so do technology advances. If you blink, you may miss something important. That’s why in this issue, we look at the incredible innovations that 4K will bring to TV including even higher resolution. Although not available in stores yet, LG, Panasonic, Samsung, Toshiba, Sharp, Sony, Vizio and others showed prototypes of 4K sets at CES. If you haven’t seen one of these extraordinary TVs yet, read on to find out why these sets are so amazing. And speaking of innovation, Vision looks at white spaces. There are some interesting ways this unused TV spectrum could be utilized, including opportunities to explore the Internet of Things (IoT), where smart wireless devices and appliances can connect easily with other devices and communicate directly with each other without going through a network infrastructure. Okay, I admit this Internet of Things has my attention. It reminds me of the film The Matrix. However, uses also could include image recognition to identify objects or logos, near-field communications (NFC) for mobile payments and embedded sensors that could detect app stores for mobile users. IoT most likely also will support the projected huge growth of machine-to-machine (M2M) devices that could talk to each other wirelessly. We also delve in to the world of gaming where portability is changing everything. Sony’s PS Vita and Nintendo 3DS are competing with Apple and Android tablets and smartphones in a congested gaming market. And because it was impossible for anyone to see the entire 2012 International CES, the largest in show history, Vision gives an inside peek at a few highlights that made the show so special including the diverse group of attendees and product categories. Last week I visited with Twentieth Century Fox Home Entertainment’s Worldwide President Mike Dunn in his Fox Plaza office in LA. As the worldwide marketing, sales and distribution company for all Fox film and television programming on DVD, Blu-ray disc digital copy, VOD and digital download, the company also releases all products globally for MGM Home Entertainment. He talked about the intersection of content and CE devices and how they are now intertwined. See our Visionary column for his interesting insights. We also recently launched CEA’s new Vision Entrepreneur Awards (VEA) program to recognize individuals and small businesses in the CE industry that demonstrate innovation and dedication to the industry. Submit a nomination form online and tell us why you believe a company or executive of an organization with annual domestic revenue under $30 million should be recognized. The winners will be honored at CEA’s Industry Forum in October in San Francisco. For more information, visit CE.org. I hope to see you at CES on the Hill April 24th. • Cindy Loffler Stevens Editor-in-Chief Twitter: calstevens Visit CEVision.org for the latest updates. CEVision.org CEVision.org March/April 2012 3 ANALYZING FUTURE TRENDS ] • [ BY SHAWN G. DUBRAVAC, CFA Inflationary Concerns? B eginning in January, the Federal Reserve Open Market Committee (FOMC) began publishing the central tendencies and ranges of projections for economic growth, the unemployment rate and inflation expectations together with the assessments for appropriate monetary policy for each of the 17 FOMC participants. The rationale behind the new public communications strategy is to create greater guidance on the likely path of monetary policy. The statement from the FOMC reads as follows: “ The Committee seeks to explain its monetary policy decisions to the public as clearly as possible. Such clarity facilitates well-informed decision-making by households and businesses, reduces economic and financial uncertainty, increases the effectiveness of monetary policy, and enhances transparency and accountability, which are essential.” Researchers have suggested an explicit inflation target would provide more support for financial stability by helping to anchor long run inflation expectations. A commitment from the FOMC to be more explicit in their communications regarding monetary policy comes closer to realizing these benefits. of inflation to fall below the FOMC’s long run inflation expectation and quasi-target. The Federal Reserve Bank of Philadelphia’s Survey of Professional Forecasters, of which I’m a panelist, anticipates inflation in 2012 will remain below the FOMC’s long run expectations. Market participants also now hold these same expectations. Inflation expectations inferred from five-year Treasury Inflation-protected Securities (TIPS) remain below two percent. I hear from many of you regarding your concern for near-term inflation and you are not alone. The University of Michigan Survey of Consumer Attitudes suggests consumer expectations for inflation remain above that of professional forecasters and the implicit expectations of fixedincome market participants. Shawn G. DuBravac, Note the Consumer Price Index What’s Coming Next? @twoopinions (CPI), a key measure of inflationary presThe published central tendency expectasures, has declined each month since Septions for inflation suggest inflation over the next three years will run below the FOMC’s tember 2011. This largely has been driven by long run expected (and therefore desirable) declining food and energy prices over this rate of inflation. This certainly leaves open same period. As of this writing, the annual the door for further monetary accommo- inflation rate is three percent (December dation from the Federal Reserve. With Fed 2011). Consumer perceptions and expectafunds rates already low, further monetary tions for inflation are influenced by energy accommodation will likely come in the prices and a slowing global economy in form of additional asset purchases—quan- 2012 that will contribute downward prestitative easing or as this third commitment sure on energy prices and subsequently to quantitative easing will likely be referred inflationary pressures. If the official statistics are to be believed, inflation in places as to in the press—QE3. The Federal Reserve isn’t alone in its diverse as China is slowing which is likely expectations for inflation. Professional a result of decelerating global growth as forecasts also expect the near-term path Europe moves into recession. 4 March/April 2012 Uncertainty will influence 2012 and possibly several years hence. In all of this, the FOMC must balance perceptions in the market to ensure they maintain the credibility necessary to accomplish their mandate for stable prices. But importantly, the Federal Reserve has a dual mandate to not only maintain stable prices but also maximize employment. The Federal Reserve speaks to its mandate for prices in the following statement: “ The inflation rate over the longer run is primarily determined by monetary policy, and hence the Committee has the ability to specify a longer-run goal for inflation. The Committee judges that inflation at the rate of two percent, as measured by the annual change in the price index for personal consumption expenditures, is most consistent over the longer run with the Federal Reserve’s statutory mandate.” However, as long as economic growth remains below trend growth, employment will continue to drop and unemployment will continue to rise. This is squarely my expectation for 2012. Ambiguity Persists Through all of this, we face a tremendous amount of uncertainty. This uncertainty will influence 2012 and possibly several years hence. Uncertainty is also evident in the newly released information from the Federal Reserve which, as I mentioned above, also includes each individual policymaker’s expectations for the path of monetary policy. There was a very large range in expectations regarding in which year the Fed would begin interest rate hikes. While the public commitment to transparency is palpable there remains significant divergence and uncertainty within individual expectations. While inflationary pressures should be maintained in 2012 and the Federal Reserve remains committed to its dual mandate, overall uncertainty remains of key concern. • CEVision.org Michael Northrup THE ECONOMIST GOING GLOBAL VISIONARY VISIONARY CE’S CUTTING EDGE LEADERS ] • [ BY CINDY LOFFLER STEVENS 20th Century Fox Home Entertainment’s Mike Dunn Fox has produced and distributed the two highest-grossing films of all time, TITANIC and AVATAR as well as other successful film franchises like STAR WARS, ICE AGE, X-MEN, DIE HARD and HOME ALONE, acclaimed TV shows such as MODERN FAMILY, GLEE, THE SIMPSONS and FAMILY GUY and indie success stories including SLUMDOG MILLIONAIRE and JUNO. How does your business model work? W ho loves a cool gadget more than James Bond? That’s exactly why Mike Dunn, worldwide president of 20th Century Fox Home Entertainment, chose the 2012 International CES to announce the release of the entire BOND film series on Blu-ray, bringing along several notable film directors and Bond girls with him. Dubbed Bond 50 for the series’ 50th anniversary, it includes all 22 films. After all, Bond would love to roam the halls of CES. Dunn also continued Fox’s tradition of hosting The Director’s Vision, a panel at CES with longtime partner Panasonic on the innovations that help preserve the craft of leading Hollywood filmmakers. Fox is at the forefront of creating a digital pathway for consumers between what’s familiar and what’s possible in home entertainment. As Dunn puts it, “we are on the verge of another monumental event in the media business. We rarely have the living room escalating into high-def TVs, thin TVs, and portable devices proliferating at a rate that’s never been seen before.” CEVision.org Movies are released theatrically around the world with a robust marketing campaign, followed by a home entertainment release, then a pay TV channel and free TV. A film’s life cycle allows for many opportunities to monetize vs. just a one shot model. Our content has many different budget levels. For example, Chronicle has been very successful and was produced for under $20 million. On the other end, we have movies like AVATAR that take years to develop and cost hundreds of millions to produce. Before we make a movie, we match the production cost against the potential audience. Is content distribution radically changing? Yes and quickly, but our goal of delivering the best entertainment experience to audiences remain the same. The televisions are getting bigger, hi-def is taking over and its functionality now includes connectivity and 3D—the living room is transforming. Also, the media business is becoming portable with tablets and smartphones proliferating at a pace never seen in consumer electronics before. And our content is going both ways. A box office success this year, Fox’s CHRONICLE is a fresh and original film from first-time director Josh Trank—just one example of the importance of new voices to the studio. ing the razors and we are selling the blades. If we align, things are very successful for both of us. The most obvious success in the history of the CE business is the DVD. It revolutionized the CE business and at the same time, it revolutionized Hollywood. Who are your CE partners? We have very strong relationships with Panasonic, Samsung, JVC and Sony—not only on their CE devices but also on Sony’s PlayStation, Microsoft’s Xbox and with companies like Western Digital and SanDisk. We work incredibly close with them and are constantly looking to begin new ones with others. Why is CEA important to Fox? Our partnerships within the CE community are very important to us. It is like the razor/razorblade relationship, they are sell- Charlize Theron and Idris Elba in PROMETHEUS. March/April 2012 5 VISIONARY Type: Subsidiary of 20th Century Fox Industry: Home Entertainment Founded: 1976 Headquarters: Century City, Los Angeles Owner: News Corporation Website: foxconnect.com Visionary filmmaker James Cameron bringing the world of Pandora to life on set during the making of AVATAR. Why did you create the Director’s Panel at CES with Panasonic? We want to demonstrate the quality of the movies and how important it is to the experience on these devices at home. We believe that content is king and the filmmaker anoints the king. I’ll give you an example. Jim Cameron went through AVATAR frame by frame and color corrected every moment for the home entertainment release, it took him over three months. He and his producer Jon Landau looked at AVATAR on every possible device out there, from the high-end to the standard models. He even gave directions on how to adjust your TV to get the best experience. For a film buff, details matter. On these devices with great filmmakers, the details are incredible. In the case of AVATAR, he invented a planet, a language, botany, animals—there was nothing in the film that existed before. In order to be a great movie, the audience has to suspend belief. How important is Blu-ray? Blu-ray is driving growth, consumers love it and it offers the best experience out there. On a planet chart, Blu-ray would be Jupiter while YouTube would just be an asteroid out in deep space. Blu-ray provides 25–40 megabits per second and it carries 50 gigs of information so it is throwing tremendous amounts of data at a very high bit rate against your TV. Filmmakers like 6 March/April 2012 Oliver Stone, Michael Mann and Ridley Scott spend so much of their career working on details to bring audiences into that film, and they appreciate the result that Blu-ray delivers. Has Blu-ray been a success for the studios? Blu-ray is really one of the great Hollywood success stories. We crossed $2 billion in software sales in 2011. We’ll cross $3 billion in 2012. Also on a side note, to me the Blu-ray player is one of the most future proof devices a consumer can buy. For less than $150, a Blu-ray player is backwardcompatible for your DVDs, it’s 3D and its connected. So it really is a killer device. Will connected TVs change how consumers interact with their content? It opens up a large a la carte offering to the viewer. If you look at most of the cable programming, it is still linear. There are some on-demand services but in the case of connected televisions you can tap into deep libraries of content and it can deliver what you want, when you want it, very efficiently. The one drawback is it’s at a lower bit rate so there is a quality differentiation. What is UltraViolet? Can you talk a bit about the benefits of a digital locker in the cloud? UltraViolet is a component of the digital ecosystem, it is in beta release right now. Fox supports fostering simple, affordable, accessible ways for consumers to access their entertainment anytime and enjoy it across their devices. With that you’ll get mass consumer adoption. There are four key components that are critical. The first is storage. Right now you keep your DVDs and Blu-rays on your shelf or in a cabinet. In the future, your purchases will be stored in a digital locker with a fantastic interface for easy access. The second is convenience and access. DVD was so successful because it didn’t get locked under the TV in a DVD player. It could be inserted into a laptop, portable device or into an automobile. It extended the rights of that content across many devices that you didn’t have with a bulky VHS tape. It was easy to justify buying a DVD because you could play it in so many different places. Digital content is going to have even more consumer rights and play on even more devices. You can bring it to your big screen TV, you can move it to your tablet or you can move it to your phone. The third element is quality. When you buy a movie, you’ll get the highest resolution possible for every playback device. It will be delivered through an integrated file that renders HD quality to large screens or SD to a portable device. The content will move fast and it will be the right file size for the device that you are using at that moment. The final component is trust. The promise of having the content they purchased always there is vital. Consumer confidence in true ownership is extremely important. With full UV, you will be able to stream or download content from your digital locker to up to 12 devices. Once you download the content, you will be able to move it from device to device regardless of which retailer you bought it from or service provider it is played back on. CEVision.org VISIONARY “There is an unprecedented growth of HD adoption, and with the mainstream acceptance of Blu-ray and the introduction of Blu-ray 3D, we now have opportunities to present our movies in the home at a quality level never seen before. It’s exciting to work with Mike and the whole Fox Home Entertainment team to bring this dream to life.” —James Cameron, Filmmaker Is this the future of content? Yes, the development of the digital ownership model is a key priority for the future of our business. Given all of the different services that are available—Netflix, HBO Go, Amazon Prime Instant Video—the content quickly gets fragmented. The reason we buy the movies we love is because it is always available when we want to watch it. You don’t want to go on a hunt and search mission through a variety of subscription services to find it. You’ll be able to buy it once and have it forever. So it won’t become obsolete? Digital is very future proof. For the consumer, the concept of future proof is incredibly important. What are your thoughts about 3D? We are bullish on the 3D format in the theater and in the home. Three of our key upcoming tentpole titles will be presented in 3D: PROMETHEUS (June 8) directed by Ridley Scott, ABRAHAM LINCOLN: VAMPIRE HUNTER (June 22) produced by Tim Burton and directed by Timur Bekmambetov, and ICE AGE: CONTINENTAL DRIFT (July 13), our fourth installment. We are also converting the Will Smith movie I, ROBOT with JVC. What role do apps play in how consumers access content? A growing number of consumers are using a secondary device like a smartphone or a tablet while watching movies and TV shows at home. This is a tremendous opportunity for us. For example, with SONS OF ANARCHY, a hugely successful show on FX, we created an interactive shopping app called “SOA Gear” for the iPad. It gives the loyal fan base a way to shop for exclusive and licensed merchandise while watching the show. This opens the door for endless ideas on expanding what is possible with our content through the advancements of technology. • Baz Luhrmann, Michael Mann, Oliver Stone and Mike Dunn at the Filmmakers Panel at CES. CEVision.org March/April 2012 7 BRINGS EVEN HIGHER RESOLUTION TO TV During the London Olympics this summer, some viewers around the world will get a glimpse of television’s next vision. Ultra highdefinition TV (UHDTV)—also known as 4K and Super Hi-Vision—telecasts of selected Olympic events will be shown at public venues globally, starting in late July. Britain’s BBC will display 4K coverage on 15-meter display screens around London, and NHK plans to show some games on similar big screens. A 4K feed is also scheduled to be on display in Washington, D.C., although details have not been disclosed. “UHDTV promises to bring about one of the greatest changes to audio visual communications and broadcasting in recent decades,” says Christoph Dosch, chairman of the Broadcasting Service Study Group of the International Telecommunications Union, which is helping to coordinate the Olympic “ultra” productions. “Technology is truly at the cusp of transforming how people experience audio visual communications.” Visitors at the 2012 International CES in Las Vegas in January got an advance peek at TV’s next wave of display technology, which delivers four times the on-screen picture information of today’s best HDTV, hence the term “4K” to describe the new category. Its pictures are displayed in 3480 x 2160 resolution or about 8.3 million pixels compared to a maximum of two million pixels for current HD. B Y G A R Y A R L E N • I L L U S T R AT I O N B Y M A R T I N A N S I N 8 March/April 2012 CEVision.org March/April 2012 9 “The special feature of 4K is that its higher resolution allows for more detailed pictures and larger screen size,” explains Tim Alessi, director of new product development at LG Electronics, which showcased an 84-inch Ultra HD screen at CES. “That means viewers can sit closer without seeing pixel grid. 4K adds the extra pixel density that you wouldn’t see on a regular screen.” That visual intensity is why the numerous CES demonstrations of 4K frequently generated “wows” and awestruck gasps as viewers took in the extraordinary colors and clarity of 4K images, often shown in side-by-side comparisons with conventional HD monitors. The picture quality was breathtaking at standard viewing distances and was vividly clear farther back across the booths. LG, Panasonic, Samsung, Toshiba, Sharp, Sony, Vizio and others showed prototypes of 4K sets ‘virtual holodeck’”—an immersive visual experience, predicts Steve Koenig, director of industry analysis at CEA. He also sees the evolution of technology at work here. For example, 4K with its greater resolution may ease the way for passive “It will be a challenge for broadcast channels to carry UHDTV, but at one time it was thought that digital HDTV was impossible.”—Brian Siegel, Sony Electronics which may reach market by late this year. Sony showed three home theater displays featuring 4K technology, including a demonstration up-scaling a 1080p image to 4K resolution. One of the displays featured a Sony 4K projector, a home version of devices being used in digital cinema. Analysts acknowledge that the 4K juggernaut is in its earliest phase. Even the name is still up in the air, with various terms including “ultra HD” and “super HD” still bandied about to describe the emerging category. Arriving at about the same time as the new big-screen OLED (Organic Light Emitting Diode) technology, which is an emissive electroluminescent display format, 4K resolution technology opens the screens for incredible visual experiences and also for more complicated consumer options. “This wave of increasingly higher resolution displays may be the stepping stones across the evolutionary path toward the 10 March/April 2012 3D glasses, which are priced lower than active-matrix 3D glasses and thus 4K resolution could invigorate the 3D category, Koenig says. Koenig agrees that there’s no problem with the 4K category name being in flux. “Whatever we wind up calling it, the industry will get that sorted out,” he says. The 4K value proposition is a more significant factor. Koenig points out that a technical standard and specifications are still works in progress, and that there are slight differences in pixel counts and other factors that will become essential when 4K content begins to flow. “Based on our research, content is a pre-requisite for market acceptance,” Koenig adds. MORE THAN 4K Sony, which demonstrated a prototype of its new Crystal LED at CES, acknowledges that the system is still in development, and no distribution timetable has been set. Still Brian Siegel, vice president of television for Sony Electronics, focuses on the high resolution as the primary attraction in this next wave of TV sets. “With Crystal LED, each pixel contains an LED for each of the red, green and blue color spectrums, a total of six million LEDs on the two million pixels of the prototype shown at CES,” Siegel explains. “What this means is that each pixel has a self-emitting light source, [which] is not the case with LCD screens,” he adds. Despite the aggressive efforts to establish a home 4K presence, the road to 4K may be as demanding as the Olympic competitions themselves. The bandwidth needed to transmit 4K images will stress broadcast and cable channels initially. And video producers’ limited capabilities to create 4K content resemble the 3D dilemma of the past few years: an initial paucity of content, followed by a deluge of original content. “It will be a challenge for broadcast channels to carry UHDTV, but at one time it was thought that digital HDTV was impossible,” observes Mark Richer, president of the Advanced Television Systems Committee (ATSC). He points out that NHK in Japan as well as the ITU are doing 4K transmission research, but he adds that it’s “not clear if UHDTV will be a priority for broadcasters or [if ] other services such as mobile DTV will be more important.” Nonetheless, 4K technology is entering the TV market in a variety of ways. “4K may be the greatest thing that happens to HD,” says Mark Schubin, an Emmy-winning TV engineer, who focuses CEVision.org on the evolution of production tactics. “At the tail end of the standard-definition era, producers were shooting with HD cameras and over-sampling. 4K cameras inherently over-sample, which makes it so much better looking even if you watch the show on a traditional HD set.” timed with the introduction of 8K into the general marketplace. In addition to the resolution improvements, video technologists are working on other display technologies to enliven the viewing experience. For example, quantum dots (QD), semiconductors “The special feature of 4K is that its higher resolution allows for more detailed pictures and larger screen size.”—Tim Alessi, LG Electronics Schubin, a long-time technical consultant to Lincoln Center’s Metropolitan Opera and an organizer of major Hollywood production technology programs, cites other 4K routes to market. Studios have been working on 4K for at least 10 years, he notes, with the expectation that it will emerge in digital cinema theaters. “Now we’re in a new era where people have large screens and home theaters,” Schubin says. “4K is a differentiator.” LG’s Alessi agrees, pointing out how his company is integrating “3D cinema, the smart TV platform and magic remote” (with gesture control and voice recognition) as part of the experience. Mark Viken, vice president of marketing at Sharp Electronics Marketing Company of America expects a similar progression toward 4K. Sharp, which calls its technology ICC 4K, jointly developed its system with the I-cubed Research Center Inc. The display “pre sents a clearer, more life-like image” and “intelligently up-scales from HD to 4K [to] provide a real-viewing equivalent to the natural world,” Viken says. WHAT’S BEYOND 4K? 8K. It displays 7680x4320 resolution— about 33 million pixels, which is 16 times that of today’s HDTV sets. Sharp showed an 8K prototype at CES in the form of an 85-inch LED display. “8K is scheduled to be demonstrated at high-profile public venues throughout 2012, including the Summer Olympics,” says Sharp’s Viken. “The dates for mass production of Sharp 8K products have not yet been determined, but will be CEVision.org with electronic characteristics tied to the size and shape of the individual crystal, are coming to TV displays. The British university research lab which developed the QD technology is working with Korean, Japanese and other TV set makers to create lower cost, energy-efficiency displays and other products possibly available within the next few years. The scope of the “ultra” and beyond TV evolution is prompting organizations throughout the media, electronics and telecommunications infrastructure to rethink how TV will work. At Cable Television Laboratories (CableLabs), the cable industry’s non-profit research consortium, David Broberg, vice president of consumer video technology, points out that these high-bandwidth display technologies will benefit from future Internet Protocol delivery. “Delivering 4K directly to the final display via IP connections avoids the digital interface bottleneck,” Broberg explains. “This approach can also take advantage of faster adoption rates for AVC and HEVC decoding technology directly within future 4K receivers.” HEVC (High-Efficiency Video Coding) is a proposed video encoding technology being devised by the ITU and the Motion Picture Experts Group (MPEG) as the follow-up to H.264/MPEG 4 AVC (Advanced Video Coding) codec. Broberg adds that the new HEVC compression standards are well suited for 4K delivery, although they are not yet deployable. “They promise the ability to deliver high-quality 4K content at bit rates being used today for 1080p content (five Mbps to six Mbps),” he says. Although limited 4K tests could take place using existing AVC coding (at rates between 10 Mbps and 20 Mbps) on existing infrastructure, Broberg expects, “It could take years before standards are sufficiently defined to make this widely available.” That coincides with other predictions about the 4K timetable. As it was a decade ago for HD, the primary initial content source may be pre-recorded content. Blu-ray discs have the capacity to store a 4K movie, although studios have not yet decided if they will use that format. The 4K rollout process is under review worldwide. NHK, the Japanese network that first demonstrated the format in 2003, plans to begin test broadcasts of UHDTV in 2020. The network first began exploring 4K in 2000. Meanwhile, ITU expects to issue its first draft standard for HEVC early this year, with a target for adoption by mid-2013. Panasonic’s Chief Technology Officer Eisuke Tsuyazaki acknowledges the need to coordinate 4K display release with the availability of broadcast, cable, satellite or other transmission technology. He envisioned the initial installation of 4K displays for medical use as well as computer graphics and design. “It’s going to be a while until 4K gets into living rooms,” Tsuyazaki said in published reports during CES. “It’s not a technical issue. The biggest issue is content.” And that’s where the London Olympics telecasts play a key role. The limited public 4K displays will give viewers a preview of the stunning images awaiting them. The risk, as always in the CE industry, is that viewers will be so enticed by 4K that they decide to postpone purchases of currently available—and lower priced—OLED highdefinition displays. At the same time, the 4K demonstrations much like the other advanced visualization exhibits at CES, including Crystal LED, 8K and more, are reminders that there will always be something aspirational to watch: bigger, better and brighter. For now, that’s what “ultra,” “super” and “extreme” mean for television. • March/April 2012 11 WIRELESS MICROPHONES › WIRELESS MICROPHONES › WIREL SMART UTILITY METERS › SMART UTILITY METERS › SMART UTILI CELLULAR TRAFFIC › CELLULAR TRAFFIC › CELLULAR TRAFFIC Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › BLUETOOTH › RFID ›Wi-Fi › › UNUSED TV SPECTRUM BY RON SCHNEIDERMAN Unused and unlicensed spectrum between TV channels—called white space—is opening up spectrum-starved bandwidth for mobile data network operators and users. And just in time. Ericsson projects a 10-fold increase in global mobile data traffic between 2011 and 2016, with mobile broadband connections growing from 900 million in 2011 to almost five billion in 2016. Julius Genachowski, chairman of the Federal Communications Commission (FCC), warned of a “spectrum crunch” at the 2012 International CES Show in Las Vegas and said U.S. leadership in mobile markets is at stake without Congressional action on spectrum legislation. In mid-February, Congress acted and the president signed a law allowing spectrum sales. (See sidebar.) The Yankee Group, a market research firm, estimates that by 2015, consumer use of wireless applications and services will be almost 60 times today’s volume. Michael Flanagan, the chief technology officer of Arieso, a U.K.-based consultancy for mobile operators with clients in the 12 March/April 2012 U.S., Europe, and Africa, says the introduction of increasingly sophisticated devices, coupled with growing consumer demand, is creating unrelenting pressure on mobile networks. “The capacity is still a very real threat for mobile operators, and it looks set to only get harder in 2012.” An Arieso survey in November 2011 found that one percent of consumers currently generate half of all mobile traffic in the world, while the top 10 percent of mobile users are consuming 90 percent of wireless bandwidth. Today, the most active users account for about 70 percent of mobile traffic. About 64 percent of “extreme users” of mobile data use laptops, according to Arieso, a third use smartphones, and three percent an iPad. To help reduce the growing pressure of traffic on wireless networks, the FCC has approved rules for the use of unlicensed, unused “white spaces” in the spectrum between TV channels. Both houses of Congress also significantly helped the cause of TV white spaces supporters when they passed the payroll tax extension bill, which allows the FCC to create bands of unlicensed white space spectrum. On the official FCC blog, Julius Knapp, chief of the FCC’s Office of Engineering and Technology, says the availability of spectrum for unlicensed devices has already fueled a wave of innovation for new businesses based on technologies such as Wi-Fi, Bluetooth, cordless phones, RFID, smart utility meters, baby monitors, and many others that could include a range of applications for the smart grid, off-loading cellular traffic to unlicensed spectrum, distance learning, regional area public safety/ homeland security/emergency broadband services, monitoring rain forests, broadCEVision.org NEAR-FIELD COMMUNICATIONS PAYMENTS › NEAR-FIELD COMM ‘BACK CHANNEL’ APPLICATIONS › ‘BACK CHANNEL’ APPLICATI DISTANCE LEARNING › DISTANCE LEARNING › DISTANCE LEAR HOMELAND SECURITY/EMERGENCY › HOMELAND SECURITY/EM RURAL BROADBAND SERVICE › RURAL BROADBAND SERVICE › RU SHOPPING SERVICES › SHOPPING SERVICES › SHOPPING SERVI ONLINE VIDEO GAMING › ONLINE VIDEO GAMING › ONLINE VIDEO OPENS TO MOBILE APPS band service for multiple dwelling and multi-tenant units, and small office/home offices and campuses. WHERE IS IT? The white spaces are the narrow slices of frequencies in the 700 MHz band that were freed up by the FCC as part of the transition of TV channels from analog to digital in September 2010. While the U.S. is just starting to dig into these new spectrum opportunities, most of Europe is already moving forward to take advantage of the frequency bands between TV channels. Ofcom, the United Kingdom’s FCC equivalent, has approved the use of white space spectrum for broadband Internet and other services in the U.K. Last year, U.K.-based Neul teamed with California-based Carlson Wireless to develop and market a white space network that focuses on underserved markets. Regulators in other European Union member states are considering similar action. Of course, making the white spaces available to mobile device vendors and service CEVision.org providers didn’t go down without a fight, mainly from TV broadcasters. The National Association of Broadcasters (NAB) formed the Future of TV Coalition to lobby the FCC and legislators to oppose the takeover of unused spectrum between TV channels for wireless applications. The NAB was joined in its opposition by the Coalition of Free TV and Broadband, representing low-power TV and translator stations that suggested alternatives that would enable them to offer point-to-multipoint broadband services. The NAB claimed that the use of the white space frequencies would reduce the broadcast quality of their TV signals, and that current spectrum levels are insufficient to provide wireless broadband to American consumers. But since filing formal arguments with the FCC, some broadcasters have begun rethinking the commission’s decision and are now considering using the white spaces for interactive “back-channel” applications to deliver highly local content. Wireless interests have also argued that broadcasters could also benefit by using the white space to offer online video games, shopping services, and other data applications. The white spaces may also create an opportunity for cable companies to deliver wireless broadband services. (Further bolstering the case of the wireless community, position papers published by a number of industry sources suggest that much of the spectrum is idle at any given time. Rohit Gaikwad, director of systems design engineering at Broadcom, also says a coalition of companies is lobbying the FCC to reduce restrictions of bandwidth to allow a bit more leakage into the TV channels to demonstrate that it doesn’t cause serious interference problems, especially with digital signals.) MANAGING THE SYSTEM To manage the use of white spaces, FCC rules require that devices in the U.S. query a TV bands database to obtain a list of channels that are available for their operation, ensuring the protection of licensed services. The FCC has approved 10 differMarch/April 2012 13 ent database providers to conduct 45-day public trials of their systems. Florida-based Spectrum Bridge says it successfully completed the trial on November 2, 2011, and the company formally filed a Summary Report of the trial (which can be found on the FCC’s electronic filing system). As of this writing, only Spectrum Bridge received FCC approval to operate its cloudbased spectrum management TV white spaces database system, beginning with a phased deployment in Wilmington, N.C. The North Carolina community was the first to switch from analog to digital TV. The FCC has also agreed to set aside two channels for wireless microphones to mitigate potential interference from news production crews or entertainment venues and others who might use the spectrum to support wireless microphones and other devices for brief periods. “Now that the solution is approved by the FCC, TV white space will be the proving ground for showing the market how our solutions can be used for spectrum bands in the U.S. and globally,” says Rod Dir, Spectrum Bridge’s CEO. In fact, major industry players are beginning to take a larger role in how spectrum is allocated and managed. For example, Qualcomm and Nokia have recently proposed the concept of Authorized Shared Access, which allows spectrum sharing via cognitive network techniques aimed at benefiting consumers and helping to sustain economic growth. In early December, Telcordia, a specialist in mobile broadband and enterprise communications software and services, announced that the FCC’s Office of Engineering and Technology would begin a 45-day public trial of Telcordia’s white space database. The FCC also conditionally designated Microsoft as a TV bands database administrator. (Microsoft was the tenth and final entity to be named by the FCC to test a white space database.) The white spaces are expected to be especially useful for serving less populated, rural areas and developing countries where there are more vacant TV channels, even in the U.S. where the Department of Commerce says that only 57 percent of rural U.S. households have broadband Internet access, compared to 70 percent of urban households. 14 March/April 2012 “The development of the 802.22 standard started out for the sole purpose of meeting the demands of rural areas.” —Apurva N. Mody, IEEE 802.22 Standard Working Group SETTING A STANDARD At least one new technical standard is helping to smooth the way to the use of these white spaces, ensuring that just about anything designed and built for this newlyavailable spectrum is interoperable. The Institute of Electrical and Electronics Engineers (IEEE) published the IEEE 802.22 standard in July 2011 to provide reliable and secure broadband access to wide regional areas around the world. IEEE 802.22 incorporates several advanced features, including cognitive radio capabilities, accurate geo-location techniques, and spectrum sensing. The characteristics of the standard are considered ideal for wide bandwidth applications in the U.S., Asia and Europe, particularly through wireless regional area networks (WRANS). Another standard likely to benefit from using white space is IEEE 802.11af. Sometimes known as White-Fi, it could provide services similar to IEEE 802.11 Wi-Fi. The difference between Wi-Fi 802.11a/b/g/ and the proposed 802.af is that the newer standard is based on evolving “smart” or cognitive radio technologies for operation in the TV white spaces, using emerging softwaredefined radio (SDR) technologies that can potentially interoperate with virtually any wireless transmission standard. 802.22 and 802.11af may also find different applications of white space. While 802.22 is more “WiMax-like,” targeting wide regional, possibly rural, broadband areas (at least, initially), 802.11af is closer to Wi-Fi in terms of its likely applications. “Today, more than half the world’s population lives in rural areas with hardly any access to broadband. The development of the 802.22 standard started out for the sole purpose of meeting the demands of rural areas,” says Apurva N. Mody, chair of the IEEE 802.22 Standard Working Group (www. ieee802.org/22) and chair of the WRAN Alliance (www.wranalliance.org). “Our focus was on the creation of rural networks.” But Mody also sees significant opportu- U K W H I TE S PA CE S TUDY While the U.S. is still seen as the driving force behind white space applications, a study by U.K.-based Cambridge Consultants indicates the European Commission is in the process of establishing a spectrum policy program to address similar issues. But the study says developing the EC program will “take time.” “Without doubt, standards developed in different parts of the world will initially be different,” the Cambridge study says, adding that, “harmonization will be required if white space is to be successful on a significant geographical basis in the long-term.” (None of this has been lost on China, which conducted a series of forums on IoT activities at the China Hi-Tech Fair in Shenzhen in November. The tech fair also featured nine pavilions focused on IoT developments.) Even with several players already active in white space applications, white space activity is only beginning to gain traction. In a recent issue of its magazine Interface, Cambridge Consultants says, “Because of the large number of possible areas where white space could be used, the technology is expected to emerge initially as a set of smaller bottom-up market opportunities. As the idea of unlicensed access to large parts of spectrum starts to take shape, white space has the potential to trailblaze a revolutionary new approach to wireless access.” CEVision.org nities for 802.22 in the consumer electronics sector. “It took some time for people to take up Wi-Fi-based products, but it has grown exponentially into a multi-billion dollar industry. I believe the same thing will happen with TV white spaces.” Mody also says that several advancements to cognitive radio are being considered to improve the performance of radios that would fit into white space applications. IN THE CHIPS Several chip companies and other industry vendors consider white space to be prime spectrum real estate because the signals in these TV bands travel well, and these ally replace 802.11n devices. (A number of companies, including Qualcomm Atheros, Broadcom, Quantenna Communications and Redpine Signals, are promoting the “ac” version of 802.11 for applications such as streaming video and for other home-based and mobile devices.) Product development is proceeding in parallel along with these standards. In the 802.11 world, products often get released when the draft of a standard reaches its second stage of approval, but before it’s actually ratified and official. “You know enough to develop and even release products after the second draft of the standard,” says Hurlston. “That’s typically what we would do.” “I think you will see a tablet technology where you don’t have to pay a subscription for wide area service. Probably less so (for) PCs and mobile phones.” —Michael Hurlston, Broadcom frequency bands are well suited for mobile wireless devices. Michael Hurlston, senior vice president and general manager of Broadcom’s wireless local-area network (WLAN) business, says the earliest 802.11af products could actually reach consumers would be toward the end of 2013, perhaps early 2014. He also sees the earliest opportunities for 802.11af applications in rural areas, possibly with the creation of local Internet connections or services. As for devices, Hurlston says, “I think you will see a tablet technology where you don’t have to pay a subscription for wide area service. Probably less so (for) PCs and mobile phones.” There’s also a push on for the adoption of another technical standard—802.11ac. IMS Research says that the number of announcements of 802.11ac chips with peak data rates of one Gbps or higher, compared to the 600 Mbps peak data rate of the more familiar 802.11n Wi-Fi standard and lower power consumption has prompted it to boost its forecast for the shipment of 802.11ac devices this year to three million, growing steadily to more than 400 million devices in 2016. The 802.11ac standard may not be finalized until late 2013, but it is expected to eventuCEVision.org INTERNET OF THINGS One of the elements of opening up the TV white spaces that has wireless carriers and device manufacturers excited is the opportunity to develop new integrated Webbased products and services that have become known as the Internet of Things (IoT), a concept in which smart things like wireless devices and appliances will easily be able to connect with other devices in their environment, possibly communicating directly with each other without going through a network infrastructure. Vendors have already identified several opportunities for the IoT space: One is micro or highly localized wireless Internet services for businesses (think “big box” stores such as Target and Walmart, supermarkets, or local government agencies) operating in rural or remote areas. Broadcasters could also use the IoT concept for interactive “back-channel” applications to provide local content and advertising. Another highly anticipated opportunity for IoT is just about anything that might improve the efficiency of energyrelated products, including smart metering and the control and monitoring of major appliances. The Gartner Group also sees opportunities for IoT in image recognition (identi- fying objects, identifying logos), near-field communications payment (allowing users to make payments by waving their mobile phones in front of a compatible reader), and embedded sensors that could detect app stores where hundreds of thousands of applications are available to mobile users. IoT concepts are also expected to be a boon to the already anticipated huge growth of machine-to-machine (M2M) devices that could “talk” to each other wirelessly. (The TIA recently released its Smart Device Communications Reference Architecture standard, TIA-4940, addressing M2M technologies and markets.) The Yankee Group expects enterprise cellular M2M connections worldwide fitting comfortably into fleet management, mobile health, security, connected energy, and industrial processes, to name a few potential high-growth market segments, surging from 81.8 million connections in 2011 to nearly 217.5 million in 2015. It also sees connectivity revenue more than doubling from $3.1 billion to $6.7 billion in the same time frame, making the M2M market one of the highest growth areas in the wireless arena in the next decade. One potential inhibitor to M2M’s success is the development of industry standards. Research firm Analysis Mason says interoperability could continue to be a challenge for M2M as major industry sectors develop products and services for both vertical and horizontal markets. • In February, Congress granted the Federal Communications Committee the authority to hold spectrum incentive auctions. This legislation will ensure that licensed and unlicensed spectrum are put to the highest use. CEA advocated for this legislation for years to improve the nation’s ability to innovate, create jobs in the future and meet the burgeoning needs of 21st century wireless networks. These auctions will bring additional revenue to the U.S. Treasury while handsomely rewarding broadcasters who choose to participate. Most important, this will help ensure wireless broadband products have more usable spectrum and thus will increase the likelihood that the U.S. will remain the global leader of the Internet economy. March/April 2012 15 GAMING’S CROWDED MARKETSPACE A BY JOHN GAUDIOSI MID THE GLITZ AND GLAM, Sony Computer Entertainment America used CEA’s 2012 International CES to showcase its newest portable game system, PlayStation (PS) Vita. Although the device launched in Japan in December with more than 500,000 units sold, Sony’s big global push for the new OLED display gaming gadget kicked off in North America in January. Sony however, faces challenges with its newest gaming device including stiff competition from Apple iOS and Google Android tablets and smartphones as well as strong sales from market leader Nintendo’s line-up of portable gaming hardware. Nintendo was also at CES with its Nintendo 3DS device, which sold more than four million units in the U.S. alone last year. But Sony is committed to PS Vita for the long haul with a 10-year plan for this upgradable device much like its PlayStation 3, which also offers interoperability between Sony’s portable and console devices. John Koller, director of hardware marketing for Sony Computer Entertainment America, concedes that launching the PS Vita is a challenge at a time when smartphones and tablets are competing with videogame systems for consumer attention. “There is a certain demographic that’s come to this expanding market and for that we applaud Apple and some of the Android devices for assisting us in bringing more consumers to this space,” he says. “We’ve built Vita around these types of big experiences like Uncharted: Golden Abyss, FIFA, Marvel vs. Capcom 16 March/April 2012 and Assassin’s Creed that aren’t possible on tablets or smartphones. The technology built into Vita far supersedes what is in the market or what will be in the market over the next few years.” Michael Pachter, videogame analyst for Wedbush Morgan Securities, forecasts that Sony will sell 4.3 million units of hardware globally this year, including 1.5 million in the U.S., 1.5 million in Japan and 1.3 million in Europe. He believes the biggest challenge for Sony is the price point, which is $250 for the Wi-Fi-enabled device and $300 for the AT&T 3G version. “While it’s not expensive, and arguably the PS Vita is a phenomenal value, it is the same price point as a PS3 with a large HDD (hard disc drive), so it’s hard for someone without a console to purchase a PS Vita before a PS3,” explains Pachter. “I think that will limit the Vita’s appeal to people who already have CEVision.org LAUNCHING THE PS VITA IS A CHALLENGE AT A TIME WHEN SMARTPHONES AND TABLETS ARE COMPETING WITH VIDEOGAME SYSTEMS FOR CONSUMER ATTENTION. CEVision.org battle with the Vita beyond Japan.” There are positives surrounding Sony’s replacement for its PlayStation Portable (PSP). Billy Pidgeon, videogame analyst at M2 Research, believes PSP taught Sony some valuable lessons. He says that PS Vita has better competitive prospects than did PSP, and the PS Vita retail performance should reflect that by an order of magnitude. THE BIGGER PICTURE With PS Vita, Sony is targeting its “PlayStation nation,” which consists of early adopter males in their twenties that purchase a lot of games and enjoy deep game experiences, according to Koller. PS Vita provides graphics that are closer to the PlayStation 3 than an iPad 2. Koller believes a lot of PS Vita owners already own a PSP and PS3, as well as other PlayStation hardware. March/April 2012 Glenn Pierce/TMG Custom Media a PS3, so the sell-through will be lower than many expect for a while.” Pachter also believes the PlayStation Vita cards, although priced lower than standard Sony memory sticks, are still pretty expensive. The limited built-in storage means that to buy downloadable games, consumers also have to buy extra storage, which increases the price of downloads. Gamers will have the choice of buying new games at retail stores or digitally, although many smaller games will be sold only as downloadable content through the PlayStation Store. “This is about brand awareness for Sony on a global level, and, 10 years after promising it, delivering on a vertically integrated product with software and content,” says PJ McNealy, videogame analyst at Digital World Research. “They have lost ground and have an uphill 17 S BREAKING DOWN PS VITA TECHNOLOGY ONY’S KEY SELLING POINTS for the PS Vita are built into the hardware itself. While the PS Vita doesn’t have a large screen like the iPad 2 or Samsung Galaxy Tab 10.1, it does showcase incredible depth through its five-inch OLED multitouch screen. Games like Uncharted: Golden Abyss come alive with the vibrant display. It’s the interaction with virtual characters in HD environments that separates PS Vita from both its competition from Apple and Google, as well as from Nintendo devices. The unit features a rear-touch pad, dual analog sticks, dual cameras, and a six-axis motion sensing system. PS Vita will also interact with the PlayStation 3 with certain games, offering multiplayer experiences across devices with no latency issues and introduce cloud gaming functionality, where players can start a game on the PS3 and continue it on the PS Vita. Both versions of the PS Vita offer a variety of social networking and communications services such as Facebook, Flickr, foursquare, Skype, and Twitter. There’s also “near,” which allows gamers to connect with other PS Vita players nearby. “Near” also enables locationbased gaming features such as “gifting,” in which a user can access virtual game-related items that other users are sharing by checking in at geographic locations that others have also visited. Another form of connectivity comes through “LiveArea,” an interactive space for each PS Vita game that allows players to access the latest information for games through PlayStation Network. Additionally, users can view an “Activity” log that is constantly updated with accomplishments from users who are playing the same game, which in turn can trigger active real-time communication among users. Additionally, PS Vita comes pre-installed with the “Party” app, which enables users to enjoy voice chat or text chat any time they’re connected to the Internet without needing to use Skype. 18 March/April 2012 When Sony first started the design process for PS Vita about four years ago, the company went to its game developers to discuss potential features for the device. Sony reached out to both its network of internal studios as well as third-party publishers to make sure that PS Vita games, especially the first generation of titles, would take advantage of its capabilities. (See sidebars) One of the first things to go was the Universal Media Disk (UMD). Created for the delivery of movies and games across the PSP line of devices, the disc was victim to piracy as well as negative press. The new format is an easier medium for developers to work with and Sony has experienced better operational efficiencies. “The UMD format, a pro- One update gamers won’t find in the future is autostereoscopic gameplay. While Sony continues to market the stereoscopic 3D capabilities of PS3, they’ve let Nintendo and a growing number of smartphone makers have the glasses-free portable gaming space to themselves. Koller says Sony looks at the larger screen as the resident technology for 3D gaming. Sony Computer Entertainment actually entered the 3DTV business last fall with its 24-inch PlayStation 3D LCD monitor and glasses. “We don’t think the smaller screen experiences are quite as compelling within the 3D space,” says Koller. “Certainly we have a lot of learning on the PS3 side and our research has shown that consumers enjoy “The way that we expect to change how Vita is used in play is through firmware updates, as we’ve done with PS3 very effectively.” —John Koller, Sony prietary version of optical-read disc media, was wrong for a portable device,” says Pidgeon. “Optical disc was a huge competitive advantage for Sony with the first PlayStation against competitive Nintendo and Sega home consoles, which used more expensive silicon-based media that required longer manufacturing cycles. Solid state media is far better for portable gaming devices.” With both PS Vita cards and digital distribution options, Sony has built the PS Vita for the long haul. The hardware maker released multiple versions of the PSP over a relatively short window and by the time the last device was released, they had abandoned the UMD completely in favor of digital downloads. “We’ve designed the PS Vita in the same vein as the PS3 and PS2 and we think that the ecosystem will live for 10 years,” says Koller. “We have no plans for hardware iteration at this point. The way that we expect to change how Vita is used in play is through firmware updates, as we’ve done with PS3 very effectively. You’re going to see features and applications added and changed as we go along. Certainly we have a pretty strong roadmap for the rest of calendar year 2012 and 2013.” playing it on the large screens, but have had health issues on the smaller screens. We would have eliminated some of our own consumer base through that avenue. Our bread and butter with 3D is PS3.” MORE COMPETITION But gamers are changing rapidly. Apple’s new iPad 3 is shipping with a new HD screen and a quad-core processor. And gaming tablets like Razer’s Project Fiona, which debuted at CES, and NVIDIA Tegra 3-powered devices like the Asus Eee Pad Transformer Prime are entering the space with advanced gaming capabilities. There is more competition in the videogame sector than ever. “Tablets are the fastest growing consumer electronics device in history,” says Jen-Hsun Huang, president, CEO and co-founder of NVIDIA. “Just as computerized technology has turned digital phones into smartphones, just as digital music has revolutionized music through technology, now tablets are changing the way people play games.” The first year of tablet sales saw 20 million devices sold to early adopters. The second year saw mainstream growth with CEVision.org A more than 60 million tablets sold. Part of that growth has come through Google Android tablets. While a quarter of all tablets sold in the first year were non-Apple iPad devices, the second year that figure rose to 40 percent. Part of that growth can also be attributed to NVIDIA’s powerful new chips, which are pushing both tablet and smartphone technology forward. “It’s a losing battle when it comes to portable game devices like PS Vita and Nintendo 3DS when you look at how fast tablets and smartphones are evolving,” said Ed Del Castillo, president of game developer Liquid Entertainment. “Tablets and smartphones are devices that you have to carry around with you anyway, whereas you don’t have to carry around a 3DS or a PS Vita because you’re not using that as your phone or as your portable computer.” Considering the game maker is in second place against Nintendo without Google and Apple in the mix, there remain questions about the future of dedicated portable gaming devices beyond the PS Vita. There are more than 250 million Android devices in the market today with 700,000 new activations a day, providing an enormous base for content developers. Game developers can now target one, cohesive user base thanks NINTENDO 3DS BREAKS RECORDS FTER A SLOW START OUT OF THE GATE in February 2011, due in large part to its $250 price point, Nintendo dropped its price for the 3DS to $170 in August. Consumers responded to the new price point as Nintendo sold four million units of hardware in the U.S. and an additional four million in Japan in 2011. It’s worth noting the original price point, because Sony’s PS Vita carries a $250 launch price point in the U.S. and its games cost as much as $50, which is more expensive than Nintendo 3DS games, at $40. Nintendo also connected with gamers by bringing key franchises like Super Mario 3D Land and Mario Kart 7 to 3DS. Each game sold more than one million copies in the U.S. alone last fall. “Consumers are really going to come to our devices, first and foremost, for gaming experiences,” says Scott Moffitt, Nintendo of America’s executive vice president of sales and marketing. “If you can provide other non-gaming, entertainment experiences as well, that really just helps push them over the fence and solidify the purchase.” Nintendo has expanded the capabilities of its 3DS by offering 3D video recording capabilities, which allow users to record up to 10 minutes of 3D video. The game maker has also launched a series of original 3D shorts, partnering with Hollywood studios like Dreamworks Animation and entities like The Blue Man Group and College Humor to provide free entertainment for gamers. Nintendo continues to support its Nintendo DSi, Nintendo DS XL and Nintendo DS devices, on top of Nintendo 3DS. And new games for all platforms are being rolled out in 2012, as the game maker continues to push glasses-free 3D gaming to the mainstream audience. “While it’s not expensive, and arguably the PS Vita is a phenomenal value, it is the same price point as a PS3 with a large HDD (hard disc drive), so it’s hard for someone without a console to purchase a PS Vita before a PS3.” —Michael Pachter, Wedbush Morgan Securities to the new Google Android Ice Cream Sandwich operating system. Developers are currently launching 14,000 new Android apps a month, and a large percentage of these are games. Apple has over a half a million apps available for its devices and these numbers continue to grow exponentially. But that’s just part of the gaming competition. New streaming capabilities from companies like OnLive, Gaikai and even apps like Splashtop allow PC quality games to be streamed with no lag on tablets. NVIDIA CEVision.org demonstrated Skyrim streaming from a PC to an Asus Eee Pad Transformer Prime at CES. Tablets and smartphones are advancing at a record pace. Tegra 6 chips will be 100 times more powerful than Tegra 2 chips that debuted just last year. It’s not just the portable gaming space that these devices are impacting, but the very future of game consoles. Tablets can now stream games to HDTVs, serving as portable gaming devices as well as “consoles” while at home. Game retailer Gamestop is already selling tablets and game controllers designed for them alongside Xbox 360s, PlayStation 3s and Wiis in its stores. Nintendo has a new Wii U launching in 2012 while Sony and Microsoft are expected to introduce new consoles in 2014. But beyond that, the future of gaming is likely going to take a tablet form. Sony already makes PlayStation Certified gaming tablets and smartphones, but it separates its game division through Sony Computer Entertainment and its exclusive game franchises. PS Vita and Nintendo 3DS face challenges, but Sony and Nintendo will continue to push their current devices to the masses. Tablet prices still need to drop to the Kindle Fire and Nook level, but that is happening. It’s just a matter of time, and Moore’s Law, before all gaming also comes in a portable device. • March/April 2012 19 CEAnewsline SBC PROFILE President Product for Profit Karen Waksman CE Vision sat down with Karen Waksman, a new addition to CEA’s Small Business Council (SBC) and a first-time CES attendee, to find out more about her training program “Retail MBA: How to Sell to Walmart and Other Chain Store Retailers.” Waksman describes herself as a “manufacturer rep turned speaker and trainer.” In addition to leading seminars and Webcasts for groups like CEA’s SBC, Waksman’s company, Product for Profit, has developed a training program called Retail MBA that teaches new and established companies, alike, how to get their products into small, chain and online retailers as well as catalogs. Having represented products in multiple industries, Waksman understands what it takes to sell to retailers. She parlayed her pas- MEMBER LINK The International CES is our highest value tradeshow of the year. 20 March/April 2012 sion for small business and innovation with her experience as a manufacturer’s representative to teach small businesses how to prepare a product for retail, pitch a chain store buyer and turn a lead into a sale. She says what started as a fun side project quickly grew into a huge business opportunity. “I published an eBook outlining my little formula that I’ve used for years to get products into stores,” she says. Once published, her eBook led to speaking opportunities and ultimately evolved into a com- prehensive training program. Waksman’s message strongly resonates with small businesses and entrepreneurs, if the enthusiastic audience at her CES conference presentation or top-rated series of SBC webinars is any indication. “There are a lot of people just starting out who have no clue how to get retail ready,” Waksman says. She believes that the most common misconception is that chain store buyers aren’t interested in working with a one-sku company just starting out. “Buyers are constantly looking for innovative new products. Often small companies can do that quicker and better,” she says. “I 100 percent believe that companies just starting out have a great chance of getting their products into chain stores.” The 2012 International CES was Waksman’s first. “It was the coolest thing I’ve ever seen and I felt very lucky and blessed to be there and be a part of it,” she says. Waksman believes trade shows are a strategy for reaching retail buyers. She asks, “What’s better than having buyers come to you?” Waksman is also very excited as a new member of CEA to become active in the SBC. Waksman offers some tips for small business owners trying to make an impact at a show like CES. First, she recommends that exhibitors identify and reach out to retail buyers in advance to build excitement for a new product and extend an invitation to come see them in their booth. Second, she encourages product companies to exhibit when they are “retail ready.” This means having an actual product to demonstrate (including packaging) and all of the pricing details worked out. Third, she advises, always have purchase orders on hand since many buyers have the ability to purchase on the spot. Stay tuned for news on upcoming SBC webinars. • By Jason Oxman T he 2012 International CES included a brand new TechZone—Eureka Park—with a special focus on smaller tech start-ups. With more than 3,000 exhibitors unveiling some 20,000 new products in front of 150,000 tech executives, CES is the world’s best stage for innovative technology debuts. For Boston-based iTwin Inc., CES was such a successful product launching pad that the company decided to join the Consumer Electronics Association (CEA) to benefit from CEA’s year round activities and engagement on behalf of the technology industry. Co-founder and Chief Executive Officer Lux Anantharaman tells Vision magazine why CES is his “highest value tradeshow of the year” and why CEA is the right place for tech start-ups. Tell us about iTwin—when was the company founded and what is unique about your product? iTwin is based in Boston and is a wholly owned subsidiary of iTwin Pte. Ltd., which was founded in June 2010 as a Singapore based, venture-backed start-up. The unmet customer need we address is simple and safe remote file access. Traditional remote file access solutions are either simple to use or are very secure, but not both. iTwin is the world’s first remote file access solution that is extremely simple to use and offers high-level security. iTwin works like a ‘limitless’ secure USB device that connects any two or more Internet connected computers anywhere in the world. iTwin won an Innovations award at CES for engineering and design. What did winning that award mean for iTwin? CEVision.org CEAnewsline TECHNOLOGY & STANDARDS Winning any award is always a thrill, but when you receive a prestigious award from a distinguished brand such as the International CES, it is truly special. The CES award is a testament to the iTwin team’s hard work and relentless focus on product quality. This award has inspired us to further push the envelope while designing new products and enhancements. How will consumers share content online in the future? Is the cloud the answer, or a hardware solution, or is it both? I believe it is both. If you use the analogy that online content is like our extended human memories, then there are three types of ‘online’ memories. ‘Public’ memories have been indexed and made easily searchable through wonderful tools such as Google. ‘Community’ memories have been made accessible and shared via Facebook and other social networks. However, ‘private’ memories or content is still typically stored and made accessible via a hard disk as the most secure method. Remotely accessing a hard disk has historically been too complicated. It is a real pain. What is your outlook for the CE industry for 2012—do you see continued consumer demand for technology? Yes, two major trends, the growth of digital storage and also the expansion of computing devices, especially mobile devices, makes me optimistic about the future. Do consumers understand the importance of privacy and security online? Online consumers have been making a trade-off of conveCEVision.org An Efficient Process F By Bill Belt nience for privacy for many years now, and social networks and cloud storage services are good examples of this. However, there are certain types of information, such as confidential files and other proprietary, sensitive company information or financial data that simply cannot be stored in a public cloud service. How important is free trade and access to the global supply chain to your business? Our business relies on the Internet and a global supply chain to deliver iTwin products into 40+ countries, so it’s critically important. What would you say to start-up technology companies that are considering CEA membership? We joined CEA in 2011, however I would suggest that other start-ups take advantage of CEA’s excellent research, training programs and networking opportunities. CEA is such a treasure trove of knowledge for any young company. What did CES mean for your business? Tell us about your experience at the show. This was our 2nd year at the International CES. After launching iTwin at the 2011 CES, we announced our exciting new iTwin Multi functionality at the 2012 CES, plus several new key retailer channels. We also benefitted from excellent press at CES and developed a strong pipeline of sales leads as well. The International CES is our highest value tradeshow of the year. • ederal, state and local governments represent the biggest consumers of goods and services and benefit greatly from the technical standards that facilitate interoperability between the goods and services it purchases. Yet the industry-led, standards-setting process is under increasing threat by the government. Over and over the government has chosen to write its own, unique standards even when an industry consensus standard exists. Duplication of standards-setting efforts wastes valuable resources, taxpayer funds and increases the costs of doing business with the government. It also threatens the effectiveness of industry-led efforts by creating multiple standards. The National Technology Transfer and Advancement Act was signed into law in 1996 and directs federal agencies and departments to use technical standards that are developed or adopted by voluntary consensus standards bodies. Industry technical standards serve as a means to carry out policy objectives determined by the government. Revisions made to OMB Circular A-119 in February 1998 instruct agencies to use voluntary consensus standards in lieu of government unique standards “except where inconsistent with law or otherwise impractical.” These policies are intended to reduce to a minimum the reliance by agencies on government unique standards. Many federal agencies have used the exception loophole to circumvent the industry standards process and write their own, unique standards. For example, CEA has standards for measuring energy consumption of set-top boxes and televisions that allow for accurate, repeatable measurement in these devices. They were drafted with participation by both industry and government representatives. Yet, in spite of these efforts, government regulations from the Environmental Protection Agency and the Department of Energy do not directly reference these standards. Instead, the agencies relied on outside consultants to create variations of the industry standards for use in their regulations. Standards at CEA are developed in an open, transparent process that encourages participation from anyone with an interest in the outcome. Businesses, academics, government officials and users have an opportunity to influence and shape the standards-setting process. CEA’s market driven approach to standards development offers flexibility, efficiency and a timeliness that is unmatched in industry or government. CEA’s partnership with the American National Standards Institute ensures our reputation as a credible and flexible standards-making body. By participating in standards development activities and by implementing industry standards, the government can streamline processes, trim costs and ensure that federal agencies have the best technologies and processes available for their needs. The government will greatly benefit by strengthening their cooperation with voluntary, private sector, consensus standards bodies. Government participation in the development of industry-led technical standards, and the use of these standards, is in the public interest and benefits all stakeholders equally. • March/April 2012 21 CEAnewsline RETAIL INSIGHTS Nielsen’s Michael Fischer Talks about Change By Kerry Moyer M ichael Fischer is president of Nielsen’s, a privately-held, family-run retailer of consumer electronics, major and household appliances, and tires. Nielsen’s is a classic “Main Street America” storefront and showroom. Since 1923, Nielsen’s has served customers in its Spencer, Iowa community with low prices on products and top notch customer service. Nielsen’s is a member of the Great Plains Marketing Group division of the buying group MEGA. Michael is an engaged member of CEA and participates in CEA Retailer Council activities. How did you get into retail and why did you make it your career? My first selling experience was when I was 10. I sold subscriptions on my newspaper route. When I was 17 or so, I got a job working at a camera store to feed my lifelong addiction to photography. I’ve worked both retail and wholesale, but prefer retail because it’s dynamic and because I’m entrepreneurial by nature. Tell us about Nielsen’s and how consumer electronics fits into your product mix. We’re a small-town Iowa retailer with a diverse product mix. Consumer electronics helps define our overall position in the marketplace. All products have become increasingly sophisticated and, we want to be there to not only sell those products, but also to help people get the most out of them. Without consumer electronics, it would be much harder to achieve our objective. As a retailer, what keeps you awake at night? You mean other than not setting the sleep timer on my bedroom TV? It’s not the economy—I 22 March/April 2012 went through the farm crisis of the 1980s—and, at the time, I never thought it would become the learning experience it turned out to be. I tend to be most concerned about big picture things like government policy and regulations. The U.S. can compete with anyone, anywhere, at anytime; but, only if we’re willing to make the investments in education and innovation. I’m deeply concerned that political gridlock and bad economic policies will lead to a lower standard of living and, as a result, less business. You participate on CEA’s Retailer Council. How does being a CEA member benefit your business? CEA brings incredible value to its membership. For instance, I’m a firm believer in using market research and economic data to help determine what the trends are and, as a result, how to drive our business accordingly. While you can get some data from suppliers or a buying group, nothing compares to having the market research CEA provides. To me, it lev- els the playing field between me and my hundred-million dollar competitors. And CEA membership comes at a very affordable price. Then there’s education—CEA provides retailers like me with a lot of benefits for a small investment. As an example, last year I attended the CEA Retailer Council’s “Great Ideas Meeting,” which featured three retail experts discussing how to improve the sales process, build relationships, and make more sales and more loyal customers. Why are you such a passionate advocate for the collection of existing state sales taxes on all purchases? I do business in my local community. Spencer is a small town in Iowa. As a family run business, we have an investment in our storefront and showroom. We employ workers from our community. I pay and collect taxes. That’s why I press my representatives to support the “Main Street Fairness Act”; because, it levels the playing field between Internet retailers and other retailers like me. We need uniformity between online and storefront retailers when it comes to the collection of existing state sales taxes. I’ve seen fellow independent retailers, who, after growing tired of having to compete against “No Sales Tax,” decided to throw in the towel and leave the consumer electronics segment to focus on other parts of their businesses. I was heartened when I read that CEA’s Executive Board at the end of last year had adopted a policy position supporting federal legislation and the concept of equal sales tax treatment for all goods and services, whether purchased in person or remotely. Thank you, CEA! Do you have a tip to share with other retailers? One of my favorite quotes is from Edmund Burke, who once said, “We must all obey the great law of change. It is the most powerful law of nature.” In business, as in life, to stay in your comfort zone is something we all tend to do but to do so in business is often a fatal mistake. Stay current. Stay involved in associations like CEA that will help you adapt more easily. It’s simple, but it isn’t easy. By the way, Burke wrote those words in 1792, and they’re as true today as they were over two hundred years ago. • 2012 CEA Events LA Games Conference April 23–24 Los Angeles, CA CES on the Hill April 24 Washington, DC Digital Patriots Dinner April 25 Washington, DC Spring Technology & Standards Forum May 14–18 Dallas, TX Producers Guild of America Produced By Conference June 8–10 Culver City, CA CE Week June 25–29 New York, NY CEA Line Shows June 27–28 New York, NY SINOCES July 5–8 Qingdao, China For more information on CEA events, call 703- 907-7600, or visit CE.org. CEVision.org CEAnewsline Innovation Reigns at the 2012 International CES Las Vegas may be best known for Elvis but January also marks the annual International CES show. CES is an all you can eat smorgasbord for the technology industry. And for the first time, it was announced at CES that in 2012 factory sales of consumer electronics will exceed $200 billion annually. Everything is bigger in Vegas including the 2012 International CES, owned and produced by CEA. This year the show broke all records. It was the most massive CES in the event’s 44-year history with more than 3,100 exhibitors. The show floor spread over 1.861 million net square feet. The world’s largest consumer technology tradeshow drew a record 153,000+ executives from business, government (see page 28), entertainment, automotive and, of course, the consumer electronics industry. What’s more, 34,000+ international attendees trekked to CES accentuating the fact that the global consumer technology industry will reach $1 trillion this year. Executive delegations from thousands of global companies came to CES to meet with customers. Each CES attendee has an average of 12 meetings at the show—an efficient way to network and do business with a wide range of global executives in one location. More than 20,000 new products and services were launched at CES including the latest in audio, autoCEVision.org motive electronics, connected home technologies, digital imaging/photography, electronic gaming, healthcare, and entertainment and content. THE SNEAK PEEK Two days before CES opened, the Venetian was like a giant hive buzzing with reporters. On Sunday, January 9, CES Unveiled drew nearly 2,000 members of the media to see 78 exhibitors showing some very cool products. Each year CES Unveiled gives reporters a pre-show look at who will be making news headlines before the show officially opens. They also get a sneak peek at the product debuts from the Innovations Design and Engineering Award Honorees. What did they see? The world’s thinnest laptop, solar-powered Kindles, Android-powered TVs, 3M’s capacitive touch display that can recognize 20 simultaneous touches and Lenovo’s 27-inch capacitive touch panel running on a Windows platform—were just a few of the gadgets on display. Press day kicked off early the next morning at 8:00. It also was the largest in show history, featuring 25 exhibitor press conferences. During the entire show, CES hosted a record-breaking 72 exhibitor press conferences. Product launches included: • Dish Network: The Hopper Whole Home DVR Entertainment System • Ford/NPR: PR smartphone App for Ford SYNC • Fujifilm: X-Pro 1 Interchangeable Lens Camera • Huawei: Ascend P1 Smartphone with Dual-Core Processor • Intel: Lenovo Ultrabook with ArcSoft Quick Photo • Klipsh: G42 Sound System • LG Electronics: 55-inch 3D OLED TV • Livio Radio: Livio Connect • Monster Cable: NCredible N-ERGY Earbuds • Netgear: Universal Dual Band Wi-Fi Range Extender • Nokia: Lumina 900 • Panasonic: MySpace TV • Pioneer: App Radio 2 • Samsung: ES8000 LED SmartTV • Sharp: Aquos 80-inch Display/ Board • Sony: Android-powered Walkman Z • Stream TV: Ultra-D, Glasses-Free 3DTV • VOXX Electronics: Insite Personal Property Tracking System More than 7,600 print and online clips and 4,700 broadcast hits profiling the technology advances at CES appeared in the news media in January. This year the number of international press that came to Vegas also surpassed expectations. Some 1,900 international journalists and analysts from 65 countries (outside the U.S.) covered the show from top outlets such as the BBC, O Estado de Sao Paolo, Xinhua News Agency, Deutsche Presse-Agentur, La Repubblica and the Canadian Broadcasting Corp. EUREKA PARK FOR START-UPS Once the doors opened, a popular new venue this year was a TechZone named Eureka Park dedicated to small companies and start-ups with an innovative business plan. The TechZone grew from an idea to more than 100 companies in a matter of months. It encompasses the core of CES— entrepreneurs with an innovative product or technology can highlight it to the world and receive coverage that they can’t get any place else. Many March/April 2012 23 CEAnewsline •The Cloud: Whether content is stored and delivered from the cloud, or wirelessly transmitted, new ways to deliver content to devices were on display. Hardware vendors were promoting cloud-based content solutions, multi-platform networking, sharing, and local interaction between handheld devices and the TV. of the budding entrepreneurs and fledgling start-ups in this technology incubator drew venture capitalists and investors looking for the next big thing in technology. See page 30. PMA@CES Another first for the 2012 CES was PMA@CES® sponsored by the Photo Marketing Association (PMA)®. PMA and CES partnered to create the mostconcentrated exhibits of photo/imaging products and services anywhere. PMA@CES also featured imagingspecific pavilions from China and from Germany and conference sessions for attendees to learn about new innovations in the digital imaging/photography market. PREMIERE KEYNOTES CES has long been a key forum for industry leaders to talk about their company, products and industry trends. For 2012, top executives giving keynotes included Microsoft’s Steve Ballmer, CEA’s Gary Shapiro, Qualcomm’s Dr. Paul Jacobs, Ericsson’s Hans Vestberg, Daimler’s Dr. Dieter Zetsche, Intel’s Paul Otellini, Xerox’s Ursula Burns, Verizon’s Lowell 24 March/April 2012 McAdam, Ford’s Alan Mulally, YouTube’s Robert Kyncl, Best Buy’s Brian Dunn and an LIT keynote from eBay’s John Donahoe. Other key executives from AT&T, Facebook, GE, Google, Hyundai, Mercedes, Unilever, Verizon and Walmart also participated in conference keynotes. WHAT WAS THE BUZZ? What was trending at CES? Take a look at a few technology innovations that got people talking including OLED TVs, Android 4.0 tablets, next-generation smartphones and 3D printers: •Lighter and Thinner: From LG and Samsung’s 55-inch OLED TVs to Ultrabooks, companies are making devices as light and skinny as possible. ucts including HDTVs, smartphones and digital cameras. •3D Printing: 3D Systems’ Cube and Makerbot Industries’ Replicator debuted printers that enable data files to become physical objects via 3D printing technology. •Haptic Technology: Numerous products showed a strong emphasis on the user interface, intuitive remote control and navigation, exploiting on-screen graphics, motion control and voice and gesture recognition. •Customizable Accessories: Headphones, cell phone cases and other accessories are now more personalized to reflect consumers’ styles. •Smart Devices: TVs, health and wellness products, in-vehicle electronics, and home appliances show Internet connectivity now is a vital feature on CE devices. •Digital Imaging: Flexibility in digital imaging was evident in digital cameras with interchangeable lenses, waterproof and Internet-connected designs, new light-field cameras and smartphone-like features. •3D: Whether it was autostereoscopic 3D (without glasses), 3D with glasses or 2D content converted to 3D, 3D is a major theme with prod- •Connected Cars: Innovation continues with new features such as Internet radio, in-car apps targeting safety issues and location-based services. •Windows and Android Smartphones: With Microsoft’s Windows 8 coming out this fall, at CES new Windows phone-based mobile devices were shown from Nokia, HTC and Samsung. Google’s Android mobile OS smartphones, many featuring Android 4.0, included Motorola’s Droid Razr Maxx and the Droid 4, LG’s 4G LTE Spectrum and Samsung’s 5.3-inch Galaxy Note among others. •Tablets: Windows-based tablets including NVIDIA’s Windows 8 prototype and Android 4.0 (Ice Cream Sandwich) devices were everywhere. Key differentiators: processors, price, higher-resolution displays, glassesfree 3D and gaming-focused devices. •Digital Health: Health care is becoming more efficient with tablets to record medical data; cloud-based solutions for storing, archiving, accessing and retrieving medical records; and consumer medical devices with apps to monitor blood pressure and glucose, etc. •Content: Media partnerships and new deal announcements were a major theme at CES. CEVision.org CEAnewsline Trending @ CES: The By Mark Chisholm NEW PRODUCTS ABOUND AT CES CES was teeming with dazzling new devices and technologies. Pulling from CEA staff reports, Vision has compiled a list of some of the new devices we think will make their way from the show floor to your local (or virtual) store in the near future. Nearly every CE company from Accenture to Zeikos was on hand showcasing their latest consumer goods and services. The following are a few highlights: •LG Electronics displayed a 55-inch 3D OLED TV that is four millimeters (mm) thick and weighs 16.5 pounds. The OLED screen delivers more vivid colors than traditional HDTVs and utilizes passive 3D glasses technology, similar to the 3D glasses used in movie theaters, which are much lighter and more affordable than the active glasses currently required to view most 3DTVs. •Dish Network unveiled Hopper, the industry’s smallest and most energyefficient whole-home DVR entertainment system. Hopper allows users to record six HD programs at once, and features PrimeTime Anytime, which records all four network primetime shows every night and stores them for eight days. Intel’s Nikiski is one of more than four dozen new ultrabooks and features a see-through touchpad, Ultrabook Transistors—they’re often thought of as the fundamental building blocks of modern electronics devices, and at CES, they were building one of the hottest new categories in computing: Ultrabooks. In his keynote, Intel President and CEO Paul Otellini offered attendees a theme for his presentation: “Transistors transforming people’s lives.” And judging by the number of Intel-powered Ultrabooks on the show floor, they’re about to shake things up. This emerging category of lightweight laptops features high-performance in a small form factor without sacrificing battery life. The Ultrabook category is defined by a number of factors. Typically in the 13- to 14-inch screen range, these ultra-thin laptops are also ultra-light. Most weigh in at roughly three pounds, and measure less than 20 millimeters (mm) at their thickest point. Most feature solid state drives (SSDs), though many offer a hard disk drive (HDD) alternative, or a combo setup option. Not only does Intel hold the Ultrabook trademark, but Intel technology is the foundation for these laptops. Ultrabooks are based on Intel’s Consumer Ultra-Low Voltage (CULV) computing platform (most recently the “Arrandale” and “Sandy Bridge” processors), featuring integrated graphics and low-power consumption. The category is the industry’s Windowsbased response to lightweight computing previously available in the Apple MacBook Air or ARM-based tablets. A number of computer makers already have Ultrabook models on the market, such as Acer, Asus, Dell, HP, Lenovo, Samsung and Toshiba. These Ultrabooks are powered by Intel’s Core i5 line of processors, and normally feature 4GB of RAM and a moderately sized SSD. Otellini said that there are 15 models on the market and more than 60 models in the pipeline. Acer’s 13-inch Aspire S5 weighs less than three pounds, awakens from sleep mode in 1.5 seconds, and measures only 15 mm’s at its thickest point. In addition to supporting USB 3.0, the S5 also includes a Thunderbolt port. The Thunderbolt interface was developed by Intel in collaboration with Apple, and allows for file transfer speeds of up to 20Gbit/s. The Aspire S5 is expected to arrive in the second quarter. During Intel’s keynote, Jeff Clark, vice chairman of Dell, introduced the XPS 13 Ultrabook. That’s only six mm’s at its thinnest, 18 mm’s at its thickest, and weighs only 2.99 pounds thanks to its carbon fiber base. While the XPS is smaller than a MacBook Air, its 13-inch display (protected by Gorilla Glass) is equivalent to that of the Air thanks to a reduced bezel. Lenovo also displayed a number of Ultrabooks including the IdeaPad U310, U410 and Yoga models—the latter of which is a tablet/Ultrabook hybrid. While not officially sanctioned as an ‘Ultrabook,’ the IdeaPad Yoga weighs only 3.1 pounds and measures 17 mm’s at its thickest. Most interestingly, the Yoga features a screen that flips all the way over to act like a tablet. The Yoga, expected in the third quarter, will run Windows 8 and feature a 13-inch touchscreen. At CES, most Ultrabooks were based on Intel’s 32-nanometer (nm) Sandy Bridge chip architecture. Yet many devices soon will be based on Intel’s 22-nm architecture, known as Ivy Bridge. When Intel’s Otellini spoke of transistors transforming people’s lives, he most certainly had Ivy Bridge in mind. The 22nm Ivy Bridge processors are the first to use tri-gate, or 3D, transistors. In the 3D arrangement, the transistor’s ‘gates’ are stacked on top of each other, allowing for higher speed and less power consumption. Ivy Bridge brings a number of improvements to Ultrabooks. First, Ivy Bridge uses 50 percent less power when operating at the same performance level as Sandy Bridge. No need to dial it back, though: Intel asserts that a 20 percent increase in CPU performance and 30 percent increase in GPU performance are achievable. In addition, Ivy Bridge processors support DirectX 11, OpenGL 3.1 and OpenCL 1.1, opening the door for Ultrabook gaming without the need for a discreet graphics card. Intel also demonstrated how an Ivy Bridge powered Ultrabook could be used to both wirelessly stream media content to capable TVs, and speed payment at online checkouts using built-in near field communication (NFC) technology. When Otellini says that Intel has a “line of sight” on a 14-nm fabrication process, the future looks even more promising. So keep on the look-out for Ultrabooks that are thin, portable and energy efficient. • March/April 2012 25 CEAnewsline Akon, Eliza Dushku, Rick Fox Ludacris touchscreen and keyboard all folded compactly into a clamshell less than 20 mms thick. •With six of the top 10 car manufacturers participating in this year’s show, it was possible to confuse CES with the Detroit Auto Show which revved up the following week. Many car companies rolled out new and/ or improved in-vehicle technologies, including voice-activated GPS, streaming in-car social media and rear-seat entertainment systems. Cadillac’s Cue, for example, seamlessly integrates the smartphone into the car, with an in-dash display system that mimics the tablet experience. Ford unveiled the official car of CES—the 2013 Ford Fusion Energi. The new hybrid is capable of reaching 100 miles per gallon. •Specialty glass producer Corning introduced Gorilla Glass 2, a harder, thinner and more scratch resistant glass that could pave the way for the production of thinner and sturdier tablets and smartphones. 26 March/April 2012 •Tobii Technology showed new eye-tracking technology that allows users to scroll, play and navigate using their eyes and without touching a mouse. And 3M Touch Systems debuted a multi-user, widescreen touch table that allows for 60 touch points and up to four split screens. •Nokia launched its first 4G LTE Windows phone—the Nokia Lumina 900— available through AT&T. Notable features include an impressive 4.3-inch display and rear- and front-facing cameras to create a “rich media experience.” While big name companies garner a lot of media attention at CES, smaller and midsize firms dominate the show floor. Here’s a sample of some of the new products from the heart of CES: •Salt Lake City-based HzO has found a way to protect gadgets from potential water hazards. HzO’s WaterBlock nanofilm waterproof coating is applied to devices on the production line, protecting the delicate inner workings. The company has successfully tested WaterBlock on a host of smartphones and tablets, including the iPhone, the iPad and the Amazon Kindle Fire. •After-market automotive and iDevice accessories manufacturer Scosche showed off the backSTAGE pro II headrest mount, designed for the iPad 2, that attaches to the headrest of any car. The mount syncs with IR headphones and conventional headphones, and it charges the iPad while connected. 50 Cent CES a celebrity magnet Hollywood stars, sports legends, musical icons and entertainers were at CES to promote the innovative products and technologies shaping consumer technology. • Actress Eliza Dushku represented the Entertainment Matters at CES program. • Fitness trainer Jillian Michaels was at FitnessTech. • Will Smith and Kelly Clarkson made appearances at Sony’s press conference. •Rapper 50 Cent talked about his audio company SMS Audio and was joined by Paul “Pauly D” DelVecchio. • Justin Bieber appeared with TOSY Robotics to unveil their new entertainment robot. •At Intel’s keynote, will.i.am announced Intel’s Ultrabook Project. • Justin Timberlake appeared at Panasonic’s press conference to announce a joint venture between Panasonic and MySpaceTV. will.i.am • Dennis Rodman, NBA Hall of Fame player, represented Paltalk. • LL Cool J demoed a track he created using Boomdizzle, playing it back on a Dolby technology-enabled laptop. • NBA legends Robert Horry and John Salley, and chef Allison Fishman were at the Haier America booth. •Actor Greg Grunberg and actor/singer Wayne Brady joined OnStar for their Tweet House sessions, the official social media track for CES. • Zeikos USA Inc.’s trademark iHip brought Nicole “Snooki” Polizzi, from Jersey Shore, former NFL linebacker Carl Banks and urban music pioneer Jose “Hyde” Cotto. • Ludacris showed off Soul by Ludacris headphones. • Panasonic hosted Twentieth Century Fox Home Entertainment’s second annual Directors’ Panel with John Glen, Martin Campbell and Michael Apted along with former Bond girls Olga Kurylenko and Caterina Murino. See the full list of celebrities at CES at CEVision.org. CEVision.org CEAnewsline Snooki •If you’ve ever worried that you left the house with the iron plugged in, Belkin has you covered. Their WeMo Home Control Switch allows household electronics to be controlled from outside the home. The WeMo plugs into standard outlets and lets users turn devices on and off using a free smartphone app. Best of the Crop The International CES Innovations Awards honor outstanding design and engineering advancements across 32 CE product categories, including two new trend-focused categories: tablets, e-Readers and netbooks, and software and mobile apps. The Best of Innovations Showcase was on display at CES. To see Vision’s coverage of the winning entries, visit: CEVision.org. ESPN Makes Waves at CES •In other CES news, Lytro won the Last Gadget Standing SuperSession competition, beating nine other finalists. • ESPN’s “SportsNation” with Colin Cowherd and Michelle Beadle became ESPN’s first studio program to be broadcast in 3D live from the show floor. •The LG 55EM9800 55-inch OLED TV won CNET’s Best of Show award. • Guests were invited to watch the BCS National Championship, live on ESPN 3D, at the Las Vegas Hilton Theater. •Razer’s Project Fiona won the People’s Voice online voting award. • Attendees were treated to a boxing match in a regulation ring on the CES show floor when ESPN presented a live edition of Friday Night Fights from Central Hall, telecast live on ESPN 3D. Entertainment Matters at CES Back for a second year, Entertainment Matters at CES is designed for Hollywood’s film, television and digital communities and was sponsored by Variety and Ericsson. The Screen Actors Guild was an associate sponsor of the program. Actress Eliza Dushku served as the ambassador for the program and contributed to Spike TV’s broadcast coverage. Highlights included: • Spike TV: The Official Entertainment Television Partner Spike TV had an exclusive partnership to telecast live coverage from CES giving tech fans more than 12 hours of CES coverage across multiple platforms—TV, online, mobile and social. • IAWTV Awards: The International Academy of Web Television (IAWTV) held its inaugural IAWTV Awards at CES to celebrate 33 digital entertainment categories honoring Web series and online talent. • Technology & Engineering Emmy® Awards: The National Academy of Television Arts and Sciences (NATAS) presented the Emmy® Awards for Outstanding Achievement in Engineering/Technical Development. • Next-Generation Program: This invitation-only, custom experience for Hollywood’s next-generation of leaders is designed to introduce this community to CES. • Red Carpet Program: This VIP program is open to select executives, directors, producers and talent as a guide to the best in technology and content. CEVision.org Social Media Stats at CES To get the word out about the latest CES products and technology advances, social media was used extensively. The CES Tweetup took place on day two, where colleagues who network together through Twitter could meet in real life. • Hashtag #CES: used 118,608 times, reached 1,039,535,646 • @intlces: 5,059 mentiones • Youtube.com/cesonthetube: 98,879 views, 781 new subscribers • Facebook.com/internationalces: 25,940 visitors • 1,333,600+: Facebook users • 860: CES Tweetup Reach is larger than Twitter users: a hash tag may be used multiple times. 2013 News The 2013 International CES is only nine months away. CEA is reviewing requests for keynotes and will be making announcements in the coming months. Stay tuned! • For updates on the 2013 International CES visit CESweb.org March/April 2012 27 TECH POLICY NEWS FROM WASHINGTON ] • [ BY MICHAEL PETRICONE Pro-Tech Policy at CES I n January, an unprecedented group of top government officials experienced the world’s largest consumer technology tradeshow, the International CES including CEA’s Innovation Policy Summit. This executive conference brought together experts from the public and private sectors to examine the critical policy issues impacting the tech industry, such as online privacy, spectrum availability, digital copyright and environmental regulation. This session featured government leaders including FCC Chairman Julius Genachowski, Nevada Governor Brian Sandoval, Senator Ron Wyden (D-OR), Senator Dean Heller (R-NV), Representative Marsha Blackburn (R-TN), Representative Gerry Connolly (D-VA), Representative Darrell Issa (R-CA), Representative John Shimkus (R-IL), Representative Cliff Stearns (R-FL), Representative Lee Terry (R-NE) and FCC Commissioners Mignon Clyburn and Robert M. McDowell. Also, several ministerial level officials and commissioners from Canada, Columbia, Egypt, Iraq, Jordan, Korea, Lebanon and Oman attended CES. The Innovation Policy Summit explored policies to effectively drive innovation and economic growth, and how best to navigate the changing regulatory landscape. In a SuperSession with CEA President and CEO Gary Shapiro, FCC Chairman Julius Genachowski stressed the importance of broadband, particularly wireless, in the future of consumer electronics. “The demand for spectrum has grown because people love these products,” said Genachowski, stressing the need for Congress to pass incentive spectrum auction legislation. “We need to get it done now.” After touring the show floor, Genachowski noted the “endless rows of innovative new products,” addressing fitness, education and healthcare, among other purposes. The session also covered net neutrality, antitrust issues and Genachowski’s broadband-driven agenda at the FCC. U.S. Chief Information Officer, Steven VanRoekel announced a new roadmap to accelerate federal adoption of mobile technology with the goals of decreasing government operating costs and increasing the mobility of the federal workforce. He also unveiled a new website, National Dialogue on the Federal Mobility Strategy, where the public can submit and vote on ideas. CES News eBay President and CEO John Donahoe 28 March/April 2012 Midweek brought the Leaders in Technology dinner with top technologists, entrepreneurs and policy makers instrumental in furthering technology innovation. After a welcome by Governor Sandoval, eBay President and CEO John Donahoe gave the keynote address. Donahoe highlighted the “new normal” for retail, in which consumers engage where, when and how they FCC Commissioner Mignon Clyburn shop across channels. Donahoe made news when he proclaimed his company to be a mobile commerce leader, revealing that eBay reached $5 billion in mobile GMV and PayPal reached $4 billion in mobile payment volume in 2011. Also during a CES press conference, Representative Darrell Issa (R-CA) and Senator Ron Wyden (D-OR) spoke against the then-pending legislation Stop Online Piracy Act (SOPA) and the Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act of 2011 (Protect-IP). They proposed the OPEN Act to fight rogue foreign websites without causing collateral damage to the innovators driving our economy. • CES on the Hill will be held on April 24, 2012, at the House Office Building-Rayburn (B-357) in Washington, DC. The Digital Patriots Dinner will be held the next night on the 25th, where David Rubinstein, best known for founding the Carlyle Group, Senator Ron Wyden (D-OR) and Congressman Jason Chaffetz (R-VT) will be honored for their contributions in advancing technology and innovation. CEVision.org BY MURRAY SLOVICK ] • [ DEFINING THE DIGITAL WORLD CES: Handheld Devices S sive, power-efficient requirements of nextgeneration mobile products, Exynos 5250 can process 14 billion instructions per second at 2.0GHz. Qualcomm, another ARM licensee, offers a family of dualcore processors known as Snapdragon S4. In his CES keynote, Qualcomm CEO Paul Jacobs demoed Microsoft’s Windows 8 platform running on a prototype tablet powered by the Snapdragon S4. With the S4, Qualcomm aims to provide a more home theater-like user experience, including 3D graphics processing and Dolby 7.1 surround sound. Jacobs says there are 300 devices using Snapdragon and another 350 in development. TI’s OMAP4470 is the latest version of its dual-core 4460 ARM chips inside Android tablets such Motorola’s XyBoard and Toshiba’s Excite X10. Slated to appear in tablets and phones this year, the new chip is rated at 1.8GHz, 20 percent faster than the 4460. TI has also tweaked the memory circuitry to squeeze out more performance and 4470 includes a faster GPU (graphics processing unit). The seven-inch AsusTek Memo 370T tablet, named best tablet at the 2012 CES by CNET, is powered by NVIDIA’s Tegra 3, a quad-core ARM Cortex A9-based mobile processor providing up to three times the graphics performance of the company’s Tegra 2, with up to 61 percent less power consumption. The processor implements a new, patent-pendMurray Slovick ing technology known as Variable All at CES Symmetric Multiprocessing (vSMP) that Designed for high-end tablets, Samsung’s newest 2GHz dual-core Exynos 5250 includes a fifth CPU ‘companion’ core application processor is based on the designed for work requiring little power. ARM Cortex-A15 core. ARM Holdings During such tasks, the Tegra 3 processor is a semiconductor intellectual property completely shuts down its four high-perfor(IP) supplier. Its business model involves mance cores and uses its companion core designing and licensing IP – the stuff that instead. For high-performance tasks, the provides instruction to chips – rather than Tegra 3 processor disables the companion. manufacturing and selling semiconductor Not to be left behind, Intel, developer of chips. Intended to meet the graphic-inten- multi-core CPUs for PCs, is taking a different martphone. Tablet. Laptop. While consumers try to figure out which one (or how many) to carry on the road, technologists understand that despite their different form factors they are all computers. As such, product performance in all three categories is determined by processor type and speed as well as display size and resolution. Let’s look at technical developments for these defining components as demonstrated at the recent 2012 International CES. PC processors previously were single core architectures and performance was increased by boosting operating frequencies and using smaller manufacturing processes to pack more transistors into the same chip area. However, this led to big increases in power consumption and wasteful heat. The solution was to go to multi-core architectures, which deliver higher performance while limiting power consumption; most desktop and notebook PCs today use either a dual- or quad-core processor and consume less power than their single-core predecessors. Processors for smartphones and tablets are following suit. According to Sravan Kundojjala, senior analyst with Bostonbased Strategic Analytics, smartphones with multi-core applications processors made up 17 percent of smartphones shipped in 2011. “Samsung, Qualcomm, Texas Instruments (TI) and NVIDIA will benefit from this growth and account for almost all multi-core smartphone processors shipped in 2011,” he says. CEVision.org TECH SPEAK approach.. Mike Bell, vice president and general manager of the Mobile Wireless Group at Intel noted that “our single-core chip is competitive with dual-core products from our rivals,” and used CES to launch its Atom Z2460 processor. The 32-nm chip is more power efficient than previous Intel offerings, consuming less than 800-mW when working full blast. Intel also announced a design win with Lenovo and a partnership with Motorola Mobility. Motorola will begin shipping devices in Q22012 using Intel Atom processors and the Android platform. The Display is Key Since it determines the quality of the user experience for consumers, the display is arguably the most important hardware component in tablets and smartphones. The latest devices offer In-Plane Switching (IPS) LCD displays, the same screen technology used in top-shelf desktop monitors and also employed by Apple in its iPad and iPhone. With IPS, liquid crystals are aligned horizontally to the screen rather than vertically, always lying in the same plane (hence the name). The result is a wider viewing angle and better image contrast. On the downside IPS needs two transistors for every pixel instead of one, and that means that more of the transparent area of the display is blocked from light transmission, so brighter backlights must be used. New iterations of IPS technology filtering down from PC monitors promise to resolve the brightness issue. Samsung uses its proprietary Super PLS (Plane Line Switching) technology to maintain good viewing angle performance while boosting throughput (brightness) by a reported 10 percent. LG Display’s take on enhancing IPS is called e-IPS. Because transparency is increased via e-IPS, the company says it can reduce backlight intensity as you need less light to achieve the same luminance. As shown at CES, processor type and speed as well as display size and resolution are making great technical advances. • March/April 2012 29 C4 TRENDS VIEWPOINTS ON CE EVOLUTION ] • [ BY SUSAN SCHREINER Entrepreneurs Connect at the 2012 International CES E ureka Park was a new concept for CES this year designed to give cutting-edge, early stage companies and entrepreneurs exposure to potential investors and B2B industry partners, including those interested in joint ventures or licens- ing deals. There was plenty of innovation as well as a strong entrepreneurial spirit in Eureka Park which mushroomed to about 100 companies and was sponsored by the National Science Foundation (NSF), Startup America Partnership, CNET, and UK Trade and Investment. Innovative Solutions Many of the exhibitors have NSF grants like KWJ Engineering (kwjengineering. com), which is developing solutions for gas detection by integrating sensors into smartphones, medical wireless devices and other safety and military applications. “Eureka Park was good for us, and the biggest tradeshow we’ve done,” according to Edward Stetter, vice president and CFO. “We’ve made some really good contacts at major companies who are looking to add capabilities into their wireless platforms.” Modular Robotics (www.modrobotics. com), a spin-off from Carnegie Mellon showcased Cubelets—the equivalent of a robotic Legos construction kit for kids. Sold 30 March/April 2012 Eureka Park is a new concept for CES designed to give cuttingedge, early stage companies and entrepreneurs exposure to potential investors. as a six-block starter kit, the Cubelets are pre-programmed 1.5-inch blocks, each able to move, sense nearby objects and display light. The way they are stacked determines what the final robot will do. Snapping a battery block on top of a motion-sensing roller block, for instance, will create a robot that automatically moves when the lights go on/off. “It’s about changing the way children learn and see the world,” says Eric Lundby, a software developer. Another company, Emota.net of Mountain View, Calif., an NSF grantee, showcased gesture controls embedded in a stuffed penguin to demonstrate how social networking technology can become more emotionally engaging. The ambient technology allows everyday objects to be used as a communications tool. For instance, it can help to keep isolated seniors active or grandkids connected with their grandparents using simple interfaces including the TV. “Our product has broad emotional appeal to anyone, and Eureka Park has been fantastic,” according to Paul To, CEO and founder. “As a startup, we made connections with prospective investors and potential corporate partners who can help us go to market,” he says. Uncle Oswald Is My Hero (uncleoswald. com) is a two-man design team giving new life to discarded telephone handsets by transforming them into an ingeniously simple, external speaker system for iPods and MP3 players. Kim Justin and Lee Jinsop, the two founders, say they hope to license their design, and had conversations with other audio vendors. “The number of people that we’ve met at Eureka Park and elsewhere at CES has been fabulous. It’s great for us because that means when the product finally comes out in commercial quantities, we know it will be popular,” says Justin. PerSuede Audio’s (persuedeaudio. com) Rebel Tower all-in-one iPhone/ iPod speaker is a stylish, fashion-forward speaker covered in synthetic cowhide in various patterns including zebra. Brad Pfeiffer, co-founder says, “The speakers smooth out the high-frequencies for a subdued sound sans tinny high notes.” These speakers, launched at CES, were under development for four-years, and this ‘single-point’ audio system comes with some impressive specs. Inside the triangular-shaped tower cabinet design is a compact, ultra-high performance 2.1 speaker system including AstoundSound DSP technology, and a 120 Watt Class-D Amplifer. The engineering team was headed by an alum design engineer and musician who previously worked at Samsung and Sony. Startup, Scrible (scrible.com) of Redwood City, Calif., showcased a program to turn a browser into an editor that can digitally annotate, save, organize and share information from the Web as well as a version for the iPad. Health and Power Innovations Eureka Park companies working in the health and medical arena included Energetic Health and Research Center; HMicro; Marista Wellness Network; Medken; Rehabtek; and SpringActive with its robotic prosthesis. For example, Innovega repurposed traditional contact lenses, creating iOptik, special lenses that integrate personal media, social networking and mobile computing into our everyday reality ala Steven Spielberg’s 2002 film Minority Report. Putting motion sensing technology to work in the health care sector, the Institute for Disabilities and Research Training Inc. showed the AcceleGlove, equipped with accelerometers to track hand movements. Also a slew of companies are working on power management, charging and more efficient battery solutions, such as Anthem Grand, Current Werks, MiserWare, nVolution, Perpetua Power Source and QM Power. • CEVision.org BY STEVE KOENIG ] • [ INDUSTRY RESEARCH Global CE Retail Sales Surpass $1 Trillion MARKET INSIDER Mobile PCs, tablets and wireless phones—will account for an astonishing 50 percent of retail CE sales this year. The CE Product Mix Media reports frequently chart the success of the BRIC markets, but the GfK Digital World analysis reveals market growth in these economic areas is far from consistent. In fact, growth rates in global regions anchored by the BRIC markets differ significantly. In 2012, double-digit growth is forecast for the Emerging Asia-Pacific region (including China and India), while growth in Central-Eastern Europe (including Russia) is predicted to slow to nine percent, down from 18 percent in 2011. But to truly understand global CE market opportunities, it’s important to look beyond geographical comparisons to examine differences in the CE product mix. This is where the GfK Digital World analCEVision.org devices in favor of the latest soluysis gets really interesting and the tions. Here, market opportunities opportunities spring forth from the data. Let’s start by confirming that for products ranging from portable consumers’ enthusiasm for mobile, navigation to MP3 players are limconnected devices is not limited to ited as consumers advance directly the developed world. The analysis to smartphones. shows these products—including In addition, the CE sales composiSteve Koenig mobile PCs, tablets and wireless tion picture of regional markets can phones—will account for an astonishing signal priorities. Once again looking at the 50 percent of retail CE sales this year. MEA region, we find the highest concentraThe result of staggering worldwide sales tion of wireless phones accounting for 37 of smartphones and other mobile con- percent of retail CE sales this year. Why? nected devices is a consumer spending Clearly, communications infrastructure is squeeze on older, more mature categories needed to foster business and economic like MP3 players or printers. In other prod- development in this area. Perhaps by now you can better answer uct categories like TVs, unit sales declines in developed economies are off-setting the question I posed at the beginning of this column and you may have thought growth in emerging economic regions. Viewing worldwide retail sales of CE of some questions of your own. Contact products through the twin lenses of CEA market research at [email protected] to regional and product data exposes even learn how you can get answers from GfK more insights. For example, the analy- Digital World. The best part is CEA memsis articulates how emerging markets bers receive a discount on the cost of this like the Middle-East and Africa (MEA) research. Are you ready for your cue to join are leap-frogging whole categories of CE the global CE sales stage? • March/April 2012 imagewerks/Getty Images G lobal CE retail sales are projected to grow five percent this year to hit a new alltime high of more than $1 trillion. But do you know which CE devices are selling where and most importantly why? If not, then you could be missing some substantial business opportunities. The good news is CEA members can now turn to GfK Digital World, a ground-breaking new analysis of global sales produced by GfK in partnership with CEA market research. For today’s CE marketplace, literally ‘all the world’s a stage’. Segmented into seven global regions, GfK Digital World reveals how CE revenues are steadily growing among emergent economies like Brazil and China. Ascendant economic regions today account for 46 percent of global retail CE sales, up from 37 percent in 2008. Small wonder manufacturers and retailers alike are keen to take advantage of abundant opportunities intrinsic to emerging markets. However, few have the knowledge to understand the scope of these opportunities leading to risky, or worse, uninformed market plays. 31 JUST THE STATS THE LATEST INDUSTRY NUMBERS Global Tech Spending Trends Impacting Global Growth CEA members can now access GfK Digital World, an analysis of global retail sales compiled by GfK in partnership with CEA market research. As can be seen below, emerging economies are helping to drive growth, and push global tech spending to new limits. Growth areas such as smartphones are helping to offset declines in other product categories. TECHNOLOGY Global Tech Device Spending to Hit $1 Trillion in 2012 2010 $922 bn Economic Recovery 2008 $ 912 bn 2011 Est $993 bn Economic Problems, Product Strength ECONOMIC 2012 Fcst $1,038 bn Emerging markets add to opportunity, value +5 +8 –10% CONSUMER Embedded Internet Connectivity, mobility, convergence, personalization drive global demand Connectivity Evolving human machine interface (HMI) Content built-in Broadening sales channels +12 2009 $824 bn Global Recession Price deflation Source: CEA, GfK Compositional product shifts Emerging Economies Driving Growth Source: CEA, GfK Global Tech Device Retail Sales Revenue in Billions of USD Developed Emerging Smartphone Is Main Growth Driver; Tablet Building 63% 60 2008 2010 37% 40 2008 2010 4 4% 4 8 7 1% 4% 4% 9 8 14 15 15 12 13 15 15 14 10 Source: CEA, GfK 32 March/April 2012 2012 Fcst 46 2012 Fcst 7 15 Tablet PC Digital Still Camera 14 Desk PC Mobile PC 8 LCD TV 16 13 7 9 12 18 22 2008 2009 2010 2011 Est 2012 Fcst 19 54 5% 4 Mobile Phone Smartphone Source: CEA, GfK CEVision.org WHAT IMAGE ARE YOU MAKING WITH CUSTOMERS? The Consumer Electronics Association (CEA)® has partnered with SERVICE 800 to launch CEA’s Digital Imaging Service Excellence Benchmark – the most effective way to measure and compare customer satisfaction and service results within the Digital Imaging Industry. Based on actual service transaction interviews with your customers, the benchmark provides customer feedback data and tools that are critical for service improvement: • Simple access to ongoing daily customer feedback results • A monthly benchmark allowing measurement against competitors • Real-time alerts for closed-loop resolution with end-customers • Statistically-accurate measurements that allow real comparisons To participate in CEA’s Digital Imaging Service Excellence Benchmark, contact Jan DeMatteo at 952-253-6129 or [email protected]. CEA members enjoy significant discounts! For CEA membership information, visit CE.org/membership or email [email protected] For more information, visit CE.org/DigitalImaging.