Soaring Consumer Electronics Use - A new study from the Consumer Electronics Association (CEA) shows U.S. households now own an average of 25 different consumer electronics products and spend more than $1,250 annually on CE products. The content is also important to consumers, who own an average of about 100 music CDs and more than 40 DVDs. The study shows that the CE industry grew 11% in 2004 and should grow the same amount this year. The average U.S. home now has 3.1 TV sets, up from 2.4 last year. HDTVs are present in 13% of households, and both flat-panel displays and Digital Video Recorders in about 10%. The penetration of DVD players is about to eclipse that of VCRs. Portable MP3-type players can be found in about 15% of homes.
Philips and Microsoft in DRM Alliance - A set of agreements between Philips Electronics and Microsoft will optimize the transfer of digital entertainment content between Windows-based PCs and Philips components using the Nexperia family of semiconductors. The multimedia semiconductors will support Windows Media AV with its Digital Rights Management 10 technology and will be used in media receivers, PVRs, portable audio players, set-top boxes and video phones. Guess it’s hopeless to fight the convergence of computers and consumer electronics devices, but let’s hope the computer nerds pay attention to reliability, ease of use and simplicity which have been pretty much ignored thus far.
Koch Entertainment Sold - Koch Entertainment - comprising the record labels, music publishing and CD distribution, and an independent video label and distribution - has been purchased by ROW Entertainment Income Fund. ROW is the largest wholesaler in Canada of CDs and DVDs as well as the largest specialty retailer of CDs and DVDs there. Koch contends that their classical CD division will be unaffected. They have also become a player in the continuing litigation over the bankruptcy sale of Dorian Records Group, in which the Reference Recordings label is also involved.
Two Dead Formats? - In a comment on the war between SACD and DVD-Audio, Audio Revolution has just stated “That format war, unlike the VHS vs. Beta battle, left no winners - just two dead formats.” Where are they getting their information? We’re not sure about DVD-A, but as to SACD how can you possibly call a format with 3500 releases worldwide and growing steadily a “dead format?”
See our article on the subject last month.
May 25, 2005 
