digital america 2009 abridged

8/8/2019 Digital America 2009 Abridged

1/16 DIGITAL america 2009 www.CE.org

Table of Contents:

Introduction........................................1

CEA Market Research........................3

CEA Technology and Standards........4

Accessories........................................5

Audio................................................ 11

Automotive Electronics .................. 32

Digital Imaging................................ 36

Gaming ............................................ 47

Home Networking........................... 51

Home Theater.................................. 54

Video ................................................ 68

Wireless........................................... 92

History ............................................. 96

Chronology: CE Milestones .......... 124

Industry Sources........................... 133

2009 CEA Leadership ................... 137

Digital America 2009U.S. ConSUmer eleCtroniCS indUStry today

Contributors:

Gary Shapiro, CEA president and CEO

Jason Oxman, senior vice president, Industry Aairs

Cindy Lofer Stevens, senior director, Publications

Carolyn Slater, manager, Publications

Mark Chisholm, publications coordinator

Octavio Kano, senior manager, Creative Direction

Contributing Editors:

Jim BarryRobert CalemJoe PalencharJanet Pinkerton

Bill SchierMurray Slovick

Phillip SwannGreg Tarr

Stewart Wolpin

Division Chairs:Accessories

Paul Sabbah

PresidentStamord International Inc.

Automotive Electronics

Lawrence Richenstein

PresidentUnwired Technology LLC

Digital Imaging

Richard GlombVice President, Business DevelopmentLucidiom Inc.

Home Audio

Kathy GornikPresident

THIEL Audio Products Company

PARA

Steven Caldero

Senior Vice President and COOKen Cranes Home Entertainment

TechHome

David Epstein

PresidentSound Solutions

VideoJohn TaylorVice President, Public Aairs and CommunicatioLG Electronics USA Inc.

Wireless

Denise GibsonChairman

Brightstar

Consumer Electronics Association

1919 S. Eads Street

Arlington, VA 22202

Tel: 703-907-7600

Fax: 703-907-7601

e-mail: [email protected]

www.CE.org

2009 Consumer Electronics Association (CEA)

May be reproduced in part, provided credit is

given to CEA.

CEA Members: or a ull (ree) downloadable version o

Digital America 2009, please visit www.members.CE.org

For non-members: To purchase a print or CD version o

the ull Digital America 2009 publication, please visit:http://www.CE.org/Press/CEA_Pubs/1964.asp.


2/161 DIGITAL america 2009 www.CE.org1 DIGITAL america 2009 www.CE.org

CE: A Hallmark of Innovation

In a year when change was in the air, highlighted by a historic

presidential election and a period o unprecedented economic upheaval,

consumer electronics (CE) oered a level o stability, a rare segment osales growth in an uncertain time, and a promise or the uture.

While not without serious challenges, the U.S. CE industry grew by morethan ve percent in 2008 to a new high o $172 billion in sales, a seventh

consecutive year o growth. The devices and services our industryproduces have historically done well in even the most dicult economictimes going back to the emergence o radio during the Great Depression.

Consumers recognize the tremendous value inherent in CE devices andhave come to rely on them as an integral part o everyday lie. With thetypical American household now eaturing some two dozen electronics

products or work, communication and entertainment, the products ourindustry delivers have become a hallmark o lie in the 21st century.

It was the nal ull year o analog TV broadcasts, helping sales o digitaltelevisions, and a year o growth in smartphones, video games, Blu-rayDVD players and nascent categories like e-books. But it was also a year

that saw layos spread throughout the industry and some longstandingretail names close shop amid the widespread economic woes.

The CE industry is broad and deep with products at various levels o

maturity, and sales gures that rise and all whatever the economicsituation. Its an industry o continuing regeneration, with thousands

o new products introduced annually, many to do things better andmore easily than their predecessors. For example, the VCR was replaced

by the DVD, which is now being supplanted by Blu-ray and electronic

delivery o eature lms. But the current economic climate is the mostchallenging in memory and will require all the hard work and creativity

the industry can muster.

Here are some highlights o what youll see in the pages oDigital America.

In-Home Technology

Since the early days o black-and-white, television has been the mainstay

o the industry or six decades and it remains the prime mover nowthat sets are digital and the world is fat. Digital displays represent 15

percent o overall CE sales with LCD sets at the oreront o the surgeadvancing 41 percent to attain dominance. Spurred by a drop in average

selling price, 14 percent o consumers snapped up 33 million digital TVs

in 2008, an increase o 24 percent. Plasma sets increased 11 percent.Projection sets ell 36 percent nding buyers primarily in the 60-inch

and larger screen sizes while CRT-based set sales dwindled to little overa million, mostly in the small-screen realm and are expected to continue

to ade in the coming year.

Other in-home technologies, including video and audio components andsystems, home inormation technologies and communications products,

held their own in the tough economy even as digital displays advanced.

Notebook computers have become the preerred replacement ordesktops in the home with two-thirds o shipments now portables.

Desktop computer units dropped to just over 10 million with $6.7 billionin revenue, while notebooks grew by 24 percent to more than 17 million

worth more than $14 billion. Within the notebook category, netbooks

today play to consumers desire to use computers principally as Internet

access devices, whether at home or on the go.

Video game consoles and sotware continue to entrench themselves

as an integral part o home and travelling entertainment. The averagevideo game player is now in his (or her) thirties as generations who

have grown up playing Atari and Pong enjoy the more sophisticated andrealistic experiences that todays computing power provides. Total videogame revenues neared $20 billion in the U.S. in 2008 and should surpass

that number in 2009.

In-Vehicle Technologies

In-vehicle technologies were one o the most challenged segments in

2008 and will be again in 2009 given the uncertain economy and the

struggling new car marketplace. This category has evolved over thepast decade rom what was once known as autosound to encompasselectronics or audio and video entertainment, navigation and security.Overall revenues in the atermarket category ell last year and are

expected to struggle again in 2009. However, portable GPS devicesrepresent a growing bright spot in this dicult environment.

Anywhere Technologies

Americans continue to enjoy one o the primary benets o digitaltechnology the ability to capture memories, stay connected, and

enjoy audio and video entertainment anywhere. Digital camera volumeapproached 34 million units worth nearly $7 billion last year while

camcorder unit volume grew slightly to 5.6 million even as dollarvolume ell below $2 billion, a refection o the surge in popularity ofash memory-based pocket camcorders. Digital photo rames represent

another growth area in the digital imaging space with unit volumesurpassing seven million and dollar volume exceeding $800 million even

as average unit prices continue to all.

Portable music player sales showed another year o decline but stillapproached 45 million units worth $5.5 billion. Related products

however, like MP3 player speaker docks continue to rise in volume andshould surpass 10 million units and $1 billion this year.

Accessories or CE products continue on a steady growth curve

especially as consumers take digital products with them everywhere.

(Enhancements like accessories, power supplies and blank mediarepresent $20 billion in annual revenues as consumers seek productsthat make electronics devices easier to connect, take along, last longer

or be more ashionable.) Even better or retailers and manuacturers inthis economy, these are products that typically carry respectable protmargins. In blank media, fash memory is a growth area as audio and

video cassettes ade.

In the nations capital and around the country, CEA works with legislatorsand regulators to assure a level playing eld so that innovation, the

lieblood o our industry, can continue to fourish unettered. CEApromotes the interests o the industry to provide the products consumers

want and their ability to use them when, where and how they like.

CEA Members: or a ull (ree) downloadable version oDigital America2009, please visit www.members.CE.org.

For non-members: To purchase a print or CD version o the ull DigitalAmerica 2009 publication, please visit: http://www.CE.org/Press/CEA_Pubs/1964.asp.



CEA Market Research

CEAs market research department (MRD) provides actionable

inormation and intelligence on all aspects o the consumer technology

industry, including hardware, content, services and inrastructure.

CEA market research produces an extensive body o primary research

not ound anywhere else.

Research Studies

25+newstudiesconductedeachyear.

300+uniquestudiesintotal. Findingspresentedinwebcastswithavailableslideshowsandvideo.

Product Ownership Rates

Ownershipratesonhundredsofproducts,servicesandactivities.

Product Sales Data (MARA)

Detailedmonthlyfactorylevelunitanddollarssalesdatareportsandanalysis.

Forecasts

Five-yearforecastsonhundredsofproducts/productfeatures.

Historical Data

Salesdataandownershipratesdatingbacktothe1950s.

Economic Insights

Analysisofmacroandmicrotrendsimpactingtheindustry. Quarterlyeconomicwebcasts.

Research Library

Experienced,professionallibrariansprovideanswerstothemostchallenginginformationrequests.

CEAmemberscanvisitCE.org/Researchforfreeaccesstotheresearch

andinformationonhowtogetinvolvedintheresearchprocess.Non-members may purchase research reports at myCEA.CE.org.

CEAMRDhasarich80-yearhistoryofobjectivemarketresearch.

Ourindustrysalesdataandmarketresearcharecontinuallyrelied

upon by the technology community, fnancial markets, the media andeconomists. We are proud o our widely recognized integrity, as well asour record o accuracy and expertise.

CEA market research is the authoritative source or industry research

and analysis.

Some Recent CEA Consumer Research

Studies Include:

Net-enabled Video Early Adopters Only?(March2009)

7th Annual State of the Builder Technology Market Study

(March2009)

3D TV: Where Are We Now and Where Are Consumers?(February2009)

Greying Gadgets: How Older Americans Shop For and Use ConsumerElectronics (February2009)

Digital Imaging: A Focus on Sharing(January2009)

The Video Game Market: Attracting New Audiences, Creating NewOpportunities(January2009)

The Evolution of Audio Is Anyone Listening?(December2008)

Going Green: An Examination of the Trend and What it Means toConsumers and the CE Industry(December2008)

The Technology Enthusiast Driver Population Driving the Future of In-Vehicle-Technologies(November2008)

15th Annual CE Holiday Purchase Patterns Study(October2008)


Fornon-members:TopurchaseaprintorCDversionofthefull DigitalAmerica 2009publication,pleasevisit:http://www.CE.org/Press/CEA_Pubs/1964.asp.



Technology & Standards

What are standards and why are they important?

Technical standards describe how to design, build, use or test something.They are important to the CE industry because they allow manuacturersto make products that will work with other manuacturers products. They

also allow consumers to compare the perormance o dierent products.

Imagine i the connector that joins your TV set to your cable or satellite

system wasnt standardized. There might be 100 types o TV cable outthere, one to connect TV set A to cable system X, another to connect TV

set B to system X, a third to connect set A to system Y, and so on. Imaginei there wasnt a standard describing the signals used or wirelessInternet connectivity. Your laptop might have wireless connectivity in

your ofce, but not in your hotel room. It might work in your homebut not at the airport. And imagine i there wasnt a standard way o

measuring the power consumed by a TV set. A set that typically uses 250watts might appear to use less energy than a set that typically uses only

150 watts simply because it was tested under more avorable conditions.

CEAs various standards committees constantly develop and improve

technical standards to help the CE industry grow and prosper. Theymaintain more than 100 standards while scanning the CE horizon to see

where new standards might make the industrys uture even brighter.For a complete list o CEA standards and inormation on how to become

involved, visit www.CE.org/Standards/.

2009 Technology and Standards Events

PlugFest12March 29 - April 3Burlingame, CA

2009 Technology and Standards Spring ForumMay 11 - 15St. Louis, MO

2009 Technology and Standards Fall ForumOctober 18 - 23

Phoenix, AZ

For urther inormation on CEA Technology and Standards events, visit:

www.CE.org/Standards/2794.asp.

How to Order CEA Standards Documents

CEA standards can be ordered through IHS (http://electronics.ihs.com/). CEA members receive a 25 percent discount o regularly pricedstandards documents.

Top Selling CEA Standards in 2008

CEA-2022 Digital STB Active Power Consumption Measurement

CEA-861-D A DTV Profle or Uncompressed High-Speed Digital

Interaces

CEA-861-E A DTV Profle or Uncompressed High-Speed Digital

Interaces

CEA-608-E Line 21 Data Services

CEA-766-C U.S. and Canadian Rating Region Tables (RRT) and

Content Advisory Descriptors or Transport o Content

Advisory Inormation Using ATSC Program and System

Inormation Protocol (PSIP)

CEA-708-C Digital Television (DTV) Closed Captioning

CEA-770.3-D High-Defnition TV Analog Component Video Interace

CEA-2014-A Web-based Protocol and Framework or Remote User

Interace on UPnP Networks and the Internet (WEB4CE)

CEA-931-C Remote Control Command Pass-Through Standard or

Home Networking

CEA-909-A Antenna Control Interace

CEA-608-D Line 21 Data Services

CEA-2017 Common Interconnection or Portable Media Players

CEA-775-C DTV 1394 Interace Specifcation

CEA-709.1-B Control Network Protocol Specifcation

CEA-2020 Other VBI Waveorms

CEA-CEB16 Active Format Description (AFD) & Bar Data

Recommended Practice

CEA-2017.1 Serial Communication Protocol or Portable Electronic

Devices

CEA-2030 Multiroom Audio Cabling Standard

CEA-426-B Loudspeakers, Optimum Amplifer Power





Accessories - CE Enhancements

Trends

CE enhancement factory sales expected to outperform CE industry as awhole in 2009.

New or improved connectivity between devices is creating new ac-cessory categories and increasing demand for blank media and othercontent storage options.

Video game accessories are the only CE enhancement category project-ed to have both positive growth and unit sale price increases in 2009.

Programmable A/V remotes sold at retail offer custom, ease-of-use

features. The rise of touch screen mobile handsets and 3G-enabled smartphones

is driving sales of protective shells and gel cases, additional memoryand screen protectors.

Wireless Bluetooth headsets, wireless keyboards and wireless mice

designed for laptops all hit near double-digit unit growth in 2008. Music-savvy wireless phones have sparked sales of Bluetooth-enabled

speakers and stereo headsets. The trend of personalizing CE devices with color and fashion-oriented

accessories continues to grow. Low-cost netbooks are increasing demand for mice, cases, USB ash

memory and, from the PC peripheral category, portable hard drives and

portable DVD drives. Consumers are using USB ash memory cards as portable hard drives,

and treating portable hard drives as personal data/media warehouses. In this recessionary market, retailers plan to pay detailed attention to

protable add-on sales.

Changed CE Market, New Accessory Dynamics2008 heralded a changed and challenging market for the consumerelectronics (CE) industry as a whole, and 2009 will bring a new dynamic

for the highly protable CE enhancement categories: accessories,primary batteries and blank media products.

Traditionally, the growth rates of CE enhancement categories havetracked at slightly lower growth rates than the overall CE industry. Forexample, in 2006, a peak year for CE sales growth, factory sales to dealers

of all CE categories increased 14 percent year-over-year to $152 billion,but CE enhancement categories grew only 7.6 percent to $19.2 billion.

For 2008, when retail sales rates plummeted dramatically in late Q3, CEAestimates total CE industry sales to dealers increased 5.4 percent over

2007 to $172.1 billion, but 2008 CE enhancement sales increased only1.7 percent to $19.5 billion at the wholesale level.

For 2009 CEA market research anticipates total CE factory sales to

dealers will dip 0.6 percent but CE enhancement sales will grow a slight1.1 percent to $19.7 billion. The CE enhancement categories sales todealers are expected to generate roughly 11.5 percent of the total CE

factory sales in 2009. By CEAs projections, the biggest contributors toCE enhancement product growth in 2009 will be ash media, forecast

to generate $240 million in new factory sales this year and video gameaccessories, forecast to generate $130 million.

Facing a stiff economic headwind, consumer technology retailers are

adjusting product mixes and sales techniques to promote protable

attachment sales to new and existing customers. Yes, the economy is ina recession, but consumers continue to embrace life amid a networked

universe of CE devices. Retailers and manufacturers believe that,economics notwithstanding, this consumer interest can still support

an increase of add-on sales, whether it be accessories for the latestvideo games, extra ash memory for netbooks and smartphones;

transportable, Bluetooth-enabled hands-free kits for in-vehicle use,or speakers docks and adapters for portable media players. New or

improved connectivity between devices is creating new accessorycategories and increased demand for blank media and other contentstorage options.

Within the CE enhancement category, CE accessories including audio and

video, digital imaging, wireless phone, video game and desktop/laptop PCaccessories, represents the largest CE enhancement product subcategory.

CEA estimates that CE accessory factory sales increased 2.8 percent in 2008and will grow 1.8 percent for 2009 to a total of $14.8 billion.

CEAs projections echo Staples Inc.s expectations in early 2009. We still

see a strong accessory business, said Mike Sacks, Staples vice president/divisional merchandise manager, responsible for categories including

GPS, digital imaging (cameras and frames), MP3, blank media andBluetooth. It hasnt been impacted to the degree the hardware has.

Factory sales of CE battery products saw growth in 2008, a 2.2 percent

increase, but are expected to atten in 2009, increasing only 0.2 percentto just under $6.6 billion in wholesale sales.

Total blank media factory sales steadily declined from $5.7 billion in

2005 to just under $4.9 billion in 2008 with the erosion of the blankcomputer media market, but the category as a whole is on a rebound,

powered by ash media products. After a 0.2 percent dip in sales in 2008,total factory sales of blank media are expected to increase by one percent

to $4.9 billion in 2009.

New and Key Products to Watch

Mid-tier programmable remotes offer sophisticated macros, color

screens and continued ease-of-use.

Video game controller attachments, especially those for the casualand/or social gamer.

Flash media for smartphones and USB drives for netbooks.

Anything extending WiFi and Bluetooth connectivity.

Anything connecting to iPhone, iPod Touch or iPod.

Gaming Accessories

Within the CE accessories subcategories, video game accessoriesgenerated the strongest 2008 over 2007 revenue growth rates, with

CEA Members: for a full (free) downloadable version ofDigital America2009, please visit www.members.CE.org.

For non-members: To purchase a print or CD version of the full DigitalAmerica 2009 publication, please visit: http://www.CE.org/Press/CEA_Pubs/1964.asp.



Audio

Trends

Theaudioindustryrespondstoconsumerdemandsforportability,easyaccesstomedia,andnewmusicsourcesviaMP3playerdocking

speakersystemsandaudioproductsthatstreammusicfromanetworkedPCandfromInternetradiostations.

Consumersdemandsimplerhomeaudiosolutionsthatttheirlifestyleandhomedecor.Thesolutionsincludeone-pieceSurroundBars,wirelessspeakersandone-piecetabletopCD/radios.

Burgeoningsalesofarelativelynewaudioproduct,theMP3playerdockingspeakersystem,havebeenresponsibleinlargepartfor

continuedaudioindustrystrength.

MosthomeaudiocomponentsandsystemscandockwithApplesiPod

toplaybackiPod-storedmusicforeveryoneinaroomtohear.

One-pieceSurroundBars,whichuseampliersandvirtualsurroundtechnology,representthelatestevolutionofthehometheater-in-a-box(HTiB)system.ManyincorporateembeddedDVDplayerstokeep

solutionssimple.

Internetradiostreamingwillbeincorporatedin2009inmoreone-

piecetabletopstereoradiosandcomponentA/Vreceivers.

Portableaudioproducts,ledbyMP3players,willoutsellhomeaudio

productsforthefthconsecutiveyearin2009,accordingtoCEAforecasts.

Totalhomeaudiosalesslippedin2008byonly1.3percentatthe

factorylevelto$3.78billionandwillremainatin2009despitetheseverestrecessioninaquartercentury.Salesincludecomponent

audio,audiosystems,clockandtabletophomeradiosandMP3playerdockingspeakersystems.

Factory-levelsalesofHTiBsystemsrose12.3percentin2008andareforecastbyCEAtodroponly1.3percentin2009,inpartbecause

consumersmaycurtailentertainmentspendingoutsidethehomefromtherecession.

TheMP3/portablemediaplayer(PMP)marketenjoyedyearsoftriple-anddouble-digitpercentagegrowth,butfactory-levelunitanddollar

salesdippedforthersttimein2008andwillagainin2009,CEAforecasts.

ThehouseholdpenetrationrateofMP3/PMPshit46percentinJanuary2009,upfrom20percentinJanuary2006.

ThemusicindustrysembraceoftheunrestrictedMP3formatpromisestofurtheracceleratesalesofauthorizedmusicdownloads.MP3lesshornofdigitalrightsmanagement(DRM)technologycan

beplayedwithoutrestrictiononawidevarietyofdevices.

DigitalHDradiowillcontinuetomakeslowbutsteadyprogressin

2009,withmorethan90HDradiohomeandcarproductsavailableandthenumberofHDRadiostationsgrowingtomorethan1,800.

Theresidentialcustom-installmarketremainsvibrantdespitetheseveredownturninnewhousingconstruction,withdealer-

levelrevenuesexpectedtocontractonly5.2percentin2009,ParksAssociatescontends.

Satelliteradiossubscriberbaserose12.5percentin2008to18.9

million,butmostgrowthiscomingthroughfactory-installedsatellite

radiosinnewcars.

Audio Industry Tunes Up

Enormouschangeshaveturnedtheaudioindustryupsidedownin

recentyears.NewmusicsourcessuchasPCsandInternetradio,growingconsumerdemandforsimplesolutions,ashiftinmusicconsumptiontoportableMP3players,andinroadsbyPCindustrysuppliershadthe

industryallshookup.Forawhile,thelegacyaudioindustrystumbled,butitsoonregaineditsfooting.Nowthecurrentrecessionthreatensto

inictanothershock,buttheaudioindustryisbetterpoisedthanmanyindustriestowithstandthesharpconsumerspendingdrop-offthattook

holdinmid2008.

Duringrecessions,consumersincreasinglylooktotheirhometoentertainfriendsandfamily,andthustheyreducetheirdiscretionary

spendingonsuchactivitiesasmovietheaterattendance,restaurantdining,sportingeventsandvacations.Infact,NorthAmerican

consumersaretwiceaslikelytoreducespendingonentertainmentoutsidethehomeastheyaretoreducespendingonin-homeentertainment,accordingtoaNovember2008ForresterResearch(www.

forrester.com)surveyofonlineNorthAmericanadults.Thestudyfoundthat16percentofsurveyedadultswouldspendmoreonin-home

entertainmentinthecomingyear,while58percentsaidtheywouldspendaboutthesame.Only26percentsaidtheywouldspendlessonin-

homeentertainment.Incontrast,52percentsaidtheywouldspendlessonentertainmentoutsidethehome,and43percentwouldspendaboutthesame.Thepenchantofconsumerstococoonathomeduringhard

timesmeanstimesforthehomeaudioindustryprobablywontbeasbadasitwillbeforotherindustries.

Recession opportunities: BecausetheTVisthecenterofin-home

entertainmentformanypeople,consumersmightbemorelikelytoimprovetheircurrentTVset-upwithanaffordablehometheater

solutionthatdeliversTVshows,DVDsoundtracks,andBlu-raydiscsoundtracksinmultichannelsurroundsound.

CEAMembers:forafull(free)downloadableversionofDigital America2009,pleasevisitwww.members.CE.org.




Automotive Electronics

Trends

Salesrevenueformobileentertainmentdevicesroseabout9.3percentin2008to$11.7billion,accordingtoCEA.

CEA,however,projectsthatsalesrevenuewillfvidalltoroughly$11.2billionin2009duetotheweakeningeconomyandotherfactors.

Theindustryssuccessin2008wasdrivenpartiallybytheemergenceoftechnologyenthusiastdriversconsumerswhosoughtmoreconvenient

waystocontrolmobiledevicessuchastheiPodwhileinthecar.

Thesatelliteradioindustry(Sirius-XM)sufferedreducedearnings

andsubscriptionnumbersin2008duetoa27percentdropinnewvehiclesalesintheU.S.RisingdebtalsothreatenedtoforceSirius-XMtodeclarebankruptcyintherstquarterof2009,butalateinvestment

fromLibertyMediakeptthecompanyaoat.

DespitetheSirius-XMmerger,CEAprojectsthataftermarket

shipmentsofsatelliteradioreceiverswillfall24percentin2009withrevenuesdeclining40percent.

Portableandtransportablenavigationsystemsroseinrevenuefrom2.4billionin2007to3.8billionin2008.CEAestimatesthatthe

categorywillriseagainin2009tofourbillion.

HDRadioexpandeditsavailabilityinstoresandonlinesites,butconsumer

awarenessofthetechnologywasatin2008,accordingtoArbitron.

The Drive to Maintain

Thein-vehicletechnologiescategoryentered2009withagoodfeelingthat

overallrevenuerosenearly10percent,from$10.7billionto$11.7billion.Thecategorywasledbyportableandtransportablenavigationproducts,

whichwitnessedarevenuejumpfrom$2.4billionto$3.8billion.

However,likenearlyeverysectorinAmerica,thedeepeningglobalrecessiontookatollonseveralsub-categoriesincludingsatelliteradio

receivers,whichexperiencedasharpdropinrevenue($156millionto$91million)andmobilevideodevices,whichfellfrom$713million

in2007to$590millionin2008.Thecreditcrisisthattriggeredtheeconomicdeclinewasarguablyfeltmoststronglyintheautoindustrywhichsawsalesfallthroughtheoorstartinginlatesummer.

Consumersstoppedbuyingnewcarsandalongwiththemnewpre-installedentertainmentproductssuchassatelliteradioreceivers.

Muchhaschangedintheworldoverthepastsixmonths.Wehavewitnessedunprecedentedeconomicupheavalthathasfrozencreditandtumblednancialmarketsaroundtheglobe.HereintheU.S.,

recessionaryforceshavebruisedbusinessesandembattledentireindustriesofallshapesandsizes,statesCEAinitsJanuary2009report,

U.S. Consumer Electronics Sales and Forecasts2009.

Astheyearprogressesandtheeconomycontinuestobechallenged,asmanyexpertspredict,thein-vehicleindustrywillhavetoexplore

waystosimplymaintaincurrentrevenues.SteveKoenig,CEAsdirectorofindustryanalysis,saysthattheaftermarketcategoryproductsthatareinstalledand/orusedinoldervehiclesrepresentsstrong

growthpotential.TheeconomyhaskeptmanyAmericansfrombuying

expensivetravelpackages,particularlybyair,whichhasledthemtouse

thecarmoreoftenforvacations.Withgaspricesstabilizing,thistrend

shouldescalatein2009.Ifso,itcouldencourageconsumerstoaddmoreentertainmentproductstotheirexistingcars.

Koenigpointstotheemergenceofanewsegmentcalledthetechnologyenthusiastdriver,(TED).InaCEAstudypublishedlastyear,theTED

wasdescribedasanearly-to-midadopteroftechnologywhoregularlydrivesacarthatisownedorleased.TheTEDconsumer,whousuallydrivesatleastonehoureachweekday,isinterestedinnewtechnologies

suchasvoice-activatedin-carfeaturesandwirelesscommunications.Awhopping61percentofTEDssaytechnologyisimportantintheir

vehiclesand89percentofTEDssaytheyuseportableCEdevicesintheircars;TEDsalsosaytheyusethreeormoreportabledevicesinthecar.

Additionally,57percentofTEDssaidtheywouldliketoconnect

alloftheirportableCEdeviceswirelesslytoacentralizedvehicleentertainmentandcommunicationssystem,Koenignotes.

Betteryet,CEAhasfoundthat27percentofconsumersmakingmore

than$75,000ayearconsiderthemselvestechnologyenthusiastdrivers,asizableaudiencewithdisposableincome.

Thereismoregoodnewsforthein-vehicleindustry.ABIResearchstated

inastudyreleasedinearly2009thatmorethanhalfabillionuserswillbewatchinglivemobileTVby2013andmanyofthemwilldosowhile

seatedinacar.TheAdvancedTelevisionSystemsCommittee(ATSC),whichestablishesstandardsforconsumervideo,saysmobiledigitalTV

couldbeavailableincarsasearlyas2010.Untilnow,liveTVreceptionin

thecarhasbeenspotty,withtheexceptionofRVandlimodrivers.ButtheATSCisexpectedtosoonissueanewstandardforlivemobileTV

thatwillleadtoanewcategorytunersforautoTVscreens.Thegroupsaystherenoware20millionmobilevideoscreensalreadyincars.The

aftermarketin-cartunercouldbeaboonfortheindustry,particularlyconsideringthatconsumerswouldnothavetopayamonthly

subscriptionforTVservice,unlikesatelliteradio.

TheNationalAssociationofBroadcasters(NAB)estimatesthatmobileDTVservicecouldreachbetween200,000and300,000vehiclesperyear

from2010to2012.

Andin-carentertainmentcompaniescontinuetoinnovatedespitetheeconomicconcerns.MitsubishiElectricannouncedinFebruary2009

thatitsintroducinganautomotiveBlu-rayhigh-defdiscplayerwhichwilltintoacarsstandardradiotting.Thecompanywasableto

makeaBlu-rayplayeratthatsizebyreducingthethicknessofcertainmechanicalpartsandimprovingtheanti-vibrationperformance.

Evenwitheconomicuncertainty,Americanstendtoembracenew

productsthatwilladdconvenienceaswellasentertainmenttotheirlives.Andwithproductslikein-carphones,HDandsatelliteradioand

roadnavigationsystems,themobileentertainmentindustrycertainlyaddressesbothofthosedesires.Consumersbelievemorethaneverthatitsnecessarytostayconnectedandentertainedregardlessofwhere

theyare(witnesstheriseofthecellphoneandiPod).Andinthecaseoftheautomobile,itcouldbeevenmoreimportanttohavethesame





Digital Imaging

Trends

Digitalcameramarketismaturing. Digitalcamerashipmentspeak.

Pricesdroppingwhilemorefeaturesabound.

DSLRmarketpicksupsteam.

Digitalcameramarketisbecomingmorediverse.

Are8-9megapixelsthesweetspot?

Consumersgraduatetosmartphones.

Cameraphonesnothurtingdigitalcameraactivity.

Camcorderscontinuetoshiftawayfromtape.

Accessoriesmarkettouctuate.

Photoframestohit10millionmarkin2009.

Onlinephotonishingrevenuestoexceed$1.5millionby2012.

Two-in-threeconsumersaresatisedwithphotosharingoptions.

Digitalprintinggrows,buttotalnumberofprintsmadeexpectedtodrop.

HotnewdigicamsdebutedatCESandPMA.

Digital Imaging Market at a Crossroads in 2009

2009promisestobepivotalyearforthecountry,theCEindustryandthe

digitalimagingmarketplaceonmanylevels.ThereisanewPresidentinofce;theCEindustrywillbetransitioningtoalldigitaltelevisionin

Juneandthedigitalimagingmarketplacefacesahostofnewchallenges.Setagainstthebackdropofapossiblerecord-breakingU.S.recessionand

risingunemploymentrates,revenuegrowthintheCEindustrywillbeanuphillbattleformanydigitalimagingcategories.

Digital Camera Market Maturing

OnceoneofthehottestproductsoftheCEindustry,shipmentrevenues

ofdigitalcamerasareshrinkingashouseholdpenetrationforthesedevicesispeakingandconvergenceerodessales.

Despitetheshipmentslowdowninthissector,thereisstillample

opportunityforsuppliersandretailers.CEAexpectsshipmentrevenuesofdigitalcamerastocheckinninepercentlowerthanlastyear,butwill

stillpost$6.3billioninsalesasmegapixelsmushroomanddigitalSLRs(DSLRs)saleshittheirstride.

Total Digital Imaging - Sales to Dealers

Unit Sales (Thousands) Dollar Sales (Millions) Average Unit Price

2004 24,411 $6,390 $262

2005 28,491 $7,315 $257

2006 39,717 $9,827 $247

2007 43,040 $9,197 $214

2008 46,953 $9,506 $202

2009p 46,809 $8,957 $191

Source: CEA Market Research

Digital Cameras - Sales to Dealers

Unit Sales (Thousands) Dollar Sales (Millions) Average Unit Price2004 18,852 $4,739 $251

2005 23,249 $5,611 $241

2006 32,947 $7,819 $237

2007 32,220 $6,517 $202

2008 33,921 $6,903 $204

2009p 31,018 $6,303 $203


Digital Camera Shipments Peak

Digitalcameras,whileinasalesdecline,stillremainamajorcomponent

oftheAmericanCEproductmix.Withseven-in-tenhouseholdsreportingownershipofadigitalcamera,onemightwonderwhatisnextforthiscategory.CEAprojectsshipmentsofdigitalcameraswillpeak

at33.9millionunitsbytheendof2008andthenbeginyear-over-yeardeclinesstretchinginto2012.Themarketfordigitalcameraswillremain

largelyareplacementmarketasconsumersupgradetheirexistingcamerasformoremegapixelsandahostofnewoptionsincludingGPS,facedetection,informationtaggingandtouchscreenfeatures.

Ofthenearly23millionhouseholdsthatpurchasedadigitalcamerain2008,seven-in-tenwererepeatbuyerslookingformoremegapixels

andnewfeatures,saidGaryShapiro,CEOandpresidentofCEA.CEApredictsthathouseholdpenetrationofdigitalcameraswillcontinueto

growto83percentby2012.

U.S. Consumer Electronics Household Penetration Forecast

2009 2010 2011 2012

Camcorders 51% 53% 55% 58%

Digital Cameras 77% 79% 81% 83%

Smartphones 23% 33% 29% 38%


Convergenceandconsolidationcontinuetosummarizetodaysdigitalimagingindustry.Inthiscompetitivearena,marginsmaybethin,

buttechnologyisstillevolvingrapidly.Cameramakersareconstantly

lookingforwaystomaximizevaluetouserswhilekeepingpacewithinnovationsintechnology.Manyofthe2009modelsarechockfullwithhighermegapixelcountsaswellasnewoptionssuchasWiFiandGPS

capabilities.

Camera Shipments Up

TheCamera&ImagingProductsAssociation(CIPA)reportedthattotalshipmentsofdigitalcamerasin2008(thecumulativetotalofshipments

fromJanuarytoDecember)exceededtheperformancein2007whenshipmentsbrokethroughthe100millionunitmarkforthersttime

sinceCIPAbegancompilingstatistics.Atotalof119,757,000units





Gaming

Trends

Gamingcontinuestopostnewrevenuehighscores.

Consumersndtruevalueingaminghardwareandsoftware.

Socialgamingfuelshottitles.

Popularhandheldsandsmartphonesenergizetheportablegamingmarket.

Gamingspopularityfuelsaccessorysalesandviceversa.

DigitaldistributionchannelsbecomeamainstayofPCgaming.

Gaming Records are Made to be Broken

Aftertherecord-settingyearenjoyedbythegamingindustryin2007,manywatchedwithinteresttoseehowgamingwouldperformin2008asthecurrentgenerationofconsolesdugintheirheels.Gamingproduced

$16.85billioninU.S.salestodealersfor2007,accordingtoCEA,andas

theconsolewarsbegantocool,softwaresaleswereexpectedtohelppushgamingtoanotherrecordyearin2008.

Thepastyeardidbreakthefreshlysetrecordsof2007,butitwasntdone

bysoftwarealonecontinuingconsumerinterestinMicrosoft,NintendoandSonysconsoleshelpedpushwholesalerevenuestoanestimated

$19.66billionfor2008,a17percentincreaseover2007.

Astheglobaleconomybegantoslump,gamingremainedabrightspot

forboththeCEindustryandthehomeentertainmentsector.Initsannualforecast,GermanmarketresearchrmMediaControlGfKfoundthatthe$32billioninglobalsalesbroughtinbygamingin2008bestedsalesof

DVDandBlu-raycombined,andboostedtheglobalhomeentertainmentsectorto$61billion.IntheU.S.,retailsalesreached$21.33billion

accordingtoNPDmarketresearch.

$0

$5,000

Gaming Dollar Sales to Dealers Revenue(millions)


$10,000

$15,000

$20,000

$25,000

$12,927

$16,850

$19,659

$21,822

2006

2007

2008

2009p

Thegamingsegmentperformedsowell,infact,thatmanyin2008began

tochampionitasrecession-proof.Atallstatementforsure,butinatimewhereconsumersaremoreconsciousoftheirspendinghabits,gaming

mayofferthebestentertainmentperdollarvaluetothoselookingtosavemoneywhilebeingentertainedathome.Meanwhile,theaudience

forgamingcontinuestogrowatbreakneckpacearecentCEAmarket

researchstudy,The Video Game Market - Attracting New Audiences,Creating New Opportunities(January2009),foundthat70percentof

onlineadultsplayvideogamesonaPC,gameconsole,portablemediaplayerorcellphone.

Itmaybetooearlytotellwhetherrecession-proofisanoverstatement,butpredictionsfor2009remainpositiveCEAexpectsgamingsalesto

dealerstoincreaseby11percenttoreach$21.82billion.Retailsalesfortherstmonthof2009arealsoencouragingNPDreportsthatgaming

generated$1.33billionforthemonthofJanuary,a13percentincreaseovertherstmonthof2008.

Heavy Machinery: The Three Major Consoles

Thelatestgenerationofconsolesalsoisdoingitsparttoholdconsumers

interest,instillasenseofvalueandattractnewaudiences.Thethree

majorplayers,theMicrosoftXbox360,theNintendoWiiandtheSonyPlayStation3,continuetoappealtoabroadrangeofconsumers.Throughacombinationofpricecutsandnewlyaddedorannounced

consolefeatures,theconsolescontinuedtolurenewfacesintothegamein2008.Atrendthatwasnotseenbeforethishardwaregeneration,theonlineconnectivityofmodernconsolesallowsforbettersupportfrom

manufacturers,includingtheadditionofnewfeatures.

Infallof2008,MicrosoftupdatedtheuserinterfaceofitsXbox360consolewhenitreleasedtheNewXboxExperience,orNXE,whichadded

newfeaturesinadditiontopresentingconsoleownerswithafreshgraphicaloverhaul.Thesystemupdate,receivedviatheconsolesInternetconnection,addedanavatarfunctionthatallowedtheownertocreate

avirtualrepresentationofthemselvesthatwouldbevisibletoeveryone

ontheirfriendslist.Inadditiontoavatars,theupdatealsoaddedthefunctionalityforNetixsubscriberstostreamcontenttotheirconsoleoverabroadbandconnection.AsofFebruary2009,overonemillion

consoleownershavetakenadvantageoftheservice,withanaverageof16movieswatchedperhousehold,accordingtoMicrosoft.

Wheregaminghardwareisconcerned,NintendohasdominatedthescenewithitsWiigamingconsoleandtheNintendoDShandheld.TheWiiand

DStookthetoptwospots,respectively,forunitssoldintheU.S.in2008.ConsumersaredrawntotheNintendoWiisuniquemotion-sensing

capabilities,andNintendohascontinuedtofocusontheseaspectstodrivesales.Releasedinspring2009,NintendosWii FittitleincludedaweightandbalancesensitiveBalanceBoardperipheralthatcouldbe

usedincombinationwiththemotionsensingWiicontrollertoenhancetheconsolescapabilities.

NotonlycanownersusetheirWiiconsolestotracktheirexerciseand

tnesswithWii Fit,buttheBalanceBoardiscompatiblewithothertitlesaswell.PlayerscanusetheBalanceBoardtointeractwithskiing,

snowboarding,surng,skateboardingorotheractivity-basedtitlessuchasShaun White SnowboardingorSkate It.NintendosplansfortheconsoledontendattheBalanceBoard,however.Anadd-onaccessory

forthestandardWiiRemote,theWiiMotionPlus,willattachthebottomofthecontrollerandprovideexact1:1movementsensingwhenitis

releasedlaterthisyear.Finally,asmanyoftheWiismostpopularonline-capabletitlescametomarketin2008,NintendoreleasedWiiSpeak,a


Fornon-members:TopurchaseaprintorCDversionofthefullDigitalAmerica 2009publication,pleasevisit:http://www.CE.org/Press/CEA_Pubs/1964.asp.



Home Networking

Trends

Homenetworksareevolvingtobemultimedia-centric,withagreatemphasisondistributingInternet-basedstreamingordownloadedvideoaroundthehouse.

Networkconnectivitywillbepromotedasadifferentiatingfeatureinlow-cost,mainstreamCEproductsnotjustinhigher-endproductsaimedatearlyadopters.

Internetserviceprovidersareincreasinglydrivingthegrowthofhomenetworks,throughequipmentinstallationsandvalue-addedservices.

Mobilehandhelddeviceswithbuilt-inWiFiwirelessnetworkingtechnologysuchasApplesiPodTouchandiPhoneareemerging

asthenext-generationofuniversalremotecontrolsfornetworkedCEproducts.

Beyondmultimediahomenetworkingliesvisualnetworking.

Astherstdecadeofthe21stcenturynearsitsend,averageAmericans

areembracingnewwaysofenjoyingthemselvesathome,madepossiblebyadvancesinhomenetworkingtechnologiesandanewgenerationof

connectedCEproductsandrelatedservices.

Fromthestartofthedecadetoasrecentlyaslastyear,homenetworkswerestillpredominantlydatacentricthatis,usedmostlytoconnect

computersandcomputerperipheralstooneanotherandtotheInternet.Butin2009thereisasignicantshift,industryanalystsandinsiderssay,

tomultimedia-centrichomenetworksdominatedbyentertainment-orientedconsumerelectronicshardware.Thisyear,theseexpertssay,low-

pricedCEproductswillatlastincludehomenetworkingandconnectivitytechnologiesthatoncewerefoundonlyinhigh-endCEproducts.

In2010,itispredictedthatmultimedia-centrichomenetworkingwill

evolvetoanewformcalledvisualnetworking.

Going Mainstream

AccordingtoCEAdata,34percentofU.S.householdscontainedawired

orwirelesshomenetworkinJanuary2009,upfrom30percentoneyearearlier.Additionally,61percentofU.S.householdshadbroadbandInternetserviceinJanuary2009,upfrom58percentinJanuary2008,the

datashows.

Iwouldexpectarobustgrowthtrajectoryforwirelessnetworks,says

SteveKoenig,directorofindustryanalysisatCEA,giventhatwirelessconnectivityisnowalmostastandardfeatureofbroadbandgateways.HomebroadbandservicescomewithanInternetgatewaydevicethat

incorporatesawirelessnetworkingrouter,henotes.

Alsocontributingtothisexpansionofwirelessnetworksisthegreatersalesofportablecomputerscomparedtodesktopcomputers,aswellas

theadventofotherInternet-connectedCEproducts,includingInternetradios,femtocells,SkypeVoIPphones,WiFi-enabledcellphonesand

handheldmobiledevicesliketheAppleiPodTouch.In2009,notebookorsmallernetbookcomputerswillmakeup69percentofPCshipments,accordingtoCEAdata.

VirtuallyeveryCEdeviceisquicklybecomingInternet-enabled,

becauseconsumerswantaccesstocontentnomatterwheretheyare,

Koenigsays.Onlineaudio,video,socialnetworkingandgamingareallndingtheirwayveryquicklyintothelivingroom,andnotjustthehomeofce.

In2000,98percentofhomenetworkscouldbedescribedasdata-centric,

butbythemiddleofthedecadetherewasadiscernibletrendtowardmultimedia-centrichomenetworksthatincludedvideogameconsolesconnectedtotheInternet,saysMichaelGreeson,presidentofmarket

researchandanalysisrmTheDiffusionGroup(TDG).TheDallas,Texas-basedanalyticsandadvisoryrmspecializesintheconnected

homeandbroadbandmediamarkets.

By2005,15percentofhomenetworksweremultimedia-centric,andbyearly2009thissharehadgrownto65percentofhomenetworks,

Greesonsays.Infact,headds,data-centrismistheonlycomponentthatisdecliningamongcurrentlyinstalledhomenetworks,andarecentTDG

surveyofpeoplewhowereplanningtoinstallahomenetworkrevealedthatmostintendedtouseitformultimediapurposes,suchaswatching

TVshowsfoundonline.

BynextChristmas,Greesonpredicts,InternetconnectivitywillbeacorevalueforthersttimeinmainstreamCEproducts,includinglow-cost

DVDplayers,Blu-raydiscplayers,audio-videoreceiversandTVs.Also,inthesametimeframe,heanticipatesInternet-basedapplicationstoberesidentinconnectedTVs,intheformofwidgetsthatconnectto

third-partyservices,suchasNetixorBlockbusterformoviedownloads.Thesewidgetswillbethebackdoorforalotofthesemovieservicesto

ndtheirwaytotheTVwithoutpushingaproprietarybox.

BecausetheInternetoffersaninnitelibraryofvideocontent,addsPredragFilipovic,senioranalystformultimediaandnetworkingatTDG,

itswellsuitedtoreplacecurrentvideo-on-demand(VOD)orpay-per-view(PPV)servicespresentedby[TVandInternet]serviceproviders

suchasComcastorVerizonknownintheindustryasMSOsormultiplesystemoperators.Thisisatrendthatcannotbestopped.

Yettherecouldbeakinkintheworks,Greesonnotes.Oneofmy

concernsiswhetherornottheInternetserviceprovidersaregoingtoallowconsumerstokeepsuckinguptheseapplicationswithoutpaying

fortheextra[bandwidth]load.Thisquestioncutstotheheartofthe

simmeringNetneutralitydebate,whichwillreallyheatupthisyear.SomebroadbandInternetserviceprovidersincludingComcast,Cox

andAT&Thavealreadybegunlimitingtheamountofbandwidthacustomercanuseonamonthlybasis,hesays,andthatlimits,for

example,thenumberofvideosthatcanbedownloadedorstreamed.

Atthesametime,though,MSOsareboostinghomenetworkingbyprovidingthenecessaryhardwareandinstallationtohouseholdswhen

theInternetserviceisactivated.AndMSOsalsoareincreasinglylookingforvalue-addedrevenueopportunitiesinprovidinghomenetwork

managementservicesforexample,helpingcustomerstotroubleshootandxahomenetworkproblem,Greesonsays.





Home Theater

Trends

AccordingtoCEAmarketresearch,householdpenetrationofhometheatersystemsroseto32percentinJanuary2009,upfromtheyear-

ago28percentandJanuary2005s24percent.

Hometheater-in-a-box(HTiB)systemssimplifythehometheaterpurchasedecisionbybundlingallaudioproductsneededtoenjoy

moviesandTVprogramsinmultichannelsurroundsound.

SourcesofmultichannelsurroundsoundincludesatelliteTV,digitalcablesystems,terrestrialdigitaltelevision(DTV)stations,broadband-

deliveredvideoservices,gamesoftware,DVDsandBlu-raydiscs.

SalesandrentalsofvideosoftwareincludingDVDandBlu-raydiscs,exceededmovietheaterbox-ofcerevenuein2008by$22.4billionto

$9.79billion,accordingtotheDigitalEntertainmentGroupandNielsenEDI,respectively.

Factory-levelshipmentsofhomecomponentBlu-rayplayers,excluding

Blu-rayequippedgameconsolesandPCdrives,willrise115percentin2009to5.8millionunitsfromtheestimated2.7millionunitsin2008,

perCEAsforecast.Dollarvolumewilljump61.7percentto$1.21billion.

Almost9.7millionBlu-rayplayers,includingBlu-ray-equippedgameconsolesbutexcludingPCdrives,weresoldtoconsumersin2008fora

cumulativetotalofalmost10millionsincetheformatslaunchin2006,theDigitalEntertainmentGroup(DEG)said.

A9.3percentdeclinein2009factorysalesofhomecomponentDVD

playersto16.1millionunitsincludingportablemodels,DVD/VCRcombos,andDVDrecorderswillbeoffsetbya109percentincrease

inhomecomponentBlu-rayplayersto5.76millionunits,boostingcombinedDVDandBDhardwaresalesbylessthanonepercentto21.89millionunits,CEAforecastsshow.Combineddollarvolumewill

grow9.3percentto$2.33billion,giventhehigherpriceofBlu-rayplayers.TheguresexcludeTVs,HTiBs,gameconsolesandPCdrives

equippedwithDVDandBlu-rayplayers.

Factory-levelHTiBsalesroseagainforthethirdconsecutiveyearin2008toarecordhighof$974million,up12.3percentfrom2007,CEA

estimatesshow.

HTiBsaleswillsliponly1.3percentin2009to$961milliondespitethe

tougheconomy,CEAforecastsshow.

ThenumberofsuppliersofferingHTiBspackagedwithBlu-rayplayerswillexpandtoatleastsevenin2009fromthreein2008atpricesdowntoaround$699.

SalesofA/Vreceivers,separatespeakersandotheraudiocomponentsusedinhometheatersfellanestimated11.3percentin2008to$1.28billionasconsumersoptedformoreaffordableHTiBsystemsina

recessionyear.

SurroundBarsproliferate.Theseone-piecespeakersystems,which

incorporateampliersandvirtualsurroundtechnology,representthelatestevolutionoftheHTiBsystem.

ManySurroundBarsincorporateanembeddedDVDplayer.Therst

modelswithanembeddedBlu-rayplayerwillarrivein2009.

AudioandTVsuppliersareincorporatingvolumelevelingtechnologiesthateliminateabruptvolumelevelchangesthatoccurwhenaTV

channelischanged,ahigh-decibelcommercialappearsorprogramstransitionfromloudtoquietscenes.

Home Theater: The Next Act

Home theater use grows in recessionary times:Recessionsarebadforconsumersandbusiness,buttheyrenotasbadforthehometheater

industryastheyareforotherindustries.

Duringpastrecessions,consumersturnedinward,lookingtotheirhomesforentertainmentastheyreducedtheirdiscretionaryspending

onentertainmentoutsidethehome.Consumersspentlessonmovie

theatertickets,restaurantdining,sportingeventsandvacations.Andthisrecessionisnodifferent.

Giventhestateoftheeconomy,NorthAmericanconsumersaretwiceaslikelytoreduceentertainmentspendingoutsideofthehomeastheyare

toreducespendingonhomeentertainment,accordingtoaNovember2008ForresterResearch(www.forrester.com)surveyofonlineadults.

Roughly26percentofthesurveyedadultssaidtheywouldspendlessonhomeentertainmentinthecomingyear,while58percentsaidthey

wouldspendaboutthesame.And16percentsaidtheywouldspendmoreonhomeentertainment.Incontrast,52percentsaidtheywouldspendlessonentertainmentoutsidethehome,and43percentwould

spendaboutthesame.

Thesurveyresultsaregoodnewsforthehometheaterindustry,whosevendorsmarketdigitalTVs,videosourcessuchasDVDandBlu-rayplayers,andthesurroundsoundequipmentthatdeliversmovieandTV-showsoundtracksinmovietheaterlikemultichannelsurroundsound.

Sales hold their own: Infact,despitetherecession,CEAestimates2008factory-levelsalesofHDTVsgrew29.3percentto26.85millionunits,

withdollarvolumerising24.9percentto$24.3billion.In2009,CEAforecasts10.9percentunitgrowthto29.8millionunitsand4.2percentdollargrowthto$25.3billion.

Likewise,factory-levelsalesofhometheater-in-a-box(HTiB)systemsroseforthethirdconsecutiveyearin2008toarecordhighof$974

million,up12.3percentfrom2007,CEAestimatesshow,andHTiBsales

willsliponly1.3percentin2009to$961million.

HTiBsystemssimplifythehometheaterpurchasedecisionbybundling

allaudioproductsneededtoenjoymoviesandTVprogramsinmultichannelsurround,makingitunnecessarytoseparatelypurchase

acomponentaudio/videoreceiver(AVR)andmultiplecomponentspeakers.MostHTiBsalsoincorporateanembeddedDVDplayertofurthersimplifythepurchasedecision,andselectnewmodels

incorporateaBlu-rayplayer,thehigh-denitionsuccessortothestandard-denitionDVDformat.

The2009forecastsforHTiBandHDTVdollarsalespaleincomparisontotheestimatedgainsin2008,butgivenwhatsexpectedtobeasevererecession,thehometheaterindustrywillholdupfairlywell.





Video

Trends

TVshipmentsareexpectedtorise5.7percentto34.6millionunits,accordingtoCEAforecasts.

Forty-sevenpercentofU.S.householdsownedahigh-denitionTV(HDTV)inJanuary2009andanother11percentownedadigitalstandard-denitionTV(SDTV).

ThenationalDTVtransitiondeadlineissetforJune12,2009.

CombinedDVDplayersaleswillcontinuetodeclinetojustover16

millionunitsin2009,withfactorydollarvolumepredictedtodropbelowBlu-raydiscplayerlevelsforthersttime,accordingtoCEAforecasts.

BroadbandconnectionsaddnewentertainmentoptionstoTVsandset-topdevices.

CEApredictscamcordersaleswillclimb4.6percentto5.8millionunitsin2009.

Perhapsmorethanever,theU.S.viewsthetelevisionsetasanecessity,notaluxuryitem,inthedigitalera.Despitethestartofaglobaleconomicmeltdownthatimpactedvirtuallyeverybusinesssegment,Americans

continuetopurchasenewdigitaltelevisionsetsatabriskpacetostayconnectedtotheworld.Avarietyofreasonsincludethecontinuedallure

ofsleekat-panelTVdesignsandagrowingdesiretoaddsmallerscreenHDTVstosecondaryroomsinthehome,butthenationsswitchtoall-

digitalterrestrialbroadcastingmaybethemostcompelling.

Theendofterrestrialanalogbroadcastinginfavorofasuperiorall-

digitalsystemwasgivenalast-secondreprievebyPresidentBarack

Obama,whosoughttoalleviateanyunnecessaryhardshiponthoseAmericanswhowerelateinpreparingfortheall-digitalconversion,

especiallyamongthepoorandelderly.

ByNielsenCompanyestimatesinJanuary2009,morethan6.5million

homeswereatriskoflosingtelevisionprogrammingifanalogTVbroadcastingweretoendthatmonth.Tohelpreducethenumber,

Congressapprovedameasuretopushbacktheanalogcut-offdatetoJune12,2009,fromthepreviouslyscheduledFebruary17,2009.

Additionalfundingwasallocatedforgovernmentsubsidizedconverterboxcouponsandamassivemulti-industryeffortwassteppeduptoalert

consumersthattheywouldneedtopurchaseanewdigitaltelevisionset,acquireadigital-to-analogTVconverterboxfortheirexistinganalogTVsets,oraddamultichanneltelevisionservice(cable,satelliteortelco)

thatwouldperformtheconversionforthem.

Assistedbya14percentdropinaveragewholesaleprices,overalldigital

television(DTV)shipmentsclimbed14percentin2008to32.7millionsets,andfactoryrevenuerosesevenpercent,accordingtoCEAestimates.

LCDTVshipmentsoutpacedallotherdisplaytypes,with2008unitvolumesup41percentfromtheprioryear,accountingfor73percentof

totalDTVsets.

Unitshipmentsofanotherat-paneldisplayplasmasetsrose12

percentin2008,andaccountedfor11percentoftotalDTVvolume,CEAsaid.Rear-projectionsets,meanwhile,fell36percentin2008,andwerelimitedprimarilytoverylargescreensizesof60-inchesandup.

Beyondever-evolvingdevelopmentsinhigh-denitionpictureperformance,agrowingnumberofdigitalTVsandBlu-raydiscplayers

plannedformarketin2009willaddbroadbandInternetconnectionstoenableviewerstoaccessselectvideo,music,photoandsocialnetworkingservicesdirectlythroughtheirTVscreenswithoutaPC.

Thedevelopmentisexpectedtogiveusersvirtuallylimitlessoptionsforentertainmentcontentwhileprovidingequipmentmanufacturersand

contentproviderspotentialnewrevenuestreams.

Thisyear,TVshipmentsareexpectedtorise5.7percentto34.6million

units,accordingtoCEAforecasts,asfactorydollarvolumedeclines2.2percentto$26.3billion.Digitaldisplaysremaintheprimaryrevenue

driverfortheindustrywithdollarshipmentsrepresenting15percentoftotalindustrysalesin2009,CEAsaid.

AsofJanuary2009,47percentofU.S.householdsownedahigh-

denitionTV(HDTV),andanother11percentownedadigitalstandard-denitionTV(SDTV),withresolutionsuperiortoanalogTVs,CEAconsumersurveysshow.FueledbyincreasedpenetrationofHDTV

setsinU.S.householdsandtheendofaformatwarlastyear,Blu-raydiscplayers,whichplaybackhigh-denitionvideoimages,alsostandasa

growthcategoryfortheindustryin2009.

Manufacturersattendingthe2009InternationalCESinJanuaryshowedmoreBlu-raydiscplayermodelsatlowerpricesthaneverbefore.CEAforecastssalesofcomponentBlu-rayplayersmorethandoubling2008

unitvolumelevelsto5.7millionasfactorydollarvolumerises61percentto$1.2billion.Atthesametime,combinedDVDplayersales

willcontinuetodeclinetojustover16millionunitsin2009,according

toCEA,withfactorydollarvolumepredictedtodropbelowBlu-raydiscplayerlevelsforthersttime.

Anothergrowthcategoryin2009isthecamcorder.Ascamcorderfunctionalitycontinuestobeintegratedintomorehybriddigitalcameras,andthepopularityofhigh-denitionmodelscontinuestogrow,

CEApredictssaleswillclimb4.6percentto5.8millionunitsin2009,althoughfactorydollarvolumewillbeat.

Digital Television Makes Market Inroads

AnalogTVgetsa115-dayreprieve.

PricedeclinespushDTVadoption.

Digitalconverterboxesprovidedigitalband-aid.

Digitaltelevision(DTV)isanumbrellatermgiventoaclassoftelevisionsetsandmonitorsthatacceptthehigherfrequencyscanratesofdigital

videobroadcastformatstoproduce,insomecases,imageswithmorethantwicetheresolutionoftraditionalanalogsets.

ADTVdisplayisdenedasatelevisionset(regardlessofresolutionca-

pability)withanintegrateddigitalATSCtuneroratelevisionmonitorca-pableofpresentingapicturewithatleast480progressivelyscannedactiveverticallines(480p)(EDTV).AtitsbestaDTVcanbeclassiedahigh-

denitionTV(HDTV)display,capableofpresentingupto1,080interlacedorprogressivelyscanned(1080i/1080p)verticallinesonthescreen.Most

HDTVbroadcastsalsocontainmultichannel(5.1)DolbyDigitalsurroundsoundtocomplementtherealismoftheviewingexperience.





Wireless Communications

Trends

The global economic crisis weakens sales of standard phones, but Smartphonescontinuetochalkupsolidgains.

SalesofGPS-enabledphonesforgeahead.

Thenextbigthing:one-clickaccesstosocialnetworkingsites.

Google,Blackberry,NokiaandMicrosoftfollowAppleinopeningonlineapplicationoutlets.

Mobilephoneoperatorsprepfor4Gsystems.

CEAupdatescerticationprogram.

The impact of the global economic crisis has been widespread, and eachproductsectorofconsumerelectronics(CE)hastochartitsowncourse

inconfrontingit.Astherecessionbiteshard,consumerspendingonnewphonesdiminishes,tightcreditweakensretailstockingandcurrency

volatilitydilutesmanufacturerearningsandputsmarginsunderpressure.

ItnowisalmostconventionalwisdomthatoverthenextyearCEsuppliersandretailerswillhavetoacceptshrunkenbusinessambitions.

SoitshouldnotbesurprisingthatCEAexpectsshipmentsofstandardwirelessphonestodropthisyear.Accordingtoitssemi-annualstudy

U.S. Sales and Forecasts(January2009),CEAanticipatesunitsalesof87million,representingadollarvolumeof$8.6billionandanaverageunitpriceof$99.

Toputthingsincontext,CEAestimates2008standardwirelessphonessalesat103millionunits,worth$11.3billionatanaverageunitpriceof$110.

Wireless Handset and Smartphone

Unit Sales U.S. (Thousands)

Wireless Handsets (inc. PDAs) Smartphones

2004 78,240 3,627

2005 90,762 7,920

2006 103,332 11,282

2007 103,675 19,500

2008 104,777 28,600

2009p 88,610 37,400


ButjustlikeinaHollywoodlm,whenthingslookdarkestthereisalwaysacavalryoverthenexthill.Inthecaseofthewirelesssector,the

upbeat news is the unabated evolution of mobile phones into Internetcommunicationsdevices.Solidgrowthispredictedinsalesoffeature-richsmartphones,whichprovidelargetouch-baseddisplaysandaccess

totheWebanddataservicessuchase-mail.

Youdidntneedatelescopetoseethisonecoming.Risingdemandfor

Web2.0-centricapplicationslikeFacebookandTwitterisspurringsalesofdevicessuchastheAppleiPhone3G,RIMsBlackBerryStormandBoldandNokiasNseriesphones,amongmanyothers.Eveninan

unsettledeconomicenvironment,inthelastcalendarquarterof2008,

devicemakersgrewworldwidesalesofsmartphonesby22.5percent

comparedtothesimilarperiodof2007accordingtoavendorsurvey

conductedbytheresearchrmIDCbasedinFramingham,MA.Inall,smartphoneprojectionsfor2009arearayofsunshineinanotherwisecloudyforecast:CEAanticipatessalesofsmartphonesexpandingto37.4millionunits,withdollarsalesmovingupto$13.6billion.Lastyear

unitsalesofsmartphonestotaled28.6million,withdollarsalesof$11.4billionforanaverageunitpriceof$398,accordingtoCEA.

LookingfurtheraheadJuniperResearch(Basingstoke,UK)anticipates

thatfrom2008to2013annualglobalsalesofsmartphoneswillriseby95percenttomorethan300millionupfromabout153millionlast

year.By2013,thermpredicts,around23percentofallnewmobilephoneswillbesmartphones,upfrom13percentin2008.

Actually, there are some other bright spots:

AccordingtoaGartnerInc.(Stamford,CT)study,enterprisesinNorthAmericawillbesupportingmoremobilephonesthandesktopphonesby2011.Gartnerfoundthatalthoughmostuserswillstillalsohavea

desktop phone, mobile phones will become more prevalent and willreplacedesktophardwareastheprimarydevice.Gartneranalysts

expectthenumberofbusinessuserswhorelyonlyonamobilephonetomorethandoubleto22percentby2012.

Usingglobalpositioningsystem(GPS)satellitestodeterminelocation,

alreadyamulti-billiondollarmarketforautomobilesandhikers,isfastbecominganattractivefeatureinmobilesphones,too.ABIResearch

(OysterBay,NY)expectsshipmentsofGPS-enabledmobilephones

willmanagetopostyear-to-yearunitgrowththroughthecurrenteconomicdownturn.GPS-enabledphoneswillclimbto240million

unitsworldwide,anincreaseof6.4percentover2008,ABIResearchreports,notingthatnineofeverytensmartphoneswillcontainGPSICs

in2014,comparedwithoneinthreein2008.

MobilephonesuppliersareratchetinguptheireffortstoembedpopularsocialnetworkingWebservicesinphones,includingone-click

access.Inparticular,FacebookandMySpaceareracingtointegratetheirapplicationsintoaswidearangeofphonesaspossible.

Textmessagingshortmessageservice(SMS)andmultimedia

messageservice(MMS)continuestobeoneofthemostpopularmobilephoneuses.IndustryanalystInStat(Scottsdale,AZ)gures

consumerssentmorethantwotrillionmobilemessagesperdaygloballyasoftheendof2008.AnIn-Statconsumersurveyshowed

thatconsumersusingmobilemessagingalsousesignicantlymorevoiceminutesthanoverallsurveyrespondents.Inadditiontopayingmoreforvalue-addedservices,U.S.mobilemessengersalsoaremore

likelytopayupto25percentmorefortheirhandsetsthanallsurveyrespondents,InStatreports.

Get Smart

Thenextseveralyearswillseeongoingdevelopmentandproductionofawidevarietyofproductivity-plus-funsmartphones.Onenotable

exampleisthePrefromPalm,anunexpectedcandidateinthechase





The Founders of Innovation

In the consumer electronics (CE) amily, necessity is not the mother oinvention its more like the kindly grandmother. Inventions true biologi-cal parents oten are the battling Bickersons o corporate competition

and engineering ego, their ospring usually nicknamed Innovate or Die.Historically, necessity oten has little or no role in the birth o a new gadget.

For instance, we didnt really need the cell phone. Pay phones were plen-tiul and calls cost only a dime when the rst consumer cell phone wenton sale in October 1983.

VCRs have served our TV recording needs aithully or more than 30years. Did we really need the DVR?

Film has served our picture-taking needs aithully and reliably or morethan a century, and we could get back prints in an hour or instanta-

neously with a Polaroid. Why did we need a digital camera?

Compact cassette tapes and even CDs were serviceable portable music

technologies. Did we need the MP3 ormat?

And why would anyone pay hundreds o dollars or a portable device

that showed us where we were and where we were going on tiny streetmaps displayed on a miniature screen when a large paper map is only a

couple o dollars and a gas station attendants directions are ree?

Maybe we needed a laptop computer. But when the rst comparably

lightweight portable models started to appear in the mid-1980s, it wasstill debatable whether anyone actually needed a computer at all.

Books are interactive, portable and never need to be charged. So why do we

need a battery-powered device that displays the contents o a book on a screen?

Widescreen digital TVs are glorious. But was there some vast unreportedconsumer dissatisaction with big screen analog TV?

Ultimately, these are all Ludittic rants o the get a horse type that early autoowners heard at the turn o the century. But history is clear: CE gadgets are

not only quickly embraced by the public, but become integral aspects o oureveryday lie and orm an important part o our world economy.

How oten have you asked yoursel, How did I ever live without (insertnew technology here)? We may have once lived without a lot o our nowseemingly integral CE gadgets and technologies, but living always seems

to improve with each new technological step orward.

You can argue all day about the veracity o individual new devices ortechnologies. But not only has history proven how important new gad-gets are, its taught us the necessity o continual technological progress.

Electricity, Energy and Bell

We oten mark our technology-dominated present as beginning with thedevelopment o the telephone, the gramophone, radio, the automobileand the airplane around a hundred years ago. But the consumer electron-

ics era really began with the discovery and development o electricity.

It is said that around 600 BC, Thales o Miletus, one o the legendary

Seven Wise Men o ancient Greece, ound that rubbing pieces o ambertogether produced an eect much like magnetism, but not quite.

In 1570, English scientist William Gilbert continued Thales amber-

rubbing experiments and called the result electric, a modication o

the Greek and Latin words or amber. In 1650, the term electricity wascoined to reer to the resulting orce.

Benjamin Franklin perormed his shocking experiments with a kite and

made his subsequent discovery and denition o positive and negative elec-trical charges in 1752. By 1800, Italian Alessandro Volta, or whom the volt

is named, gured out how to produce electricity in a steady current. Englishphysicist Michael Faraday discovered electromagnetic rotation in 1821.

In 1827, German George Ohm published his eponymous law concerningvoltage, current and resistance that makes possible all manner o electri-cal and speaker wiring. Faraday, simultaneously with American scientist

Joseph Henry, discovered electromagnetic induction in 1831, makingpossible all uture electric motors and electrical generators.

But there were still no electrical gadgets until Henry, working with anobscure painter named Samuel F.B. Morse, used the principal o mag-

netic induction to invent the rst electronic communications device, thetelegraph in 1837.

In 1836, British John Frederic Daniell combined copper and zinc andcreated the Daniell cell, the orerunner o todays batteries. In 1839,

young Frenchman Alexandre-Edmond Becquerel discovered the photo-voltaic eect power rom light without which most solar calculatorswould be useless. Between 1856 and 1873, Scottish

physicist James Clerk Maxwell dened electromag-netism, leading the development o every electrical

product that ollowed. The rst such breakthrough

using Faradays and Maxwells theories was thedevelopment o the AC induction motor by NikolaTesla in the mid-1880s.

The Phonograph

In 1876, the year o Americas centennial, Alexander

Graham Bell took the telegraph to its next logicalstep by sending sound through the wires, resulting

in the telephone. The resulting gadget became therst electronic item ound in the home. But it wouldbe the only piece until electricity itsel was brought

into American homes.

The rst consumer electronics product wasnt elec-tronic at all, at least not at rst. A year ater Bell invented the telephone,Thomas Edison became the most amous and admired man in America.

In December 1877, he sketched a diagram o a strange device and askedone o his technicians in his Menlo Park, N.J., lab to build it. When the

technician brought back the machine, he asked his boss what it was.Edison adjusted the great horn that had a needle attached to a waxcylinder covered with tin oil. Turning a crank on the side, he shouted

into the horn, Mary had a little lamb, its feece was white as snow, andeverywhere that Mary went, that lamb was sure to go.

Edison then readjusted the horn and its needle, which had just scratched apath on the tin oil, then turned the crank again. To the amazement o the

Nicola Tesla

History

Thomas Edison

Alexander Graham Bell





2009

Analog TV broadcasting ends. Mobile DTV standard established and rst products go on sale. Video Bluetooth standard is announced. Microsoft opens retail outlets.

First solar-powered cell phone is announced. Portable HD radio receivers become available.

In-home wireless HD video connectivity standards is announced. Several 3D HDTV standards are demonstrated.

2008

CES goes green.

Digital TV converter coupon program begins and converter boxes goon sale.

HDTVs with Web access become widely available. High-denition movie rental downloads begin.

First two-way personal navigation device (PND) goes on sale. OLED HDTVs are unveiled. First cell phone with Near Field Communications technology is available.

LTE (Long Term Evolution) wireless broadband network standard isratied.

Pico pocket video projectors go on sale. First ultra-thin LCD HDTVs go on sale.

Mobile DTV standards and testing are announced. First Blu-ray players with streaming movie services included are

announced.

In-room cable-replacement WirelessHD (WiHD) technology is nalized. First Tru2Way interactive cable TV set-top boxes (STBs) and HDTVs

become available. Blu-ray becomes the dominant high-denition DVD format.

Roll-out of nationwide WiMax mobile wireless broadband networkbegins.

First ultra-light netbook laptop PCs go on sale. Most online music retailers end copy protection and restrictions. First Blu-ray discs with extra PC-compatible digital copies included go

on sale. Sirius and XM satellite radio providers merge.

First touchscreen laptop PCs are announced.

2007

CES celebrates its 40th anniversary. First cell phones capable of receiving broadcast television are available.

Inkless printing no ribbons or cartridges is demonstrated. Windows Vista operating system is released. Apple iPhone is introduced.

Portable navigation devices (PND) become a mainstream category.

2006

Nintendo Wii video game system goes on sale. Microsoft Zune digital music player is introduced. The rst consumer high-denition DVD players go on sale in the U.S. The rst video game systems with high-denition DVD players hit the

market. The rst OCAP (Open Cable Applications Platform) cable systems

begin operation and rst OCAP-enabled TVs are available. President Bush signs legislation to end analog television broadcasting

on February 17, 2009. Hybrid-format chip sets for combining Blu-ray/HD DVD high-

denition DVD are announced.

First broadband HSDPA GSM cell phones are available in U.S. One billionth Bluetooth device ships.

The rst 1080p plasma HDTVs go on sale. CEA and IT industries le consensus proposal with FCC to end plug-

and-play two-way cable TV interoperability stalemate. First RPTV HDTVs with LED lighting technology begin shipping.

The rst ash memory, DVD and hard disc drive-based high-denitioncamcorders using AVCHD format hit the market.

Inkjet printers using long-lasting pigment-based ink are available for

the rst time. Sales of digital TVs surpass sales of analog TVs for the rst time.

First DECT 6.0 cordless phones go on sale. First dual cellular/WiFi, cordless/WiFi phones are available.

New WiFi 802.11n specication, enabling throughput of 100 Mbps forwireless local transmission of HDTV, is approved by IEEE.

First high capacity 4 GB-plus ash memory cards are available.

2005

The rst digital camera with built-in WiFi capability becomesavailable.

The rst subscription-based online digital music services andcompatible portable devices become available.

The rst hard disk drive-based camcorders go on sale. FCC requires mandatory inclusion of ATSC HDTV tuner in 50 percent

of all 24-inch to 35-inch HDTVs by July 1.

CEA inducts its rst class of Digital Patriots, honoring governmentand industry leaders for their positive impact on the rapidly evolving

consumer technology industry. The rst PCs with dual processors become available.

Cell phone carriers offer live and downloadable TV clips and onlinedownloadable music stores.

The rst stand-alone VoIP phones are introduced.

Consumer digital cameras reach 10-megapixel resolution. A/V home theater receivers with HDMI connectivity and direct satellite

radio connectivity go on sale. The rst portable MP3 player/satellite radio recorders are announced.

Flash media card capacity reaches 4 GB. The rst single-use digital camcorder goes on sale. U.S. Court of Appeals strikes down FCCs broadcast ag order.

The rst HDTV with built-in HD-DVR goes on sale.

Chronology




16/16

Industry Sources

Advanced Television Systems Committee (ATSC)1750 K Street NW, Suite 1200

Washington, DC 20006202-872-9160www.atsc.org

American Electronics Association (AeA)Merged with ITAA to form the Technology Association of America in 2009California Headquarters5201 Great America Parkway, Suite 400

Santa Clara, CA 95054800-284-4232www.aeanet.org

ALMA - The International Loudspeaker AssociationP.O. Box 180093Boston, MA 02118

617-314-6977www.almainternational.org

Association of Home Appliance Manufacturers (AHAM)1111 19th Street, NW, Suite 402

Washington, DC 20036202-872-5955

www.aham.org

Association of Progressive Rental Organizations (APRO)

1504 Robin Hood TrailAustin, TX 78703

800-204-2776www.rtohq.org

Automotive Aftermarket Industry Association (AAIA)7101 Wisconsin Ave, Suite 1300

Bethesda, MD 20814-3415301-654-6664

www.aftermarket.org

Business Software Alliance (BSA)1150 18th Street NW, Suite 700

Washington, DC 20036202-872-5500www.bsa.org

Business Technology Association12411 Wornall Road, Suite 200Kansas City, MO 64145

816-941-3100www.bta.org

Cable & Telecommunications Association for Marketing (CTAM)201 North Union Street, Suite 440

Alexandria, VA 22314703-549-4200www.ctam.com

Cabletelevision Advertising Bureau830 Third Avenue, 2nd Floor

New York, NY 10022212-508-1200

www.thecab.tv

CTIA - The Wireless AssociationFormerly Cellular Telecommunications & Internet Association (CTIA)1400 16th Street, NW, Suite 600

Washington, DC 20036202-785-0081

www.ctia.org

Consumer Electronics Association (CEA)1919 S. Eads St.Arlington, VA 22202

866-858-1555www.CE.org

Content Delivery & Storage Association (CDSA)Formerly International Recording Media Association (IRMA)

182 Nassau Street, Suite 204Princeton, NJ 08542-7005

609-279-1700www.contentdeliveryandstorage.org

Continental Automated Buildings Association (CABA)1173 Cyrville Road, Suite 210

Ottawa, Ontario, K1J 7S6, Canada613-686-1814

www.caba.org

Custom Electronic Design & Installation Association (CEDIA)7150 Winton Drive, Suite 300

Indianapolis, IN 46268317-328-4336 or 800-669-5329www.cedia.net

Digital Entertainment Group (DEG)9229 Sunset Boulevard, Suite 405Los Angeles, CA 90069

310-888-2201www.dvdinformation.com

