Radio. Appendix F: Consumer Electronics. Radio Reginald Fessenden (Canada) first speech and music broadcast Radio amateurs advance technology
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1 Appendix F: Consumer Electronics 1093 Radio 1840s - James Clark Maxwell (Britain) theory of electromagnetism Heinrich Hertz, Maxwell s student, demonstrates electromagnetism waves Gugliemo Marconi applies electro-mechanic waves to radio telegraphy Source: Radio Reginald Fessenden (Canada) first speech and music broadcast Radio amateurs advance technology /040226/images/fessenden.jpg
2 1919: GE, Westinghouse, American Marconi and AT&T, with US gov t support, create Radio Corporation of America (RCA) to compete with British Marconi Company. David Sarnoff (RCA) Radio as Consumer Electronics 1920: Powel Crosley, an auto accessories manufacturer in Cincinnati, wanted to buy his son an amateur radio. The cost of such a set at the time: $ mages/powel.jpg st US commercial broadcast in Pittsburgh 1098 Crosley builds his own set for $35. Decides to mass-manufacture radio sets. His first model, the Harko, a crystal set, $20 and later for $9. Within seven years, Crosley sold $18 million worth of radios annually Largest radio company in the world. Crosley CR82 Harco Radio Source: l/-/b000063ck8/ ?v=glance
3 1922: Powel Crosley Jr. produces first low-price mass market radio - the $9 Crosley Harvey 1930: 25 mil radio sets Radio Penetration Rate 1923: 500,000 radio sets in use. 1924: Over 3,000,000 sets in use. 1931: Radio sets in over 50 percent of American homes. Took 21 years Source: Source: /bchris/1940.htm The Age of Miniaturization Zenith starts at same time. In 1922, about 200 small firms. Majors: RCA Zenith Westinghouse Source: GE Crosley okrev1_12-97.html 1952: AT&T: licensed transistor technology cheaply to other manufacturers Hearing aids, transistor radios 1955 Tokyo Telecommunications Engineering (Sony) introduced a small model, the TR Source: Jerry Kalov, :Industry Origins & History, Eli Digital M. Noam, America Hardware
4 Sony s First Transistor Radio, TR-55 in 1950 Source: Japanese Dominance 1953: Japanese begin exports 1959: the US import more than 6 million transistor radios, half of Japan s radio production, which accounted for half of Japan s dollar earnings 1974: No US firm left in the manufacturing of radios, tape recorders or monochrome TV sets Sales of Transistor Radio Huge Success Key driver = Rock n Roll Teenagers primary buyers In 1959, US imported more than 6 million, half of Japan s total output of transistor radios Source: o.org/jimmy/radi / o/radios/pages/i mage41.html Source: e41.html Source: Jerry Kalov, :Industry Origins & History, Eli Digital M. Noam, America Hardware Reasons for Japanese Success 1960s: Japanese success through cost leadership Later, success through superior quality (in mid-1970s US-made color TVs were failing at five times the Japanese rate) Source: Wellenius, Bjorn: Developing the Electronic Industry
5 Reasons for Japanese Success MITI (Japan s Ministry of International Trade and Industry) subsidized creation of electronic ind. Low interest loans, financed research and development Protection against imports Large domestic market for CE Source: Stabilizer Model of Global CE Highly competitive global market Falling market entry-barriers Bargaining i power of buyers Europe s CE industry survived better than US Government help R&D subsidies Standards collaboration Think Global, Act Local Most products offered worldwide but with regional modifications: localizations language packaging (size, look) Source:
6 1990s Japan: Victim of its own success Yen appreciates, labor costs rise - manufacturing moving abroad Korea, Taiwan, China Source: Source: dll?viewitem&item= &category=13883#ebayphotohosti ng Television Sets Source: Source: Return of US Firms? Convergence of consumer electronics with computer and multimedia industry leads to greater role for US players. Apple I-Pod In top 10 CE firms, none is US-based and one is European (Philips) Source: APPLE/WebObjects/AppleStore?family=iPod 1114 From Radio to TV 1920 &30 radio became dominant mass medium Experiments with radio with pictures One picture is worth a thousand words Television : word coined in 1907 by the magazine Scientific American
7 First Attempts at TV Electro-mechanical 1884 Paul Nipkow (Germany): scanning disk system 1929 Baird (UK), 1st transmissions 1936, Germany - first regular TV for Olympic Games, for propaganda purposes 1117 Source: www-stall.rz.fhtesslingen.de/telehistory/nipkow1.html Garage-inventor Philo Farnsworth overtakes RCA Source: TV 1930s UK, Germany, France, US RCA : Vladimir Zworykin Technology The heart of a television was a cathode-ray tube (CRT) in both, camera and display Source: Source:
8 An electron beam scans a picture on the face of the tube, one horizontal line at a time. Scans for information on luminance (light) and chrominance (color) Scanning takes place line by line, several dozen times (frames) per second 1121 RCA Introduces TV at NY 1939 World Fair 1123 A synchronized electronic beam is rapidly scanned by on phosphorescent screen, creating a picture. Display 165 Early Television Sets Source:
9 Television as CE World War II slows the development and marketing of TV. 1946: Initial sets offered to public. Viewtone: 7 inch screen, $100. TV Penetration Rate 1953: 53% 7 years 1960: 90% : RCA introduces model 630TS, with a 10-inch screen. 95 lbs., $352, approximately a month and a half s salary Image source:
10 1940 Tape Recorder Consumer Camcorder 1980 Sony 1986 Hitachi 8mm Sony Wlk Walkman
11 Home Video VCR/VTR History 1956: Ampex releases the first practical, commercial broadcast quality video recorder. The model VR-1000 cost $50,000 and used 2" wide videotape. Source:
12 November 30, 1956: CBS airs the first broadcast via videotape, Douglas Edward and the News. 1962: RCI releases the TR-22, the first video recorder. It is meant for commercial use only. Source: es/hardware/tv/rca-tr22.jpg Sony s Betamax Sony Betamax TV-VCR combo. $ , stand-alone Betamax Source: c.com/history/cartriv ision.html : Sony releases the first VCR intended for home use, the CV2000. Reel-to-reel: user had to manually feed the tape from the supply reel 1138 VHS: Matsushita The reasons for VHS triumph: Lower price ($1000 vs. Sony s $1300) Longer recording time (4 hours vs. Sony s 2 hours) Better marketing Alliances with other CE makers
13 VHS takes the market 1977 introduced the VBT200 VCR. Despite the first-mover advantage antage and the technical superiority of the Betamax, VHS became the leading standard in two years time. DVD Started in 1994 as two competing formats: Super S Disc (SD): Toshiba, Time- Warner Multimedia CD (MMCD): Philips/Sony Predecessors of DVD Attempts for video discs since late 1970s: 1978: Magnavox releases the VH- 8000, the first laser disc player, retailing for $ : laser discs reach their peak, selling 287,000 units that year alone. Still, no mass adoption DVD Consortium formed to regulate standardization. Later renamed DVD Forum. Includes content providers (AOL Time-Warner), CE companies (Philips) and computer companies (IBM). Convergence of hardware, content
14 DVD Technology Source: Source: DVD Development Source: Source:
15 In 1995, DVD standard adopted DVD player price: $600 in : $30 for low end Home Video Storage Personal Video Recorders (PVRs) Digital Video Recorders (DVRs) Source: DVD Penetration Rate PVR/DVR Technology of a PVR A glorified hard drive or a pathetic PC SD/AS - 11/06/2002 ELEC 694, Seminar #10b 3 Source: Source:
16 Communications Challenges of 3G communications: Network: To make a 3G device into a communications device, Sony would need infrastructure. It must therefore sign agreements with carriers Communications While Sony can manufacture the communications hardware (modem, Ethernet port, IR) by itself, it still needs to partner with telecom/cable network/wireless providers to ensure the product is useful as a communications device Communications Challenges of 3G communications: Competition: PDA makers (Palm, HP), Handset makers (Nokia), PVR makers (TiVo), video game makers (Microsoft, Nintendo). Communications Conclusion Sony should probably enter into a partnership with strong wireless providers to ensure a prevalent network
17 PVR Available since penetration rate: 1% of U.S. households. Expected to grow to 50 million in 5 years. PVR not yet compatible with HDTV. As PVR depends on hardware convergence (computer, TV, telephone line), will it be able to survive as a stand-alone CE product? Source: PVR Industry leader: TiVo. Machines retail for $400, monthly service for $13. Personal Digital Assistant t Source:
18 PDA First PDA created by Apple in 1993: the Newton. Sales dwindled, and eventually stopped. Sony Entry in to PDAs: Clie Nice styling, but low market acceptance Sony ends Clie in 2004 Source: Video Games
19 Video Games 1961: MIT graduate student Steve Russel programs Spacewar on a PDP-1 mainframe computer. Game becomes a cult hit Army rejected Baer s project. Project sold to RCA, then to Magnavox. Released game titled Magnavox Odyssey, Image source: Engineer Ralph Baer contacted by U.S. Army to build an electronic training tool. The project, titled Game Room, utilized a television monitor to create an electronic variation of ping-pong. Odyssey had over 300 separate parts. Hand controls, dice, playing cards, plastic overlays to place on the TV screen. $ ,000 units sold first year. Image source: Image source:
20 Atari 1971: Nolan Bushnell creates an arcade version of Spacewar. Creates Pong 1977: Bushnell sells Atari to Warner Communications for $28 million. 1978: Atari becomes a hit due to a game manufactured by Japanese company Taito-- Space Invaders. Image source: Atari sold 6,000 Pong arcade machines within one year. $ : Pinball giant Bally s Midway buys rights to Pong. More than 100,000 units sold within a year. 1974: Atari sells $13 million worth of arcade games 1170 By 1984, the industry crashed. Atari, $300 million debt, sold to Commodore. Video games considered a passing fad
21 Revival: Nintendo Japanese toymaker Nintendo builds a video game system. Over 2,000 bytes of RAM, much more than Atari s 256 bytes. The Famicom has two custom chips: Central Processing Unit Picture Processing Unit Sony sold entire stock of machines, over 300,000 units, within 30 days. By 1996, Sony sold 10 million units Sony Enters the Market In 1994, Sony introduced the PlayStation. Combined superior hardware with access to content, t marketing. $40 million marketing campaign. Marketing campaign focused on movie stars, rock stars and other trend-setters Microsoft s XBOX In 2001, MS entered with the XBOX, enticing programmers to develop exclusive games for the platform. Focus on on-line playing
22 The Gaming Industry $11 B entertainment industry in US 2004, video and computer game sales reached record $7.3 B American men spend more money on videogames than on all forms of music Consumer Electronics Association, Gaming, Digital America 2005, 5 pgs The Gaming Industry Gaming a cyclical market After several years, game console sales decline until new generation of consoles release Gaming software market less cyclical, more robust Consumer Electronics Association, Gaming, Digital America 2005, 5 pgs Fatal Attraction Media and IT companies see gaming as a way to attract consumers to high-speed broadband Online gaming seen as a way to speed up penetration of broadband From there, marketing of other high-speed internet services Consumer Electronics Association, Gaming, Digital America 2005, 5 pgs
23 Gaming Wars: Portable Gaming Nintendo DS Sony PSP Nokia N-Gage a small entrant, suffered from price, user interface issues Consumer Electronics Association, Gaming, Digital America 2005, 5 pgs Online Gaming Worldwide market for online gaming expected to reach $9.8 B by 2009 Yahoo and AOL advertiser sponsored gaming sites each attract 10 M users monthly +$1 B in online videogames since 2003 Consumer Electronics Association, Gaming, Digital America 2005, 5 pgs Console Wars Microsoft release Xbox 360 in 2005 Sony s PS Utilizes Power PC cell processor Nintendo Revolution 2006; will utilize BroadCom wireless tech. Consumer Electronics Association, Gaming, Digital America 2005, 5 pgs
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