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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
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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.
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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)
CEA Members: or a ull (ree) downloadable version oDigital America2009, please visit www.members.CE.org.
Fornon-members:TopurchaseaprintorCDversionofthefull DigitalAmerica 2009publication,pleasevisit:http://www.CE.org/Press/CEA_Pubs/1964.asp.
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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
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.
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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.
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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.
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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
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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
Source: CEA Market Research
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%
Source: CEA Market Research
Convergenceandconsolidationcontinuetosummarizetodaysdigitalimagingindustry.Inthiscompetitivearena,marginsmaybethin,
buttechnologyisstillevolvingrapidly.Cameramakersareconstantly
lookingforwaystomaximizevaluetouserswhilekeepingpacewithinnovationsintechnology.Manyofthe2009modelsarechockfullwithhighermegapixelcountsaswellasnewoptionssuchasWiFiandGPS
capabilities.
Camera Shipments Up
TheCamera&ImagingProductsAssociation(CIPA)reportedthattotalshipmentsofdigitalcamerasin2008(thecumulativetotalofshipments
fromJanuarytoDecember)exceededtheperformancein2007whenshipmentsbrokethroughthe100millionunitmarkforthersttime
sinceCIPAbegancompilingstatistics.Atotalof119,757,000units
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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)
Source: CEA Market Research
$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
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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.
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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.
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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.
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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
Source: CEA Market Research
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
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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
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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
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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
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.