Internet Persistence and Current TV Trends

Home Theater View grew out of business weblogs at JupiterResearch and AskAvi columns written over several years at a personal site, http://www.greengart.com.  Thanks to the persistence of the Internet — web pages never really die as long as they’re in Google’s index — one of those old AskAvi columns is now generating a lot of feedback. It seems someone queried Google to find advice choosing a TV, found Column 10, and posted it to a  newsgroup.  They did this without ever looking at the column’s date (which is on the page, though perhaps not as prominent as it could be).

Column 10 was provocatively titled, "Why HDTV Doesn’t Matter," and it covered whether to buy a 4:3 (square) TV or a 16:9 (widescreen, rectangular) shaped TV.  At the time, there was precious little HDTV content being broadcast and even fewer ways to get that content using cable or satellite.  There were also several 4:3 TVs on the market with a true 16:9 squeeze mode – in other words, you could buy a square TV without giving up the higher resolution of widescreen programming (though you’d have black bars on top and bottom of your image).

The advice was good for its time: it was written in 2001, before the advent of relatively affordable DLP-based sets and Dell HDTV plasmas. (And I noted that the price of HDTVs would come down in time for something to watch on them).  But to correct any misconceptions, this is not the advice I would give today.

First of all, there’s a lot more widescreen programming available now, even for those watching standard definition ("regular" TV, as opposed to HDTV). Even video games are being created for widescreen playback. Second, 4:3 sets with 16:9 squeeze mode have largely disappeared from the marketplace, having been replaced by less expensive widescreen HDTV-ready models. No, today the issue isn’t whether to go widescreen or not, but which widescreen technology to go with: traditional CRT? New, narrow depth CRT? CRT rear projection? Plasma flat panel? LCD flat panel? LCD rear projection? DLP rear projection? LCOS rear projection? Wait for SED flat panel? 

Short answer: budget and screen size dictate the technology. Past Home Theater View columns have covered LCD vs. plasma, the introduction of SED, DLP’s suitability for gaming, DLP vs. LCOS, and the announcement of narrow depth CRT.

-avi

Internet Persistence and Current TV Trends Read More

New Online Retail/Marketing/Research Channel: Woot.com

At 1 AM EST every night? morning? something extraordinary is happening to online retail. Woot.com is an online outlet for tech overstocks and refurbs, but its unique business model is opening up some intriguing possibilities for building an installed base for a certain breed of product. The store offers one item per night at dramatically discounted prices – popular items sell out fast, and aren’t replenished.  A new item goes on sale the next night. The item descriptions are cheeky, the online forum is relatively uncensored, and the audience is extremely geeky (and proud of it.  Though the site definitely attracts a few too many teenagers with time on their hands).

Some items are mundane – such as coffee makers and toys — or just ordinary — such as iPods and computer speakers. But once a week or so the site offers technology about a half generation behind, seeking an audience. This may have started out as a pure overstock play, with woot buying what didn’t sell to early adopters, but it is now evolving into companies approaching woot with products they still hope may catch fire.  The best example is Omnifi streaming audio players from Rockford Fosgate: one night the site offered 1,000 home/car bundles for $199, another night just the home unit for $79. In both cases company reps were in the online forum to answer questions, guage interest, and get feedback.

Tonight’s woot is a refurbished InFocus ScreenPlay 4800 DLP home theater front projector. For $499. The projector sells new for $1,200, but the percentage and magnitude of savings isn’t as interesting as the price point itself: at $499, front projection may be used by completely different buyers or for new applications.  The online forum provides a limited method of obtaining feedback on who/how the product will be used, but feedback mechanisms could be expanded.  If so, how long will it be before vendors sell a few hundred units of new products at cost on woot simply as a method of market research?

-avi

New Online Retail/Marketing/Research Channel: Woot.com Read More

Product Review: LG LST3510A HDTV tuner/DVD player

New connectivity options often drive product design, and DVI/HDMI is no exception.  DVI and HDMI are interfaces that allow you to keep the signal in the digital domain throughout their journey, making hookup simpler, and providing a noticeably sharper picture when viewing digital content (such as DVD or HDTV) on digital displays (like plasma, LCD, DLP, or LCOS), as the signal is never converted back and forth to analog at all.

I’ve already written about how computer-like interfaces open up the A/V cable market to new entrants, but every product in the A/V chain may need to change as well.  There are already DVD players with DVI outputs from Samsung, V, and others – some at prices barely above non-DVI equipped models.  Most current HDTV tuners and set top boxes have DVI or HDMI outputs. TVs and front projectors have embraced the interface, but only partially – most offer just a single DVI or HDMI input.  So how do you hook up two things to one interface?

While specialized switching gear exists, it’s not usually cost effective, so A/V switching is a classic task for a receiver (along with audio processing and amplification).  For the moment, the only receiver or processor that I know of that switches DVI for you is Sony’s ES STR-DA9000ES flagship… a $3,000 behemoth.  Outlaw Audio has announced a more affordable receiver due out… eventually (after botching the 950’s product launch they’ve gotten a lot more conservative with their release date announcements).

LG has an interesting solution – combine the two most likely sources into a single component.  The LST3510A combines an upconverting DVD player with an ATSC (over the air) HDTV tuner, and a single DVI output for both sources.  It works extremely well… when it works.  The manual is terrible, offering little actual information about either the DVD functionality or HDTV tuning.  The on screen user interface is excellent – but it doesn’t control output format (a variety of choices including 480i, 480p, 720p, and 1080i).  For that, you need to use two switches on the front, which toggle back and forth between selection and change.  While relatively simple, I found this maddening and have never successfully changed settings on the first or second try.  It also precludes easily programming different resolutions for different displays or source material into a universal remote control.  It’s own remote control is pretty good – no backlighting, but buttons are differentiated by size and shape, and overall layout is reasonably intelligent.

HDTV tuner performance is exceptional, which was not surprising given Zenith’s long history with the standard (LG owns what’s left of Zenith, including their HD patent portfolio). The LG LST3510A locked in on some unamplified signals, indoors, in my basement, using a simple UHF loop antenna, when the signal meter read almost zero, and with a lot of multipath distortion (signals bouncing around off of obstacles – my house is not in an ideal HDTV location).  This equals or bests any other HD tuner I’ve seen. 

The channel guide did not reliably work, but that may be dependant on the broadcasters, so I’m not sure whether to fault LG here. The tuner is ATSC-only.  No NTSC (regular TV), no analog or digital cable, no satellite.  So even if the guide were to work, you’d be limited to seeing HDTV programming.  There’s also no digital output such as IEEE1394 (Firewire) suitable for copying the HDTV signal to DVHS tape or to a hard drive like a ReplayTV or TiVo unit.  Sure, over the air HDTV is incredibly detailed, but being forced to watch commercial television on the network’s schedule with no control over commercials is cruel.

DVD upsampling performance is also exceptional.  I noticed no artifacts, excellent 3-2 pulldown, and there was noticeably more detail in upsampled 720p images over DVI than in 480i playback over component video from my "reference" Panasonic and Sony DVD players.  Sure, those are budget decks, but then the LG isn’t all that expensive either once you consider the cost of standalone HDTV tuners.  The point is, if you go with an all digital signal path, you want there to be a difference, and in my experience, that difference is clearly noticeable. Not earth shattering, mind you, but clearly noticeable nonetheless.

This high performance convergence does come at the cost of audiophile friendliness – neither high resolution multi-channel music format is supported.  I suppose truly serious audiophiles may simply add a dedicated DVD-Audio and/or SACD player to the rack – analog connections should be fine for the limited video content on those discs.  Everyone else will continue studiously ignoring both formats.

Overcoming Initial Flakiness

As great as I found the HDTV and DVD performance to be, the unit as a whole didn’t always work at first, and I couldn’t begin to tell you why, as I haven’t been able to replicate the problems.  Most of the time, the unit started right up, the TV locked onto the signal, and everyone was happy.  However, for the first two months I had the unit, once in a while it would start up in whatever mode you left it in (tuner or DVD), but if you subsequently switched modes, the TV wouldn’t pick up the signal. Sometimes the audio signal sent to the receiver was out, too.  And sometimes, the unit started up and neither audio or video were working.

Any number of things seem to reset the machine – or not.  Turning the unit on/off, cycling through display output resolutions, switching modes, removing/inserting a DVD.  I have heard numerous problems with DVI input/output incompatibilities, and HDCP copy protection on top of them, so my experience is likely not unique. While the video sync could be a problem interacting with my TV (lately, a 50" JVC D-ILA), the occasional audio sync problems suggest problems with the unit itself.  Perhaps it was just getting used to its new environment – the gremlins seem to have completely disappeared.

Another problem I have with the unit is not it’s own fault, but can be blamed on the dual-use nature: Logitech’s Harmony remotes, which magically program themselves over the Internet, choke on the LST3510A.  The big problem is determining whether the LG should be considered a DVD player or an HDTV tuner.  It’s both, but the Logitech software treats the unit differently depending on how you classify it.  Logitech tech support assures me that they’re working on the problem, and when I updated the remote to account for a new receiver several new commands for the LG showed up as well. Progress!  In the meantime, I could simply program the Harmony remote manually, but if I’m going to do that, I could just use my Philips Pronto – if I had time to program that…

Conclusion

Until reasonably priced receivers with DVI and HDMI switching are common (and we’ve all been compelled to upgrade our existing gear), it makes a tremendous amount of sense to add an upsampling DVD player to an HDTV tuner in a single box with DVI or HDMI outputs.  In addition to its sensibility, LG’s  LST3510A is a bargain at only $399 – some less capable HDTV tuners cost more, making the DVD playback essentially free.  However, there were clearly some glitches in my setup where the TV, receiver, and LG unit were not communicating properly with each other at first.  I’m keeping my unit, but as much as the raw performance and value push me to recommend this product, I cannot do so unconditionally.  Buy one, but make sure the retailer will take it back if your TV won’t play nice with it.

-avi

Product Review: LG LST3510A HDTV tuner/DVD player Read More

iPod Rips Through “Pretty Face Syndrome”

BusinessWeek has an article in this week’s issue titled, "The Crisp, Clear Sound of Rising Profits" [registration req’d] on B&O’s recent uptick in business. After years of stagnation, the company is rolling out dozens of new initiatives in high end audio systems for exclusive automobiles, yachts, and penthouse suites at the MGM Grand in Las Vegas.

That’s all well and good, but those are relatively small markets with high investment required to enter.  In other words, they’re brand-building activities, not core products. Bose and Harman are exceptions: they make real money in their auto divisions because they’ve built the business over the past decade(s) across multiple auto product lines.  High end brands like McIntosh and Linn who are offering systems in cars as expensive options (or for cars with limited production runs) is at best a break-even marketing expense. Linn has even admitted as much.

Product innovation is given some ink: a $1,600 PVR is on the way, and the company’s BeoLab 5 speakers have been critically well received (I haven’t auditioned them) – no word on sales figures, though. The problem here is simple: B&O products have tended to be high priced art pieces.  There’s nothing wrong with selling art, except when they’re supposed to make music, too. The expensive B&O products I’ve heard have sounded terrible. The new CEO admits as much, calling it "a gap between our image and our performance… the ‘pretty-face syndrome.’"

It will take more than a new product or two to change my impression (and the company’s home theater loudspeakers appear to be based on older B&O designs).  What’s worse is that the high end of audio is moving away from spending tens of thousands of dollars on top flight design to spending hundreds of dollars on top flight design …from Apple. Bose had the right idea when it put together a $300 iPod speaker dock — as long as they understand that it obviates the need for any of their standalone products. Home theater systems are safe, for now, because their purpose is video, not music. While B&O offers speakers that can be sold for home theater use, it doesn’t sell packaged home theater systems in the $2,000 – $3,000 range like Bose does.  Custom installers selling higher priced gear are looking for audiophile performance or invisible in-wall options — not B&O style art pieces. 

So where are the profits coming from?  Clues come later in the article: lower expenses. Roughly a third of the company’s employees were laid off, and dozens of stores were closed. The company is planning to moved some production out of Denmark and over to Eastern Europe.

That’s good operations management, but not a strategy.  I seriously question B&O’s product development priorities.  I would expect them to capitalize on what’s left of the brand and attack Bose in mid-priced packaged systems, move into custom installation in a big way, or both. Why why why an overpriced PVR?  It had better absolutely set the world on fire because it’s competing amongst a sea of struggling PVR vendors, not to mention Microsoft and cable operators. In the meantime, the iPod is melting away the design-oriented audio business.

-avi

iPod Rips Through “Pretty Face Syndrome” Read More

Something There Is That Doesn’t Love a Format War

It seems like everybody’s writing stories about the upcoming HD disc format war between HD-DVD and Blu-Ray (BD).  The technical specs are reasonably locked down, but everything else is up in the air – perfect fodder for journalism/rampant speculation.  Gizmodo had prematurely called HD-DVD the winner based on studio support (I called them on it here).  More recently, DVDFile.com posted a follow up of sorts – also trying to predict a winner based on the various studios and where they’re currently lined up on the issue. This is pretty hard to do because the studios are about evenly split, and will likely move to whichever format appears to be winning.

A couple of key points that tend to get overlooked:

HD-DVD is cheaper/easier to replicate.  OK, this isn’t overlooked, everyone points this out.  But the implications go well beyond speed to market and Warner’s willingness to flood the market with titles.  Plain old DVD penetration is now approaching 75% in the U.S. market. With cheap players, cheap software, a huge installed base, and no need for an expensive high definition TV, regular DVD looks likely to remain a mainstream format indefinitely.  No HD format is going to kill off regular DVD any time in the next decade; killing the golden DVD goose would be suicide for the studios.  If Hollywood is going to make any additional money over and above regular DVD revenue, there are just two ways to do it:

·        One way is to sell high definition discs as a higher priced separate SKU in addition to regular DVDs. Never mind retailers’ reluctance to stock even more SKUs of each title, nobody wants to reinvent the limited laserdisc market.  However, I should point out the videophile market is considerably larger now than it was: Joe and Jane Q. Public has gotten used to director’s commentaries, proper film aspect ratios, and are beginning to gain exposure to HDTV.

·        The other way is to sell HD-DVD as part of every "collector’s edition" SKU along with regular DVDs. If HD-DVD replication costs are essentially the same as regular DVDs, that would enable studios to continue with a business model that seems to be working already: a basic movie-only SKU, and a deluxe, 2 or 3 disc collector’s edition — only one of those discs has the movie on HD-DVD, adding value, and keeping the pricing of the collector’s editions from slipping down DVD’s brutal price curve. This strategy may also negate BD’s space advantage — just keep all the supplements on the regular DVD disc – most of them don’t have to be in high def anyway.

So HD-DVD is a winner, right?  Not necessarily.  At least initially, prices for the decks will be in the $1,000 range.  CE vendors will be reluctant to push prices too low, too quickly, as there’s no margin left in regular DVD players, and they’ll want to make back their R&D.  Still, prices will have to fall fast because a pricey HD-DVD player is going to be a tough sell with a full blown format war on — consumers will simply wait on the sidelines.  Even with reasonably priced players, DVD may be considered "good enough" and consumers may direct their attention elsewhere in CE-land (it’s shocking, but if you look at the numbers, apparently everyone has not bought an iPod and a cameraphone yet). And then you have a classic chicken and egg problem — just how much will studios push a format for an installed base that doesn’t exist? 

It’s here that BD has a secret weapon: the Sony Playstation 3.  If Sony’s next gaming console is a hit, that will put millions of subsidized BD players in homes, neatly solving the player/software chicken/egg problem. If the software is difficult to master and costly to replicate, you still may end up with a more limited, laserdisc-like audience.  But if HD-DVD players don’t sell in volume, a limited videophile market may be all we get from this group of HD disc formats, until the next new thing rolls along, or the whole industry goes hard drive or on-demand.

Aren’t format wars great?

-avi

Something There Is That Doesn’t Love a Format War Read More

This Disc Will Self Destruct. Interested?

Wired is reporting that Disney has given up on Flexplay’s EZ-D disposable DVD format.  The press had a field day getting environmental activists all riled up against the format, but that’s just a sidebar.  If consumers found disposable DVDs moderately convenient, then the used discs would end up in the landfill alongside the rest of our disposable society.  If the discs were a smash hit, then we’d end up with another color plastic recycling bin for media (which might not be a bad idea anyway.  I must throw away hundreds of discs a year, even after AOL stopped mailing them to me twice a day).  Since the format didn’t even make a dent, conventional wisdom says that consumers aren’t interested in a disc that self destructs 48 hours after you open the case.

Conventional wisdom is wrong – the product hasn’t been adequately tested to determine anything at all about consumer willingness to adopt one-time-use media.  Simply put, the business model here is all wrong.  Traditional video rental places won’t carry the product because there’s no return trip to encourage repeat business, and the pricing structure doesn’t fit in with their large scale agreements with Hollywood. Non-traditional locations (supermarkets, convenience stores) can’t sell the product at $5 or $7 each – there isn’t much margin in it for them, and they’re already carrying regular DVDs that sell in or just above that range.  Target has an entire line of DVDs for $5.50, including some decent flicks (for example, the Special Edition of Total Recall).  Other limited-use entertainment is priced lower: any cable subscriber with a STB can get VOD from their cable provider for $3 to $5 without ever leaving the house (and many digital systems provide for multiple start times or fast forward/rewind capabilities). 

So let’s recap: nobody wants to sell this, “real” DVDs are priced at or just above EZ-D, VOD is priced below it. How exactly do you conclude from this that consumers aren’t interested in anything that self destructs after 48 hours?

Somewhat related, The Wall Street Journal had an article today (I got the paper version, no link, sorry) comparing services for legally downloading and watching movies over broadband on a PC. MovieLink and CinemaNow provide downloable movies for $3 to $5, which also self destruct (within 24 hours of hitting “play”).  However, there’s a unique value proposition there for anyone who specifically wants to watch movies on their PC (for example, notebook users heading out on the road).

-avi

This Disc Will Self Destruct. Interested? Read More

Consolidation in the Display Business

The New York Times today reports (free reg. req’d) two separate deals: Fujitsu is selling its LCD display manufacturing to LCD leader Sharp, and Matushita (known in the US as "Panasonic") is hooking up with Hitachi to jointly manufacture plasma displays.  Bottom line here: prices are dropping too fast to go it alone if you aren’t dominating the field.

-avi

Consolidation in the Display Business Read More

I Want My IP TV

The current issue of BusinessWeek has a nice overview of Microsoft’s efforts in IP TV (sending television feeds to a set top box over a broadband connection).  It’s a bit skeptical, and focuses on how Microsoft has bent over backwards to address the needs of partners.  For example, Microsoft’s brand does not appear on the set top box, and the boxes don’t even need to run a Microsoft operating system.

I saw a demo of the system at CES, and BusinessWeek leaves out an important element of the story: it’s really, really cool.  I suppose cable operators adopting this system could simply force their customers to upgrade, but new entrants such as phone companies and alternative broadband providers will need to provide consumers with a reason to move; simple pricing bundles will only go so far.

Microsoft was running a live demo off to the side of their main consumer booth – I literally stumbled into it on the way to a different meeting. What most impressed me about the system was not the alternative angles, more interactive VOD, or even the concept of moving the DVR from your living room back to the service provider.  What impressed me about the demo was that it didn’t feel like much of a demo at all: image quality was spectacular, and reactions to user input was instantaneous – far faster than changing channels on a satellite STB or HDTV tuner.  The main window contained what appeared to be full HDTV, with alternative feeds around it.  The user interface was refined, all onscreen graphics were in high resolution, and the EPG (Electronic Programming Guide) appeared simple enough for anyone to use.  Feeds switched from one to the other with smooth transitions.

OK, one feature did stand out: easy to use PIP (Picture in Picture) without need for multiple tuners. Nobody actually uses PIP in the real world because setting it up is too complicated.  But with "Microsoft TV IPTV Edition" (seriously, who comes up with these horrible names?) you can use PIP to keep an eye on multiple sports games in progress at once. If Microsoft solves the naming problem, they’ve got a real winner here.

-avi

I Want My IP TV Read More

Mobile PC-based Theater Speakers

This is such a good idea I wonder why nobody’s done it well before.  Altec Lansing sent over their XT1 Portable Audio System for notebooks. A DVD-ROM equipped notebook is essentially a giant portable DVD player combined with an iPod with a larger color screen, but most notebooks have terrible internal speakers.  Adding external speakers solves the problem at the cost of portability — even if you did shlep them with you, you’d be dragging along another power brick, too.

The XT1 siphons power off your notebook’s USB port which greatly simplifies setup and enables easy portability. Both Windows and Macs are supported. All the cables are included, and most of the time you only need two of them: one to connect the speaker to the PC’s USB port, another to connect the other speaker to the first one.  Several nice touches abound: the USB cable is provided twice, once with a self-winding mechanism for travel, the speaker connector cable has self-binding velcro tabs, and all the cables fit neatly into their own spot in the included molded protective case.  The case is exactly the size of two John Grisham paperbacks lying next to each other (I tested and tested until I found a visual analogy that fits).  It’s not tiny, but definitely small enough to fit in a backpack along with your notebook.  Setup and use is simple.

The tradeoffs are volume and bass.  Your USB port provides just a trickle of wattage.  The XT1 is plenty loud if you’re sitting in front of the speakers (which is where you’ll be if you’re watching a movie on your notebook), but won’t fill a large hotel room with sound.  Audio quality is pretty good.  Highs are crisp, instruments are well defined (my ThinkPad’s audio is rather muddy), and there is plenty of mid-bass energy (also somewhat lacking on the ThinkPad).  There is still no deep bass to speak of — the official rating only goes down to 100hz, and I suspect that the response drops off a bit before that.  In practical terms, this means that music and movies sound dramatically better than a notebook’s internal speakers, but not as good as a comparably priced amplified sub/sat system. If you don’t need portability, there are better choices out there (including several from Altec Lansing).

The XT1 thoughtfully provides an Aux in port and cable for connecting MP3 players and the like (though it still must be jacked into your notebook’s USB port for power).  I plugged in Sandisk’s Digital Audio Player and listened to several hours of pop and classic rock encoded as variable bit rate WMA files.  Music sounded rich and full and didn’t lack much for low end punch — drums had a decent thwack, and bass guitar notes were distinguishable.  On movies, the low end was more obviously lacking.  I tested both the THX logo (a test tone and a logo all in one!) and the sonic depth charge scene from the DVD of Star Wars Episode II: Attack of the Overly High Expectations.  The asteroid chase was fun — upper frequency sounds were clear — but suffered greatly in comparison to my Klipsch THX system or the Logitech Z-5500 THX multimedia system I promise I’ll finish reviewing one of these days.  When the XT1 is pushed to the top of its volume range, there is audible distortion and some sibilance on dialog.  No provision for using the XT1 with a subwoofer is provided.

The only directly comparable product I have in house is the Virgin boomtube.  The boomtube’s sound is a bit more defined, it plays a bit louder, and Virgin offers an EX version that provides actual bass.  However, the boomtube is considerably heavier as it relies on batteries, an optional power converter, or both. The boomtube has multiple wires for setup and no place to store them (or the power adapter) in the case.  The boomtube’s aluminum speaker drivers are not covered by a protective grill – a big no-no for a portable device — my four year old accidentally dented the drivers with his fingers within minutes of my unpacking the unit.  I also question whether the boomtube’s design is airport security friendly; the thing looks like a pipe bomb. 

I love the boomtube, but the XT1 is probably the unit I’d take with me when I know I’m going to watch a movie on my notebook once I get to wherever it is I’m going. The XT1 design team clearly thought through the implications of portability, and, as a result, the XT1 also makes for a nice improptu music system on the road.  However, it doesn’t play loud enough for road warriors looking to give multimedia presentations in large conference rooms or for throwing a headbanger’s party in your hotel room afterwards.

-avi

Mobile PC-based Theater Speakers Read More

Is technology moving too fast for consumer acceptance?

Former colleague Joe Wilcox notes that most computer brands are met with cognitive dissonance when they journey into consumer electronics. Joe is definitely on to something (though his observations are backed by admittedly anecdotal evidence — don’t you think that’s something you guys over at JupiterResearch should be testing empirically?)

Another part of the problem, though, is that consumers are slow to fully understand the implications of digital technology – never mind convergence.  (OK, I’m working with entirely anecdotal evidence here as well, but bear with me). When I meet new people and invite them to watch a movie in my home theater, the first question I get is how big my TV is.  I usually respond that the TV is besides the point, we watch movies on a projector.  This is invariably met with blank stares, followed by, "a projector?  How do you watch movies?  Don’t you have DVDs?" Saying, "yes, it’s a digital projector" results in polite affirmative nods but usually the same deer-in-the-headlights look in their eyes.  (One person actually asked whether I have a projectionist.)  Only once you walk people through the steps does the whole concept click into place.

Here are the steps:

  1. Start with the familiar, in this case, business projectors: "You know how you have digital projectors for notebooks when you give a PowerPoint presentation?"
  2. Tie in well understood entertainment technologies: "The technology in those projectors can also be used to display DVDs."
  3. Now you can explain product specifics: "Unlike a business projector, our digital projector is optimized for showing movies and watching HDTV."
  4. Talk about DLP vs. LCD, rainbow artifacts, or black levels at your peril.

I expected this situation a few years ago, but despite four generations of DLP since my first projector, little has changed.  This isn’t unique to home theater projectors, a category which has little mass market awareness.  How many consumers understand HDTV at even the most basic level – meaning they can differentiate between the format and plasma televisions?  I’ve been using the Zenith ZHDTV1 antenna in my basement, and, not surprisingly, its distinctive shape generates a lot of questions as to what, exactly, it is.  When I say it’s an HDTV antenna I get those blank stares again – "you can get HDTV using an antenna?" 

The implications of the digitization of everything requires a cognitive leap. (For an extreme example, take my mother, please.  When I described Sony Ericsson’s s710a megapixel cameraphone to her, she asked "how can they fit such a nice camera into a phone — where does the film go?")

Companies that have walked consumers through these steps have benefited.  Consumers are just now beginning to wrap their heads around MP3 players because Apple built a simple vertically integrated system from content to consumption.  Similarly, Echostar has had tremendous success — though much less publicity — with their integrated HDTV TV/satellite/installation bundle.

HP and Optoma have the right idea with DVD/player/speaker all-in-one units, but they can’t assume that consumers will understand what you do with them, never mind why they need one in the first place.  As another example, I think Sonos’ distributed audio system is brilliant – it takes advantage of your PC’s existing music library and spreads the wealth.  But I hope the company can survive on sales to custom installers and early adopters for a while, because it’s going to take the rest of the world a long time before the concept sinks in.

-avi

Is technology moving too fast for consumer acceptance? Read More