Showing posts with label industry Insights article. Show all posts
Showing posts with label industry Insights article. Show all posts

Saturday, July 12, 2008

Not Dead, Just Different

New open and advanced IDM models are helping fabless semiconductor manufacturers address their SOC supply chain issues.

by Eugen Pfumfel, Principal Engineer, Toshiba Electronics Europe

For the most part, the ASIC route still offers the most cost effective route to market for semiconductor manufacturers, if it is handled correctly.

In fact, thanks to the trail blazing activities of Integrated Device Manufacturers (IDMs), who continue to invest in the latest technologies, the established process nodes have never been more accessible to manufacturers, particularly fabless semiconductor manufacturers and specifically for start-ups.

The majority of SOC devices shipped today are actually originated by fabless semiconductor companies, many of which could still be described as being in a start-up phase.

In this early phase, these companies have specific needs and demands that are difficult for foundries to meet. Consequently, Toshiba has developed a new, open and advanced IDM model that meets the needs of the fabless chip company, as well as being able to support OEMs with the classical ASIC (IDM) model.

It is easier to understand why this new model is necessary, if the current SOC supply chain is analysed from the perspective of the fabless semiconductor company.

In the early stages, a fabless semiconductor’s motivation for developing a SOC is to reduce production costs, but not necessarily go for the lowest possible cost level. More likely, it is to bring their product to market within a window of opportunity (innovative fast moving / growing markets) and using an appropriate technology. Crucially, their strengths will undoubtedly lie in the functionality of the device. Immediately it is clear that the client needs to work with a partner who is best placed to advise on this issue, and it doesn’t start and end with process technology. Later in maturing markets, production cost optimisation is the key for success, and this can also be offered by Toshiba via a pure foundry model.

Design hand-off

It all starts with a concept, but for any company today to approach an ASIC/SOC design with a clean sheet of paper is unfeasible; the use of 3rd Party IP is not only commonplace it has become essential. This represents potentially the most complex element of the supply chain for any company; how to co-ordinate the selection, delivery, integration and verification of multiple pieces of IP and design libraries, without being able to specify, at an early stage, the fabrication process targeted.

Without a team of dedicated specialists, the fabless semiconductor manufacturer could become embroiled in design details they are not best qualified to address. However, an IDM is perfectly placed to address these issues because it fits exactly their own internal design flow and management structure, and they are likely to already have working relationships with the IP and design library providers.

Once the design phase has been entered the manufacturer is faced with a potentially expensive and time-consuming learning curve, if the EDA tools are to be mastered to a degree where sign-off can occur. To alleviate this Toshiba accepts design hand-off at the RTL level, meaning companies can avoid investing in expensive tools and start with simple VHDL/Verilog design, allowing the customer to focus on their core competence and not the implementation, including synthesis and Design for Test (DFT). For fabless companies, handing over a netlist is often the preferred solution as it protects their IP.

To support the customer’s core competence, Toshiba also offers a host of design services, which includes CPU sub-system design, DFT and DFM (Design for Manufacturing), and the provision of mixed signal and standard digital IP, all of which can be provided by Toshiba or one of its qualified 3rd Party partners. To speed application development Toshiba offers local competence and support through its European LSI Design and Engineering Centre (ELDEC).

If the customer’s core competence includes mixed signal design, then GDS hand-off is requested. Here, Toshiba can also reduce the cost of design by offering its own analogue physical design kit (PDK), but still offering top-level and digital layout service from ELDEC.

Knowledge transfer

Because the Toshiba ASIC & Foundry service is based on its own CMOS process development – it is fully qualified and works seamlessly with the Toshiba CMOS libraries. With dedicated LSI logic production lines, Toshiba continues to manufacture devices at the um node but has recently announced its fully qualified 65nm process, with 40nm tape-outs expected in early 2009.

Toshiba’s ASIC customers inherit all this technology, as it is used to develop and manufacture its own in-house ASSPs. The experience gained by developing devices targeting highly demanding and competitive markets is also offered to customers, which is where the IDM model really benefits the fabless manufacturer.

To remain competitive in its chosen markets, Toshiba also needs to invest in leading edge packaging technologies, a further benefit to its ASIC customers and another example of how using the IDM model simplifies the entire supply chain.

Toshiba operates its own assembly and testing facilities, from low pin-count QFN/QFP to various types of BGA packages and Wafer level chip scale packaging (WLCSP). For multi-chip devices, System in Package (SIP) is also available.

With an open and advanced IDM model, Toshiba is able to simplify the supply chain for SOC development, from design hand-off, to sourcing wafers, assembly and test. A close reporting structure ensures flexibility throughout the design and manufacture process, without sacrificing performance or yield, and also enables short turn-around-times.

Access to a local sales organisation helps customers with order processing and logistical issues. Toshiba, for example, has rolling forecast systems that anticipate peak demand and recognise overstocking.

Lastly, the ASIC model offers a more attractive cashflow for customers who only pay after final product delivery rather than after every production step, when dealing with multiple organizations.

Further information about Toshiba ASIC & Foundry services could be found at www.toshiba-components.com/ASIC .

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, July 5, 2008

A Global Standard for Home Networking

by Rob Gelphman, Chair, Marketing Work Group, MoCA

Current forecast for home entertainment networking suggests continuation of multiple parallel technologies, standards and mediums, with choices based on ease of use and applications. “Let the marketplace decide,” is the rallying war cry on this competitive path toward hypothetical industry standardization. We recommend a different, more agreeable course founded upon shared interests and mutual benefit for providers, manufacturers and consumers alike.

Too many technologies are purporting to be standards, especially for home entertainment networking. Consumers want home entertainment networking solutions, not another standard. They want whole-home connectivity that includes gaming, HD video, telephone service, internet and data access. They want to purchase, with confidence, a system that is easy to install and inexpensive. They could care less about technologies or standards.

Current forecast for home entertainment networking suggests continuation of multiple parallel technologies, standards and mediums, with choices based on ease of use and applications. “Let the marketplace decide,” is the rallying war cry on this competitive path toward hypothetical industry standardization. We recommend a different, more agreeable course founded upon shared interests and mutual benefit for providers, manufacturers and consumers alike.

Too many technologies are purporting to be standards, especially for home entertainment networking. Consumers want home entertainment networking solutions, not another standard. They want whole-home connectivity that includes gaming, HD video, telephone service, internet and data access. They want to purchase, with confidence, a system that is easy to install and inexpensive. They could care less about technologies or standards.

Is it any wonder the end consumer is confused? We, as an industry, offer too many standards and not enough solutions. It is solutions that are of interest to consumers and it is at that level that we should be competing. Competition does not need to create confusion to thrive, but confusion is evidence of competing ideas. Too many standards foster misunderstanding and redundancy. They can serve to bind customers to their point of entry generating discontent. If we are not careful, consumers will wash their hands of the whole affair.

A standard is more than a specification. Technical merits are cornerstone of the evaluation process, as are organizational effectiveness and economic benefits. Market size, immediate and downstream economic value and management by industry leaders should also be considered when evaluating and adopting standards.

To say that the home entertainment network is and will be a blend of technologies, standards and mediums has become cliché. This thinking does not take into account the problem of moving high definition video from room to room or screen to screen in real time. In addition to considerations such as overall performance, quality of service, operating frequency and availability, economic benefits, ability to function in multiple industry segments and environments, we must not lose sight of the fact that the solution must ensure real-time HD video distribution within homes.

We believe that no one standard will dominate the home entertainment networking marketplace. However, the ones that stick around will not interfere with other mediums, technologies or devices in use. They must appeal to multiple geographies and industry segments. These standards will also provide value throughout the entire chain. The dominant home entertainment networking standards will also utilize the ideal medium designed for video in the first place--coax.

There are too many standard and not enough solutions. While service providers try them all, endless trials further delay deployments and the consumer grows ever more confused.

A standard provides a framework within which innovation thrives. When an industry accepts a standard it is an indication of maturity and confidence. It is beneficial to the industry and their customers to begin finalizing these home entertainment networking standards.


This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, June 21, 2008

22 Tips to Obtain Better Sound

by Steve Oksuz, NoName HiFi

One accepted tenet in the audiophile world is that it almost impossible to achieve the best sound by simply combining the best equipment. A much cheaper but properly selected and tweaked system may sound better than its expensive counterpart. This is called system synergy in audiophile world. System synergy is not only about combining the best equipment, but it is a kind of long and enjoyable way to maximize its performance.

The precautions and principles may seem absurd and meaningless for someone who does not have solid understanding what hi-end is.

Within the last twenty years, I spent considerable time, money, and effort to achieve the best sound (whatever the “best” is). I wrote a couple of important points from my own perspective. Many audiophiles may already know most of these points. More importantly, the below points in this article consist of my own observations. There are so many different tweaks and techniques. I avoided including here the points that I did not try and/or the points that did not work for me. I believe below-mentioned points will improve someone's system to a higher level without having to make radical equipment changes.

The only certain truth I learned after twenty years is that "there is not one absolute truth in Hi-End." Most of the truths in Hi-End cannot be proven by scientific measures. The human ear hears a lot, interprets, evaluates, and decides. In a listening session with three audiophiles, one will find the bass insufficient, the other may find it excessive, and the system owner will think it is perfect. That phenomenon is called "brain reference." Brain reference is a kind of prejudice that comes out of our own system's timbre and tonality. This phenomenon sometimes causes conflicts with someone who compares better equipment versus their own and may not like the sound of the former in spite of its clear superiority.

Most of the points stipulated below will depend on the capabilities of the system, but more importantly, they will depend on the experience of audiophile. A poor system will not differentiate the points, and less experienced ears may not “hear” them either. That's why some of the points below may not be relevant to everyone. I would be delighted if someone who reads this article picks up just one or two points.

1. Listening at Night - Critical listening or equipment testing should be done in the night hours. This rule applies especially to one who lives in a big city. City noise affects our hearing, and we are basically not able to hear what our system delivers to us during the day.

City noise is several times lower in the night, so hidden aspects in the hi-end come out at night and the system delivers its full potential.

2. Heat and Humidity - Humidity and heat have serious influences on sound. Systems cannot generate their best sound, power, and dynamics in warm and damp weather. There may be two reasons: Damp air is heavier, thus the loudspeakers are not able to pull enough air into the room. Or the loudspeaker materials may soften and behave differently in warm weather. Cooling the environment before the listening session eliminates this effect.

3. Darkness - People should listen to music in a dark room. The loudspeakers and the system should be kept in the dark, and the original recording venue should be imagined while listening.

The main objective of a good quality hi-end system is to depart from the hardware and go into the recording environment. Listening to music while watching the hardware will spoil the virtual environment that we want to experience. The most inconvenient part of a hi-end system is the inexistence of visual imaging. The reality sense is different when participating at a live concert or watching a DVD player via a surround system.

If the listening environment is not dark, the listener will perceive the speakers as the sources of the original sound.

4. Find the Correct Listening Distance - Sound is spread in waves called frequency. The volume of every frequency is different depending on the distance from the speakers. In terms of volume, frequencies will be up and down when the distance is changed. Higher mids and treble sections will vary between 20-25 centimeters. The human ear can easily recognize these frequency peaks.

a – To find the correct listening distance, put in a test CD that contains different test frequencies. Start with mono 1000 Hz at the listening chair. Then stand up and walk very slowly around the room (preferably with your eyes closed). You will realize that the signal will have ups and downs in volume while you are moving as if somebody was turning on and off the volume control.

b - The main frequency of the music and the one which is closest to human sound is 1000 Hz. 1000 Hz is your starting point, and you should find the closest distance to your current listening chair where the 1000 Hz is at peak. The ups and downs in that band should be changed around 50-70 centimeters. This is the best location to hear the middle frequencies, but it is not the best location yet to achieve the best frequency spectrum. It is just the starting point.

c - Stick a rope to a back wall and pull that to your shoulders. Now close your eyes and listen at different frequencies such as 300, 500, 1000, 2000, 5000, and 10,000 Hz, etc., while moving the top of your body (while sitting) back and forth. Mark the peak points of every frequency you listened on the rope. Our aim is to find a particular point that most of the frequencies are at their peaks. If you are not successful and these points are not close enough to each other, move your speakers (or your listening chair) 10 centimeters forward and repeat the same exercises till you find a certain point where most of the frequencies are at their peaks.

It is not an easy task. It is time consuming but free of charge. Once you have the point, you will be surprised with the improvement of the sound of your existing system.

5. Room Acoustics - Room Acoustics is the most known but the least considered part of Hi-End. A conventional speaker may throw 40 percent of the sound directly to the listener; the rest of the sound comes through the walls by reflections. Reflection means the timing difference of the original signal, hence it is an additional acoustic which does not exist in the original record. Within such a complexity of reflections, a part of the original signal will come late due to the front wall or ceiling, or a part of the original signal from the left speaker will sound as if coming from the right speaker (or vice versa). Such a complex listening environment will demolish the stereo imaging and channel separation.

Some audiophiles are happy with this case because the speakers seem to have disappeared and the soundstage is wider and deeper. Some producers even add additional mid/treble units to the back side of the speakers (dipoles) to emphasize such effects.

But one thing should be considered - these reflections do not exist at the original sound. If something is produced by the system/room in addition to the original sound, it should be named coloration.

If the aim of a good hi-end system is to reproduce the original sound, such reflections should be avoided as much as possible. Ribbon and electrostatic speakers especially will suffer a lot from such reflections.

Carpet on the floor is a must to lower the reflections (standing waves) between the floor and the ceiling. Thicker curtains will help to lower the reflections of the windows. Glass-covered photos and stiff furniture should be avoided.

This article is not intended to give recommendations on how to soundproof your room. Information on this topic is already prominent on the Internet. The purpose of this section is to emphasize the importance of room acoustics.

6. Precise Focus and Loudspeaker Placement - This is also another known but often ignored part of Hi-End. It is critically important to locate both speakers at the exact same distance to achieve precise focus. Distances should be carefully measured, and both of the speakers should be placed at exactly the same distance from listener.

Why is this step so important?

Sound signals are distributed in waves, as explained in section five. The people who tried the settings in section five will realize that the peaks of frequencies vary in conjunction with the distance from the speakers. Especially the treble frequencies will vary a lot with only one centimeter of a change. In such cases, if one speaker is just one cm closer to the listener, some frequencies will be heard from one speaker but not from the other. If the upper harmonics of the human sound consist of such upper frequencies (they do!), then the sound will move from the middle to left or to right. Moreover, within that case, some frequencies will collide in full phase and will be exaggerated with others will collide in inverted phase and thus are destroyed.

This effect is exactly the same as losing bass when connecting one speaker out of phase.

7. Mechanical Vibration of Electronic Units - Several products exists that absorb vibrations (feet, platforms, etc.). They are to be placed under the electronics/speakers. Such materials have two intentions:

a- To eliminate the external vibration coming through the unit

b- To eliminate the vibration of the unit itself (CD driver motor, speaker cone vibrations)

Most-popular solutions are the cones (spikes). I believe the proper usage of spikes is not known very well. Rather than being a vibration absorber, a spike is a kind of transmission material that transmits vibration from one point to another point. Vibration is condensed to one point and mechanically carried to another platform by the spike but not eliminated. If the connection surface is stiff (e.g., marble or granite), such vibrations are passed to that surface. The area underneath this stiff platform (marble, MDF, glass, granite) must be covered by an elastic material such as cork, mouse pad, neoprene rubber, or similar.

The vibration cannot pass from a stiff platform to an elastic platform and will be transposed to heat.

The direction of the cone is also critically important. The direction should be in conjunction with the intention of the vibration transmission.

The last point about the cone is the cone should be in touch with the chassis of the component directly. If any kind of rubber, double-sided band, blue tack, or other such elastic material is put between cone and the unit, that material will try to transpose the vibration, and the cone will not work.

8. Marble under the Loudspeakers - A marble platform under the speakers eliminates most of the unwanted resonances of the speaker. The thickness of the marble should be at least three centimeters, and the size should be at least 10 centimeters bigger then the edges. The area underneath the marble has to be covered by an elastic material such as cork, mouse pad, or neoprene.

With this arrangement, you have more powerful but clearer and tighter bass, with relaxation at the mid and top frequencies.

The speaker has to be connected to the platform via a cone, not by elastic feet. The sharp end of the cone has to direct to the marble but not to the loudspeaker.

9. Grounding the Metals for Static Electricity - Static electricity can be an issue, especially in wet weather and in fully carpeted listening environments. The carpet is charged with static electricity, which can be passed through the electronic equipment via the rack and/or human touch. Static electricity on the carpet is so powerful that if one checks the carpet in the morning, before anyone walks on it, one can see the static electricity through simple tools sold at RadioShack.

In order to eliminate the effect, the loudspeaker stands and the equipment racks should be connected to earth by a thin wire. Moreover, the loudspeaker cables and interconnects should be lifted away from the floor due to the same effect.

Through this tweak, one will benefit with less-blurry and lower bass.

10. Loudspeaker Distance from the Front Wall - Loudspeaker manufacturers generally recommend the correct distance of the speaker from the front wall (the wall behind the speakers). Generally speaking, the speaker should be located as far as possible from the front wall (and side walls as well). If they are too close to the wall, bass standing waves will be reinforced, and the excessive bass energy will compress the mid/treble band.

Some audiophiles find the desired bass volume by placing speakers closer to the front wall, which is not correct. One thing should be considered – that such bass increase is not due to the original sound, but it is a consequence of the room response, called coloration.

11. Auto former / Transformer Passive Line Stages - New technologies in the hi-end industry could make pre-amplifiers obsolete – at least make their purpose questionable. The purpose of a preamplifier is stipulated in four basics tenets:

a- To connect more then one unit together

b- To record to tape from some sources

c- To provide low volume output and inverted polarity signal of turntables (as the only source component)

d- To fulfill bass and treble adjustment requirements

Nowadays, CD and SACD units can provide 5-8 Volts of output, which is more than enough for the power amplifiers. Audiophiles are not interested in tone adjustments but focused on simplicity. Dedicated phono stages are in common usage; hence, the majority of the requirements are not valid anymore.

The main and the only basic job of a modern pre-amplifier is to lower the volume level, not step it up!

Just try to imagine a pure signal from a CD or DAC through the power amplifier, then cut this link, add four plugs, four female plugs, a pair of interconnects, and lots of resistors, capacitors, tubes, transistors, and all that stuff. How can you keep the signal purity?

An active line stage demolishes the neutrality and the purity of the original sound. Such a corruption may not be so evident in most of the lower resolution systems – or some people may disregard this issue. Every active line stage has its own tonality and coloration. As a matter of fact, audiophiles generally use line stages to balance their tonality problems in systems. For instance, a tube line stage is used to calm down a firm-sounding solid-state power amplifier, or a treble-rich line stage is used to compensate the treble-poor power amplifier and vice versa. If this is the case in a system, the audiophile is not worried about achieving a fully natural line stage or lack of coloration.

For me, the consideration should be to change the power amplifier until one finds the desired sound, rather then playing with a pre-amplifier. In other words, you should deal directly with the original problem rather then trying to mask it.

It is almost unanimous that using a simple volume pot adds neutrality and purity to the sound. But in such cases, other problems appear. A volume pot, which is either a potentiometer or a stepped alternator, works with the resistance principals. Every volume step adds a different resistive path to the signal, thus lowers the volume. Due to the complexity of the music signal (20 Hz – 20 kHz), such a resistive load will act like a barrier for different frequencies. For instance, when turning down the volume level, the treble is lowered, and the bass is condensed – or when you increase the volume, the mids are excessive or vice versa. There can be a lack of dynamic range as well. A line stage eliminates these problems.

Due to these facts, volume control pots or analogue volume-controlled CDs cannot be used stand-alone as line stages. New auto former and transformer passive line stages are developed for volume control. Such units do not work with resistance principals and do not add resistance to the signal path. The only resistance of such amps is approximately 200 Ohms due to the cable in windings.

Transformer passive line stages consist of two transformers, one for the left channel and one for the right. They have one primary winding and multiple (12-24 steps) secondary windings. Their principal is to lower the volume by changing the volts, rather than adding resistance. So far as I know, there are only three producers of such line stages, and I have used two of them. Both of them are providing extraordinary natural, calm, and undistorted sounds.

I heavily modified the Antique Sound Lab myself, which is a very good product and quite inexpensive too (but don't underestimate its price), but Audio Consulting's Silver Rock, made of pure silver, is something else.

It should be also mentioned that such passive line stages are not be suitable for every system. In such a case, input impedance of the power amp should be driven directly by the output stage of the DAC or CD player. Input impedance of the power amp should be as small as possible. The best way to learn this case is to send the impedance values to the producer and request assistance prior to purchasing.

12. Good Tubes (NOS Tubes) - Is it logical to pay 100 € for an old tube when a new one costs 10 €? I believe it is. A good tube can change the characteristics of a tube electronic as if you replaced the entire unit. NOS tubes are not easy to find and quite expensive, but they are worthwhile to use – especially the upper frequency hiss is quite lower with NOS tubes.

13. Very Easy Polarity Finding Method - Generally speaking, European (German) standard AC plugs do not have the signal direction. U.S., U.K., and Swiss AC plugs have one way to connect to AC. So in some cases, it is not easy to find out the correct polarity.

Electronic components, including our televisions, refrigerators, bulbs, and computers, can work properly regardless of the polarity. Why is the AC polarity so important in Hi-Fi?

Electricity arrives from (+), passes the electronic circuit, and departs from (-). Generally the main current arrives in the power supply of the unit first then is reduced to the desired voltage by the electronic circuits. In this case, the power supply section automatically filters the mains. The transformer of the power supply section behaves like an isolation transformer - input and output currents are physically separated. If the polarity is not correct, the mains will arrive to the system directly from the back door and will carry all the pollution, like RFI/EMI, into the unit. So it is important to find out the correct polarity.

Most of a unit’s polarity is similar. If the unit has a detachable power cord and IEC kind of input, the right hole should be the (+) mains, when you look at the plug front at the front.

Another simple method is to check the mains fuses. If the unit is equipped with an exterior protection fuse, release the fuse and check it by an electricity check pen while the unit is connected to the mains. It should be a (+) signal. If not, reverse the AC plug from the wall.

14. Listening Volume Level - No one can tell you that what the correct listening volume setting is. Some audiophiles like a very low listening level. Some turn the volume till the windows break.

If the outcome is to achieve the ambiance of the recorded venue, volume level should be adjusted accordingly but not more or not less. This case is applicable to acoustic instruments only and not to electronic music, jazz, or disco.

Whatever the listened record is, the correct volume setting should be the one that does not enlarge or shrink the original instrument. For instance, a guitar should be played within the original volume of the guitar, at the correct volume setting. If the volume level is increased too much, the body of the guitar will become bigger in obsolete terms. On the other hand, a full Mormon chorus would not be so realistic at low volumes.

15. Warming Up the Speakers and Cables before Critical Listening - Apart from the theory that "solid-state electronics provide their best sound for those few minutes before the transistors became warm,” practically all audio equipment needs some time to warm up. The proper time is at least half an hour or even one hour despite the manufacturers’ recommendations. The reason behind this requirement is the specifications of the resistors, capacitors, and tubes, which can vary in output if they are cold or warm. Manufacturers make final settings when the units are warm - otherwise the equipment would play perfect for the first half an hour and get worse after warming up.

Audiophiles apply this principal for their electronics but not always for their speakers and the cables. Speakers are quite important since their passive components such as crossover resistors should be warmed up. Their voice coils should be warmed up as well. The cables are also important. The term “warm up” may not apply for the cables, but the cables should be run for some time until their dielectrics are charged.

As a result, the warming-up time should be completed by playing (not necessarily listening to) the entire system.

16. Proper Loudspeaker Selection for Listening Room - Loudspeakers should be selected in conjunction with the listening room dimensions. Unfortunately the general tendency in audiophiles, particularly in the U.S., is "the bigger, the better."

It is like a starting skier picking out the best skiing equipment prior to learning and facing multiple problems afterwards.

Big loudspeakers are difficult to position, difficult to drive, and are affected the most by the room boundaries. If the speaker is too big for the room, excessive bass energy will diminish the rest of the sounds. A bigger speaker means bigger problems. Driving big speakers is challenging and requires experience, sources, time, and money.

17. PS Audio Power Plant - On principle I avoid giving specific brands in my non-commercial Website. But PS Audio Power Plant is such a special product that it is incomparable. It is a kind of power regenerator powered by electricity. P300 actually regenerates new AC for the audio gear. This regenerated AC is of much better quality than filtered AC because of the stable voltage and near-perfect AC waveform. It also removes 70 dB of EMI and RFI noise from the AC line!

Not all my friends agree, but in my opinion, it is very special equipment that lifts up the entire system to a higher level.

What you would expect from it is a much more relaxed sound, a more layered deep and wide soundstage, crystalline treble, and more inner details. Improvements are immediately apparent. Be sure to use it with power-hungry amplifiers.

18. CD Surface Treatments - There is several kinds of CD surface treatments in the market. They shine the surface of a CD so that the laser picks up more information. A surface treatment should produce high frequencies that are cleaner and more extended. The easiest and cheapest method of CD surface treatment is the one used by pipe lovers .That is the human oil on the skin of face. I apologize for that ugly tweak, but our systems are personal and private anyway, aren’t they? Human oil has the perfect thin viscosity and can be absorbed by a CD surface very easily and effectively. Listen to your CD first, then smear the CD across your forehead and spread the oil with your finger and listen to it again.

Don't forget to spread the oil with your finger every time prior to listening to that greased-up CD.

19. Objective of the Third Dimension - The objective of a stereo system is to achieve a third dimension via two channels. All hi-end or hi-fi equipment have their own character, timbre, and tonality. For instance, a titanium tweeter will have a different tonality then a silk dome tweeter. Two different brands of loudspeakers will have different tonalities even if they use the same drive units. The tonality of hi-end equipment mostly depends on the listening preferences of the designer. Most people prefer their own equipment as opposed to the different tonalities of another system, even if that other system sounds better. Most audiophiles have a bias to their own system – they don't like the sounds of somebody else's system regardless of its qualtiy. This case is also evident when buying or testing new equipment at home. We sometimes test better equipment at home but feel something is still missing when compared to our own equipment.

I remember very well, when Sony introduced the first 20-bit CD player, most of the people found the sound harsh, edgy, and colored. People were used to dark-sounding CD players at that time and hearing more inner details disturbed them.

I also remember very well that when I modified my old B&W 801 Matrix II monitor speakers and cancelled their protection units. The new sound disturbed me at first. I was so unhappy by the new sound that I could not listen to my system for several days. At that time, the manufacturer said that "the protection units were needed because the speakers were designed mainly for recording studios.” They also told to me that the new sound would be better because the system lowered crossover resistance, which affects especially the lower, mid, and upper bass ranges. After several days of listening, the sound became better and better. Eventually the sound was surprisingly perfect. Actually the sound was the same, but my perception was changing.

If this type of incident is often the case, how do we distinguish the better unit? There are several ways, but for me the main method is its third-dimension capability. This is not the only case for sure, but generally speaking, if two units are compared, the better one is the one delivers bigger soundstage, more depth, and more height.

This theory is shared with Peter Quodrup from Audio Note UK, and I am agree with him 100 percent.

The distortion of an electronic device does not affect the tonality of the equipment but mainly affects the inner details. Soundstage, depth, and height are such hidden factors in inner details that they will be affected first. If the unit provides lower distortion, more precise soundstage, especially more depth, will be provided.

20. The Least Powerful Ring of a Chain - Hi-Fi is a kind of chain. Strength of a chain depends on the least powerful ring. Picture a water hose that varies in width. Its water capacity will be in accordance with the thinnest part.

A system should consist of similar level of equipment throughout. If you add the best CD transport to a standard level of system, there will be some changes, but they won’t be as good as expected. A poor digital cable will compress the entire sound quality of a very good system.

The buyer should prepare a long-term plan before setting up a system, and the pieces should be purchased after at least some deliberation. Hurried purchases may become replacement expenses within one or two years.

21. Don't Immediately Judge a Unit, Give it a Chance - Every system can sound well in time. System synergy is a time-dependent factor that sometimes takes months, even years, to develop. Sometimes we make quick decisions, creating quick prejudices for good products, and immediately make unfair observations. From my perspective, the main element of the hi-end chain is the loudspeaker. If tonality and characteristics of the speaker are generally fine, or if the overall tonality of the entire system is generally fine, the system can be scaled up several more steps by playing with cables, tweaks, locations, and tubes, among other things.

22. Critical Adjustments should be done by Listening to Symphonic or Choral Music - Once we decide on the main components of our system, we can play with the cables, tubes, tweaks, and other accessories to find the desired tonality. But adjusting the tonal balance of a system by listening to a single instrument or jazz trios may mislead us.

Upper mid and the treble bands of a sound can easily disappear if somebody is far away from the original signal. This circumstance is the case if we listen to a live concert or hi-end system. If this is the case, such instruments like a saxophone, guitar, violin, or even the human voice are darker and more distant if we listen to a very good live record. Whenever we increase mid/treble band of the system by tweaks, these instruments will become more open, detailed, and dynamic. But one thing should be kept in mind - we may add a subtle amount of coloration to sound unconsciously. If a system is trimmed by listening to small trios, single instruments, or single voices, this risk is big. Such an adjusted system may not play classical music performed by a big orchestra. The owner should listen to symphonic music, and the system may reveal heretofore hidden harshness and brightness.

It is often said that somebody's system plays well in classics but sounds quite dark in jazz, or somebody else's system is quite revealing in jazz but very bright and glazing with classical music. These issues with system adjusts are the main reasons for those phenomena.

Hi-End is such a passionate field that many opportunist firms and persons are added every year. Despite this market growth, the hi-end community is not growing enough. Prices are multiplied by threes, five, or tens every year. Every producer pretends to be one of the best in the world or at least within a particular price level. Manufacturers issue their own review reports.

No testing equipment in today's technology can prove that their claims are correct or incorrect. Equipment cannot compare two units and prove that one sounds better than the other. Self-proclaimed best-in-the-world equipment and cables often fail to impress in blind testing. But it is easy to claim to be the best in the world if nobody can objectively prove the opposite.

The price of valuable equipment can fall down to one-third of the purchasing price within few years by the additions of MK-IIs, MK-IIIs, Special Editions, and Signature Versions.

While the best speaker in the world was sold for 7,000 € twenty years ago, the best speaker nowadays is more than 200,000 €. A poor line stage which is used to lower the volume is sold at 40,000 €.

Hi-End technologies do not mature for several years. Most of the hi-end producers are part of a small family of entrepreneurs that target a small population of very rich people. They don't have proper research and developmental laboratories. Design and aesthetic properties are the priorities.

I believe that Hi-End is digging its own grave with this policy. We will see what happens to hi-end after 30 years.

It is a deep, possibly bottomless hole. My humble recommendations are to go with secondhand products and buy reasonably priced equipment to minimize your losses over the next few years. Never look for the perfect sound, which does not exist for any amount of money. Keep in mind that an amplifier sold for 300,000 € may be only 2-3 percent better than a 5,000 € unit. In the long run, it would be worth it to buy the smaller brother.

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, June 14, 2008

The home management market – is the search for the killer application dead?

Supplemental Article by Intamac

The market for integrated home systems and controls has always been seen as attractive, but I’m coming to the opinion that it’s being held back by a fruitless search to find the holy grail of the sector, a “killer” application that will finally define the market.

Less glamorous though it may seem, I’m increasingly convinced the correct route to realizing the potential of the market is through simple, measured steps.

This view is supported by history. Remember those who don’t know their history are doomed to repeat it! Take the case of electricity. Modern life would be unthinkable without it, yet when electricity came along it was received initially with a muted response.

It was expensive, not least because the size of the infrastructure needed and the investment required to pipe electricity to properties made it difficult to roll out. Even where businesses were willing to make the investment, customers questioned the value. Consumers had gas and paraffin for light and generally went to bed when it got dark so they perceived it to be of little value.

So what made electricity an essential utility in every home wasn’t the fact that electricity could produce light. The market took off when companies like General Electric helped develop a mutually dependent ecosystem based on an increasingly pervasive network, reduced cost of service supply, and produced comparatively inexpensive electrical appliances that added value and made an electricity supply desirable to the consumer. It was initially refrigerators, heaters, irons, and cookers and later food mixers, air conditioners, and entertainment devices that made electricity essential in any home.

The point is that there was no single killer application; it was the availability of a wide range of applications that spurred growth in the whole ecosystem. In this respect the parallels with the growth of broadband are striking as it moves from being an access point to a network of networks to becoming an essential utility in any property.

Broadband did not appeal to everyone initially when it was only providing faster access to web pages on a PC. It has been growth in the applications and their associated devices - the equivalent of the electricity market’s appliances - and the associated fall in cost of access and the ability to pipe broadband around the property - particularly through wireless LANs - that has driven broadband to reach more homes.

In particular, it has been the ability to use broadband for entertainment applications that has been the real driver to date. Now, home networking and e-commerce applications are further building the ecosystem. There is, however, another phase of growth to come with pervasive low-cost broadband - the advent of inexpensive devices that will exploit broadband to deliver convenience, comfort, and care in the home. This is the phase in which home management will finally realize its potential.

Internet platforms will provide the key building blocks in the ecosystem needed to enable this new phase of growth. Creating the platform to do this is the difficult bit, but it’s what Intamac has devoted itself to, so I’m seeing the impact close at hand. Intamac’s work with partners such as BT, IAG (Australia and New Zealand’s largest insurance company), and Cisco Linksys to develop and bundle a new range of innovative and affordable products and services for home suggests that this approach can work and the market is ready.

For example, using the platform with BT, we have developed a broadband home monitoring service that can be installed by the user with a complete system retailing for under £200. This provides the consumer with new levels of protection in the home and the ability to remotely manage their systems for low monthly fees. It is possible to integrate easily cameras and have pictures sent to mobiles with online video storage capabilities. Companies such as BT are able to scale up offerings with attractive support packages that generate recurring revenues from a mass market customer base.

Enabled by the platform approach, these products and services are a first step in a huge growth market. Intamac is working to network a wide portfolio of partner products and to help add features that will allow them to be deployed into new and attractive segments such as telecare and utility and appliance management.

For an infrastructure point of view, while it is clear that web platforms like Intamac’s are being recognized as key nodes in the new ecosystem, it is the advent of low-cost wireless networking with technology such as Z-Wave and ZigBee, low-cost IP cameras at under £100 retail, and solutions for remote management of routers that will also drive the market. That’s’ what we’ll need to get to grips with when we all meet at CONNECTIONS™ in June.

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, June 7, 2008

Virtual Worlds: Real Opportunities

by Michael Cai, Director of Broadband & Gaming, Parks Associates

Virtual worlds, despite all the press attention of late, are still in the early stages of development. Virtual worlds came into existence several years before YouTube, MySpace, and Facebook, but their adoption rates pale in comparison to these services. According to a recent Parks Associates survey of Internet gamers ages 13 and older, only 7% visit a virtual world on a weekly basis, compared with 37% who visit social networking sites and 41% who watch short videos online with the same frequency. Even more alarming – among the people who have ever visited a virtual world, only about 28% are active visitors (visiting on a weekly basis), much lower than the 62% and 52% for social networks and online video sites, respectively.

Our survey did not capture the high-growth part of the industry. Kid-oriented worlds, such as Neopets, Habbo Hotel, Webkinz, and Club Penguin, are attracting tens of millions of children, sometimes along with their parents, to log on daily. BarbieGirls, a virtual world Mattel launched in April 2007, signed up 3.5 million users in less than three months. Several kid-oriented worlds are already raking in millions in revenue. Last year Disney (NYSE: DIS) acquired Club Penguin for $700 million. Although Habbo Hotel has not released its revenues, it has recently surpassed 100 million registered avatars worldwide.

Everyone’s jumping on the bandwagon; more than 100 kids worlds will launch in the next 12 months, including several with significant brand equity such as Cars from Disney, SpongeBob SquarePants from Nickelodeon, and Lego.

Two big success factors for child-oriented virtual worlds are that they are structured and provide interesting things to do for their participants. The number-one reason for visiting virtual worlds is to play games, and this is especially true for kids. For instance, more than 50% of Webkinz and Neopets users go there mainly to play games. In contrast, visitors to 3D virtual worlds such as Second Life cited “Escaping Real Life,” “Being Someone Else,” and “Creating and Managing Avatars” as their top three reasons. In our view, such motivations lack sustaining power. In order for 3D virtual worlds to grow their active resident base, they need to provide more organized and engaging activities. Many newbies to 3D virtual worlds feel overwhelmed and bewildered when they first enter the wild, seemingly vast and unstructured virtual world. Some industry pundits are making the argument that whatever you can do on the 2D Internet; you can do it better in 3D virtual worlds. Such vision may prove true ten years from now, but currently the technology is not mature enough and mass-market consumers simply don’t see enough value to migrate to 3D Internet. Another key success factor is to better leverage the social aspects of virtual worlds, and the industry is moving in the right direction. Several companies, including Vivaty and Scenecasters, recently emerged to bridge 3D virtual worlds and 2D social networks such as Facebook.

Despite technology and business challenges, backers of 3D virtual worlds are marching along. Large media companies such as Viacom are investing heavily, believing that the medium promises real opportunities. MTV already operates more than ten virtual worlds, including Virtual Laguna Beach, Virtual Pimp My Ride, and the upcoming Virtual Lower East Side, a world devoted to indy music. Large technology companies such as IBM, Intel, and Cisco Systems are promoting 3D virtual worlds for obvious reasons. In addition to media and technology companies, financial institutions, service providers, universities, and pharmaceutical companies have shown significant interest in the medium. In 20 years there will be no debate about the utility and importance of virtual worlds; they will be an indispensable part of consumers’ connected life, similar to today’s Internet.

However, most of our readers are likely to be more interested in what will happen in the next 12 months than in the next twenty years. We hereby offer the following near-term predictions:

  • Sony Home will finally launch and create lucrative opportunities as content providers deal and negotiate premium placement and marketing opportunities within the world.

  • Another 6-8 million Internet users will try a virtual world in the next twelve months, and weekly active users will grow.

  • Increasing stickiness and trial conversion rates remain top priorities for virtual world operators.

  • Competition for eyeballs is heating up, especially in the child-oriented worlds; new worlds without significant IP will find it difficult to survive.

  • There will be many experiments with platform interoperability and universal avatars. Several efforts are already underway, including IBM and Linden Labs’ collaboration in pushing an open standard and the China Recreation District initiative to build a virtual platform that can host millions of avatars.

  • Social networks will add 3D virtual world features, and 3D virtual worlds will leverage Web 2.0 lessons, including enabling more user-generated worlds. An Aussie start-up MyCosm aims to provide robust tools for any consumer who wants to build a high-quality virtual world.

  • 3D virtual worlds will become more user friendly and compelling.

  • There will be more private virtual worlds or firewalled virtual worlds from large international corporations

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, May 24, 2008

Aging Gracefully at Home...Technology Can Help!

by Harry Wang, Research Analyst, Parks Associates

The aging population is now a global concern. Even in developing countries like China and India, dramatic improvements in living standards and advances in medical technology have led to a growing senior population. According to the World Health Organization (WHO), by 2030, more than 973 million people worldwide will be 65 and older, up from 420 million in 2000. The percentage of population 65 years and older will rise from 15.5% to 24.3% in Europe, 12.6% to 20.3% in the U.S., and 6% to 12% in Asia during the same period. An aging population is usually accompanied by rising incidence of chronic diseases and soaring demand for healthcare resources, putting extra pressure on many nations’ already overburdened healthcare systems.

Healthcare reform is underway in many countries in order to cope with these challenges. Most emphasize prevention over intervention as a means to delay the onset of chronic conditions. But an indispensable component of any healthcare reform should include the reconsideration of resource allocation for different types of population subsets. For years, the industry has focused healthcare on institutions: doctor’s offices, hospitals, or outpatient surgical centers. With the coming of preventive care, a new place becomes qualified: a patient’s home. Many studies have shown that home care not only saves money but also gives patients a sense of security and comfort.

Patients’ homes have been quickly modernized these days, thanks to new-generation technologies that provide fast and secure communication and diagnostic tools and reliable access to a wealth of information. Home care is based on the premise that patients can use these tools to access a variety of healthcare resources without leaving the house. With these new technologies, patients can communicate with doctors through e-mail or live video conferencing, and they can self-monitor vital signs and let physicians access these data remotely to make diagnosis and provide treatment advice. For frail seniors, medical and motion sensors can be set up in the home to inform caregivers of daily living and health conditions. This technology-laden home care system, if widely deployed, could relieve the resource crunch on many hospitals and medical centers and allow these institutions to focus instead on patients with acute needs or in severe conditions. Home care will complement institutional care without jeopardizing the quality of care that the patients receive and optimize resource utilization for the entire healthcare system.

This transition will run its course over many years. For one thing, systematic shifts require behavioral changes from all parties involved. In our healthcare system, from doctors to patients, it will take a long time to assimilate new behaviors. Technology can expedite this process but can’t transform it overnight. At the same time, awareness and acceptance are predicated on fast dissemination of scientific evidence of clinical efficacy and financial savings, a task made easy through the Internet.

Parks Associates projects that by 2012 in the U.S., 16 million senior citizens and 17 million baby boomers could benefit from technology-assisted home care services offered through big companies such as Philips and Boston Scientific as well as start-ups like Dovetail Health and VitelCare. Even broadband service providers can leverage their customer reach to offer home health services on top of their existing entertainment and home security service tiers. The market is wide open and calls for innovative solutions and smart marketing to help our aging population live wholesomely at home.

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, May 17, 2008

Behavioral Targeting and Consumer Privacy: New Media's Paradox

by Harry Wang, Research Analyst, Parks Associates

Contextual targeting is widely used in both the offline and online advertising worlds. But the wild-card nature of behavioral targeting could revolutionize how marketers interact with their target audience in an online world. Behavioral targeting is based on a proven assumption that the Web pages people visit and where they go from those pages indicate at least a presumptive interest in products related to the page topics. For example, repeat visits to a Web page featuring reviews for camcorders, coupled with subsequent Web visits to major electronic retailers, clearly indicates at least a curiosity about camcorders. If this type of data is combined with other Web traffic such as visits to baby portrait services, baby travel kits, and vacation packages, the marketer can be quite confident that this particular user plans to buy a camcorder to film a baby, perhaps during an upcoming trip. As a result, advertisers not only have in-depth knowledge of the customer but also can purchase ads along this user’s future “Web trail,” instead of serving ads only to camcorder-related Websites. Some publishers find behavioral-based targeting very useful for selling undervalued ad inventory.

For instance, The Wall Street Journal reported that in the past, NBC Universal Inc.’s iVillage found it difficult to sell ads next to its astrology section because few products and brands correlate directly with astrology. But “by identifying a particular consumer [through behavior targeting] and delivering an ad tied to his or her interests, that same ad spot is worth a lot more,” said Peter Naylor, senior vice president of digital media sales for NBC Universal.

Technology vendors have been trying for years to translate online behaviors and consumption habits into predictable product and service needs so that advertisers can deliver the appropriate marketing messages at the right moment and on the right Web pages. Over the last two years, their work has finally caught the attention of advertisers and publishers. Ultimately, contextual and behavioral targeting should and will be integrated to give advertisers the most reliable information about their audience’s interest and their surfing patterns. This level of granularity is a marketer’s dream but can easily trigger privacy concerns if the issue is poorly handled. Facebook’s original ad-targeting policies caused such a stir that the company eventually had to backtrack to pacify its users. Advocacy groups have already called on the federal and state governments to tighten privacy regulations in light of this and many other events that they say have given them grave concern over online properties’ ability to protect Web users’ privacy. Currently, the debate over privacy protection is centered on how advertisers use personal identifiers and whether behavioral targeting should be “opt-in” versus “opt-out.” (“Opt-in” means that consumers must give explicit permission; otherwise, advertisers/publishers cannot track consumer behaviors online. “Opt-out” is just the opposite: advertisers/publishers can track consumer behaviors online unless consumers explicitly notify advertisers to “opt-out.”) Marketers are leaning toward “opt-out” and argue that this policy is consistent with precedent set by anti-spam policies. Consumer privacy groups, however, are pressing for “opt-in,” and many want the creation of a “Do-Not-Track” list that allows consumers to opt out completely of all behavioral profiling and targeting. Marketers are lobbying hard against such a list for fear of a similar devastating effect that the “Do-Not-Call” list had on the telemarketing industry. They also point out that audience targeting differs from telemarketing because better targeting feeds consumers with the most relevant information that helps them make informed decisions.

This debate will continue until technology vendors and the business community come up with privacy guidelines for behavioral targeting to assure consumers and their privacy right advocacy groups. Technology providers can shore up support if they not only give their promise in writing but also design a data-scrambling mechanism that makes it difficult for anyone to extract personal information from an online behavioral database. Such a mechanism also needs to be independently verified for its intended use. The advertising industry might have to cough up additional funds to cover these extra efforts, but as the old saying goes, “No pain, no gain.” It is the only way for the advertising industry to move beyond this controversy and pursue a growing new media advertising market, which is expected to hit $12.6 billion in 2012.

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, May 10, 2008

High-End A/V: Moving to the Masses

by Bill Ablondi, Director, Home Systems Research, Parks Associates

Technology advancements, widespread adoption of broadband Internet access, and consumer desire for enhanced entertainment experiences will drive current high-end entertainment capabilities into mainstream markets.

What is a high-end entertainment system? That question can be answered in a variety of ways. We found that out as we started research for our High-end Entertainment Systems: Analysis and Forecasts market report at the end of 2007. For some people, “high-end” meant systems bought at a specialty retailer, e.g., Bang & Olufsen, Tweeter, or Ultimate Electronics. For others, price determines a high-end entertainment system — $5,000, $10,000, or more for a TV with a 5.1 surround-sound system. On the other hand, audiophiles think of a critical listening room equipped with Krell components and B&W loudspeakers when asked about high-end entertainment. For our report we settled on the following: home theaters and audio systems that are typically installed professionally as opposed to purchased at retail or online and set up by users.

Parks Associates has been conducting research of home systems integrators/installers for over six years in order to understand what people with large budgets want and don’t want. Customers of the home systems integration channel are spending an average of $12,000 to have audio systems installed, $25,000 for home theater installations, and $30,000 or more for whole-house control systems. Clearly they are upper-income households, or they wouldn’t be able to afford these systems. Why does Parks Associates track consumers in this rarified market stratum? This high-end market is a leading indicator of products, services, and capabilities that will succeed in mainstream consumer markets when prices, packaging, and delivery methods match what typical consumers can afford.

Plummeting flat-screen TV prices are a good example of how technology advancements are bringing high-end products to mainstream markets, enticing millions of households to pitch their tube and hang a plasma or LCD TV on the wall. Once the screen is on the wall, adding a multichannel sound system with surround-sound speakers is a natural progression. The next step is a storage system for music, videos, and family pictures, a.k.a. a media server. Finally, once all of this is in place, how about a system for distributing audio and video content to other rooms in the house? How can anyone resist?

As installed home theaters and multiroom audio systems become more affordable, a broader market of consumers at lower income/wealth levels will open up. This trend is evident as we look over results from numerous Parks Associates’ consumer surveys. Ownership of all forms of entertainment systems is extensive, and intentions to purchase larger (40+ inches) flat-panel TVs and multiroom audio systems are high. Parks Associates’ Digital Media Habits II (3Q/07) study revealed that more than 20% of broadband households in the U.S. planned to purchase a flat-screen TV within 12 months and 66% intend to buy one 40 inches in diameter or larger. With this research in mind, we see a natural evolution in the high-end A/V market as systems become more affordable and accessible to a larger base of customers.

As mentioned, the vast majority of current high-end A/V customers are wealthy … they have to be in order to afford the systems. In addition, most installed entertainment systems are currently sold into the new-home construction market or into homes going through a major renovation. This mix will change as wireless, power line, and other “no-new-wires” technologies gain more traction in the market, particularly among home systems integrators who are influential in determining which products and technologies are incorporated in the systems they install.

Most single-family homes in the U.S. are detached units owned by those living in them. However, there are 300,000-350,000 living units built in multiple dwelling units (MDUs) annually added to approximately 18 million existing rental units. This market is sizeable and one that can be better addressed by “no-new-wires” approaches for a couple of reasons. People will be able to take their entertainment systems with them when they move, and those living in units where they can’t open the walls will have an alternative.

Parks Associates’ research of broadband households in its Global Digital Living™ II survey reveals that broadband households are significantly more interested in enhanced TV features, including video-on demand, high-definition channels, and digital video recording (DVR) capability, than are households without broadband access. In addition, younger broadband households have high DVR penetration (50% of those 25-34) compared with older households. These results point to a high propensity for broadband households to upgrade their entertainment systems when they can afford them.

Further in the future (2015-2020), not only will the capabilities of high-end entertainment systems become more affordable to the top 10-15% of households by income level, but they will also become relatively easy to set up by consumers. Parks Associates’ definition of high-end entertainment systems (installed systems) will need to change. The situation is comparable to that of mainframe computers. The capabilities once confined to water-cooled computers in large glass rooms are now in slender laptop PCs we can carry anywhere. Technology changes the market … and our definitions.

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, May 3, 2008

All Eyes on the TV: What Will Define the Next Generation of Services?

by Kurt Scherf, VP & Principal Analyst, Parks Associates

The Evolution of TV: No Longer Just “Lay Back”!

For years, the tried-and-true television experience was very much the “lay-back” experience. Before cable and satellite services grew in significance, viewers had four main channel options. Even after the Fox Network was launched in 1986 and subscriptions to multichannel offerings became the norm, the model remained the same –viewers tuned in at specified times to watch a particular show based on a predetermined schedule. In other words, it was television on somebody else’s terms.

With the rise of digital video recorders, alternative content available through the Internet, and fierce competition among different television providers, control over when – and even more dramatically what – to watch is very much in the consumer’s hands. As the television audience becomes increasingly fragmented, consumers demand more in terms of the content choices they are offered and the overall value of their television service. More importantly, the value of entertainment services is not measured by one facet (such as the number of channels) but by providers’ success at offering blended services to their customers. In initial stages, this blending will include bundled services, in which one company provides voice, video, and data services (generally over one type of fixed-line connection), typically at a discount. However, the longer-term offerings will include actual convergence in offerings, in which end-user devices and home networks facilitate the delivery of services in new ways.

Television Gets Smarter: Stages of Evolution

As new entrants seek to attract and retain customers for broadband, television, and communications services, we see significant opportunity for a host of new services and applications to drive new revenue and serve as competitive differentiators. Television service, in particular, will transition from a relatively basic offering of several hundred channels and some interactive features such as video-on-demand to a fully interactive and distributed service that reflects key digital lifestyle attributes, such as home connectivity, a blending of services, and an emphasis on holistic applications, including home management, safety, and health.

Three stages of television’s evolution to a more personal and interactive medium are highlighted in the figure below. At the present time, the major markets in North America, Europe, and Asia-Pacific sit mostly between the near-term and mid-term opportunities. The basic services are in place, and the scene is set for some dramatic changes to video services in the next few years.

Development Path for Advanced TV Features

Efforts in the near-term stage will emphasize a more personalized television experience, with a key focus on DVR functionalities, home networking (linking the PC to the set-top box), an enhanced level of information (through informational widgets), and rethinking the user interface. We are not expecting a wholesale evolution of the electronic program guide (EPG) during this phase; however, program guides will incorporate more advanced (32-bit) graphics to help sell additional services such as premium VoD movies (by displaying easier-to-read title boxes).

The second phase of advanced TV services deployment will rely more on two-way communication to provide even more Internet-like content. Companies will incorporate place-shifting features (such as those embodied today in what Sling Media or Orb Networks can offer) into television services, which will allow consumers to stream recorded content from a DVR and play it on any Internet-connected device. Social media enhancements will offer features like channel and/or program recommendations that come to viewers from a circle of friends and "virtual water coolers," where viewers can see the top-viewed shows for any given night or week.

The last stage of development will include more advanced entertainment and communications convergence. Providers will enable videoconferencing at the TV, and there will be applications tied to t-commerce (allowing consumers to order products directly from an advertisement using a remote control). We also expect to see features such as home monitoring and health (i.e., Web conferencing to check on an elderly relative). Community features will allow for a more customized information service related to local information (updates on city government and school events; allowing subscribers to connect to each other on Craig’s List or Angie’s List).

Are consumers ready for these features? As service providers seek to differentiate and add value to their services, the additional investments necessary to create these advanced features have come with significant questions. Telco/IPTV providers in particular have come under scrutiny for their investments in deep fiber technologies and their deployment of television and bundled services, but after some initial skepticism from Wall Street, these efforts are being seen in a more favorable light as subscriber numbers have increased.

Now that the basic offerings are in the field, the focus has returned to the consumer. As television services expand beyond “me too” offerings, do consumers see value in these additional features – interactivity, more programming, greater personalization, higher-quality content, etc.? Our data (most recently from Digital Media Habits II) indicate that premium video-on-demand services will be a key differentiator, followed by the ability to enjoy music and user-generated content (such as photos) on the TV.

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, April 26, 2008

Wireless & Powerline Controls: View From the Channel

Wireless & powerline control technologies have been around for years; adoption among home systems integrators has been limited. What’s the outlook for 2008?

by Bill Ablondi, Director, Home Systems Research, Parks Associates

Whole-home control systems are typically found in high-end, new homes – detached single-family homes and multiple dwelling units (condos, co-ops, and apartments). In a good year for homes, builders start 1.2 to 1.5 million homes, with about 300,000 in MDUs. In a good year. The past year was not a good year for homebuilding, and prospects are not looking good for another couple of years. Therefore, what about the market for controls in existing homes … the other 100+ million?

The retrofit market has traditionally been a tough one to tackle. Installing control systems meant cutting holes in walls, pulling wires through tough-to-reach places, and, most importantly, keeping customers pleased during the disruption. Parks Associates and EH Publishing’s research of home systems integrators/installers has consistently indicated that about 50% of the typical home systems integrator’s revenues are generated from new construction; 50% from existing homes (retrofit projects). Our 4Q07 Channel Monitor survey revealed that the percentage for control systems is slightly weighted toward new homes (53%).

Based on these findings, one might conclude that there is considerable activity targeting the existing home market. However, consider the lopsided ratios: more than 99% of all homes in the U.S. are existing homes, not newly built, but existing homes account for only 47% of integrators’ control revenues. Further, Parks Associates’ consumer research indicates that fewer than 7% of all households have any form of electronic controls. Clearly there is an opportunity here. An opportunity, that is, if several conditions can be met: 1) there is demand for home controls, 2) they can be installed without a major disruption, and 3) the price is right.
Creating demand needs to be the sole subject of another article ; for now, the focus is on available solutions, in particular powerline and wireless control systems requiring no new wires to be pulled through walls.

Products incorporating Echelon’s LonWorks or PCS’s UPB powerline technologies, ZigBee and Z-Wave wireless technologies, or SmartLabs’ INSTEON powerline/wireless technology have been around for years. Many of these products are very affordable when compared to high-end home controls from AMX, Crestron, and Lutron. Are home systems integrators/installers aware of these technologies, and if so, what do they think about them with respect to their control projects?

These are some of the questions we posed to dealers in our 1Q07 and 1Q08 Channel Monitor surveys. First, are they aware of these technologies? Figure 1 compares results from these surveys for selected technologies. Awareness of ZigBee and Z-Wave wireless technologies has increased significantly; Z-Wave nearly doubled in awareness level over the period. These increases are not surprising given the marketing efforts from the alliances behind these technologies. UPB (Universal Powerline Bus) from PCS (Powerline Control Systems) scored high in familiarity on the 2008 survey and has been a favorite of some integrators as a complement to their wired control systems for several years.

Few dealers are very familiar with INSTEON, a dual-mesh, powerline/wireless technology from SmartLabs, and LonWorks from Echelon. INSTEON has been popular as a do-it-yourself (DIY) technology with products available on the SmartLabs’ SmartHome website. LonWorks is popular in commercial and MDU installations in Europe and Asia, but it has launched a Digital Home initiative aimed at residential markets. We expect to see awareness of HomePlug C&C to increase during 2008 as the HomePlug Powerline Alliance plans to approve the final specification in 3Q08.

We asked dealers, in addition to their awareness of the technologies, about their opinions on using these technologies in solutions for their customers. A common theme across all technologies was dealer uncertainty about the capabilities of these approaches. We think that the underlying cause of uncertainty is resistance to change. Dealers are familiar with traditional wired systems; change requires new learning and risks potential failure in some applications. New learning coupled with risk is a huge hurdle for any business to overcome.

Often new technological approaches are adopted by those seeking to differentiate their business and/or offerings from incumbents. The home systems integration channel is growing with entrepreneurs from the ranks of IT VARs, electrical contractors, and security dealers. In addition, the retail installer Geek Squad has said it is eyeing the market for control systems; other, similar firms are also interested.

The Bottom Line: there are more than a 100 million homes in the U.S. alone not taking advantage of the convenience and savings (energy & money) home controls offer. Affordable, retrofit-ready wireless and powerline controls are a couple of pieces to the puzzle that is the retrofit market.

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, April 19, 2008

Industry Training and Certification: Building the Workforce to Service the Digital Home

Digital living is here – consumers have embraced electronics, and digital is ubiquitous in communication, documentation, entertainment, and everyday life. Homes are now wired extensively for multiroom audio, computer networks, surveillance cameras, security systems, home theater, and home control. Current sales and projections for digital home products and systems show double-digit growth. Today the challenge is, how do you know the company and technician performing installation and service work are qualified and performing the work correctly. The need for a qualified workforce to deliver the digital home is paramount.

For years many have predicted a plug-and-play world for installation of electronics. Products and interoperability have improved dramatically over the past decade, yet growth in technology is still faster than product enhancements, requiring installation and interconnection by trained and qualified technicians. The skill set required is different than that of the electrician, the traditional wire installer in the home. The professional contractors serving the home provide electrical, plumbing, and HVAC (Heating, Ventilation and Air Conditioning). Now meet the fourth trade – the low voltage installer. The person performing this work in the field is called an electronic systems technician (EST). The advanced setup, programming, and ongoing support are delivered by a digital home technology integrator (DHTI), a trained and certified professional installing and servicing residential technology systems.

Training Resources
Opportunities for training in the fast-growing world of technologies for the digital home range from associations, industry events, education facilities, and training companies to manufacturers and publishers. With the complexity and options in many products offered today, and the integration of products with each other, manufacturers are offering more and more training. Manufacturer training opportunities have expanded from the traditional live presentations given at industry events, local distributors around the country, and road shows to include webinars and online courses. Technical schools are starting to offer training in technology for the home, incorporating online, classroom setting with lectures, and hands-on labs. Training companies offer industry materials and resources including online training and live workshops. Publishers are releasing books covering the different technologies, installation, programming, calibration, and troubleshooting, including industry certifications. Books are also available covering the business aspects of the industry such as design, sales, and project management.

Recognition and Certification
A wide skill set is needed to perform as an EST, Electronic Systems Technician, and DHTI, Digital Home Technology Integrator. Industry associations, product manufacturers, and independent companies are validating knowledge and skills with different kinds of recognition. These acknowledgements can inspire confidence from business partners and potential customers and can be a valuable differentiator in a highly competitive market. Both contractors and homeowners, along with home technology companies, desire to have a common frame of reference verifying the training and knowledge of technicians. Industry certifications exist to help identify qualified and competent people in the market.

Electronics Systems Technician Certification
Through a unique collaboration among some of the most respected industry associations and businesses, the Electronic Systems Professional Alliance (ESPA, http://www.espa.org/) is working to build a qualified workforce with the necessary set of entry-level industry knowledge and best practices and to create career opportunities within a unified electronic systems industry. The candidate for this certification has six to nine months experience. The domains include electrical basics, tools, construction methods and materials, wiring and installation practices, standards, codes, and safety practices. Certification is indicated by the designation Certified-EST.

EST Advanced Certification by CEDIA
CEDIA, the Custom Electronic Design and Installation Association, at http://www.cedia.net/, is a nonprofit international trade association focusing on the planning and installation of residential electronic systems. The domains of the EST Advanced certification address the knowledge of a technician with five-years experience and include project supervision, codes and standards, installation and setup, and troubleshooting. An individual attaining this certification assists in the training and mentoring of new technicians, interacts with others, installs, troubleshoots, calibrates, programs remotes, works with subsystem integration and control, and ensures the installation meets the design specifications.

Digital Home Technology Integrator Certification by CompTIA
A collaboration between the Consumer Electronics Association (CEA®) and the Computer Technology Industry Association defines the certification for the digital home technology integrator CEA-CompTIA DHTI+, http://www.comptia.org/. It is the benchmark for today’s technology integrators assuring individuals with 18-24 months experience have the advanced skills and knowledge to configure, integrate, maintain, troubleshoot, and comprehend the basic design concepts of electronic and digital home systems. Domain topics include home networking, audio/video distribution, telephone/VoIP, security and surveillance, home control management, documentation, and troubleshooting.

Specialized Certifications
Industry-experienced individuals desire confirmation and recognition of knowledge and skills in specific areas. Numerous manufacturer certifications exist, along with several in the industry, including the CEDIA Designer certification. Domains covered on this certification exam include needs assessment, project design, design documentation, and design management, and it is assumed the candidate has at least five years of related field experience prior to taking the examination. CompTIA offers additional certifications focused on computers and IT, including A+, Network+, and Project+.

The Future is Bright
Research reveals the rapid growth of the digital home industry has created a skills gap. With the increased offerings of technology for the home and the rapid growth in the number of companies providing installation and services, training is essential. Certification validates the knowledge and skill set of the technician to install, maintain, and repair electronic and digital home electronic systems and can establish comfort and trust with the customer. With a trained and certified industry workforce, the market can be served accurately and efficiently. Everyone involved will benefit from training and industry-recognized certification.

by Helen Heneveld
Bedrock Learning, Inc.
4539 Hemlock Drive
Holland, MI 49423
616.335.6206
helen@bedrocklearning.com

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

Saturday, April 12, 2008

A Practical Home Theater

Recently a friend asked for advice on setting up a home theater. I have been critically observing home theater demonstrations at trade shows and assumed an installation would be not be complicated. This is far from the case and is a challenge to the consumer electronics industry.

Lots of claims have been made about the benefits of digital television (DTV) and high-definition television (HDTV). Foremost are screen size and lines of horizontal resolution. Consumers are promised a greatly improved home theater experience. The reality is that DTV and HDTV are not always delivering the wow factor. In part this is caused by system complexity and compatibility problems between equipment and source material.

Many home theater problems stem from the traditional method of selling consumer electronics as self-contained boxed items. A home theater is composed of many devices including a display, speakers, DVD player, cable or satellite decoder, antenna, remote control unit, and cables. All these devices must be chosen to complement one another and must be connected properly, calibrated, and supplied with audio and video content. The content may be delivered via broadcast TV, satellite, cable, DVD (standard definition or HD), video cassette, or streamed from the Internet (IPTV – a technology under development).

Home theater components
The intent of a home theater is to create a space with attributes of a commercial movie theater. This requires a comfortable viewing environment with suitable seating and lighting. Until 1952, a movie theater and TV presented an experience that shared similar features: an image with a 4:3 (width-to-height) shape and monaural sound. With the introduction and overwhelming success of Cinerama in 1952, Hollywood discovered that multichannel sound and a wide screen could draw customers away from the TV and back into the theater.

The key components for a home theater are:

• A large rectangular room
• Multiple audio speakers
• A large display

A rectangular room offers better acoustics than other shapes. About 10-by-15 feet is a good size for a large display at the long end of the room. The display choices are:

• LCD
• Plasma
• Rear projection
• Front projection

The CRT (picture tube) actually can reproduce motion and colors more accurately than LCD or plasma displays. However, a CRT is not a practical choice for a home theater because the largest commercially available picture-tube TV measures about 40 inches diagonally. Plasmas offer a bright picture with excellent motion rendition. However, they operate at a higher temperature with a shorter life and consume about 30% more energy than an LCD.

A rear-projection TV takes a small image, magnifies it, and bounces it via a mirror onto the back of a large display surface. The image quality when looking directly at the screen is good. The brightness falls off when the screen is viewed from the side of the room. Rear-projection TVs cost considerably less than the other display technologies.

The front projector is used primarily in offices and conference rooms for slide presentations. Until recently, these projectors were designed with computer interfaces using a multi-pin VGA connector. Also, they have been optimized to display bright images composed mostly of primary colors. Projectors intended for home theater are adjusted for full-spectrum color and have inputs typically found on a TV. I prefer a projector with a zoom lens that can be adjusted to fill a large screen. A 10x15-foot room could accommodate an eight- or nine-foot wide screen.

The resolutions of displays are measured by the number of horizontal lines. The three common options for DTV are:

• 480: standard-definition TV (SDTV)
• 720: high-definition TV (HDTV)
• 1080: high-definition TV (HDTV)

A 720-line or 1080-line HDTV can accept signals with any of these three resolutions and convert them to the capability of the display.

Home theater audio
The choices of audio systems for a home theater are primarily stereo and surround sound. Surround sound may include rear speakers and even speakers on the sides of the room. These additional speakers add realism to action movies such as the buzz of distant aircraft flying around in a dogfight.

The speakers built into TV sets are usually not the best quality. They are chosen to fit a confined space inside the TV cabinet. The most important external speakers that make a home theater sound less like a TV set and more like a theater are the front left, front right, and subwoofer. The subwoofer reinforces very low tones such as a door slam, banging on the floor, the very low notes from an organ, or an orchestra kettledrum (timpani). Since low notes do not convey spatial location well, the subwoofer may be placed anywhere in the front of the room. However, an additional speaker placed below the center of the screen carries the actors’ voices for enhanced spatial location.

The audio from HD sources includes multiple channels that are combined with a technique developed by Dolby Laboratories. An audio amplifier with built-in Dolby® Digital technology extracts the audio from the content and decodes the various sound tracks. Dolby Digital supports the speaker configurations. The arrangement of speakers is called “7.1 sound” because there are seven speakers and one subwoofer.

Matching the screen to the show or movie
The shape of the screen is an important ingredient in achieving a great viewing experience. TVs are sold in 4:3 (1.33:1) and 16:9 (1.78:1) aspect ratios (width-to-height). Within a few years, all new TV programs will be presented in the wider aspect ratio. This is the reason for the narrow horizontal bars seen at the top and bottom of conventional TVs when viewing many of the network shows that are already produced in the 16:9 format.

After widescreen movies were introduced in 1952, many studios and production companies invented proprietary widescreen formats. Some of these formats have familiar names like Cinemascope, Panavision, and Vista Vision. The screen shapes vary from 1.85:1 to 2.76:1 with the most popular being 1.85:1 and 2.35:1. Movie theaters accommodated these aspect ratios by projecting all movies on a screen with the same height and varying the width according to the movie aspect ratio.

In older theaters, curtains on the far left and right covered unused portions of the screen. For dramatic effect, theaters in the 1950s and 1960s would show a newsreel in 4:3 and then open the curtains wider (almost doubling the width) as the feature film began, usually with a trumpet fanfare.

The 16:9 format for the HDTV display was selected as a compromise to accommodate limitations in fabricating wide CRTs. Widescreen movies on an HDTV are displayed to fill the width of the screen with black bars on the top and bottom. Conventional TV (analog 4:3 TV) and old movies need bars on the sides. Some TVs electronically stretch images to fill the screen. However, this distorts the actors and objects so they look bloated.

The imaging circuits in most HDTV projectors display the picture with 720 horizontal lines. (1080-line projectors are available for about double the price.) A widescreen movie matted with horizontal black bars on the top and bottom for an HDTV display is wasting up to one third of the available scan lines and picture brightness as illustrated in Figure 3. The resulting images are displayed with resolutions that are comparable to standard-definition TV!

To recreate the optimal theater experience at home requires a screen with the widest aspect ratio of any movie to be viewed. Some projector manufacturers have developed high-end products designed for 2.35:1 screens to maximize resolution for widescreen movies. Bars appear on the left and right when viewing 1:85:1 movies, 16:9 HDTV, or 4:3 old movies and analog TV programs.

Home theater on a budget

I find that a wide-format, standard-definition DVD movie on a large screen with two-channel stereo sound and a subwoofer (a “2.1 sound system”) provides a good viewing experience. Therefore, consumers with a limited budget might choose an SDTV front projector and 2.1 sound to create a home theater that can be quite impressive even at standard definition resolution. With more funds, the customer can upgrade to an HDTV projector and additional speakers for surround sound.

Home theater prices have been falling while quality is improving. Good equipment is available even at warehouse stores. However, consumers can make mistakes when choosing compatible equipment and connectors. Retailers should educate the sales staff on recommending systems, not just individual boxes. This will benefit consumers and generate increased sales of profitable peripheral equipment.

© Copyright 2008 Kenneth P. Wacks

Dr. Kenneth Wacks has been a pioneer in establishing the home systems industry and a management advisor to more than 100 companies and utilities worldwide. Corporate managers depend on Dr. Wacks to identify business trends with clear and practical advice on business development strategies in home and building systems. The Consumer Electronics Association (CEA) chose Dr. Wacks to chair the international committee (ISO/IEC) responsible for world standards in home systems. For more information, please visit http://www.kenwacks.com/.

by Kenneth Wacks, Ph.D.
Home Systems Consultant
kenn@alum.mit.eduwww.kenwacks.com
Tel: 781 662-6211
Fax: 781 665-4311

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.