rAVe HomeAV Edition Volume 4, Issue 8 – April 26, 2007

 Volume 4, Issue 8 – April 26, 2007
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Introduction
Welcome to rAVe Home Edition –
Volume 4, Issue 8

Editorial

Video Download Services Finally Arrive
Part 3: Netflix "Watch Now"
By Denise Harrison
Editor-in-Chief, rAVe

Special Announcement

Join Gary Kayye as he Moderates the Fourth Annual InfoComm Manufacturers Forum!

New – Cartoon Series!

 
Media Recording, Distribution and Control
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Motorola Making Content Distribution Moves

LG Electronics, Harris Corporation Bring Over-Air Digital TV to Mobile Devices

New 6.1 Release of SageTV Brings YouTube to the Television

New JVC Home Theater Connects to PC

Comcast Acquires Fandango, Sets up New Website for Watching and Managing Media

 
 
 
 
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Breaking News
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Harman International Acquired by KKR and GS Capital
 
   
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Industry News
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New Intel Chip Giving Next Generation Opportunities to CE Developers

 
   
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TVs
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Westinghouse Introduces 1080p LCD TVs up to 52 Inches

OSRAM Gets Playful With OLEDs at CEDIA Lifestyles EXPO

 
 
 
 
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CEDIA News
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Join CEDIA in Celebrating the Best-of-the-Best!

Deadlines are fast approaching! CEDIA Electronic Lifestyles® Awards

Designer Awards Competition — Deadline: Friday, May 4

 
 
 
 
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Association News
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NAHB, CEDIA Form Home Technology Alliance

 
   
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Welcome to this edition of rAVe Home!

This new Intel system-on-a-chip takes CPU processing down to the smallest form factor yet. It's specifically for consumer electronics and it could be THE next driving force for next generation technology. Read about it below.

This issue, Editor Denise Harrison continues her rundown on the different internet feature film download services. This time, a test of the Netflix "Watch Now" service.

Enjoy the issue!

Gary Kayye, CTS

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Join Gary Kayye as he Moderates the Fourth Annual InfoComm Manufacturers Forum!

Always engaging and thought-provoking, the fourth annual Manufacturers Forum, scheduled from 4-5:30 pm on June 18th, offers a glimpse into AV industry trends and predictions from some of the biggest names in the business. This event is moderated by Gary Kayye. CTS, of Kayye Consulting, and will feature thoughts from panelists Gerry Remers, President and COO, Christie Digital Systems; George Feldstein, President, Crestron Electronics, Inc.; Andrew Edwards, President and CEO, Extron Electronics; Michael MacDonald, Executive Vice President of Harman Pro Group; and Rick Snyder, President, Americas, Tandberg.

If you're interested in candid, insightful opinions about the current and future state of the AV industry, it's an event not to be missed!

And, it's free to all attendees!

To read about last year's forum, go to http://www.ravepro.com/issues/2006/07/vol4_iss13/index.html#d2

For registration information, go to http://www.infocommshow.org/html/842_2572.htm

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Video Download Services Finally Arrive
Part 3: Netflix "Watch Now"

By Denise Harrison, Editor-in-Chief, rAVe

Consumers are starting to ask about downloading movies from the internet, and it can only be assumed they'll be asking local HomeAV installers how and where to do it. You, the installer, will want to know the answer so that you don't appear out of touch with the latest technologies and, importantly, because that question could lead to a business opportunity. So, we at rAVe present this series to you about the different services available.

You can read Part 1 at:

http://www.ravehome.com/issues/2007/03/rhvol4iss6/index.html#feature

Part 2:

http://www.ravehome.com/issues/2007/04/rhvol4iss7/index.html#feature

Of all the internet feature film offerings, Netflix is by far the simplest. You hit play, and it streams immediately. No delay whatsoever. No learning curve. There is no downloading, just streaming. You don't pay separate rental fees. But you also can't buy the download (yet). And you have to be a paying subscriber.

But with almost 7 million subscribers, there's a good chance that many of your customers are already with Netflix. And for good reason. Founded in 1999, Netflix is the oldest of the web-based DVD rental services. Netflix has 75,000 titles and gets new titles at the same time as they hit retail shelves.

Subscribers create their own queue of titles they want to see and in what order they want to see them. Netflix ships DVDs to users via the post office then, when the user wants to return the Netflix DVD they have at home, they use the pre-addressed, pre-paid envelope and just drop it in the mailbox. Whatever film is next in the queue is automatically shipped upon receipt of the last DVD. The turnaround is usually only a few days.

Pricing is based on how many DVDs the customer wants to have at home at the same time. If they would like to have four different titles in their home at once, it costs $23.99 a month and the customer can return and get new ones, without limit, during the billing month. In other words, they can rent as many as the post office transit times will permit but Netflix will only allow four rentals to be in possession at one time. The subscription offerings range from one at a time up to eight.

If you are a Netflix subscriber, the queue feature is an easy way to let Netflix know which movies you want and in what order. The movie in the number one position in the queue will ship automatically the next time you mail back one of the Netflix DVDs. Number two will ship upon the next return, etc., and users can change the queue any time, very easily.

A less-advertised feature of the queue, however, is that it's a fantastic place to amass a wish list of movies you want to eventually see. If a friend tells you about a movie and you want to see it, but there are really 10 other movies you want to see first, you add it to the queue in the 11th position. This way, you won't forget about it. Some users keep lists of HUNDREDS of films in their queues just this way, adding films as they read about them, hear about them, or learn about them through the Netflix suggestions feature.

"Watch Now" is a very new feature, and Netflix tells rAVe that availability went from 300 titles at launch in January to more than 2,200 today. They say others will become available as licensing agreements with studios are reached.

That's Netflix in a nutshell. The reason for all that background information is because, in a very nice move, Netflix integrated the "Watch Now" feature WITH the user's queue.

How this works is that the user enters the Netflix home page and chooses "Watch Now." The page offers several sections from which to choose. The "Watch Now" titles are sorted by genre (horror, drama, nonfiction, classics, etc.), by whether or not it's a suggestion for you based on your likes and dislikes, and it also lists those films from your OWN queue that are available for instant viewing, No need to click on different titles in your queue to find out which are available for streaming – Netflix rounds up those titles for you.

The number of instant viewing hours a subscriber can watch is based on their subscription package, but it's plenty. A four-at-a-time package for $23.99 comes with 24 hours of instant viewing time.

I put Netflix "Watch Now" to the test recently. You have to download the Netflix Movie Viewer but it's a rather quick install (about two minutes). First, I loaded up "Ben Hur: Collector's Edition" on my laptop. You get a choice of about a half a screen, or full screen. The full screen image looks surprisingly good on my XGA screen.

Next, I hooked my laptop up to an Optoma MovieTime using VGA cable and projected the movie "Sherrybaby" on a Da-Lite screen. It looked great, which I didn't expect. In neither the case of "Ben Hur" nor "Sherrybaby" did the video get interrupted by internet delays, even though the Netflix test tool of my connection on the "Watch Now" page says my connection is only "good," not "high."

Bottom Line

The upsides of Netflix "Watch Now" are what set it apart from the other services available today. The user doesn't have to wait for a video to download – these start immediately. The user also doesn't have to worry about videos taking up precious disk space on the hard drive. And there is something really nice about hitting "play" and not having to feed credit card info into a website for every $3.99 rental. If you're already a subscriber, the instant viewing feature feels like a "freebie." In fact, it is a freebie: it was simply added as an additional subscription benefit.

The movies looked as good as you'd expect on a XGA laptop screen and surprisingly good on a projected screen. Granted, it was hardly an action movie and any "Star Wars" flick would be a better test of image quality.

The downsides, compared to other services, are that you can't buy downloaded files at this time, so you can't own the movie in this fashion. And you must already be a paying subscriber to use the service. It also shares the downside of all other services: the need to connect the PC to the TV or projector to watch it on a bigger screen and comfortably view it when two or more people want to participate.

Just as with the services we covered previously, Mac users are out of luck.

Future influences: Blockbuster is determined to chomp into Neflix's market share so you can expect instant viewing from Blockbuster soon as well. Also, as more set top boxes provide internet connections, or as media center PCs become more commonplace, these download services, such as Vongo, CinemaNow, Movieflix and Netflix will MAINLY be used on the TV without the laptop as a requirement. Instead, the laptop will become a secondary viewing option.

Opportunities in HomeAV

Internet movie download services are great in concept but limited in practice. The ideal situation is for a consumer to hire a HomeAV installer to set up all the home entertainment boxes and wires into an integrated, easy-to-use and housed system capable of expansion and delivering a variety of source options.

Projectors, projection screens, and home theater audio systems are additional opportunities presented by those looking to solve the problems associated with internet movie downloading.

Next issue: Amazon Unbox for TiVo

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Thanks to our sponsor D-Tools, worldwide leader in easy-to-use, highly accurate system design software. System Integration just got easier!

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Harman International Acquired by KKR and GS Capital

rAVe just learned that Harman International agreed to an acquisition by Kohlberg Kravis Roberts & Co. L.P. and GS Capital Partners. You might remember KKR as the giant investment company that bought such huge companies as RJR Nabisco and Beatrice back in the 1980s. According to the company website, KKR, founded in 1976 has completed more than 150 transactions with an aggregate enterprise value of over $279 billion.

The Harman deal is worth roughly $8 billion and was unanimously approved by the Harman Board of Directors, following the recommendation of a Special Committee of independent directors. Under the terms of the agreement, Harman stockholders will be entitled to receive $120 in cash for each share of Harman common stock they hold. As an alternative to receiving the cash, Harman's stockholders will be offered the opportunity to invest in the new corporation incorporated by KKR and GSCP in order to acquire Harman.

The company will continue to be named Harman International Industries and Dr. Sidney Harman, Founder and Executive Chairman, will remain Executive Chairman.

Dr. Harman stated: "We are pleased to reach an agreement with KKR and GSCP that is in the best interest of our stockholders, presenting them with excellent value for their shares and the opportunity to participate in Harman's future growth. KKR and GSCP are two of the world's leading private equity investors and our Board of Directors strongly believes that this transaction will create attractive long-term opportunities for our employees, customers and business partners. Together, we will continue to execute our strategic plan, capitalize on new opportunities, and build on our history of product innovation and service excellence."

For more information, go to
http://www.harman.com/press/pdf/harman-kkr.pdf

For more about KKR, go to http://www.kkr.com/index.html

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Join CEDIA in Celebrating the Best-of-the-Best!

Its time for a celebration! Join CEDIA, its membership, and industry supporters for a celebration of CEDIA University's Certification Program during the month of May.

Beginning in May, CEDIA will celebrate with more than 4,000 active certified professionals by highlighting these individuals on a scrolling marquis. To view these individuals visit www.cedia.org/certification this May.

Did you know that CEDIA University's Certification Program is dedicated to setting the highest standards in the residential electronics systems industry. From start to finish, CEDIA University's Certification Program promotes to users that companies with CEDIA-certified employees offer uncompromising quality and expertise.

CEDIA University Professional Certification Lets You:

  • Prove your electronic systems expertise to prospective customers
  • Build your company's status and prestige
  • Boost your company's position in the CEDIA Finder Service
  • Give your career – and your company – a competitive edge

Already certified? Call CEDIA's Marketing Team at (800) 669-5329 for tools to market your certification! Or for more information regarding CEDIA's Certification contact the certification department at (800) 669-5329 or email certification@cedia.org.

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Deadlines are fast approaching!

For years the CEDIA Electronic Lifestyles® Awards have been known as the most prestigious awards in the residential electronic systems industry. This year is no different, and promises to be more competitive than ever. With enhanced guidelines and two panels of highly qualified professionals judging, this awards program has double the credibility. Make sure your best installation project isn't left out. Enter today at www.cedia.org/awards.

Designer Awards Competition

Deadline: Friday, May 4 (5:00 p.m. PDT)

If you have any questions contact Katey Schenk at (800) 669-5329 or email at kschenk@cedia.org.

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New Intel Chip Giving Next Generation Opportunities to CE Developers

Intel just announced a new, complete system-on-a-chip that takes the usually stand-alone functions of 1GH central processing, AV processing and graphics, MPEG-2 and H.264 hardware video decoders, DDR2 memory interface, 2D/3D graphics accelerators and I/O components, and packs them right into the chip itself. This new CE 2110 Media Processor is targeted squarely at CE vendors, who now have opportunities to develop new products around this smaller, one-source form factor. Specifically, Intel expects new digital set top boxes, network media players and other in-home information and entertainment services to benefit. Manufacturers are also expected to develop more products that provide internet capabilities, too.

Chunghwa Telecom1 of Taiwan, has adopted the new system-on-a-chip (SoC) media processor for its Multimedia on Demand. Chunghwa Telecom will expand its high-definition video content, karaoke, e-banking and e-learning services, along with trying out as-yet unnamed new ways of interacting with content obtained on the television.

ASUS already has available a new set top box using the SoC. Digeo1 plans to deliver new Moxi Multi-Room HD digital media recorders, and OKI1 and ZTE1 will build set top boxes.

System integrator Hwacom plans to provide application layers for IPTV services, and RADVISION1 will deliver VoIP and video conferencing.

It has been clear for a while that internet connectivity on the television opens up a lot of possibilities for content access as well as distribution. This new Intel SoC simplifies product development in a HUGE way. Manufacturers can get far more creative in what they want to offer and they can do so in a far quicker time-to-market.

For more information, go to http://www.intel.com/pressroom/archive/releases/20070416comp_a.htm?iid=pr1_releasesec_20070416am

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Westinghouse Introduces 1080p LCD TVs up to 52 Inches

The three new 1080p LCD HDTVs from Westinghouse include 42-, 47-, and 52-inch models as part of the company's TX series. These are specified at 1920 x 1080 progressive scan and include an integrated ATSC/NTSC/ClearQAM Tuner and four HDMI, two Component, Composite, S-Video, and 1 VGA.

Westinghouse put some proprietary functions in these, such as 1080Pure for getting 1080p resolution out of all HD connectors; SpineDesign intelligent cable access; DayBright panel technology for improved daytime or nighttime viewing; and Autosource technology, that automatically turns the TV on and adjusts it when a source is detected.

The 42" TX-42F430S LCD HDTV will be available in May 2007 for MSRP $1,599. The 47" TX-47F430S LCD HDTV will also be available in May 2007 for MSRP $1,799. The 52" TX-52F480S LCD HDTV will be available September 2007 and pricing is TBD.

For more information, go to http://www.westinghousedigital.com/default.aspx

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OSRAM Gets Playful With OLEDs at CEDIA Lifestyles EXPO

We've been waiting for years to see what will become of OLED displays. They boast very wide viewing angles, very thin forms and quick video response. One company. OSRAM, decided to show off a few potential applications at the recent CEDIA Lifestyles EXPO.

The exhibit showed home furnishings with embedded OLED displays streaming wireless live information content, a fish tank with a submerged OLED, as well as some hanging decorative and visual arts pieces, all containing the latest OLED technology up to 6.5 inches.

The living room furnishings with wireless streaming included a panel with content from TV Guide, another for stocks, and another for weather reports. A recliner had an OLED touch panel controller in the armrest, demonstrating home audio, lighting and security controls at one's fingertips. In addition, the date and time was illuminated through a shaving mirror.

For more information, go to http://www.osram-os.com/news/press_releases.php?lan=eng&id=9 and http://www.pictiva.com/

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Motorola Making Content Distribution Moves

At NAB, Motorola unveiled a number of different media distribution methods the company hopes could bring them to the forefront of both home and mobile entertainment. The Connected Home Solutions division showed Mobile TV, which lets customers watch content on a mobile handset, and Motorola Follow Me TV, which lets customers move content between rooms in the home and portable devices.

Motorola also showed its IPTV set-top boxes for video on demand, pay-per-view, HD, etc.

In content distribution and transmission, Motorola had its MPEG-4 high definition and standard definition encoders, a switched digital video server, digital simulcast technology and customized content distribution via the Motorola On-Target system.

For more information, go to http://www.motorola.com/mediacenter/news/detail.jsp?globalObjectId=8038_7967_23

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LG Electronics, Harris Corporation Bring Over-Air Digital TV to Mobile Devices

LG and Harris announced at NAB a service called MPH In-Band Mobile DTV system, which can provide DTV signals to mobile, pedestrian and handheld devices – basically any device used on the go. The announcement points out that terrestrial digital TV for portables obviously brings new revenue possibilities to broadcasters as the DTV transition nears, and a single technology that can bring DTV to all types of portable devices is a plus for consumers.

The LG-Harris minibus mobile DTV demonstrations follow field tests conducted recently in Columbus, Ohio. The Dispatch Broadcast Group's CBS affiliate tested a wide range of challenging locations and the companies say the technology performed fine in the busy business district as well as at the 55-mile-per-hour speed limit on the Columbus beltway. Dispatch Broadcast Group says they broadcast HDTV on the main channel and mobile services on the MPH channel at the same time with no problems, and they believe mobile DTV is a key to their future.

For more information, go to http://www.harris.com/view_pressrelease.asp?act=lookup&pr_id=2105

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New 6.1 Release of SageTV Brings YouTube to the Television

SageTV made available version 6.1 of the company's media center software for Windows and Linux PCs. The software lets the PC act as a PVR and the new version brings online video to the TV, with support for the global DVB broadcasting standard, the ability to play unencrypted DVD libraries on the TV with SageTV Media Extender, and expanded file support that allows consumers to play virtually any video and music file format. The new Sage TV Version 6.1 also adds beta support for watching, browsing, and searching YouTube videos, and the Online Services button now lets you view YouTube video as well as Google video and local weather, for example.

SageTV software lets users watch, pause and record TV programs on their Windows or Linux PCs without a monthly fee. It also provides a single interface for accessing PC-based photo, music and video files. SageTV also offers SageTV Placeshifter, which lets users access their home TV and entire media library on any Internet-connected PC or Mac much the same way Sling Media or Sony's LocationFree allow remote viewing of home content.

For more information, go to http://www.sagetv.com/

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New JVC Home Theater Connects to PC

JVC introduced the new Sophisti DD-3, a home theater product with a main unit and speakers but also with a network media player that lets users connect a PC via Ethernet cable. The system includes a DVD player, an AM/FM tuner and inputs for connecting other components. The Ethernet connection lets consumers retrieve music files, movies, digital images and other digital files stored on the computer. JVC's Sophisti system can connect directly to a single computer, or to multiple computers — through a wired or wireless router — so users can access files stored on any connected computer. Audio is routed through the system's speakers while video and still images are displayed on a connected television.

The JVC DD-3 also has a USB Host, so digital devices can be connected directly to the system, including flash audio players, USB drives, digital cameras and card readers. This way consumers can directly connect a digital camera and view photos or connect a music player for playback through the Sophisti's speakers.

The DD-3's speaker system includes a powered subwoofer plus left, right and center channel speakers. The front surround speakers are designed to provide surround sound without separate rear speakers.

The JVC Sophisti DD-3 is available immediately and sells for about $1,000.

For more information, go to http://www.jvc.com/presentations/Sophisti/index.html

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Comcast Acquires Fandango, Sets up New Website for Watching and Managing Media

Comcast announced an agreement to acquire Fandango, best known as a website where consumers can check movie show times and buy tickets online. But the company also announced plans to launch Fancast.com, a new national online destination that will let consumers find and watch entertainment across different devices, including television, computers, DVDs and wireless services, says the company.

Fancast, to launch this summer, is described as a national entertainment site where people can search and discover television and movie content, while managing their viewing experience across multiple devices. With Fancast, consumers will be able to search for their favorite shows, movies, actors and actresses, or just watch the video content on the site. Fancast will provide consumers with a place to discover when their favorite shows or movies are "on," and where they can view them via television, video-on-demand, online or on other devices.

That's actually a nice service since content is now so spread out. A central search website like this may be the first of its kind.

For more information, go to http://www.cmcsk.com/phoenix.zhtml?c=147565&p=irol-newsArticle&ID=983794&highlight=

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NAHB, CEDIA Form Home Technology Alliance

CEDIA and the National Association of Home Builders signed an agreement at the CEDIA Lifestyles EXPO in which the two organizations will join forces to support The Home Technology Alliance. During the 2006-2007 NAHB's Institute of Residential Marketing research project sponsored by CEDIA, NAHB and CEDIA concluded that strengthening their relationship will be beneficial to the respective memberships, the industry and consumers as the market prepares for astronomical growth.

This agreement basically suggests that NAHB members turn to CEDIA members when it comes to home technology. The Home Technology Alliance will act as a new program within NAHB's Custom Home Builders Committee. This focus on home technology integration will communicate the benefits of partnering with CEDIA members and demonstrate the opportunities for providing better service to homeowners regarding technology.

For more information, go to http://www.cedia.net/press_media/nahb.php

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Well, that's it for this edition of rAVe! Thank you for spending time with me as we muse the industry's happenings. To continue getting my newsletter, or to sign up a friend, click the link below. To send me feedback, don't reply to this newsletter – instead, write to me at gkayye@kayye.com or for editorial: Denise Harrison at dharrison@kayye.com

A little about me: Gary Kayye, CTS, founder of Kayye Consulting. Gary Kayye, an audiovisual veteran and columnist, began the widely-read KNews, a premier industry newsletter, in the late 1990s, and created the model for and was co-founder of AV Avenue – which later became InfoComm IQ. Kayye Consulting is a company that is committed to furthering the interests and success of dealers, manufacturers, and other companies within the professional audiovisual industry.

Gary Kayye's rAVe was launched in February 2003. The rAVe Home Edition co-sponsored by CEDIA launched in February, 2004.

To read more about my background, our staff, and what we do, go to http://www.kayye.com

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Copyright 2007 – Kayye Consulting – All rights reserved. For reprint policies, contact Kayye Consulting, 400 Meadowmont Village Circle, Suite 425 – Chapel Hill, NC 27517 – 919/969-7501. Email: dharrison@kayye.com

Gary Kayye's rAVe contains the opinions of the author only and does not necessarily reflect the opinions of other persons or companies or its sponsors.