Canadian Consumer Electronics and Photo Merchant Digest

No. 29 February 2004

Publication Mail - Agreement No. 40048613
C.E. BIZ : 21 MAIN STREET N., BOX 496, MARKHAM, ON L3P 3R1
19.5" deep 102 lbs. 61" model
Visit www.samsung.ca or call 1-800-SAMSUNG (726-7864)
For Mississauga call: 905-542-3837
2003 Samsung Electronics Canada, Inc. All brand and product names are trademarks or registered trademarks of their respective companies. Product appearance and specifications are subject to change without notice. Check with your local retailer for availability and pricing. DLP and the DLP Medallion are trademarks of Texas Instruments.
Reality. What a letdown. Announcing the stunning Samsung DLP TV.
Crystal-clear HDTV picture Compact design: 61" model is 19.5" deep and 102 lbs. Available in 43, 50" and 61" "
Thats DigitAll innovation.
Once you experience the Samsung widescreen DLP TV, everything else pales in comparison. Thats because it features Digital Light Processing technology. The result is a high definition picture that stands out with exceptional colour, clarity and brightness. Your perception of television, and reality, may never be the same.

EDITORIAL

The WOW Factor
No. 29 FEBRUARY 2004 C.E. BIZ Corp. 38 Sir Galahad Place Markham, Ontario L3P 2H6 http://www.cebiz.ca info@cebiz.ca Phil Metford pmetford@cebiz.ca Jacques Thibault thibault@cebiz.ca Justin Aish Jim Bray Cheryl Crumb Adrian Davids Robert Donnelly Corinne FitzSimmons Gordon Jameson Mike Laker Roger Lanctot Peter Lazar Yves Lvesque Stephen Malcolm Anne McIntosh James Sage Mitchell Solomon Andy Walker Dale Wilson Contact our columnists at info@cebiz.ca Numerix Design
When we were going out for dinner on the last night of the show, I asked my colleagues how they rated the show on a scale of 1 to 10. The answers ranged from a low of 4 to a high of 7. My own feeling was the show was a 5. Its the first time in years that I was ambivalent about the show, as it has traditionally been exciting to attend for many reasons. For me, the show lacked a certain jne sais quoi, but I wasnt sure what. When we started to drill down as to why we werent as collectively thrilled, some interesting points of discussion arose. In fact we talked about it for a couple of hours, (which probably didnt please the restaurant staff). First of all, it was one of the first times that I came away from the show not saying to myself Ive got to learn more about this new technology. In the past, weve been introduced (in no particular order) to CD, DVD, recordable DVD, WIFI, Bluetooth, HDTV, LCD and Plasma panels, OLED, and DLP, along with Digital Cameras and so on. This time out, I saw a lot of refinements and improvements to products and technologies, but for me at least, nothing that made me go WOW. The notable exception would be the progress being made in wireless home entertainment networking. So what was my takeaway? Pricing. The flat panels are bigger, better, and less expensive, the gadgets are smaller, better, and less expensive. So, where are the products that will be coming to market in the next couple of years? Already on the floor more or less, but with much more attractive pricing for consumers. I suppose that this will help in recovering the R&D already invested, and therefore open up opportunities for new projects. Ill just have to wait for them. But what I found interesting was the move by more manufacturers to strategically grow their business opportunities by sliding into adjacent markets from their core competencies. A perfect example is APIs intro of the Spherex 5.1 gaming speaker system with built-in digital processing. This affords API an entry point into a whole new sector of consumers. Another example is Epsons new line of Home Theatre products that builds on their strengths as a brand, but targets new markets for them. And look at HP with new TV product and a partnership with Apple and iTunes. I am certain that this type of thinking will become much more prevalent over the next few years. Why? Because the retail community has already done it. Weve talked before about grocery stores selling 36 brand name televisions, about gas stations adding fire wood and lottery tickets to their mix, and DVD players as end-cap items at the drug store. These retailers have figured out that they need to be more than just a gas station; they need to be an entertainment source. So it may be that we should wait a while to see how the trends of lower prices and new marketing strategies play out before we rate the show. As always, we welcome your comments, at editor@cebiz.ca.

EDITORIAL DIRECTOR EDITOR CONTRIBUTING EDITORS

GRAPHIC DESIGN

CONTRIBUTIONS C.E.BIZ welcomes all comments, suggestions and articles from dealers and manufacturers/distributors for publication in the magazine. ADMINISTRATION C.E.BIZ is published ten times a year: February, March, April, May, June-July, August, September, October, November, December-January by C.E.BIZ Corp. on a free subscription basis and is addressed to all Canadian Consumer Electronics and Photography Dealers, Manufacturers and Distributors. PUBLISHER VICE-PRESIDENT, SALES & MARKETING Phil Metford Tel.: 416-258-2458, pmetford@cebiz.ca GENERAL MANAGER Jacques Thibault Tel.: 418-877-4768, thibault@cebiz.ca Canadian Publication Mail. Sales Product Agreement No. 1912747 Registration No. 04676645-99 C.E.BIZ Corp. All rights reserved. No material from the magazine may be reproduced without the written consent of the publisher. While all efforts are made to ensure accurate editorial contents, C.E.BIZ Corp. may not be held responsible for any inaccuracy, error and/or omission. Privacy Policy It is the policy of C.E.BIZ not to share, rent, sell, or otherwise divulge any of the information of the recipients of the magazine C.E.BIZ. This mailing list is considered proprietary, and is only shared (under a signed confidentiality agreement), with the companies contracted to fulfill the actual mailing of the magazine. The C.E.BIZ mailing list is kept confidential, and is administered internally. You may subscribe via Internet at www.cebiz.ca or at the following address: C.E.BIZ, 21 MAIN STREET N. BOX 496, MARKHAM, ON L3P 3R1. Those wishing to update their mailing information, or cancel their free subscription may also do so on the same page of the web-site, or by sending an email to info@cebiz.ca, or via Canada Post to the above mentioned address. In the case of updating addresses or canceling subscriptions, please take the time to inform us of the old name, address and ID # which is found on the top left corner of the address label. Member of CITA, PMA, DIMA, CEDIA & CDTV

Inside

Bold, Bad and Bizarre from CES by Mitch Solomon REAL After Sales Service by Bill Swansborough The Future of PDAs by Andy Walker The Ultimate Audio Experience by Jim Bray Listening. The Best Gift by Cheryl Crumb Page 10 Page 14 Page 19 Page 20 Page 22 Home Video by Stephen Malcolm Dealer comments Quotes From CES by Michel Lacaille Once The Gifts Are Opened by Mike Laker Interview with Epsons Don Saunders Page 24 Page 26 Page 28 Page 29 Page 30

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THE TOUGHER THE BETTER.

Face it - your customers will take their digital cameras and video gear into the real world. Protecting them demands the widest selection of carrying solutions. With extra padding, durable double-stitch construction, oversized zipper pulls, rugged bottom reinforcement, and the toughest fabrics to be found. Those are only available from you - in a Lowepro bag. Canadas #1 brand. www.lowepro.com
Lowepro is distributed in Canada by DayMen Photo Marketing Ltd. 100 Spy Court, Markham, Ontario L3R 5H6 Telephone: 905.944.9400 Fax: 905.944.9401 Email: info@daymen.com Web: daymen.com
SONY LOCATIONFREE BROADBAND TV
Innovative Dual Band wireless transmission technology enables video viewing, Web surfing and E-mail in a lightweight touchscreen LCD monitor.
CANONS NEW CAMCORDERS MAKE DYNAMIC DIGITAL MOVIES EASILY RECORDABLE AND VERY AFFORDABLE
Canons three new digital camcorders expand ease-of-use and enhance the capability and affordability of video for entry-level users. In stores beginning in March for estimated selling prices of US$399, $499 and $599, Canons ZR80, ZR85 and ZR90 models pack advanced featuresSkin Detail Mode, End Search, Transfer of Video Footage stored on the MiniDV tape onto an SD card inside the camcorder, Still Image Capture to an SD card, Simultaneous Photo Recordinginto a sleek, compact design.
SAMSUNG'S 56 W HDTV MONITOR TV WITH DLP TECHNOLOGY (HLP5685W )
The new Samsung HLP5685W DLP TV offers the best of HD picture quality performance with a lightweight design addressing more placement options than other same class TVs. MSRP: $4999. Available in June. CES 2004 Best of Innovations WinnerCategory Video

TOSHIBA SD-P5000

Set for US introduction in April 2004, the SD-P5000 LCD TV/DVD combo blends technology with the latest in design. The SD-P5000 offers consumers an integrated 15 LCD TV with a 4x3 high resolution (1024 x 768) screen, combined with a DVD player in an innovative design. Designed for the home or mobile use, the product also features AC/DC operation and an optional battery pack. MRSP: US $799.

EPSON LIVINGSTATIONTM

Epson Canada Ltd. expands its presence in the home entertainment market with its introduction of two Epson Livingstation HDTV LCD projection televisions the EPSON Livingstation LS47P1 and EPSON Livingstation LS57P1 featuring an integrated digital photo centre. Seiko Epson has a great deal of experience in LCD as shown in the new sets boasting a 720p resolution and Epsons patented LCD technology. Additionally, with Epsons proprietary Photo On Demand capability, users can now view, print and store their digital photos from an easyto-use universal remote control.
WURLITZER DIGITAL JUKEBOX
The Wurlitzer Digital Jukebox from Gibson Audio is a true masterpiece, delivering the most comprehensive set of digital music features available with sound by Klipsch and design worthy of your living room. Best of CESCategory Audio.

Cappuccino Home Theatre Central
MONSTER PRODUCTS WITH CUTTING-EDGE DESIGNS
Monster received four 2004 Innovations awards at the CES for new products with ground breaking designs: the MDesign Eleganza Powered Subwoofer 1500, the MDesign Eleganza Flat Screen InvisiSound Frame 6300, the MDesign Eleganza Cappuccino Home Theatre Central and the Monster Power Monster Home Theater Music Three-Channel Reference Power Amplifier MPA 3250.

C.E.BIZ

February 2004
XACT COMMUNICATIONS WRISTWATCH
XACT Communication'sTM next generation X33X WristLinx 2-way wrist communicator has been named an Innovations 2004 Design and Engineering Showcase honoree by the CEA. X33X features a chrome finish with changeable faceplates. The FRS (Family Radio Service) /GMRS (General Mobile Radio Service) device also adds 38 sub-codes on each of its 22 channels providing more than 800 ways to secure a clear signal. Priced between US$30 and $40, depending upon the model.
PIONEERS AUDIO HERITAGE SHINES WITH NEW A/V RECEIVERS
Pioneer Electronics 2004 line of digital audio/video receivers includes the VSX1014, VSX-D914, VSX-D814, and the VSX-D514. The VSX-1014 is the second receiver in the Pioneer product line to be THX certified. Three of the new receivers offer Pioneers multi-channel acoustic calibration (MCACC), allowing consumers the ability to easily and accurately set-up their speakers with optimal performance based on the room environment. Prices vary from US $275 to $700. Three models available in March.
PIONEER TO INCREASE PRODUCTION OF PLASMA DISPLAYS
Large screen plasma televisions are becoming more common in homes across the nation as consumers become turned on to the exceptional image quality and wide viewing angle, all delivered in a slim, flat panel television. iSuppli/Stanford Research predicts that plasma sales will grow at a compound annual rate exceeding 70 percent through 2007. As a result of this surge in market demand, Pioneer has increased its manufacturing capacity to 250,000 units annually with plans to open additional manufacturing lines for a total capacity of up to 500,000 units annually by 2005.
FISHER POCKET CAMERACORDER
The (Sanyo) Fisher Pocket CameraCorder, the easy-touse, tapeless advanced solution for both high-resolution video clips and high-end digital still images Small enough for pocket or purse (5.4 ounces.). Best of CES Category Video (tie)

SPHEREX OMNIPOLAR TECHNOLOGY FOR GAME CONSOLES
Spherex Inc., a subsidiary of Audio Products International Corp. (API), unveiled its entry into the computer and video game industry through a 3year global licensing agreement with Microsoft Corporation to produce and market the Xbox 5.1 branded speaker system. Branded as a new reference standard in video game audio, the Xbox 5.1 is a multimedia audio platform created for use as a game audio and home theatre solution, consisting of a 5.1 speaker system with Apogees DDX digital power amplification, surround sound processing, multiple audio inputs and networking capability. The 300watt (RMS) amplifier drives 5 identical OMNIPOLAR satellite speakers and an 8 Subwoofer. The speaker design is based on APIs patented Mirage OMNIPOLAR technology, which disperses sound in a 360 pattern, to create a most realistic immersive experience for gaming, movies and music playback. MSRP: $499.00 USD.
NETGEAR 108Mbps WIRELESS HOME FIREWALL ROUTER/BASE STATION
Looks to match its performance! The WGT634U 108Mbps Wireless Home Firewall Router/Base Station is the fastest router with the best range and the first to offer print and file sharing. Best of CESCategory Home Data Networking
NEW HARMONY REMOTE SST-659
Easy to use, easy to set up. Full control of any component. One-touch Activity Buttons. Total PVR Control. No Macro programming required. 2MB Flash Memory. How does it sound so far? This must-have remote for the family replaces many remote units but also provides onebutton control of your home theatre. And its a Canadian concept. Best of CESCategory Home Theater Accessories - Remote Controls
INDUSTRYS BROADEST SELECTION OF FLAT-PANEL DISPLAYS SAMSUNG MiniDV
Samsung introduces new MiniDV line with multiformat flash port and multilanguage display options. Samsungs SCD-100 Series features the SC-D103 and the SCD107. Both Camcorders take advantage of a new compact shooting design - 12% smaller than the 03 model and feature digital image stabilization, an EZ-Dial Navigator, FireWire ports, and Samsungs Power Nite Pix technology. Two versatile camcorders fill out the SC-D300/400 Series, the SC-D303 and the SCD407. Extremely compact, with a light form factor, these camcorders provide a fashionable and convenient shooting ability. LG arrived at CES with a truck load of flat-panel displays including digital cable-ready plasmas and LCD HDTVs. Ranging from 15 all the way up to 76 inches in screen sizes, the LG-brand Plasma and LCD product introductions are based on 3 categories: digital cable-ready HDTVs, integrated HDTVs, and HDTV monitors. The core technology behind LGs HDTV plasma displays is the X1 panel that provides 1000:1 high contrast ratio and 1000 cd/m2 high brightness.

Leaving Las Vegas

NPD HARDLINES (INTELECT) CANADA TRENDS IN ELECTRONICS & INFORMATION TECHNOLOGY TOTAL CANADA Year-To-Date Ended November 2003
NPD Hardlines Canada, formerly known as NPD INTELECT, provides sales tracking services for the consumer electronics, small domestic appliances, information technology and imaging industries. Data are collected from comprehensive panels representing each industry's key retail and businessto-business distribution channels. The NPD Group's clients include many of the major manufacturers, retailers and business-to-business sellers in each industry NPD Hardlines tracks. For more information please contact Adrian Murphy, Vice President, NPD Hardlines Canada at adrian_murphy@npd.com extension 5306. or 416.383.0224

PUORG PUORG PUORG

M La anu Sa u fa M ve nch ctu ailup ing rer in to Febr s Re $1 uar bate 00 y 6
Pioneer DVD Recorders. It's a Whole New Game!

RECORD. REPLAY. REPLACE.

* $50 Manufacturers Mail-in Rebate with the purchase of a Pioneer DVR-310-S DVD Recorder, OR $100 Manufacturers Mail-in Rebate with the purchase of a Pioneer DVR-510H-S. *Rebate in effect from February 6 to April 30, 2004. See store for details.
RECORDING HAS NEVER BEEN EASIER. PICTURE
QUALITY HAS NEVER BEEN BETTER.
Pioneers DVD recorders replace your old VCR with the latest, most convenient recording technology. Record over 1000 times onto a rewritable DVD-RW disc with no deterioration in picture quality compared to VHS tape. Plug your DV format camcorder directly into the front panel digital interface (IEEE 1394) for easy transfer of tape to disc. Create DVD libraries of your favorite TV shows or camcorder home movies to share with friends or family, viewable on most standard DVD players. Additionally with our DVR-510H-S model (not shown), you can easily record and store up to 102 hours of program material on the built in 80-gig hard drive. 24 x high speed copy feature lets you transfer a 2 hour movie in EP mode from hard drive to DVD-R disc in approximately 5 minutes. The recording game will never be the same. Pioneer has rewritten the rules with rewritable DVD.
Pioneer Electronics of Canada, Inc. 300 Allstate Parkway, Markham, Ontario L3R 0P2, 1-877-283-5901

S E RV I C E

Where the REAL after sales customer service is
Service and repair are words like prostate check-up or Dental Cleaning. They are words that most of us dont want to talk about and hate to acknowledge. Yet, as with the need for a check-up or teeth cleaning, we realize their importance in our lives. If you ask the average person about getting something fixed that has broken, they usually speak with disdain and disappointment that whatever they have that is broken requires repair. They never seem to blame the product, but rather the store or sales person who sold it. I knew I shouldnt have listened to that guy and bought the other unit, its better Whats worse is they also blame the technician for having to actually do the repair. Now, thats frustration. Yet, at the root of the issue is the fact that the product they have used, which has operated fine for a couple of years, is suddenly costing them hard earned after tax dollars to repair, not to mention unplanned trips to service establishments, or worse, having to stay home to wait for the technician to come between noon and 5:00. Imagine the inconvenience! These are the scenarios that service providers, warranty administrators and other repair facilitators face each and every day. The customer is upset at the wrong people; they feel misled and inconvenienced, and hate to have to spend money when something goes wrong after a purchase. The service industry takes the full hit from the customer when a repair takes too long, or a part isnt readily available because the product shouldnt have broken in the first place. Service is becoming a key part of the retail experience. We all talk about what happens after the sale, and why keeping the customer close is a good way to maintain customer loyalty, yet very few retailers really understand what happens later in the products life cycle that can impact where the customer will make their next purchase. The savvy retailer will promote extended warranties, or service contracts to help the customer through that uncomfortable time when something goes wrong. At least, the customer wont be out of pocket when the repair call goes out, and is pleased that they had made the

24 C.E.BIZ February 2004

By Stephen Malcolm
So how is this going to impact your business in the next year or so? Well, consider where this is coming from. Most of you have heard about VoIP or voice-over-IP, using the Internet to deliver audio and voice. Many of you may even be considering adding a VoIP telephone system in order to reduce long distance bills between retail locations that are out of local service areas. And the next natural extension for this is Video-over-IP. As video compression continues to improve and as the numbers get smaller while the quality gets better, there will soon come a time when broadcasters will be able to send you an allin-one signal over the same delivery method you currently have (cable/satellite/phone). In fact, this year, Bell Canada has a commercial system for sending their local phone, Sympatico hispeed Internet, and their
more interesting products and information I saw at CES about home entertainment networking. Its well known that Intel is the leader in processor chip technologies, and it would seem a natural for them to want to combine computer information processing with video and audio signal processing. By adding the two of these together you have the heart of any good Media Server technology. The following site offers their take on the new digital home, and how it will roll out from them this year.
http://developer.intel.com/technology/ digitalhome/ One Box is already selling a strong Media Server. It comes in many different sizes with the larger HDD size being only US$100 more. As well you can purchase refurbished models at a considerable saving, perfect for those installations where the Server costs need to be kept down. http://www.oneboxmc.com/ This is a link to a really good series of articles on the actual implementation of a Home Media Server system. It details everything from topology of how and where to wire, as well as system requirements for the Server.

One Box Media Centre

ExpressVu satellite TV service to multi-dwelling units. So dont think that it is going to be long before you see something like this service for homes. The benefit of IP-based television is that you can improve the quantity and quality of the channels while offering a lot of choice on where to watch the system. With a wireless system you are not limited on where you view the programming. Right now, you simply need to have a wireless adapter with a NTSC output to allow you to walk around your house watching different channels on a laptop. Microsoft and other software houses are marketing applications that enable you to use your home computer both as a source and as a PVR, with the result that you are not limited on what you can see, hear and record. The following are some of the newest and

http://www.extremetech.com/article2/ 0%2C3973%2C1276366%2C00.asp For those of you who want to find a product right now that can deliver up to 36 channels of simultaneous broadcast, go to the link below. While this is more of a commercial product, it still has local and immediate applications. http://www.optibase.com/html/ products/Media_Gateways/MGW_5100. html Im hoping that by this time next year youll be thinking back on how many implementations youve done, selling people new computer systems, wireless hubs, WiFi equipment and connecting all of their home theatre stuff together. We have seen the future and the future is now.

2002 Sharp Corporation

Introducing AQUOS Theatre. The worlds first HDTV-compatible 30-inch* liquid crystal television coupled with the worlds first 1-Bit multi-channel digital audio system. Watch crystal-clear images. Discover sounds youve never heard before with 1-Bit technology. And enjoy sleek design that complements any interior. AQUOS Theater by Sharp. Cinematic excellence, by design. Visit www.sharp.ca
*Screen size: 29.51 (measured diagonally)

DEALER

CES 2004 re-visited
ROBERT LAPOINTE, STEREO PLUS I believe 2004 will be an exciting year as far as new products are concerned, which should help in making it a better year than the one we just finished. Digital Cameras: for the coming year, improved features, better styling and ergonomics were the obvious evolution from major manufacturers. Also the influx of 2nd and 3rd tier brands with aggressive low prices will mean that consumers will need to go to retailers that can explain the benefits of the quality products vs the entry level products. DVD: slimmer designs and more features (Highmat, etc), DVD players that are 1080i--- DVI will help in up selling up with benefits over entry level product. DVD recorders will be a growth area for us in 2004 and this is where specialty dealers like us can shine, with their ability to give proper advice to their customers. Display: lots and lots and lots of choices. Not even the big box stores can carry all the new products in display devices. This will give the manufacturers a better chance for channel management. 12-Volt: Better amplifier design, improved cosmetics, lots of navigation and other video products pretty much sums it up.

NICK BOURIKAS, CANADIAN SOUND It was quite clear that manufacturers are trying to simplify custom and make it less labour intensive. The result would be reducing or eliminating the money paid out in labour by the end-user, thereby increasing their consumer penetration. The bonus for the reseller is eliminating costly labour charges. Secondly, it was interesting to view the two extremes of vendors. Some companies are moving forward rapidly and others are doing the same old thing, i.e. moving backwards. Besides that, I was quite impressed with the turnout, and with the professionalism of the attendees. I was also pleased to see a new generation of people entering our industry. They showed a tremendous amount of promise.
TONY RAIMONDO, MEGA GROUP One thing that is certain about Vegas 2004 is that the conventional CRT days are numbered, just like black and white TV in the late 70s. At the same time, there were well over 50 different companies proclaiming that they were all manufacturers of LCD and or Plasma. The question is how many will be there next year under the same name? History does repeat itself, hundreds of manufacturers of radios and TVs have all come and gone, the same will be true for LCD/Plasma. I have a fear about the CE business. As more of the IT companies try to get into our business the harder it will be for the retailer to stay in business. Shrinking margins and expansion by the majors in every category will make it very hard for the independent retailer to continue to reinvent himself in order to stay afloat. We will all have to work harder and get our creative juices flowing if we are to survive. Everyone will have to look at their balance sheet and see what will have to be eliminated in order to compete with lower margins. Only the future can tell, how long we have in making good margin dollars in LCD/ Plasma.
BRIAN STEWART, LEONS For me, the highlight of CES is the electricity in the air as you walk the show floor on Day One. As merchants, we have to admire the vendors who do a terrific job creating new and exciting displays to draw attention to their brands. The sea of thin panel displays with each vendor showing 20 to 40 models really was aweinspiring. "Wireless A/V" and convergence products added to the excitement. There were noticeably better designs and colours shown by the higher-end speaker manufacturers, a sight welcomed by all. Generally, I couldn't help but think that with all the hype and excitement, and so many manufacturers bubbling with enthusiasm that in the end only a handful will be successful. Clearly it's the excitement of the journey and the experiences that we have along the way that makes our business unique.

By Mike Laker

a technical 270- page book recently. I doubt many average mother and father have done so recently. Teenagers may touch the book, for luck and then will figure out some of the features by trial and error. For the average consumer, this situation translates in &$#@# gift that Santa gave me. (Why cant manufacturers create a simple show-and-tell CD?) I think its time for simple, in-store how to connect and use your digital camera and software courses. If you are wise, (like the 3 wise men), following Christmas you may even want to advertise these courses, or at the very least make in store posters promoting these events.

MINOLTA DIMAGE Z1

Naturally, you could proof and print some of the Christmas prints on your digital minilab, but that could put commercialism back into Christmas.
POWERSHOT SD10 DIGITAL ELPH

I N D U S T RY

INSIDER

I n t e rv i e w w i t h

Epsons Don Saunders
Don Saunders has been with Epson Canada for over 10 years, after coming over from Canon OE, where he held the position of Vice President, Logistics and Administration. Don assumed the role of VP, Operations with Epson Canada, and was subsequently appointed National Manager for the company in 2002.
C.E.BIZ: Don, I have a feeling that many people arent aware of the history of Epson. Can you give us a prcis of Epson? DON: Sure. Epson Canada is celebrating its 25th anniversary this year. We are a division of Seiko-Epson out of Japan. I think that most people associate the name Epson with printers, which is good in many ways as we have positioned ourselves as a sort of best of breed. We were dominant in dot-matrix and desktop printing, and over the last five years have focused on digital photo printers for consumer use. But what many dont know is that Seiko has a dominant share in OEM production of multi-media projectors, cell phone and handheld displays for PDAs and such. Our optics and engines are second to none. Last June, we launched an IPO in Japan, which turned out to be one of the largest IPOs that year. C.E.BIZ: What was the purpose of the IPO? DON: The funding we received enabled us to do a couple of things. One of the things we did was to commission a worldwide survey on the perception of the brand. Happily, it turns out that consumers place a high degree of trust in our brand, and perceive us as innovators of technology. It also revealed that consumers place a premium value on the brand. So, it appears that our brand attributes fit well with our targeted consumers for the new home theatre products that we are introducing. Our vision is that imaging on paper is great but the future is in display panels. We see a variety of imaging sources being linked to display devices. So, the other thing we did was to create a new category of products for Epson, tied to home entertainment. C.E.BIZ: You just launched a series of Home Theatre products, including multi-media front LCD projectors and HD-ready LCD rear projection sets. The TVs are interesting because of their built-in memory card readers, CD burners and dye-sub printers. What is your strategy for the roll out? DON: This is a really important event for Epson, as these products are being marketed only in North America. Our success here will dictate the global positioning for the category. Back in the late fall, we previewed our products and plans with a select group of independent Canadian dealers. Our plan is to develop a network of roughly 60 dealers coast to coast, and we are well on our way. The objective is to establish a dealer network that can influence not just consumers, but other dealers as well. Certainly the name Epson will give credence to the image quality and dependability of the product, as we learned in the survey. But, effectively we are leveraging that reputation in a new category, where we have different competitors than we are used to. And, there are other considerations as well such as distribution. We have contracted with Ingram Micro to be our stocking distributor. As such they will manage our product warehousing and delivery to our dealers. They will also be managing the billing. We have appointed a network of sales agencies to rep the product, which is necessary because we understand that with a tightly distributed product line there has to be a high level of support and training. C.E.BIZ: What was the reaction to the product at CES? DON: Well, we were certainly pleased. And it was interesting to hear the comments from some of the other brands. One of them said that we had a leap-frog product, meaning that with the multi-functionality of our TVs we are really turning the TV into a conduit for image sharing. You can take your images, put the memory card into the TV, preview all the images, select any or all of them to be burnt to disc, or printed on the dye-sub printer. This brings imaging out of the home office where the computer is, and into the family room where the family is. And isnt

that the point of pictures? Sharing? We think so. And our engineers have made it drop dead simple for consumers. The printer is one rugged mechanism, ink and all, and is userreplaceable, The dealers will be stocking them as accessories. We have calculated the cost per print at around 30 cents for a 4x6, which is pretty competitive with the local photo lab.
C.E.BIZ: Can you outline your longer term strategy? DON: Sure. As I mentioned before Epson has been an industry leader in many forms of print imaging; laser, dot matrix printing for mission critical applications such as warehousing, and then in desktop printing. As we moved into the photo printing of digital images, we realized that not only were many people were spending their time at a PC to view or print their images, but those same people were spending time and money investing in Home Theatres. If we could combine the TV functionality with image sharing, it would make sense. So, we developed our current LCD rear projection line. As consumers migrate to larger flatter screens, we expect to be there as well. Seiko Epsons strength in LCD should be an indicator of our path as manufacturing efficiencies improve. We also showed an OLED panel at CES and we are pretty high on that as a future display technology. Certainly, our entry into the C.E. arena would not have made sense if we were launching a 27 CRT. But, our engineers created a product line that is fundamentally different than what is currently out there, TVs for consumers who appreciate image quality when they see it, and are prepared to pay for it. We expect Epson Home Theatre products to be a niche, profit based line that appeals to those kinds of consumers. The halo effect these products cast on the Epson brand is also important in our long term strategy. The fact is that innovation is a critical element of our plan. When products become a commodity, its difficult for a company like Epson to compete. But, our constant innovation will enable us to deliver desirable products that consumers will appreciate and pay for, to the benefit of us and the dealer.

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Designed to handle everything from small meeting spaces to large lecture halls, Canons complete line of LCD Multimedia Projectors offers unparalleled flexibility and hassle-free setup. Plus, with superior Canon optics providing incredible picture quality, you can trust that Canons LCD Multimedia Projectors will provide projections that will help you make a great impression.
Contact your local Canon Dealer to learn more!
Canon LV-7215 LCD PROJECTOR 2500 ANSI Lumen Native XGA Resolution 1.6x ultra-wide optical zoom (best in its class) Compact Design Canon LV-X2 LCD PROJECTOR 1100 ANSI Lumen Native XGA Resolution Portable lightweight design
Canon LV-7210 LCD PROJECTOR 2000 ANSI Lumen Native XGA Resolution 1.6x ultra-wide optical zoom (best in its class) Quiet Operation
Canon LV-5210 LCD PROJECTOR 2000 ANSI Lumen Native SVGA Resolution 1.6x ultra-wide optical zoom (best in its class)
Canon LV-S3 LCD PROJECTOR 1250 ANSI Lumen Native SVGA resolution Ultra-light 2.2 kg Includes presentation kit
Take advantage of a 3-Year Warranty* on all Canon LCD Projectors!
Canon and Canon Know How are registered trademarks of Canon Inc. *Canon LCD Multimedia Projectors come with a 3-year limited warranty and 120 day lamp warranty. For more information on Canon LCD Multimedia Projectors visit www.canonprojectors.com or www.canon.ca/digitalphotography

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BE STIRRED , NOT SHAKEN.
Front panel controls for easy access
THE ALL NEW OM-200 SUBWOOFER BY MIRAGE
Flexible input connections
Poly-Titanium hybrid drivers to boost power
PURE AMAZING BASS, WITHOUT THE SHAKE, RATTLE OR ROLL. Place your hand on a conventional forward-firing subwoofer, and you will feel the cabinet vibrate in response to the energy produced by the driver. Now try the same test with Mirages all-new OM-200 subwoofer and you will experience virtually no vibration. Thats because the OM-200 uses two opposite-facing drivers that radiate in phase, canceling out the reactive forces they exert on the enclosure. The result is tight, distortion-free bass and an incredibly natural sound. The OM-200 is designed to be so versatile, it can seamlessly blend with any speakers from tiny Omnisats to the tall OM5. Combine the OM200 subwoofer with any Mirage speaker system and you can enjoy perfect, clear sound with no distortion or vibration. Unlike traditional subwoofers, which need to be strategically positioned to get the fullest appreciation of the bass, the OM-200 can be placed just about anywhere. Thanks to Omnipolar dispersion and distortion-free performance, the OM-200 will fill any room with a rich, clear bass sound no matter where it is located. Visit your local Mirage dealer for a demonstration today and take your appreciation of bass to an all