Tricks And Treats For CE
By Steve Smith -- TWICE, 10/28/2002
News in the CE business is always fast and furious, but its velocity has been extreme in the past few weeks. And like all breaking news there are both positive and negative impacts on the business. (Or maybe it's the fates throwing a lot of tricks and treats at the industry right before Halloween.)
For instance the FCC giveth and taketh away, namely unanimously endorsing the use of in-band on-channel (IBOC) for terrestrial broadcasting, developed by iBiquity. The ruling gives radio broadcasters interim authorization to begin digital broadcasts. (The way their TV brethren have so quickly embraced HDTV broadcasting, I'm not too sure how fast this will be accepted.)
And as you all know by now the FCC had denied the EchoStar, DirecTV merger, which is either a positive or negative development depending upon your view. Will both sides resubmit a new plan to the FCC and get it approved by the contractual deadline of Jan. 21, 2003? (One interested bystander is Rupert Murdoch of News Corp. Talk about ghouls and goblins.)
In digital TV CEA reports that September was a record month. But at the same time comes the news that TWICE broke two weeks ago, that Wal-Mart will begin to sell HDTV in 1,500 stores. Will the giant chain from Bentonville, Ark., destroy margins in this category like it has done so many times in the past? For all its retail expertise, some think that Wal-Mart may be over-its-head as it tries to sell this still pricey and complicated category. Still, I wouldn't count them out.
And finally, just when you were getting ready for the fourth quarter the West Coast docks were closed in a work stoppage. Thankfully after the ten-days port reopened for 80 days as both sides negotiate. Yet as CEA pointed out at a briefing during its Industry Forum & Fall Conference in San Francisco, the trouble is not over yet. (See story on p. 1.) Will there be enough product for the fourth quarter? Stay tuned.
CEA's Gary Shapiro Celebrates 20 Years
Gary Shapiro, president/CEO of CEA celebrated 20 years with the organization at the aforementioned Industry Forum in San Francisco. Shapiro joined CEA when it was represented by the Electronic Industries Association in 1982. Shapiro has accomplished much with CEA over the years. Some of the highlights include the following: making International CES the largest trade show in North America; broadening CEA's membership; helping establish HDTV in the United States; and being a strong advocate for consumers and the industry in the many copyright battles over the past two decades. Congratulations on your 20th, Gary, and many more.
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