Vision - September/October 2008 - (Page 14)

The Ultimate Home Theater The percentage of U.S. households owning a CEA-defined home theater system rose to 31 percent in January 2008, up from 24 percent in January 2005, CEA consumer surveys show. In today’s economic times, such an optimistic forecast is guaranteed to get people’s attention—and investment dollars. The home theater industry, which includes everything from CE retailers to high-end installers to TV manufacturers to accessory makers, is pouring dollars on products and services that will encourage people to spend their entertainment dollars at home. While the concept of home theater has been around for decades, three recent CE trends have helped fuel more consumer interest—in addition to today’s economic conditions. says the “ultra thin frame” sets deliver a home theater sound experience without the need for additional speakers or extra wires, is clearly targeting the consumer who wants to save money and reduce clutter while entertaining at home. Frank DeMartin, vice president of Mitsubishi Digital Electronics America says, “[The sets are] ideal for consumers who have been craving a complete home theater TV solution without the complicated set-up and operation.” A home theater can be a simple, relatively inexpensive system with a large TV screen and some speakers. Or, it can be the stuff that dreams are made of. In many homes today, consumers are spending thousands of dollars to re-create the movie theater experience in rec rooms and spare bedrooms. To cook up the “Ultimate Home Theater,” some ingredients are usually a must on the menu. For instance, home theater enthusiasts will opt for a wall-mounted projection screen rather than a large rear-projection TV. With the wall-mounted projection screen, you can display movies at images larger than 100-inches—or more if you have the space for it. A front projector, which usually is mounted on the wall across the room, literally throws the images onto the screen. Once the large-screen and projector are in place, the ultimate home theater owner supplements it with an elaborate sound system that calls for as many as seven speakers from the front of the room to the back. The system will ensure that you feel every boom, crackle and pop that comes off the screen. But while the above equipment easily can set you back around $25,000—if you buy top-of-the-line equipment—some home theater owners go even further by installing popcorn machines, curtains that cover but then recede from the screen once the movie starts, movie posters and special lighting tricks that give the room a movie theater feel. The extras can be priceless in more ways than one—but if you have the money, there’s nothing like feeling you’re the sole proprietor of your own movie theater. Fueled in part by declining profits on large-screen TVs, big box retailers such as Best Buy and Circuit City have launched aggressive home installation services for everything from the simple set-up for a TV to a complete home theater system. Depending upon how elaborate the installation is, of course, a consumer can hire his neighborhood retailer to install the entire system for around $200 (not including the cost of equipment). For the retailer, it’s a profit center to help offset those declining set prices. The retailers can generate extra revenue in labor costs as well as the sale of accessories needed to install, such as cables, speakers, A/V systems and universal remote controls. For the consumer, the one-stop installation solution removes the fear and hassle of trying to install your own home theater system. Many people are intrigued by the idea of building a home theater, but hesitate when they contemplate such issues as wirwir ing and choosing the right components. Responding to that fear, Mitsubishi recently introduced two flat-panel HDTVs that include 16 inteinte grated sound speakers. The company, which 1 Plug n’ Play Installations In the past 12–18 months, there has been an explosion of new products and services designed to enhance the quality and quantity of home theater entertainment. From Blu-ray high-def disc players, which offer a picture better than what’s seen on the multiplex screen, to expanded high-definition channel line-ups from cable and satellite services to Net-enabled HDTVs that display videos from YouTube and other online services, the home theater owner has more choices than ever before. And the choices are arguably more diverse and exciting than what you’ll see at the movie theater. In the next few months, Hollywood is expected to release a number of 3-D Bluray movie discs and video games (the games have been out for awhile) to further excite the home theater enthusiast. While many of the films will first be available in 3-D in theaters, many consumers will be content to wait until they are released on home video. But in case they aren’t? The studios are increasingly releasing new videos on cable and satellite videoon-demand systems on the same day they are released at retail on DVD. Studio executives are hinting boldly that the day will come soon when a new blockbuster theatrical release, such as an Indiana Jones movie or the next Iron Man, could 2 New Content/Delivery Systems CEA Online Resources Installers: www.TechHome.com. Manufacturers: exhibitor directory on www.CESweb.org 14 September/October 2008 www.ce.org http://www.TechHome.com http://www.CESweb.org http://www.ce.org

Table of Contents Feed for the Digital Edition of Vision - September/October 2008

Vision - September/October 2008 Contents Shapiro's Spectrum In this Issue The Economist Visionary C4 Trends Coming to a Neighborhood Near You IPv6: Connecting People and Things Israelis Spend Big on the Latest CE Devices Tech Speak Tech Policy CEA Newsline Going Global Eye on Business Market Insider Just the Stats

Vision - September/October 2008

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