The depth of the recession in the US consumer electronics market was highlighted today by CEA data which confirmed a decline in dollar revenues in 2009 of 12%. The outlook for 2010 improves but only in the sense that the rate of decline falls to 3%. In the meantime we're hearing news of new 3D TV channels already, with both ESPN and Discovery throwing their hats into the ring. This is great, if expected, news for the many 3D-ready TVs we expect to see over the next few days. At this evening's CES Unveiled event Sensio were showing their passive 3DTV, even though the company today announced its partnership with Visio to launch an active 3DTV later this year. Mitsubishi was also showing its laser 3DTV with the adaptor which will be necessary for compatibility with Blu-ray 3D players when they are lauinched. Logitech was showing its new Lapdesk N700, a laptop “cushion” with in-built speakers designed for enhanced laptop usage in the comfort of the armchair. The peripheral retails at $89.99 and also features an in-built cooling fan to prevent over-hearing, a familiar problem for those many TV viewers who now sit with a laptop on their knees. Logitech have thoughtfully added a grip to help keep the laptop steady, but unfortunately in my case it failed to prevent the Macpro falling to the floor. No damage done, luckily, but perhaps evidence of a need for further improvement in design. Logitech was also demonstrating the fruits of its recently closed acquisition of Lifesize Communications, a videoconferencing specialist. On display was its Passport set-top videoconferencing device. This retails at $2500 and allows anyone with a minimum 2-way 1Mbps broadband connection to communicate using HD video (720p). The service downscales to lower resolutions for slower bandwidth connections. Logitech claims that this device is a third of the price of any other similar product on the market. That may be true today but is unlikely to remain so for much longer. Videoconferencing and telepresence are shaping up to be one of the emerging trends of this CES and we will hear a lot more over the next few days, in addition to the Skype/Panasonic/LG announcement today. Yet another OTT video set-top box was being demonstrated by Syabas with its Popbox product. This grew out of the company’s Popcorn Hour device. The Popbox has been designed to be especially user-friendly, and the user interface does appear attractive and accessible. The service integrates currently 20 “content application channels”, which means things like Netflix, and is working with 200 application developers. It will launch in March 2010 and retail at $129, plus $20 for the optional WiFi module. The Popbox is 1080p-capable, although the only 1080p content was demonstration material. If Syabas manages to sign 1080p deals with content providers it will certainly be a step ahead of most competitors. ProVision CEO Steve Cliffe was confident enough in his company’s wireless HD technology to carry a laptop across the show floor while it streamed 1080i HD content, and there was no loss or deterioration in signal. This UK firm was founded by professors at Bristol University, and uses proprietary error correction and RF management techniques to improve HD video streaming over 802.11n. The company is talking to set-top box and TV manufacturers looking to support HD distribution to multiple home devices. Another UK firm, Imagination Technologies, was launching its Pure digital radio products for the US market. Pure is the leader in the UK but virtually unknown overseas. It will, rightly, tread carefully as it enters the notoriously challenging US market, and will obviously (since the standard is not used) drop DAB from its US product line-up, instead concentrating purely (sorry) on internet radio. Its Sensia product is the highlight of the range and features a full-colour touch screen LCD display as well as additional interactive capabilities like Twitter and Facebook. Pure confirmed to us that video-capable devices are a natural step forward and can be expected in the next year or so. Client Reading: HDTV: Standards Muddle Clouds Outlook For Wireless Displays

Global advertising revenues are forecast to decline by 8.5% this year, according to Strategy Analytics’ latest Global Advertising Forecast. In such a tough environment the need to find new communications platforms and ad-based business models is more urgent than ever. In theory the arrival of so many new IPTV services, in both managed and over-the-top environments, should give cause for optimism. If IP technologies have any advantage over traditional alternatives it is that they enable closer, more measurable relationships between those with the message (advertisers) and those receiving it (viewers). So far, however, with a few exceptions, we have seen little commercial evidence of these capabilities in the real world. These are some of the issues we will be exploring at the forthcoming “Future TV Advertising Forum” in London on December 11th. I will be chairing a session on Advertising in the Age of Convergence, with speakers from Coca-Cola, Thinkbox, RomTelecom and the Co-Operative Group. Other keynote speakers at the event include Turner Broadcasting, Sky, Channel 4, ITV, Discovery, Telenet and Ford. It promises to be a compelling and thought-provoking event. Early bird conference passes are available until the 25th November or register to watch the event live online FREE of charge at www.futuretvads.com. Twitter: twitter.com/DavidMercer_SA Client Reading: Online Video: YouTube vs. Hulu - Let the Battle Commence!

Macrovision is not a name many consumers will be familiar with, except perhaps those with a close interest in breaking content protection systems. Macrovision evolved as one of the early leaders in this market, and its technology is today deployed on 249 million TV set-top boxes and 12 billion DVDs. It also prevents the copying of many pay-per-view television programmes. Over the past year or so Macrovision has moved forward aggressively to reposition itself as a player in the wider content discovery business. Its major move was to acquire Gemstar-TV Guide in May last year, giving it a leadership position in TV guide technologies. We discussed Macrovision’s plans for the next wave of TV interfaces with Richard Bullwinkle, the company’s chief evangelist. Richard demonstrated the new Neon guide, which will include innovations that will bring greater power and personalisation to the interactive TV guide. Neon will allow viewers to see not just lists of TV programmes, but also what content is available on their home network devices as well as from the Internet. Where and when Neon gets deployed depends on CE manufacturers and service providers. But Macrovision clearly has a head start because of its TV Guide market leadership. And as Richard was keen to point out, competitors looking to develop internet TV applications that provide information about television programming should be aware that Macrovision has lots of intellectual property in this space. One issue which I debated with a number of players here at CES is the problem of tailoring TV and internet guides to multiple users within the household. While nobody expects TV users to “log on” before they can watch TV, the fact that Macrovision’s and other new services allow increased personalisation does beg the question: which member of the household has control as the “administrator”, and how easy will it be for younger household members in particular to override security restrictions. When content is being sourced from all over home networks and the Internet this is likely to become an increasingly vital question and it didn’t seem to me that anyone at CES has really solved this one yet. Client Reading: Digital Media Devices Global Market Report

As I have pointed out recently, the publicity surrounding HD broadcasting in the UK, whether it’s Sky HD, Freesat or DTT’s future plans, has not been matched by the pace of consumer adoption. This is in sharp contrast to the experience of our Norwegian neighbours across the North Sea, where the decision by pay TV operator Canal Digital to remove the additional HD subscription fee has led to a surge in HDTV viewing in recent months. While Sky has just reduced the fee for a new HD set-top box, it still charges viewers an additional £10 a month to watch the limited number of HD channels available, and that depends on what premium packages customers pay for. As a result, only 5% of Sky viewers can currently access HD channels. By contrast, 25% of Norwegian customers of Canal Digital are now watching HD programmes, according to Strategy Analytics’ estimates. On a similar basis, Sky could have reached more than 2 million HD viewers by now, four times its actual level. The time will come sooner or later when the HD fee is removed, at least for some channels. HD broadcasters not owned by Sky, such as Discovery and National Geographic, must be frustrated that their audiences are not building more rapidly and will surely increase the pressure for a change in policy before too long, as will Freesat and Virgin Media as they slowly but surely improve their HD offers. Client Reading: High Definition TV, Video and Digital Media Devices: Global Market Forecast

We're attending this leading IPTV event at London's Olympia today. The conference kicked off with presentations from Orange and the BBC, amongst others. Orange's Eric Abensur suggested that quadruple play services are already gaining a significant foothold across Europe, with 16% of homes now "equipped" to receive such services. He also emphasised Orange's view that it is necessary for any operator to "control the mobile and broadband infrastructure in order to control the customer experience". This suggests a disregard of competition from any web-based service such as Joost (see here). Indeed, Mr Abensur seemed bemused by an audience question on the threat from Joost - it was not clear if he had heard of the service or whether there was something lost in the question - but in any case he dismissed the idea that Joost and similar services are a real challenge to managed IPTV services, arguing that they had no clear revenue model and that TV ultimately always has to be paid for. I suspect he may need to read up on what Joost and others are planning... The BBC's Ashley Highfield as always gave an interesting perspective from the UK's leading public service broadcaster. It contrasted with Orange's approach in discussing IPTV as a web-delivered service that should not be targeted to compete directly with the UK's existing digital TV services from Sky and Virgin Media. Instead, IPTV should be seen as changing TV by offering improvements in engagement, amplification, distribution, discovery, innovation and navigation. The BBC's iPlayer is of course the foundation of the BBC's strategy in IPTV. The BBC is still learning how its users want to search the vast archives of TV and video content that may one day become available, but it believes that the discovery element of IPTV is likely to prove one of its critical USPs. Mr Highfield also touched on the controversy over the BBC's choice of Microsoft's Windows DRM platform. He suggested that they would be "happy to work with Apple if they supported time-based DRM". The BBC sees it as critical that its solution can support 7-day online access to broadcast programming that is now a standard part of its rights contracts. We also look forward to hearing more about the BBC's plans for a hybrid DTT/IP set-top box. As I suggested recently, this is a further sign that the DTT platform in the UK is fragmenting, and I hope to hear more from Ofcom on this subject at this afternoon's DTG meeting.