Wrap-Up

The first trade show I attended and covered for Secrets was CEDIA 2000. I was still a relative newcomer to our publication, and I was hesitant to go out and meet the manufacturers. I also hadn't met Stacey until I arrived at the hotel, so what if he turned out to be a serial killer? Lots of weird things go through your mind when you're nervous! Fortunately Stacey was there to help show me the ropes, and he made some introductions to people he knows, including a few writers from print publications and several of the manufacturers.

Fast forward to CES 2001 and I'm a little less nervous, and excited like I was as a child on Chrismas Eve -- lots of new toys to look at! I had a great time. I met more manufacturers and the rest of the Secrets staff in attendance.

CEDIA is growing in importance, and this year they had the entire convention center and RCA dome filled with exhibitors. There's no way to cover everything, so we did the best that we could. 2002 will find us in Minneapolis for the show closer to the end of the month.

Probably the single biggest thing I noticed is that some areas of the market are experiencing substantial price erosion at a very rapid pace. The best example is the DVD-RAM / DVD-R player market. One manufacturer was selling a DVD-RAM recorder for US$2500 at CES 2001. The same manufacturer was is now selling a DVD-RAM/DVD-R for the relatively paltry sum of US$1500 (a 40% drop in under a year). The same manufacturer was expecting this product to street for about US$995. Maybe in another 2-3 years we'll be writing about the US$300 DVD-RAM/DVD-R/DVD-RW players.

Another area experiencing price erosion due to increased volume are RPTV and FPTVs using LCD and DLP projectors. These products have a few advantages over CRT projection, and some disadvantages as well. Within the last year, there's been about a 30-50% drop in their pricing. 

Plasmas are also experiencing some price erosion, but I've only seen about a 20-30% reduction. As pricees go down, differentiation between products gets smaller. Major manufacturers are getting down below US$200 for entry level DVD-V players. DVD-Audio and SACD players are creeping down in price to US$249 and US$299 respectively. Maybe if we can get all manufacturers to work nicely together, we will see more than one universal player (DVD-V, DVD-A, multi-channel SACD, MP3 CD, CD, Video CD).

Another area I find fascinating in this business is the subject of price sensitivity. I found several items that are priced (in my mind) too low to be taken seriously by the high-end community. Speakers and Electronics both had some gems on display with very reasonable pricing, given their performance. It's a sad commentary that some products will not do as well as they deserve due to "low price snobbery".

Multi-channel continues to expand its presence. Some companies that had been focused strictly on two-channel stereo are now producing multi-channel processors and amplifiers out of necessity to survive in the now entrenched market for surround sound music and movies. Even high-end speaker companies are designing or bundling together packages of speakers targeted specifically for the home theater / multi-channel markets. The mass market companies are introducing HTiBs (Home Theater in a Box) at entry to mid-level (up to $2000 for an integrated solution). This saves the average consumer from having to pick and choose all the necessary components for their home theaters. Just add monitor and . . . "Instant Home Theater".

I am by no means the video expert that Stacey Spears is, but I'm encouraged by the excellent results from several products. Videon Central was displaying their prototype Omega one video processor doing a spectaular job, and with its estimated price point, will run more than a few heads.

The same can be said for the guys at Theater Automation Wow! Their product, "The Rock" video processor and "The Ruby" DVD player appears to be a breakthrough which can keep up with other video processors that cost well into five figures. With software upgradability provided free of charge via the internet. Their customers will see incremental improvements to their performance which can protect their investment for several years time. Meanwhile, Sage Inc is making serious inroads as an OEM, and their de-interlacing chipsets are landing in more and more products daily.

One very high-end manufacturer I spent time with discussing Secrets said, "You guys are fanatics about things just like we are". We have not yet reviewed their products on the e-pages of this journal, but I suspect that by year's end this will change. I also find that meeting manufacturers face to face solidifies the fact that we are becoming a very well regarded publication.

Of course the word isn't out everywhere yet. I ran across one manufacturer who still thinks electronic publications are only a passing fad. Sort of like airplanes, light bulbs, home computers. Stuff like that.

The tragedy in New York on September 11, 2001 is not going to help the world economy, the stock market, sales of hi-fi equipment, or anything on earth for that matter. Our hearts go out to the families of the victims.

Click on links below to go to the photo pages for each day.

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