DEAR READERS:
 This edition focuses upon the
CEA and its president, Gary Shapiro, _Dale Cripps
INDUSTRY
NOTES
Broadcom Ushers In Patent 'Peace'
Era, Settles Intel Dispute
By James Detar
Broadcom Corp. (NasdaqNM:BRCM
- News)
took another step toward a comeback Friday when it announced the settlement of its patent
lawsuits with rival Intel Corp. (NasdaqNM:INTC
- News)
[view story]
MIT Media Lab Founder and Director
Nicholas Negroponte to Keynote 2003 CEA Industry Forum
 Arlington, Va., August 14, 2003
- The Consumer Electronics Association (CEA) announced today that Nicholas Negroponte, founder and chairman
of the Massachusetts Institute of Technology's (MIT) innovative Media Laboratory, will
deliver a keynote presentation to attendees of CEA's annual Industry Forum on Monday,
October 13 at 12:00 p.m. at the La Costa Resort and Spa in Carlsbad, Ca. The 2003
CEA Industry Forums runs October 13-15 and is co-located with the Fall Meeting of the Home
Theater Specialists of America (HTSA) and the Optical Storage Technology Association
(OSTA) Symposium.
"The annual CEA Industry Forum has evolved into the must-attend event for some 500
consumer technology industry leaders and press to network, conduct business and discuss
trends in technology," said Gary Shapiro, president and CEO of CEA. "As
our industry continues to shed the analog format and further transition to digital, we are
pleased to have such an expert as Nicholas Negroponte share his vision on the overall
transition and its impact on the technology industry."
Professor Negroponte studied at MIT and has been an MIT faculty member since 1966. He was
the founder of MIT's pioneering Architecture Machine Group, a combination lab and think
tank responsible for many radically new approaches to the human-computer interface. In
1995, he published The New York Times bestseller Being Digital, and due to its popularity,
has been translated into more than 40 languages.
In the early eighties, Negroponte accepted a French government invitation to become the
first executive director of the World Center for Personal Computation and Human
Development, an experimental project designed to explore technology's potential for
enhancing primary education in underdeveloped countries.
Panasonic Announces New
PT-L780U Portable XGA LCD Projectors
Panasonic
announced the availability of the new PT-L780U portable XGA LCD projectors with a
brightness of 3,200 ANSI lumens and a 500:1 contrast ratio. Weighing 12.8 pounds, this
projector incorporates three TFT Active Matrix Polysilicon LCD panels and a 270W UHM lamp
to deliver 3,200 ANSI lumens of brightness for challenging applications in classrooms,
conference and training rooms, auditoriums, churches, lecture halls and other large
venues.
ESPN's first-ever scripted dramatic series, "Playmakers," is set to premiere on ESPN HD Aug. 26 at 9 p.m. EST.
Playmakers is a gritty ensemble drama chronicling the behind-the-scenes and off-the-field
lives of the players, families, coaches and owner of a fictional professional football
team. Following the premiere, 10 additional episodes will air on ESPN HD each Tuesday
night at 9 p.m. with repeats directly following at 10 p.m. and 12 a.m.
Panasonic
Announces New PT-L780U Portable XGA LCD Projectors
By Elina Shatkin
Panasonic
announced the availability of the new PT-L780U portable XGA LCD projectors with a
brightness of 3,200 ANSI lumens and a 500:1 contrast ratio. Weighing 12.8 pounds, this
projector incorporates three TFT Active Matrix Polysilicon LCD panels and a 270W UHM lamp
to deliver 3,200 ANSI lumens of brightness for challenging applications in classrooms,
conference and training rooms, auditoriums, churches, lecture halls and other large
venues. [Veiw complete Story]
 Mr. Gary
Shapiro
President of the Consumer Electronics Association (CEA)
It is doubtful that HDTV could have a better friend
than Gary Shapiro. He is a true believer that HDTV is both a good thing and that everyone
who sees it, wants it. He sits in a position of power to aid HDTV and while his direction
may be influenced by the responsibility he must have to his manufacturing
constituency, the public interest remains firm. He is not faint-of-heart and strikes out
at the related industries which all must do their part to make HDTV a happening thing.
Steeled in the politics of Washington he firmly applies his well-honed instincts when
commanded by them. Gary has been in a leadership role in consumer electronics for 20
years. He is a lawyer by training and certainly a manager by experience. He runs one of
the largest trade shows in the world--the CES--held annually in Las Vegas. He brings to
that venue all relevant manufacturers, developers, distributors, retailers, cable
executives, DBS executives, broadcast executives, pre-recorded executives, and computer
executives to mix with those from Washington -- the FCC members and key legislators
who have their hands in consumer electronics and signal policy. He was honored this last
year with the prestigious Industry
Leadership Award from the Academy of Digital Pioneers, an organization formed to honor
those who have made important contributions to the digital television movement.
My talk begins with a general assessments of the industry
and quickly turns to where things can be made better:
HDTVMag: We are
approaching the fall season and there seems to be plenty of activity with regards to HDTV.
Can you tell us what the CEA's present efforts are?
Gary Shapiro: For several years CEA has been aggressive in promoting HDTV to
Americans. I am sure you have been to our HDTV
web. What we do here is focus on the macro--the well defined picture. The purpose of
CEA is to grow the industry. We have been advocating HDTV for a decade and been at the
forefront of many of the issues. There is no question that despite all of the mass media
stories about the failure of HDTVwe have, as have you, believed that HDTV was inevitable
even though there would be bumps in the road. We feel validated by the fact that HDTV is
achieving enormous acceptance by program providers and consumers. Our sales figures
on an aggregate basis are very, very positive. This has been a tipping point year. You
understand that after having rocks thrown at us for many years about this failed product
our faith, like yours, remains unshakable.
HDTVMag: I have. I believe you also have some helpful tools for the marketers of
HDTV, do you not?
Gary Shapiro: We continue to work with every segment of every industry in many
different ways. Our research is something is extensive on what consumers want with HDTV.
Indeed, we have seen several of the major program providers join CEA recently, including
NBC, ESPN and Discovery Channel and ABC because of the amount of information we are
providing on HDTV.
HDTVMag: This is hard data your are pulling up from surveys and direct contact with
consumers?
Gary Shapiro: We are active in several areas. We do original research on
consumer's needs and expectations and opinions. We also do advocacy work on the Hill and
with the FCC promoting HDTV as a concept. Our major focus with the government right now is
the "plug and
play." agreement with the FCC. That is the most critical thing we are working on in
terms of advocacy right now. We also have our HDTV
Guide, which lists all 450 models of DTV products.
 We are also very active with Antennaweb.org, which is the web site that
lays out the antenna map that is active in retail stores. We think that is an important
part of what we do. Obviously our definitions is something we continue to push. We think
they have generally been accepted in terms of what HDTV is vs. digital television. We are
preparing for the fourth annual Academy
of Digital Television Pioneer Awards for recognizing those who are instrumental in
digital television.
HDTVMag: You and I share awards from that organization for last year, didn't we?
Gary Shapiro: Yes. It is important to recognize people in a positive way in every
different category and segment for what they have done to help HDTV happen. As you know
the Academy members themselves are the people who have made a difference in H/DTV. They
are the ones who vote on the awards, although we did add a People's Choice Award this last
time.
Did you see the interview in our
past Pagae 2 edition?
Yes, the one with Best Buy.
HDTVMag: Bill Cody (BEST BUY) said that the most important
thing left to be accomplished is getting cable fully on board. That leads me back to
your comment on the cable "Plug and Play" issue. What opponents do
you find in the "Plug and Play" agreement and how are you overcoming them?
Gary Shapiro: Right now the major challenge is getting something out of the FCC.
We are very hopeful that we will
get something in September. If not it certainly will be tragic.
Our opposition to the mandatory tuner stems
from the logic that most of Americans are getting most of their programming by satellite
and cable. So, we thought the cable solution was much more critical. Even a government
mandate cannot force Americans to put up antennas. We have been very aggressive in
promoting antenna usage for several years. We continue to promote it. We would like to see
the broadcasters step-up and also promote antenna usage. We are totally puzzled as to how
they could focus on mandating TV tuners but in all of their efforts (with the exception of
just a few like WRAL) I have yet to see a TV advertisement for over-the-air antenna usage.
HDTVMag: Do you have any data that suggests that antenna usage is being adopted by
the consumers?
Gary Shapiro: No, I don't. We don't have that data because it is not being
adopted by consumers, at least to my knowledge. It is sticking to around 10 to 15% (of TV households.)
HDTVMag: Is this due to the view that an antenna is a retro or old fashioned technology as opposed to something more modern?
Gary Shapiro: Seventy plus percent of Americans are relying on cable and fifteen to
twenty percent are are relying upon satellite. For services that most of us are paying for
it doesn't make sense for consumers to think about antennas unless there is an aggressive
campaign to get them to think about it.
HDTVMag: There is one thing I find very interesting with our
audience. They are quite devoted to watching HDTV and not the lower standard. Most of the
HDTV that they are watching, with some obvious exceptions, is from
over-the-air services. They have retreated
from the "200" old standard cable channels and adopted viewing patterns which
are more in line with what the networks are locally providing to them. That would suggest
that for many an antenna is sufficient and, perhaps, the only thing they want for their
HDTV viewing.
Gary Shapiro: I certainly find that to be the case in my home. I tend to
exclusively watch HDTV programs. I do have an over-the-air
antenna.
| History will
review HDTV as the most successful product launch of a major product category. |
HDTVMag: We do see more and more positive, or, at least, less negative press
coverage now occurring where the the story ends up favoring HDTV if you have the money.
Certainly, the quantity of programs is not considered in short supply, though we can
always look forward to more and we see coming online all of the time, so there is no sense
that the trend is against you...
 Gary
Shapiro: This is much better than the launch of color TV. On an inflation adjusted
dollar basis HDTV is actually cheaper than color was at the same point in time after its
introduction. The quality is also far superior to the analogous quality of color at this
point. Color. Being an analog medium it was new and the colors were not that good. Yet,
color TV was one of the most successful launches in history. History will review
HDTV as the most successful product launch of a major product category. Here you have a
product that cost over a $1000 and yet it is rapidly achieving mass market acceptance.
HDTVMag: When cars cost $24,000 or more it now does not seem
much to spend $1000 on something with which you will spend more time
with than your car.
Gary Shapiro: That is probably a good point. When color was introduced a car cost
eight to ten times what a color set did. Today it is fair to say that a car
is a great deal more. Obviously,
that is not the fault of the auto industry. For the most part HDTV is a digital technology
with no moving parts. We don't have to go up to 100 MPH. So, comparing the cost to a car
may not be the fairest thing, but you do spend as much time, or more, in front of your TV
than your car.
HDTVMag: Let's talk about the decoder problem. I call it a
problem because of the ratio of decoders being sold to monitors -- about 11%. What
is the cause of this
disparity?
| It has been broadcasters who have been most
disappointing. _Gary Shapiro |
Gary Shapiro: I don't think
there is a problem as much as a marketplace a work. As much as we like to think that HDTV
is this great, wonderful product which broadcasters are pushing, the truth is that people
buying HDTV's do so for one of three reasons.
One is DVDs. Movies look better on HDTV. We all know
that it doesn't use the full capability, but DVD does look spectacular on HDTV, plus you
get the surround sound. The fact that people are buying monitors to watch their DVDs is
the marketplace at work.
The second reason is satellite programming. If you
look at DirecTV you can see that the HDTV stations are identified. There are many of them.
It started out with just Mark Cuban on channel 198 and HBO. Now you have many more.
The third reason has to do with cable and broadcast
programming. Broadcasters have been modest in their offerings, though that is
increasing. The local broadcasters clearly have a long way to go. Cable started out very
slowly but in the last year, especially the last few months, they are rushing to get to
HDTV. It is a competitive issue. They realize that Americans want HDTV and they are losing
their best viewers to satellite.
It has been broadcasters who have been most disappointing.
They don't talk enough about HDTV. They don't push it. There is not a concerted campaign.
It is not aggressive. I know that the National Association of Broadcasters have made some
modest efforts, but there is zero promotion of over-the-air antennas. There has been very
little promotion across the broadcaster industry.
HDTVMag: Can you put
your finger on why?
Gary Shapiro: I think it is a
tough economic time. It is a competitive model and people are focusing on the last
quarter's numbers. You can see the differences in the quarter numbers In the cable and
satellite industries because one is losing subscribers to another because of HDTV.
For broadcasters the pain for not being economically competitive with HDTV is similar to
the same pain they experienced when asleep at the switch as cable was introduced and by
not paying attention to satellite. It is a slower erosion of market share. That erosion is
going to continue as it has for another 20 years. It is just going to get worse while
being exacerbated by their lack of promotion of HDTV. So, it is a macro long term threat
that broadcasters face. It is almost the "AM-ization, " if you will. That is
something they have to face. Some, like CBS, specifically, have been very aggressive. That
has been helpful. Others have not paid attention or they have made wrong decisions. The
biggest wrong decision was Fox's 480p policy, which has now been switched to HDTV. They
didn't want to go the way of AM or become the inferior medium. I think that is a very
important decision made by Fox president Peter Chermin. I applaud him for it.
HDTVMag: Rupert
Murdoch said at the May 2003 Congressional hearings on Newscorps' acquisition of DirecTV
that HDTV was the only category capable of making the digital TV transition happen.
| The fact that they
(Europe) have gone to digital and not HDTV is, I think, a consumer tragedy. |
Gary Shapiro: I
agree with Mr. Murdoch that HDTV is an incredibly important part of the digital
transition.That was not been the broadcaster's view for a long time. There was a lot of
talk about these various schemes to make money and monetize the spectrum. But when you
read about how Europe...Europe is behind us in that they don't have HDTV. They do have
digital. They are transitioning quickly. I read recently that Berlin, Germany has
already returned
the spectrum. They are getting spectrum back quicker. From a Washington point-of-view
that is very important. The fact that they have gone to digital and not HDTV is, however,
a consumer tragedy. The US approach is right for the US and, perhaps, the European
approach is best for the Europeans considering all of their different languages, etc.
| I think CEA could
be persuaded to withdraw that lawsuit if the broadcasters stepped forward with an
aggressive campaign aimed at over-the-air antenna promotion. |
HDTVMag:
Going back to the discussion on decoders: The OTA/cable and satellite decoders for the US
market are not being proportionally acquired. Are we using all of the promotional tools at
our disposal?
Gary Shapiro: No, we are not.
There is this lawsuit now in the courts where we (CEA) have challenged the mandatory tuner
and the FCC's ability to mandate it. That lawsuit is working its way to an oral argument.
I think CEA could be persuaded to withdraw that lawsuit if the broadcasters stepped
forward with an aggressive campaign aimed at over-the-air antenna promotion. They have
been quiet on promoting over-the-air broadcasting. If they would spend less time trying to
put mandates on us and more time on promoting over-the-air antenna I think the marketplace
would help out.
HDTVMag: We have heard
broadcasters say that CEA and its members have given up on over-the-air broadcasting and
you're not paying much attention to it.
Gary Shapiro: I can't imagine
their saying that considering our aggressive campaign with antennaweb.org and the millions of dollars
we have spent promoting it without any broadcaster assistance. I think it defies
credulity. Manufacturers are themselves promoting over-the-air broadcasting while
broadcasters are, instead, focusing their efforts in Washington (on mandates).
Our industry (CE) has a history of avoiding mandates in
Washington. We focus on the marketplace. We know you can't force consumers to buy what
they don't want. But you can do cleaver marketing to encourage wants into needs. You can
create your product categories. You can create things that were once only an engineer's
imagination and turn them into a consumer product whether that is computer, a
personal digital assistant, a wireless internet device, or even HDTV. None of these
products came out by way of government. They came through people experimenting and
introducing products at the CES, seeing what retailers, consumers, and the press would
respond to. A few succeed from the long list of products introduced.
HDTV happens to be one of those products with a tremendous
belief by Dick Wiley, Gary Shapiro, Joe Flaherty, Peter Fannon, Dale Cripps, and quite a
few others. This was a product that captured our imaginations and we felt it would capture
the imagination of the American Consumer, We have been rigid in that belief for ten years.
Along the way we fought claims that it was a foreign invasion; that there was a better
transmission system, or, that there is nothing in it for broadcasters or anyone else. We
fought every step of the way and history has proven that the Flaherty's, the Cripps, the
Wileys, and all other believers were absolutely right in their steadfast determination for
HDTV. When you look back in history and ask, "What are you proud of?" I am
pretty proud of what we did for HDTV.
HDTVMag: Getting back
to antenna and consumer acceptance: The term "wireless" has grown popular and
glamorous. Why is the TV antenna not made more glamorous today?
Gary Shapiro:There are different flavors of wireless. There is the telephone that has an
almost imperceptible antenna compared to the antenna you must put on your roof or in your
house for TV. It is much more visible.
| If somehow broadcasters can be
organized to get together to use that powerful tool to help themselves promote
over-the-air broadcasting they will unleash a torrent of potential AND marketplace
acceptance of antennas. |
HDTVMag:
Is there no way to camouflage these devices or put them into an artistic form so they
become aesthetically pleasing?
Gary Shapiro: A satellite dish is an antenna. There have been various devices to make them
more visibly attractive for communities. With satellite radio services you are looking at
an antenna on top of your car. I have one. Doesn't bother me at all. It is a question of
consumer awareness. Broadcasters control the most powerful tool there is for creating
consumer awareness. The whole business model for broadcasting is based on consumer
awareness. That is what they are selling to others. If somehow they can be organized to
get together to use that powerful tool to help themselves promote over-the-air
broadcasting they will unleash a torrent of potential AND marketplace acceptance of
antennas. That may help solve many of the their existing problems. I think it is fair to
say that the cable industry and the satellite industry are secretly pleased that
broadcasters have not figured out that they themselves have the power and ability to
change their own future.
HDTVMag: That brings
us to cable. I did talk to the NCTA which seem to be quite canned, but positive
statements: "Yes, it is a good thing to do. It is our future. We are doing everything
we can. Are you seeing what they are saying?
Gary Shapiro: I believe the cable industry -- for the majors --there is no question in my mind
that they are very interested in HDTV as a competitive tool against satellite. It is in
their business interest to be so. They are rushing to it. They don't want to be perceived
as an inferior medium. I think the marketplace will be very helpful with cable in getting
to HDTV providing there is a "plug and p lay" agreement, which allows consumer
electronics companies to invest in a standardized technology.
HDTVMag: When I asked
you what the major obstruction to this agreement was earlier in this interview you seemed
to say that it was the FCC. Why?
Gary Shapiro: I would not say in the short term I would say the FCC is an obstruction. I
didn't mean to say that. What I mean to say is that a failure to enact the plug and play
agreement is the major impediment in the short term.
What is impeding the FCC from making this decision?
Gary Shapiro: I think you will have to asked them that. They have their due process. In
December 2002 we handed it over to them and Chairman Powell assured me and Robert Sachs
(president of the National Cable Telecommunications Association) that he would do
everything possible to move quickly. I think they did initially and got it out to comment
(each rule must go through a process of comments and reply comments prior to an FCC
action). Right now it is not going as fast as we want and we are very frustrated.
HDTVMag: I have heard
that manufacturers want this done by September in order to give them time to fabricate for
the next fall buying season. Is that the problem.
Gary Shapiro: Manufacturers are facing the dilemma of a manufacturing decision. While each
manufacturer makes its own decision but if there is any risk of a change in that agreement
they can't really go into production.
HDTVMag: Is there any
serious risk in the agreement now?
Gary Shapiro: The agreement is very clear, helpful, and specific for almost all parties. There
are those fringes of the "copy anything" people and the "copy nothing"
people. Both sides have issues. That means we clearly end up in the middle. We are
confident that it preserves consumer's traditional use rights and it protects the
copyright interests as they have been protected with satellite. It steps up their
protection. I think it is an agreement that is about as acceptable to everyone as will
ever be created. It seems to be a slam dunk, but we are just counting the days.
HDTVMag:
Back to broadcasting for a minute. The recent upfront markets (for advertising at the
network level) enjoyed a record $9 billion in sales of advertising space. None of that is
identified for HDTV or caused by HDTV. Is the problem that all bills are still being paid
by the traditional business?
Gary Shapiro: Look at how cable came into the marketplace some 30 years ago.
Broadcasters looked at cable and said, "Ah, what do I care about them? Ii is too
small a market." In the exact same way cable and broadcasters responded to satellite,
video games, VCRs, and everything else. Every time a new media arrives it starts with a
small marketplace and they ignore it. Then it grows very big and takes away their
marketshare, and, before you know it, they have a new competitor which they should have
paid attention to in the beginning and focused on what consumers were asking for. With
broadcasters vs. cable consumers were asking for choice. For cable vs satellite they were
asking for choice and, I would argue, quality of programming. Now consumers are making a
huge investment. The fact that are not buying tuners is not alarming to me, although they
are increasingly doing so. They are investing in the largest portion of it--the monitor.
They will be looking for programming that can be displayed beautifully on that monitor.
HDTVMag:
Thank you Gary.
READER MAIL
Regarding my editorial on the potential of the PVR in
solving real time bandwidth clogging...
Wow, what a revelation! I completely missed the connection between DVR and
saving bandwidth by avoiding multiple showings! Of course, I am already completely sold on
DirecTivo and am EAGERLY awaiting the release of HD Tivo! I WILL be the first in line to
get mine. Two years of use have spoiled me to no end, and having to sit myself down at the
appointed hour to view my HD shows is really a major PITA.
In my opinion Tivo is a bigger improvement to TV viewing than going from b/w to color! (I
can't believe you don't have a Tivo of your own!) SOMEBODY needs to learn how to market
these devices -- most people I talk to STILL don't even know what Tivo is, or think it's
just a digital VCR.
I've previously asked you to do whatever you can to help, but your current audience most
likely already knows (and uses) DVRs. I suspect the place you could be most effective is
talking to the people in charge of marketing them -- there is NO effective advertising
campaign being shown where people can see it.
I'll read more of today's newsletter later. (This is the only way I ever see your 'other'
work -- I never make it to the website.) Keep up the good work, and thanks again for a
WONDERFUL product.
Gary in Houston.
Just got done watching Monday Night Football in Hi Def on ESPN. Football never
looked so good. The picture was very clean, clear and crisp. I had some friends over and I
think I sold about 3 new Hi Def sets.
Thanks for all your efforts
Keep up the good work.
Tony
Palmdale, Ca
Mitsubishi ws-55 Platinum Series
Mitsubishi HD500 HD Receiver
Direct TV 24'' sat with Triple LNB's
STATEMENT OF FCC CHAIRMAN MICHAEL K. POWELL REGARDING
CABLE-CONSUMER ELECTRONICS AGREEMENT ON
PLUG AND PLAY
Plug and play cable compatibility is a key
piece of the digital television puzzle. In a plug and play world, consumers
will be able to plug their cable directly into their digital TV set without the need of a
set-top box.
Plug and play will be good for the future of
these industries, good for the digital transition, and most importantly, good for
consumers.
I commend the cable and consumer electronics industries for
their extraordinary efforts in reaching this agreement. This shows what progress can be
made when both sides are committed to finding solutions rather than jockeying for
regulatory advantage.
The agreement contains certain requests for FCC action. We
will act expeditiously on those requests after other interested parties have had the
opportunity to comment.
REMEMBER MONDAY
NIGHT FOOTBALL TONIGHT ON ABC
Further FCC references:
Comments
requested
|
ision Publishing