CES 2009: Panasonic's Blu-ray in a Box

The term "Home Theater in a Box" formerly had about as much cache as "wine in a box." HTiB was, in fact, a very pejorative acronym used only with extreme prejudice. But, that is changing. Increasingly, HTiBs are going upscale, with Blu-ray drives installed in their head units.

Case in point, Panasonic is introducing two new Blu-ray equipped HTiB systems. Moreover, the are offered at lower prices than their current models. Both come with 7.1-speakers or supports them (reflecting the trend toward 7.1 on BD discs) and both support BD-Live. In addition, both support Panasonic's VieraCast service to deliver direct internet access to YouTube, Picasa Web Albums from Google, and other content.

The SC-BT300 (pictured) is a 7.1 system; it features an iPod dock, and wireless-ready surround speakers. The dock has been upgraded to display an iPod's video and audio menus, and the unit will upconvert audio on all channels to 96kHz sampling rates. Interestingly, a bamboo cone driver is used in the front and center speakers. Total output power is 1250 watts. The SC-BT300 retails for $699.

The SC-BT200 is similar to the 300, but uses smaller front speakers and total output power is 100 watts. It retails for $599. --Ken C. Pohlmann

CES 2009: Lowered Expectations

As John Sciacca pointed out in an earlier post, companies at CES 2009 are under no illusions about the economy. In particular, they know that 09 (and possibly 10, and 11) will be pretty tough sledding, until people have enough money to start going deeply into debt again. (That makes no sense, but apparently that is the way the modern economy works).

At a recent show-opening seminar, staticians from CEA (Consumer Electronics Association), the show's sponsor, tried to paint a happy face, but with only limited success. Steve Koenig, CEA director of industry analysis, and Shawn DuBravac, CEA economist (pictured), proposed that CE sales will be slow, with a few bright spots. In their State of the Industry report, they said that discretionary spending has turned negative, but technology is still outperforming other durable goods such as automobiles and major appliances (small comfort, because those sales have fallen off the cliff). In addition, proposed government stimuli (such as a $1,000 tax credit for less than wealthy Americans) may help lift sales later in the year.

They listed a number of growth categories: OLED displays (up 149%); HD flash camcorders (up 106%); next-generation DVD players (up 62%); 120-Hz LCD TVs (up 57%); MP3 players with wireless connectivity (up 41%); and home-theater-in-a-box/Blu-ray combo systems (up 30%).

That sounds rosy, but in true glass-half-empty spirit, let me point out that those categories are tiny to begin with, and even a few sales here and there would net huge percentage gains. In addition, even with huge sales in these categories, they would not come close to offsetting any decline in TV sales.

Still, there is hope. For example, even though fewer people can afford really big screens, maybe they will still buy smaller screens. And if they have already have a big screen in the living room, maybe they will still get a new small screen for the guest room. In either case, they might not be buying big audio component systems, but might still spring for a display with a built-in Blu-ray player, or a soundbar.  So, if expectations are low enough, sales for 09 might be decent. That, my friends, is about as optimistic as I can be. --Ken C. Pohlmann

Photo Credit: Dealerscope

Circuit City Shrinks Self

Things are tough, especially in consumer electronics. Circuit City is really taking it on the chin. As we previously reported, the rumor was that CC was going to close stores to try to stay afloat. Now, that rumor has become reality.

It was officially announced that Circuit City will close 155 domestic stores and lay off 17% of its workforce. The official statement: "Due in part to its deteriorating liquidity position and the continued weak macroeconomic environment, the company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings, and aggressively renegotiating certain leases."

The company was caught in the same squeeze the rest of us are feeling: "The sharply worsened overall economic environment led some of Circuit City's vendors to take restrictive actions with respect to payment terms and the credit they make available to the company." The company also said it has been unable to collect an income tax refund of approximately $80 million that the company believes the feds owe them. Been there, done that.

Psst! Wanna Buy a Company?

The earth is shaking over at Panasonic. First, as we reported earlier, Panasonic ditched the name of its founder, Matsushita, and will go by Panasonic from now on. And now we learn from Bloomberg Japan that Panasonic has agreed to buy a controlling stake in Sanyo. Reportedly, the deal should be finalized by April. Panasonic is already the world's largest consumer electronics company, and the purchase will make it even bigger, with revenues of $110 billion.

Panasonic says that the Sanyo name will still appear on products, and that they will retain most of Sanyo's employees. Riiight.

TiVo Joins Netflix

If you can possibly remember back that far, back in September 2004, it looked like TiVo and Netflix would strike a deal to stream movies to set-top boxes. It was a terrifically brilliant idea. But nothing ever came of it. TiVo worked out a deal with Amazon for on-demand content and the companies seemed to part ways.

Until now. It was announced that some Tivo DVR owners can begin streaming Netflix movies and TV shows by early December. What's more, some lucky owners can begin streaming immediately in a beta testing program.

In particular, anyone owning TiVo HD, HD XL, or Series3 DVRs will have the capability. Sorry, the older Series2 and DirecTV models won't get the upgrade. This is part of the ongoing strategy on the part of Netflix with deals with Roku, LG, Samsung, and Microsoft Xbox 360 (coming in mid November, though Xbox Live is already up and running). It's also apparently part of TiVo's grand plan: Last week, TiVo announced deals with CinemaNow and Jaman.

New Disc in Town?

I'm not sure what to make of this. First, the facts: An outfit called Royal Digital Media has announced it will market an optical disc format to rival and surpass Blu-ray. Possibly developed by, and named for, Dreamstream, the new format would be able to store up to 100GB and would use 2048-bit "military-strength encryption" The latter technology, at least, is outlined on the Dreamstream web site.

Furthermore, the disc would be able to display 1920p video that would "transform perceptions of high-definition." Royal Digital Media would "replace traditional DVD technologies with a comprehensive, next generation HD system." Available in 2009, the players would use "inexpensive red laser technology," and the price would "equal" those of DVD players.

I Want My HDTV

Times are tough. Sometimes a man will do anything to feed his family. Just ask Jan Valjean. And sometimes a man will do anything so his family can watch TV. Especially HDTV.

The Pocono Record in Pennsylvania carried this news item:

Someone drove a truck or large SUV into the front door of Los Tres Amigos Restaurant on Route 209 in Middle Smithfield Township, breaking the glass, stole a 47-inch flat-screen Insignia HDTV, then fled the scene, police said. The burglary was reported at 4:40 AM Tuesday. Anyone with information is asked to call police at (570) 839-7701.

First of all, I'm not kidding. Therefore if you have information, please do call the police.

Blu-ray Hits 1,000! Sort of

No question about. Everyone likes nice, round numbers. So it caught our attention when The Hollywood Reporter noted that Blu-ray has reached the 1,000-title milestone. Sort of.

By their count, as of last week, more than 1,000 Blu-ray Discs were either on the market (841) or scheduled for release (185). That takes into account some titles that are still a ways off. For example, Disney  is planning a 70th anniversary platinum edition Blu-ray of the animated classic Pinocchio for release on March 10, 2009.

Not to take anything away from the celebration, but let's note that in fact, there are not 1,000 BD titles available. For starters, about 20% of them are only "scheduled for release." Also, some of the early Blu-ray titles are probably out of print by now, and others use some pretty marginal mastering formats and probably don't really deserve the Blu-ray name.

The real question, though, is whether — even with 1,000 titles — Blu-ray will have the critical mass needed for long-term success.

Introducing Green-ray

In a surprising move, Sony executives called a press conference today and announced that Sony and other licensees would abandon the Blu-ray disc format. According to the Sony spokesperson, "After considerable thought, we've decided that we cannot continue with Blu-ray. The color is just all wrong, and clashes with our wardrobes, not to mention our beautiful hazel eyes."

As the spokesperson was speaking, the press conference was suddenly interrupted when The Incredible Hulk burst through a plate glass window, showering the room in glass shards. Visibly angry, the Hulk tore off the arms . . .

Okay, just kidding. But if you take a second glance at the cover artwork on the Hulk Blu-ray release, you'll notice something just a bit odd.

Good Life. Great Price.

In case you didn't know, "Good Life. Great Price." is the slogan used to market Sears. Don't feel bad, it didn't ring a bell with me either. At least not like "Always Low Prices. Always."

In any case, if you need a hammer or a car battery, you might very well head to the Sears. (The Craftsman and Diehard brand names are worth their weight in steel and lead, respectively). But, when you think of cool consumer electronics, do you think of Sears?

Probably not. In an effort to change that, Sears is going after the CE market, with greater offerings in categories such as DTVs, digital cameras, DVDs, etc. Case in point: They have a sale coming up that's been posted on BlackFriday.info.  It has a long list of CE stuff (as well as more traditional Sears hardware offerings).

For example . . .