Light Summer Reading On CE

Now that we've hit July, the weather in the Northeast has finally turned from too much rain and highs in the 60s, to the usual mid-90s, sunny, hot and humid conditions, for at least three days in a row. Many have begun to think about the beach … and the typical light, entertaining books that are published during this time of year to cash in on vacationers' downtime. (At least I have.)

This week's column is in that spirit. Instead of droning on and on about one industry topic I'll quickly touch on a few, for those of you who are reading this in a comfy lounge chair.

FCC Requests Industry Comments On HDTV Plans: The Federal Communications Commission asked CE manufacturers, among others, of their plans for the digital TV transition. (See story on p. 1.) To a company, all the CE vendors wrote, "Approve the cable plug-and-play agreement!" The cable and CE industries have had an agreement for more than half a year. If the FCC is serious about speeding the HDTV transition, it should approve the pact this month. If not we'll have to wait until 2005 for consumers to experience the full benefits of HDTV on cable systems. Why? CE manufacturers aren't magicians. They need a year to fully tool up for this new technology.

New Record Industry Marketing Ploy… Sue The Public: Hear the one about the Recording Industry of America threatening to sue consumers who download music online? It's no joke. President Cary Sherman says the RIAA is gathering evidence against consumers using software to scan public directories of peer-to-peer networks and that several hundred lawsuits would be filed in the next few weeks. Damages could reportedly be from $750 to $150,000 per song. While we are against illegal downloads and are willing to pay for downloads, this is over-the-top and overkill. The industry still believes file sharing on the Internet — not overpriced CDs, lousy new music, lack of investment in new talent and an unwillingness to review its existing business model — is the key reason for its troubles.

Hatch Proposes Death Penalty For PCs That Illegally Download Music: Here's another one from the "Believe It Or Not File." Sen. Orrin Hatch (R-Utah), chairman of the Senate Judiciary Committee, asked about ways to damage the computers of consumers who illegally exchange music or movie files online at a hearing on copyright issues last month. He was quoted as saying, "If that's the only way, then I'm all for destroying their machines." A death penalty for PCs … only a legislator or lobbyist could come up with that one. The senator quickly modified his statement the next day, when even supporters of punishing those who download online thought the idea was a bit over the top.

Federal Reserve Chairman Alan Greenspan Concerned About Deflation: And finally, when Alan Greenspan cut the prime rate two weeks, he said he was concerned about a slight chance of deflation in the U.S. economy. What is deflation? If it occurred, businesses would spend less on investments of all types, especially new product development. Consumers would postpone purchases. After all, why buy something today when you know it will be less expensive in a week or two? (Scary, but doesn't it remind you a little bit of the CE business?)