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THE BROADCASTER'S INSIDE SCOOP ON CES IN LAS VEGAS

  Come with us and enjoy a recap of the Consumer Electronics Show just concluded in Las Vegas as seen through the eyes of a highly experienced broadcast engineer.  This is not just any engineer, but Hal Kneller who is a Senior Manager at Harris Corporation, one of the largest and most respected manufacturers of broadcast equipment in the world.  Of course the views expressed are his alone and do not necessarily reflect those of Harris.

  Here, then, is the Broadcaster's Inside Scoop On CES:

I was at CES on a mission for my employer (Harris Corporation) and not someone who was attending because of being in the consumer electronics industry, so I see this in a slightly different manner, and also to how it relates to traditional radio and television broadcasting.  Thus I will pepper my comments accordingly, as most readers will have similar interest.  We had meetings with iBiquity (the HD Radio creators), NDS (more on them in a bit) and several receiver manufacturers, some customers and also were interested in mobile video and other trends in how consumers would receive and process their content in the future. As a broadcast equipment manufacturer, we need to spot trends early to see how our customers (radio and television stations and production houses) may be changing the way they do business because of changes in consumer electronics and the habits of their consumers - the end user.  But heck, we're curious people, so we look around a little, too.

The new iPhone from Apple is going to be hot and was a big buzz at the show.  I think combining many functions of video, MP3 player, etc. into a traditional cellular phone is going to reduce the number of"appliances" that people carry thus will be popular. These people have instant market credibility after coming back from the ropes a few years ago with the iPod.  Consumers trust iPods, so Apple will certainly have a leg up with iPhone. This has a "coolness" factor because of iPod's success. After all, in the culture today, you are not hip if you don't have an iPod, therefore you probably will have to buy an iPhone if you are in that 15-35 demo.

It's not a big buzz yet but I see Wi-Max as a huge thing. It should begin rollout out later this year on a limited basis in the US.  When you can have that kind of bandwidth over a 10 mile area (of course more area with multiple cells) and see the kinds of appliances that will work with it, a lot can be done.  Frankly, radio and TV as we know it could see a huge change.  We're talking about all kinds of video or audio on demand services and very decent resolution due to the bandwidth involved.  Plus these are usually portable devices so the screen is not real large, meaning that the kind of resolution that we would expect for our HDTV at home - we're not in the same ballpark for bandwidth requirements.  This is already operating in -- South Korea (they are way ahead of us in technology, by the way).  I saw a wide array of portable video boom boxes and cellular telephones with multi-band capability which will operate on this service (none of which is yet available in this country). The automotive industry may well embrace this, too, for audio entertainment, or for video in the back seat to keep the kids occupied while driving around town. Remember how cell phone coverage started - only in the bigger cities and towns, and then grew along highways?  Think that might also happen with Wi-Max for the mobile audience? It's a good bet.  If you want to see leadership in the future technology for portable communications devices, Samsung and LG will show it to you. I used to think Samsung was Japanese, but it's South Korean, along with LG.

HD Radio had a very high profile this year with receiver manufacturers for the first time at CES.  Many products are now shipping, and more are coming. These products are now actually in stores (compared to scarce supply if you knew where to find them on the Internet).  Radio Shack was selling its Accurian before Christmas for $99.99 after iBiquity rebate, for instance, and they were selling them from the stores, along with the Boston Acoustics Receptor model. A year ago you needed to be an Internet sleuth to find an HD Radio.  At CES, Visteon had the best aftermarket auto product, in my opinion, with what they are calling the Jump.  It's an HD Radio receiver that is in a car cradle that can be mounted to floor or dash.  You install the car cradle and hook your car radio antenna to the cradle + 12 vdc and pop the Jump into this cradle and you have HD Radio.  The Jump handles all your AM/FM and HD Radio and outputs on an FM frequency to your existing car radio (all over shielded cable). So even if you have an existing car radio that does not have analog FM RBDS, you will have it now, with the Jump. And Jump has a multi-line text display which is nice, and shows the HD-2, HD-3 etc. channels as well.  It was the most elegant of all the converters I saw.  However, the only downside is that using the FM modulator approach might not allow the best possible audio quality transfer on HD Radio.  Other solutions used the CD changer inputs to your head unit and the converters ONLY output the HD stations.  So you'd have to be going back and forth from your existing analog radio to the converter unit to see if there were any HD stations to listen to.  PLUS, you lost the use of your CD changer.  Dice Electronics told me that was no big deal, people don't listen to CDs in their car any more, and Dice offers an iPod interface which then replaces the CD changer.  I don't have an iPod, am I missing something here?  I never thought I needed one.  But I like my CD changer. In 2008 and moving forward, we will see more OEM receivers in cars.  There was a BMW and a Jaguar in the iBiquity booth, both showing OEM radios. 

One more thing about HD Radio which most people don't know about.  It's called conditional access.  Just like Cable TV and Satellite can sell you pay-per-view or specific tiers of channels, HD Radio can lock out a channel from reception unless you are subscribed. We saw a live demo of this in the iBiquity booth, provided by NDS. The first test of this will be with the Radio Reading Service in Tampa Florida over WUSF-FM, the NPR station.  Radio Reading services enjoy copyright exclusion for any publications they read over their signal so long as it is not receivable by the general public.  The receivers will have an electronic serial number and the channel may be permissioned (or not).  Commercial rollout of this might find the Howard Stern channel, a pledge-free channel on an NPR station for people who have already donated, a concert which could be a one-time purchase, or any other subscription channel a station may wish to have. iBiquity has the hooks in its software to support this, and NDS is under contract to develop the system. NDS is well known in this area, having done cable TV boxes and satellite units for subscription.  So they are re-spinning technology for HD Radio.  By the way, that pretty dumb cable or satellite box you have connected to your TV may be having games in it in the future, or allow you to connect to the web and see other content which is for sale or subscription, courtesy of NDS.  Their display was very impressive.  Downloaded movies from the WWW had resolution equal to or better than a DVD and you didn't have to drive over to Blockbuster or put the NetFlix envelope in the mailbox.

Digital TV is well along its way in rollout.  Consumer prices for really very good high def sets are crashing.  And Plasma versus LCD pricing - not nearly as much separation as years past.  Some Plasmas are within $200-300 of LCD models now.  Depending upon whom you ask, DLP is dead or DLP is the next coming. TI has been providing LED/DLP technology since last year and I saw several examples.  TI says DLP is a great technology.  Several TV manufacturers say it's DOA.  Samsung offers all three (LCD, Plasma and DLP).  They said it's a lower cost choice for those who are not needing a flat TV back. However, newer DLP projection techniques are making DLP receivers much thinner than before.  Still, not something you can hang on the wall like a picture frame as we can with LCD or Plasma.  From the sets I saw, the biggest downside of DLP is viewing angle.  LCD is better, not great but Plasma can be viewed at a pretty bad angle and still look good.  LCD sets have improved greatly over the last year without blurring images with motion.  Black contrast has also improved, but still not as good as Plasma.  However, brightness now appears to be equal, as LCD has consistently improved the technology.  A nice 50 inch Plasma can be had for $2500 now.  Same size in LCD would be about $2200, all plus or minus depending upon brand or feature set.  But at that $2500 target, you are going to see a very nice picture, and later this year - in 1080p! One more note on Plasma.  While LCD is a close rival, Plasma does look better, brighter and has more vivid colors and a better black.  Burning, they claim, is a problem of the past, and so is life.  Some manufacturers are putting longer warranties on their Plasma sets just to help prove that point.  Still, LCD is providing larger and larger screens at lower prices, looks nearly as good, and is giving Plasma technology a good run for the money.  LCDs up to about 50-52 inches (diagonal) are becoming pretty common now.  Of course, they get larger each year.  Just to show off, there are some Plasma screens over 103 inches. 

While remote controlling functions in your home is not at all new, I saw a demo of Johnson Controls Control 4 system which seems to be taking things to newer levels.  This thing has it's fingers on literally everything electrical and electro-mechanical in your home.  He showed one example where it called his cell phone because he left home and didn't close the garage door.  The Control 4 system closed his garage door after 30 minutes (you can set the interval) and called him to tell him so.  It has a "home" and "away" mode.  You set everything.  What temperature do you want for each mode?  What lights do you want to go on and off?  What appliances do you want to switch on and off?  These can be set to happen at a certain time, or by the press of a button when you drive into your garage. There is both an IP interface as well as a voice system on phone similar to what many of us would know by a Burk or Gentner type transmitter remote control system.

Windows Vista was in a huge tent outside in the parking lot. Unfortunately, I didn't get to see that but some people told me it was very impressive and the GUI is much nicer than on XP.  Since I'm still using Windows 2000 on my home computers, I guess you can tell that Vista is not something that I'll be installing right away, thank you, until the programs that I use force me into it.  I think I'd still be using DOS if I could get away with it.  Let's see, DEL *.* is the best DOS command, right (after you are in the root directory)?  One thing about Vista, apparently there is an on-line tool on the Microsoft website which you can run and it will tell you your Vista compatibility.  There are several versions of Vista and if you wish to continue with your current computer and install Vista, then you may use this tool to determine the version which is the best match for your computer.  Vista promises much better computer graphics, multi-media and sound than earlier operating systems.  You can correctly assume that proper treatment of Windows Vista will require more horsepower from your PC.

LG was showing their new Chocolate phones.  What they have to do with Chocolate has me totally perplexed.  I just don't get it.  They are not brown (or white) which are the only two colors I recognize for being chocolate.  If the phone doesn't work, you can't eat it.  So why Chocolate?  I wanted to ask someone in the LG booth but the throngs of people there prevented me from speaking with a live person.  Chocolate phones are not as flexible as (excuse my using a commercial name) Blackberry.  Yes, Chocolates have a nice small high resolution LCD color display.  But they won't do email.  If the phone won't do email today, I wouldn't see how it could be a big hit.  If I want Chocolate, I think I'll go to the candy store, and pass on LG for this one.  You know, I'm not dissing LG.  They had some wonderful other products in their booth, some great LCD and Plasma TVs, and a Blue Ray serial ATA writer/reader for your PC (which would also write DVDs and CDs).  Nobody else has that product yet.  Nice scoop, guys.  For those who don't know, Blue Ray is to video resolution, the difference between VCR and DVD.  It's a quantum leap in picture quality.  I don't know how many gigs are stored on a Blue Ray disc which is the same size as a CD or DVD physically, but wow, the picture is impressive, looking at it on a 1080p Plasma screen of very large size (looked about like a 70 inch).  They also had a set-top Blue Ray player for $700.  Obviously this price will come down.  It did not have record functions.  The lady told me "come back next year, I think you'll see a Blue Ray Recorder".  For data backup, Blue Ray may offer large capacity without relying on a hard drive, for archival storage. 

Anyone in broadcast will remember the name RCA.  Most of us over 40 or 50 grew up on RCA, and remember when 8 out of 10 television station chief engineers owned RCA color televisions, per their commercials. OK RCA must have tossed in a TV set for the chief engineer when the station bought an RCA transmitter, right??  So there's a big booth with RCA in the same old red logo we remember from before their ship sank.  Humm, I thought GE bought RCA and that was pretty much the end of it.  So, I asked.  Seems as if Thomson (the French company that also makes broadcast equipment) has bought the rights to this name from GE and they have licensed the name to consumer electronics manufacturing. Don't look for any RCA radio or TV transmitters, a new line of broadcast microphones like the 07DX, or an audio console.  And there is no relationship between these products and the consumer products of years ago.  Sort of like the bankruptcy court sold the name Pan AM to another airline who flies jets around with the old Pan AM logo, evoking memories, but, alas, no connection to the once proud airline.  But it was kind of cool to see those huge three letters up high, reminiscing the glory days of NAB when RCA had one of the biggest booths on the floor (this was definitely NOT one of the biggest booths at CES). The booth had everything from small coax F connector patch cords to TV sets, VCRs, DVD players, personal portables, surround sound audio systems, etc etc all RCA branded. It was like a trip back in time!

Some of you who have not been able to travel to NAB might wonder how you have 150,000 people at a show like CES in a fairly concentrated area, and all are using cell phones, Trios, Blackberries, etc., and all seem to be working fine. Amazing system capacity, right?  Out in the parking lot they bring in these portable cell sites on wheels and vastly increase capacity for large conventions like this.  The cells are so close to the convention center (and on both sides) that there really are no dead spots inside the halls and meeting areas.  It's pretty amazing. I consistently had good audio and data on my Cingular Blackberry and no dropouts at the convention center (I can't say that over in some of the large hotels and casinos).

The landscape of communications is changing very rapidly, and I predict based on what we see at CES, that there will be major shifts in how people use radio, TV, telephone and the Internet over the next five years.  The term "convergence" was used a number of years ago and has been over used.  But today, it appears that we are really heading for convergence because there will be so many ways for a program producer to deliver content to a consumer, and what's coming up is certainly a violation of the tradition we have seen in the past.  Particularly television and later, radio transmitters are going to become less relevant and IP connectivity more common each day forward as large Wi-Fi and Wi-Max rollouts occur. That some markets are 80% cable penetration was the start of erosion of over-the-air TV reception.  That was only the beginning.  And we will have much more interactivity with programs, advertisers and person-to-person with fewer devices needed, as a device will accomplish many more tasks than the traditional ones we use today. We're already seeing this starting with cell phones (Smart Phones) with cameras that can instantly email a picture, and then MP3 audio and MP4 video is being added, email functions and text messaging, etc. Remember the Palm Pilot?  Those functions are all in the cell phone now, including your contacts list and calendar, synchronized with your PC. We just see more and more functionality and capability going into the products of the future. We're seeing a lot of Blue Tooth devices which can connect to your car audio system without need of cables or RF radiation under Part 15 (a good thing).  Consumers can and will have audio and video on demand, and not rely on a set schedule, or even a DVR or TIVO to watch or listen to their content when and where they want to. This is a major paradigm shift, indeed.

Hal Kneller, CPBE, CBNT, AMD
HARRIS CORP
Sr. Manager
Marketing Communications and Public Radio Initiatives
Radio Business Unit - Broadcast Communications Division
300 Klispie Drive
Punta Gorda, FL 33950
office:  941 639-1889
fax:     321 674-2512
cell:    941 286-3398
e-mail:  hkneller (at) harris.com

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Posted by Steve Blodgett
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