Upbeat In A Down Market

Despite The Economy, Consumer Technology Takes Center Stage at CEDIA

By Timothy Sprinkle

 

It’s no secret that times are tough for American business.  The economy is weakening, buyers are cutting back on purchases and the doom and gloom predictions are pouring in on a regular basis.

And the situation is finally starting to trickle down to “luxury vendors” like those in the custom electronics industry, long considered insulated against swings in the market.  In fact, according to a report published earlier this year by market research firm Parks Associates, 42 percent of consumers say that the “economic situation” was a factor in their deciding not to purchase an electronic product this year.

“Consumer sentiment regarding consumer electronics purchases is quite mixed,” said Parks Associates principal analyst Kurt Scherf.  “We are starting to see more pronounced signs of spending restraint among consumers as they feel more uncertainty about the country’s economic outlook.”

On the ground, 2008 CEDIA Expo chair and Portland, Maine, based custom home integrator Jim Goss with Woofer Audio Video says that, “the impact has yet to be felt in a lot of the markets.  The high end of the market is the high end of the market, and we still have those clients who spend $50k every year.  But the middle part of the market is where we’re seeing the battles with the Best Buys and the Circuit Cities.”

The real issue, Goss says, is that with fewer customers in the market for a custom home system the overall competition for buyers has increased.

“There are just more mouths to feed,” he says.  “Everybody is battling with each other.”

At the CEDIA Expo, for example, exhibitor numbers are reportedly down 20 percent versus 2007 and opt-in attendee registrations are down 68 percent.

But it’s not all doom and gloom in the CE space these days.  Despite the slowing growth and increased competition, customers are still out there buying, and manufacturers are still rolling out new products to serve that demand.

“Has it slowed?  Yes.  But so far so good,” Goss laughs.

With this upbeat attitude in mind, the electronics industry is set to roll out its latest and greatest at the 2008 Custom Electronics Design and Installation Association (CEDIA) Expo in Denver this week.  In this edition of The BRIDGE we’ll examine a few of the big themes you can expect to see at the show and dig into some of the new technologies that will be on display in the Mile High City.

CE Embraces The Green

 

In an age when everything from a car company (Subaru) to a television network (NBC) can claim green roots, it should come as no surprise that the consumer electronics industry is jumping on board the conservation revolution.

“Green stuff is absolutely everywhere this year,” Goss says.  “And it’s not just the little guys.  The bigger manufacturers like Extron and Crestron are coming out with things like Energy Star compliant power supplies for their pieces and other energy aware pieces.”

There’s an attitude shift happening too, he says, which is further driving this move toward energy consciousness.

“Houses that used to turn on those big amps and just let them run all the time are now turning them off,” he says, “so control pieces to manage that kind of energy usage are becoming more important.”

Case in point: the new Green Light line of conservation-minded lighting systems from home integration juggernaut Crestron.

“Going green is not new for us – we’ve provided energy and cost saving solutions for decades,” said Randy Klein, Crestron executive vice president.  “Green Light further demonstrates our vision and innovation for green building, energy management and environmental system design.”

The new Green Light line, for its part, was designed to help users manage energy use throughout their homes.  By incorporating energy smart features like automated adjustments based on the movement of the sun (seriously) to take full advantage of natural light, the company’s Green Light controllers offer installers yet another way to reach green-minded customers who don’t want to give up on the comforts of the 21st Century.

And Crestron is far from the only CEDIA-related company going green these days.  Auralex Acoustics is also getting into the act with its new Eco-Tech acoustic paneling.

Set to debut at the 2008 CEDIA Expo, this “green” paneling is made with 100 percent recycled polyester fibers and manufactured without the use of ozone-depleting chlorofluorocarbons (CFCs), according to the company.  The idea, said Auralex Director of Operations Dave Paxton, is to offer green buyers the same acoustic performance and longevity of standard Auralex panels.  The Eco-Tech launch follows the company’s eco-friendly StudioFoam that launched in January.

“The introduction of Auralex’s Eco-Tech is the next step in our ongoing initiative to become a more earth-conscious company by refining our products and practices,” Paxton said.  “Alongside our eco-friendly approach in manufacturing, Auralex is proud to do its part in conserving our resources by printing collateral materials on recycled paper and by using recycled materials for the shipment of our products.”

Even CEDIA University is going green this year, offering free electronic versions of course materials and encouraging participants to cut down on paper usage during the trainings.  Attendees who pre-register for CEDIA U classes will have access to the free electronic guides, CEDIA says, though they will still have the option to purchase a printed version for the core courses if they really want one.

Is Wireless Finally Ready For Its Close-up?

 

As in years past, a number of wireless technologies are expected to be on display at CEDIA.  The difference for 2008, however, is that many of the new offerings are actually expected to work.

“Wireless technologies certainly aren’t anything new,” says Goss, “but as the compression algorithms get better and the technology matures there seems to be more out there.”

The big question, of course, is how well these new wireless offerings will perform.  Over the years, wireless has developed something of a (certainly well deserved) reputation for less than stellar A/V performance.  Who among us hasn’t fallen for the dream of wireless surround speakers, only to be disappointed by the system’s weak frequency range and static-heavy overall sound?

Goss, for his part, is hoping for better results this time around.  “I can’t wait to see what’s out there,” he says.  “And that’s what great about Expo; you can see it all together and really compare technologies.”

Among the early entries in this “Wireless 2.0” sweepstakes is Mitsubishi’s new wireless HDTV, which allows users to connect their TVs to a high-def source without having to run a cable between the two.  The Mitsubishi Living Fit line is, like the Sharp X-Series announced last spring, powered by Amimon’s wireless HD technology and includes an LCD HDTV and a HD receiver that connects to the set wirelessly.  According to Mitsubishi, the technology can be used to connect other HD sources and it can deliver HD video up to 100 feet through walls.

Microsoft Comes Home

 

Remember the stir that Microsoft created at CEDIA 2007 with its two-story booth, bold promises of integrated content and army of smiling attendants?  If not, here’s the short version.  Last year at the Expo the gang from Redmond was all smoke and no mirrors.  Sure, they talked a big game about the future of whole home A/V, but nowhere in their great big booth did they ever really present attendees with an answer.

This year, things are expected to be different.

Not only is Microsoft dramatically expanding its CEDIA presence for 2008 (sharing a massive booth space with Runco and Lifeware), it plans to roll out a new version of its Windows Media Center software at the show (though the rumored introduction of the Media Center TV Pack, a.k.a. Fiji, turned out to be just that, rumors).

Still, expect Microsoft to make plenty of noise this year in the installed electronics space, especially given the software giant’s new focus on the channel.  Kevin Collins, principal program manager with Microsoft eHome, recently told CE Pro that the company’s interest in the installed home systems market has as much to do with product development as it does sales.

“Microsoft is not into this channel as a revenue play,” Collins said.  “Microsoft is in the channel to get learnings.  We believe the channel is going to provide feedback to make Media Center a successful product in consumer retail.”

CEDIA Education Gets An Overhaul

 

The products aren’t the only things getting an update for the CEDIA Expo this year.  The show’s education component is being beefed up as well, with a host of free classes and new hands-on options designed to reach out to the association’s newest members.

For starters, this year members have access to 14 gratis courses (good for 29 continuing education credits).  “There’s finally some real value there,” Goss says, “and I think it’s a neat thing for CEDIA to offer.  It’s awesome to see the association give something back to its members like that.”

Beyond the free courses, the biggest news for CEDIA education in 2008 is the new “learning lab,” a hands-on teaching lab designed to give participants real experiences with the technologies they hear about.

“The learning lab is really unique,” says Goss.  “What this does is take the old CEDIA Boot Camp concept and expand it to include more advanced topics.  It’s just like college.  You take what you learn in the classroom and then go into the lab and put it into practice.”•