Posts Tagged ‘Sony’

Google TV: Oops! Never Mind…

In a story reported by the New York Times, Google has asked TV manufacturing partners Toshiba, Sharp, and LG to hold off on introducing any new Google TV products at next month’s Consumer Electronics Show.

The official reason is that Google needs more time to refine the software. The real reason may be the lackluster reception that Google TV has gotten so far from consumers. The first sets to launch with Google TV were Sony Bravia TVs, back in October.

If any readers walked the aisles of Best Buy recently, you probably noticed the Google TV kiosk that featured an incredibly complex remote control – one that outdid Rubik’s Cube in complexity. The Sony Google TV remote featured two mouse disks and dozens of tiny alphanumeric keys, and was a sure turn-off for those viewers used to one-button navigation to Netflix and YouTube.

It's just like a smart phone keyboard...only vastly more complex...

In fact, the question now is whether there is any real interest in using a video engine as part of a NeTV – or if consumers are happy with icons or apps that take them directly to Hulu, Netflix, or other content sources.

To make matters worse, major TV networks including CBS, NBC, and ABC are blocking their online programming from Google TV, as is Hulu. Given that the top-rated TV shows are carried by these “old school” networks – as is the current #1 time-shifted show, The Office – that’s not good news for early adopters.

Logitech’s Google TV set-top box has also met with indifference and disdain. According to the Times story, 38% of reviewers on Amazon.com gave the Logitech Google TV receiver three stars or less, and 19% gave it just a solitary star. Not good!

Does this mean consumers don’t like the idea of NeTVs? Not at all. What they DO seem to prefer is a limited number of directed channel apps for the most popular content providers, and not another Web TV-approach to merging computer and TV viewing…something that is akin to mixing oil and water.

Don’t bet against Google, though. They’ll eventually figure out what consumers want and don’t want. The question is; can they compete against the amazingly user-friendly TiVo interface and the ‘directed apps’ approach of companies like Samsung (also a Google TV partner)?

And is Google TV destined for success, or will it go the way of Web TV? (Challenge: Do any readers even know what happened to Web TV? It’s still around, although under a vastly different name…)

3D TV Came In With a Bang, But Appears to Have Fizzled Out

A recent story at Reuters.com says that 3D TV hasn’t caught the imagination of consumers and that they are still largely sitting on the sidelines when it comes to a new TV purchase.

Even Internet connectivity hasn’t provided much of a boost to the ailing TV business, which has seen big-screen LCD and plasma prices sliced to unheard of levels as manufacturers try to kick-start the holiday buying season.

How about super-thin LED-backlit TVs? Those aren’t doing the trick, either. Instead, the hot items this year appear to be smart phones and digital cameras, which have also seen dramatic price drops.

The Reuters story quotes Frank Ingarra, a portfolio manager at Hennessey Funds, as asking why TV manufacturers thought it necessary to push a new generation of TVs right after many people bought their first flat screen sets. “People don’t understand the added benefit of 3D,” Ingarra said. “When you get into $2,000 TVs, you start thinking: ‘At what point do I really need this, and is it going to make my viewing experience that much better?”

Not surprisingly, the high cost of active-shutter 3D glasses – and their incompatibility with other 3D TV brands – has been a turn-off for consumers, according to Ross Rubin at NPD Research. Earlier research studies showed that some consumers are waiting for 3D technology to progress further, and are waiting for “competing technologies” to resolve their differences. By “competing,” I mean active shutter vs. passive 3D viewing, which uses much less expensive glasses.

The lack of content and the ill-advised exclusive 3D content bundles have also impaired 3D TV sales, in my opinion. There’s still not a lot of 3D content to watch yet, and in particular, the premium 3D Blu-ray titles that viewers really want to see, such as Avatar, are all locked up in long-term deals with TV brands.

On a related note, TVs equipped with Google’s search engine (read: Sony Bravia LCD TVs) haven’t been selling well, either. That could be evidence that consumers are voting for more of an app-driven approach to NeTV viewing (such as direct links to YouTube and Netflix) and don’t care to search through millions of videos on the Internet with a complex keyboard to simply “watch TV.”

The story pointed out that “…consumers realized they could find the same services, like movie service Netflix Inc, elsewhere” using lower-priced alternatives such as PlayStation and Xbox consoles, Blu-ray players (which are getting dirt-cheap now), and Apple TV and Roku boxes. (Anyone remember what happened to Web TV?)

At CES next month, we’re certainly going to see more cutting-edge TV products, although I think the emphasis on 3D will be toned down considerably from a year ago and TV manufacturer’s marketing efforts shifted more towards connected TVs and peripheral media players. Even though TV sales are weak now – a recession just can’t be overcome with marketing hype – the future of TV is clearly Internet connectivity.

Whether most of those connections take place through a TV or through a connected peripheral such as a Blu-ray player remains to be seen. In the meantime, consumers are content to sit on their checkbooks and credit cards for now, paying scant attention to 3D and Google TV as they rush out to buy the latest Droid, Samsung, Apple, or HTC phone to put under the tree…

3CD: Well, that was fun. I’m bored. What’s next?

I stopped in at my local Best Buy this past Saturday (10/30) to look for an inexpensive upscaling DVD player (yeah, I know that’s redundant) for my in-laws.

While I was there, I wandered around the store to see what was being showcased in the store demos. 3D, which was a big thing back in April, had clearly fizzled out – at least, as far as store personnel were concerned.

Of four possible 3D demo stations, only one had any glasses – the Sony Bravia 3D demo in the Magnolia section. A nearby Panasonic 3D demo had clips from Avatar rolling in 3D on a plasma TV, but not a pair of glasses to be found.

At the entrance to the Magnolia store was a Samsung 55-inch LCD 3D demo. Trouble was, the channel was set to a 2D telecast of the Michigan State – Iowa college football game and no 3D glasses were anywhere to be seen.

Behind the service counter in the regular TV section was yet another 3D demo, this time featuring the 46-inch UN46C7000 Samsung LCD TV. And just like my last visit, the TV was showing Monsters vs. Aliens in 2D, again sans 3D glasses.

A possible fifth demo at the end of one of the aisles used to feature Panasonic’s 50VT20 plasma, but it had been taken down. This was the only demo that had any working 3D glasses a few months back.

So, what was all the  buzz about at BB this time? Why, Sony Internet TV, of course!

If you think TV remotes are complicated, wait until you try THIS keyboard!

Yep, it’s time to get out on the Internet and dig for content, using Google’s search engine and Sony’s incredibly small and dense keyboard. I didn’t see a single person attempt to use it during my 30 minute visit to the store.

In addition to Sony’s support for Google TV, Logitech has a new set-top box you can connect to the Ethernet port on your existing TV – or to the HDMI input.

Sony also showed a new “Internet TV Blu-ray Disc Player” that incorporates the Google interface. It’s the silvery box in the lower middle part of the photo, and encourages you to “take advantage of Full HD 1080p Blu-ray Disc Capabilities.” (???) No mention of 3D anywhere in the exhibit, so there may be a ‘separation of church and state’ thing going on as far as Sony is concerned.

Oh, and that inexpensive upscaling DVD player? I wound up going down the street to 6th Avenue Electronics and scoring a Panasonic DVD-S58PP-K with HDMI output and CEC for $50. Can’t beat that with a stick.

Toshiba TVs: A Fade to Black? UPDATED

EDITOR’S UPDATE: Toshiba has indeed begun the process of moving its Wayne, NJ consumer products division to Irvine, California; integrating it with the company’s IT division. A press release detailing this move (which I missed, whoops!) came out on May 6, 2010.

Yes, Toshiba is following Samsung’s lead by consolidating the offices and operations of its consumer and professional divisions. But that’s only a sidebar to what is potentially a big (and perhaps insurmountable) problem facing the company, and that’s a slow and steady decline in market share among LCD TV brands.

According to an August 18th press release from industry analyst Riddhi Patel of iSuppli, Toshiba’s LCD TV market share in the United States has shrunken from 7.4% with 570,000 TVs shipped in the 2nd quarter of 2009 to 5.5% with 402,000 shipments in Q2 of 2010.

That’s not an insubstantial number. To put that into starker terms, Toshiba’s LCD TV shipments have dropped by almost 30% in one year, which should be sending up a huge red flag in the company’s executive offices…wherever they wind up next.

What is also alarming is that Toshiba’s market share has now fallen into Pioneer and Hitachi territory from 2007 and 2008. A few years ago, Pioneer had a 7% share among plasma TV shipments that dropped to about 5% within a two-year period (while the company was also hemorrhaging red ink). By late 2008, they had decided to throw in the towel and exited the plasma TV business in the spring of 2009.

Remember Hitachi? They once led the market in rear projection TVs and made some top-notch CRT sets, too. Hitachi was also a leader in plasma technology, building an enormous plasma fab on the island of Kyushu with partner Fujitsu in 1999.

Today, that plant is largely superfluous, as the company has withdrawn from selling plasma TVs. And you won’t find any Hitachi LCD TVs at Best Buy, or HH Gregg, or Wal-Mart, or Sears (they do have some nice Hitachi electric drills, though!).

Looking through the Amazon.com Web site, I found a handful of Hitachi sets that are either the last left in stock, or used models.  (And the company was conspicuous by its absence at CES 2010.)

The iSuppli report lists the current top five LCD TV brands as Samsung, Vizio, Sony, LG, and (surprise!) Sanyo, leaving Toshiba in the #6 slot. That’s quite a fall, as they were ranked #4 in Q2 of 2009. Panasonic showed up at #8 with a 3.1% market share, but their core business in plasma TVs.

Another shocker: Sharp, once the leader in LCD TV sales, brought up the rear with a 2.4% share, a decline from 4.7% in Q2 of 2009 and a drop in Y-Y shipments of 49%. Yikes! (Is Sharp on the LCD TV endangered species list, too? That’s another story for another time…)

Given all of the LCD fab capacity in Asia and indications of LCD TV oversupply in the channel, the logical result is another round of price wars. That’s a game that Toshiba can’t compete in, because they don’t manufacture LCD panels, and would have to do some serious shopping in Taiwan and China to keep manufacturing costs down.

However, three of the five brands ahead of them do make LCD panels  (Yep, Sanyo does make LCD panels, although they also buy glass on the open market), the exceptions being Vizio and Sony. But Sony is still sitting pretty because they are major investors in both the Korean S-LCD Gen 7 joint venture fab with Samsung and Sharp’s new Gen 10 LCD fab in Kameyama, Japan. (Sony owns about 34% of the Kameyama factory and a corresponding amount of the LCD panel output.)

Toshiba was one of the first companies to introduce LED backlights in their TVs. In fact, they were one of the first companies to use the term ‘LED TV,’ thereby creating instant consumer confusion about perceived differences between LCD and LED TVs.

The past decade hasn’t been kind to Toshiba. Their prized HD-DVD technology was vanquished by Sony’s Blu-ray format (supposedly with the help of a $400 million dollar payoff to Warner Home Media), and the crown jewel – the DVD format – is showing its age and in decline.

Toshiba was one of the few companies to show working 3D TV sets with active shutter technology at CES 2010. And their Cell TV architecture (co-developed with Sony) is a powerful platform on which to build next-gen TV designs that can stream multiple channels of HDTV programs and incorporate hand gesture recognition for operation and control.

But all of that may be for naught, if this negative market share trend continues.  It doesn’t help that Toshiba is perceived as a ‘mid range’ TV brand now, according to what an industry colleague heard when he recently visited several Best Buy stores in southern California and could find only two models of Toshiba LCD TVs for sale.

The marketplace is indeed a harsh mistress…

Memo to 3D TV manufacturers: First, you build the highway. Then, you build the cars!

The latest PR blurb from CEA headquarters shows that, in a survey taken of 250 sales associates in retail stores, consumer enthusiasm for 3D is strong, with 50% of customers reporting a positive response to 3D technologies, and only 2% reporting a negative response.

That’s not necessarily good news. Do the math, and you’ll see that 47% of customers had no feelings about 3D TV one way or the other, or didn’t respond. (Or were distracted by their teenagers repeatedly begging Mom and Dad for an iPhone or iPod Touch.)

The CEA report does go on to say that “…While nearly 70 percent of sales associates feel well trained to answer questions about 3D, there is still consumer confusion. According to the retail associates interviewed, roughly half of consumers had some confusion about the technology.” That pretty much covers the 47% who didn’t respond positively or negatively.

And now for the devil in the details! “…For most retail associates, 3D content is pivotal. Nearly 80 percent of the associates interviewed believe sales of 3D technologies will not be strong until more 3D content is available.  Moreover, some of the most frequently asked questions by consumers revolved around the availability of 3D content. “

World Cup in 3D…Been there, done that. What else ya got?

There’s the rub. 3D may look great in the store, but how much 3D World Cup coverage can you watch before nodding off? (Hey, did you catch Paraguay and Japan fighting to a 0-0 tie?) And there are only a couple of 3D Blu-ray discs out there that haven’t been exclusively linked up to a 3D TV bundle promotion.

DirecTV is taking some steps to solve the problem today, announcing the launch of its 24-hour 3D channel in conjunction with Panasonic at a New York City press event. That’s good news for DirecTV customers, but it’s not much help to cable or Dish Network subscribers who are currently limited to ESPN 3D.

If this seems like déjà vu all over again (apologies to Yogi Berra), it is. Remember the start of the digital TV transition in 1998, when exactly two DTV stations went on the air? (For trivia buffs, they were WRAL (CBS) in Raleigh, NC, and WFAA (ABC) in Dallas-Ft. Worth, TX.)

Set-top boxes cost about two grand. You needed component inputs on your TV that could accept the 1080i signal from the box (good luck with the 720p outputs), plus an antenna, and maybe a preamp, and a bunch of coax, and a compass to tell you where to aim the antenna.

Oh, and yes – you needed HDTV content. But there was very little of it back then, aside from some CBS prime-time programs and the ABC Saturday Night Movie. It wasn’t until four years later (2002) before most of the TV networks were carrying a majority of their evening programs and sports coverage in HD. Can 3D TV manufacturers afford to wait that long?

It’s encouraging that 70% of the sales associates interviewed by CEA felt competent enough to answer questions about 3D. But that’s not the problem, based on my experience last Sunday at Best Buy. Only two out of four 3D TV demos in the store were actually working, and one was located in the worst possible spot for a demo. The other had only one pair of working 3D glasses. How do you answer questions about 3D, when customers can’t even see a demonstration of it?

This is where a company like Sony has a leg up with their Sony Style company stores. They can ensure (and they’d better!) that potential customers get the best possible 3D demo, with a large screen LCD TV and comfortable seats positioned at the correct viewing distance. And they can put together a nice mix of live 3D (Sony is a World Cup sponsor) and clips from Sony Pictures 3D movies (think Cloudy with a Chance of Meatballs).

Samsung’s ‘experience’ store in the Time-Warner Center in New York City is also an excellent place to demo 3D. (Hmmm. Maybe Samsung should be thinking about opening their own company stores!) Alas, Panasonic has no such showcase and is at the mercy of Best Buy and Sears. And Mitsubishi (who has some of the most compelling 3D TV value propositions right now) has no 3D showcases at all. (Too bad they can’t just truck their June NYC line show around the country!)

Now, THIS is how ALL 3D demos should look. (Dream on…)

But all the demos in the world won’t do any good if there is nothing to watch in 3D. And for the vast majority of potential 3D TV customers, there just isn’t enough to watch in 3D right now, so the credit cards and checkbooks are staying in pockets and purses.

Hopefully, that problem will sort itself out by year’s end, when we should see a flurry of 3D BD releases, more coverage of sporting events, the launch of Discovery’s 3D channel, and maybe even some 3D streaming from Netflix. (That last possibility assumes Netflix can get over some significant technical hurdles, such as bandwidth.)

Hint to TV manufacturers, and to Fox Sports: S-U-P-E-R B-O-W-L I-N 3-D. (Think that was subtle enough?)

So, we’re back to 1998. Grab some shovels and picks, and let’s get started on those highways! (Maybe there are still some stimulus funds available?)