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The WAVE Report on Digital Media
3D --- Media Creation --- Shared Space ---Published by 4th Wave, Inc.--- Issue #0706------------------4/6/07 |
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0706.1 PMA 2007
By John Latta
March 8-11, 2007
Las Vegas, NV
PMA is all about the market around consumer photography from the taking to the end product which consumers enjoy. But PMA is an American conference, including Central and South America. When it comes to Europe, Photokina is the event. In spite of these geographical biases, PMA is the place to come to see new products and sample trends. 2007 PMA is no different. We have noticed that the amount of exhibit space has declined. For example, Microsoft, Apple and Adobe are not here.
In terms of conference dynamics there are important forces at play which influence PMA. CES is the major consumer show – worldwide. But as with all other large shows it has become too large. Experience has shown that large events with broad market coverage eventually collapse. This trend is certainly evident at CeBIT. PMA is caught in two dynamics – being too close to CES which has also become a venue for consumer photo goods and Photokina – the mega photo show. Exhibitors are faced with the decision – should they participate at two events that nearly overlap? PMA has the advantage of being focused in one market segment but it appears that some of the major exhibitors have pulled back. Next year will say a lot about the ability of PMA to have a signature in the market as a defining trade show. If it continues to see major erosion the end could be on the horizon.
Last year the WAVE Report examined scrap booking, this year it is digital photo frames. As we bore into the topic there was much to uncover.
Digital Photo Frames
Digital photo frames are all over the show floor. The WAVE sought to capture the market dynamics around this emerging category.
Gentel International
This is a Canadian distributor of products. They have two product lines branded as Optex, low end, and IQ for the high end. Their frames are in 7”, 8” and 10” with 11” coming. All the frames interface by inserting a flash memory card in them but one product will have USB. The low end products sell for $100 to $120 Canadian and the IQ products sell for $199 to $299 Canadian. Gentel originally expected the low end product would out sell the high end 2:1 but the reality has been 1:1. Products moved very well in Christmas 2006 and they expect a very good year in 2007.
Merkury Innovations and Targus
These companies are located in the same booth but it is Merkury with the photo frame products. Shown were what appeared to be prototypes. Merkury feels that photo frames will be the hottest photo product at Christmas 2007. But they also feel that the market is more than just for gifting. One had the impression that there was not much preparation into the display – no prices, no product sheets, no information on features and nothing on connectivity options.
Sungate
This is a Chinese OEM/ODM located in Shenzhen. They had the most extensive collection of photo frames at PMA. This included WiFi and Bluetooth connected frames.
The market is segmented by panels 8” and above and 7” and below. The smaller market is fading with the movement to improved quality and panel size. The small panels are analog while the larger are digital panels.
We are in a feature race and these include:
Resolution and panel size;
How many storage cards supported
How much onboard memory
Slide show support
MP3 support
Alarm clock support
Type of panel – analog or digitalThe high end panels are going below $200, retail.
Camdus Micro
Camdus is a Taiwanese company that has 4 picture frames including with MP3. In the booth was a 19” frame at 1280 X 1024 resolution. The high end 19” has no card readers and connectivity is with WiFi. There strength of Camdus is their software expertise and this is used to drive the panels and connectivity. The non-WiFi large panel is expected to retail for $550 while the connected version for $700.
This is a huge market and 2006 was an important year. The supply problems stemmed from the fact that many of the frame companies installed “used panels.” Most of these came from Pachinko machines in Japan where the machines last only 6 months and are replaced – which creates the excess market for the small displays they use. Thus, this was the source of supply. However, the demand was so great for photo frames that the small panels supply dried up which resulted in the shortage at Christmas. There were also a number of post purchase failures of the panels. These factors have driven the industry to get panels directly from the panel manufacturers. Further, with lower new panel prices it makes the transition to new easier while still keeping the retail price in the consumer range.
Pearl Luck Holdings
Located in both New York and Hong Kong this is an ODM. They have some of the most innovative designs including a small 1” cube with displays on it. The market is moving to higher quality and larger displays. Christmas 2007 will have 7”, 8” and 10.4” displays. At retail the 8” will go for $149 while the 10.4” should sell at $170.
The whole manufacturing segment for picture frames has to leave the use of used frames. In 2006 we were caught by the lack of supply and this hurt the growth of the market.
Fidelity Electronics
The drive to purchase photo frames began in October 2006 and has continued. We have never seen the demand for a photo product like this.
Our current products support cards and in Q2 or Q3 we will support USB and then Bluetooth and WiFi in Q4.
Smartparts
Christmas 2006 caught all the suppliers off guard in terms of demand. This will not be repeated in 2007. Our company is going away from used panels.
When asked about network connectivity it was stated this is a niche and their products will likely not have this until 2008.
Mustek
It was asked “…have seen the end of picture frames with used LCD panels.” Yes, was the response – we now have the supply chain in place. Mustek had a number of interesting comments.
The picture frame business is not brand oriented thus a company such as theirs can gain market share. To illustrate the point, consumers will not tolerate a product name on picture frames – regular photo frames have none and digital frames are expected to follow.
The maximum size frame we are likely to see on a table or counter top is 10”. Larger frames will get put on a wall and likely to have greater utility than just a picture frame. (Note the potential for competition with the concept which Sony was showing.)
They do not see 2007 as the year that connected frames happen – this is 2008 in their book.
Wynit
Wynit is a large photo item distributor. They have been selling photo frames for 5 years but in October the category just took off. The market happened in part due to the promotions at $79 to $99 during the Christmas season. But when consumers got to the store they purchased the larger and higher quality frames nearly 1:1 with the smaller units. An 8 X 10 frame typically costs $199.
A derivative market has been the use of digital frames as point of sale advertisement in retail, especially smaller stores. For example, if a store has 5 retail outlets it is possible, with networked frames, to update the frames near instantaneously from one location. This allows for spot sales and promotions, for example.
Kodak
These were the best looking photo frames on the floor– reflective of the Kodak image quality mantra. The frames also had many features. The standard frames at 7” and 8” with respective prices of $129 and $179. The premium frames at in 8” ($229) and 10” ($279) and each one has WiFi connectivity. There is also a remote control. The frames can operate in portrait and landscape modes. Multiple bezels are available to suit individual tastes. The basic frame comes in a black bezel.
When to comes to pricing Kodak feels that consumers will pay for a frame some faction of what they paid for a camera. The frame is like what would normally be paid for processing and printing from a film camera. The market is also strongly driven by gifting but this is not just at Christmas.
Kodak has its LCD panels custom made for these products. There is a lenticular lens array in front of the display panel to disperse the light output and make for wide viewing angle. The panels also have the Kodak color processing software embedded for best output. Each panel has 128MB of memory for local storage.
Kodak applies a plastic sheeting on the cover of each panel to improve the dispersion of the light and enable greater viewing angle. A comment was made that when one does a before and after test of the panels which arrive at manufacturing the result is stunning. That is, the application of the plastic sheeting and Kodak color science processing on each image, renders the panel image quality significantly above the panel as it arrives and also all the other products on the market to date.
The WAVE looked at the panels at some length. The colors were highly saturated which made for striking images. But in contradistinction to many of the other panels, this did not result in a loss of dynamic range of the images. The result is that the images were striking. This has just the effect that Kodak sought to create.
The connectivity story also reflects the thought that Kodak has put into the product. If one has a free account at Kodakgallery.com images are downloaded to the panel automatically over broadband to the home and then via WiFi over the home network. If others what to post images they also need a free account at Kodakgallery.com. This avoids the monthly fee associated with Cevia but the Kodak solution will not work on dialup.
Kodak is counting on the migration to higher quality and the premium that their brand commands. The pricing for the premium panels are at the upper end of the market but they are ahead of the competition in terms of the total connectivity story.
The wireless frames will not ship until May or June while the non-wireless units will ship next week.
The set up is intended to be very easy on the connected picture frames. Shown was how the wireless panel could link to the in-home network, apply security codes and then go to Kodakgallery.com and link to an account.
Someone, such as one of the children of elderly parents, can basically control the panels remotely. This makes the use even easier for the parents once it is set up. There can also be limits set on how much can get downloaded.
The panel will show video and play MP3 files but it will not allow MP3 to be played at the same time as a slide show. In response to a question that this seems a significant omission the response was – Kodak is known for its ability to update products once they are shipped. When asked how these panels are updated over the Internet there was only a smile.
Kodak was asked – the point has been made that brand is not important in this market. If no consumer wants a brand name on the frame how can Kodak establish its presence? The response was that the name on the box is important at the point of sale. It is here that Kodak will establish its value and in the home with the quality of the product.
Many companies are seeking to drive digital photo frames to commodity status and establish the market based on price. The Kodak approach is founded where it is strong – sharing and quality. We were left impressed with the approach that Kodak is taking. Now it is time for the market to decide.
Sony – Using in Home Displays to Emulate Photo Frames
Sony was showing the following cameras which will output component signals to an 1080p HD display:
Cyber-shot DSC-T20 - $330
Cyber-shot DSC-H9 - $480
Cyber-shot DSC-H7 - $400
Cyber-shot DSC-W200 - $400
Cyber-shot DSC-W90 - $300
Cyber-shot DSC-W80 - $250
Each one sits in a small docking station.
Sony on dlna Digital Camera
The Cyber-shot DSC-G1 will support up to 4 peer-to-peer communications, that is, to other dlna devices including cameras. It will also communicate with a dlna network using the 802.11g radio. Yes, the camera is priced $200 above most of the others but it has 2GB of internal memory, a large back display and the features of a high end point and shoot.
Will GPS Come to Consumer Cameras?
Sony was showing the GPS CS1 GPS unit. This is a portable 12 channel receiver which records its coordinates every 15 seconds. The unit is 3 1/2” long and weighs 2oz. It will go on a backpack or ones belt. The unit has a USB connector and software, GPS Image Tracker, allows the camera to be paired with the GPS location information. It is touted as being able to link to any still image including those taken from a video camera. Photos can become push pins on an outline map by activating the Picture Motion Browser 2.0.
The problem with this solution is that it is independent of the camera, it must be on all the time and there is a processing step required to determine the correlation between the image and the location.
NXP, a spin out from Philips, has addressed some of these issues. It is called swGPS Snapshot. When the picture is taken the software can capture GPS signals in about 100ms and thus avoid the long on camera acquisition time or the need to leave the receiver on all the time. When the images are taken to the PC the swGPS Snapshot software continues the processing of the GPS signal to obtain lat, long and attitude. One of the reasons that NXP is at PMA is to seek OEM agreements with camera companies.
Jobo, a German company, has adapted the NXP technology into a device that resides in the strobe shoe of most cameras. They have made this small device on the top of the camera a simple add-on. The device will trigger GPS collection at the same time the trigger is pressed with no additional cables to the camera. This device is due to the market in July at a price point of $149.
There are still some limitations. swGPS does not support WAAS which does limit the accuracy in the US, but this is not a significant drawback. One might find discrepancies between the location from the Jobo device and car navigation, of which many use WAAS. The more serious limitation is that one cannot record coordinates inside. Given that many pictures are taken there the value of the device is negated under these conditions. Lastly processing is required to get the coordinates and then tie it to each frame.
Sony and GPS Tagging
The WAVE spoke at length with Sony on its GPS CS1 GPS photography tagging unit. This is quite small and very convenient but it is priced at $149.95. It is being sold as an accessory. The unit runs independently of any camera – it just logs lat long at 15 second intervals. Battery power is provided by one AA battery which supports up to 15 hours use and the interface is USB 2.0. It works only on Windows. There is no altitude recording and it does not process WAAS. Sony supplies software but it will also work with Google Picasa. The discussion was interesting.
This is a difficult sell. Most camera buyers do not understand the value it brings. It is hard to explain to consumers.
The perceived value rises the more expensive the camera. That is, the more sophisticated buyers may have a car navigation device, they may travel more and use their camera beyond in-home or around home use. To most of these buyers GPS is a known technology.
At present the limitations on indoor use are not a major issue with the basic perceived value being the major barrier.
It would appear that built in GPS would be a better proposition but there are still issues of time to process, battery power of an always on device and the limitations on indoor use. For this to happen, the consumer use proposition must be more widely accepted.
JVC Continues to Improve Camcorders
JVC continues to make advances in the Everio camcorder line and the GZ-HD7 is a major step forward. This is hardly a surprise given all the early technology demonstrations including CEATEC. This camera is capable of providing 5 hours of content to a Blu-ray disk. The codec used is MPEG2-TS/MP2. The variable bit rate is 30Mb/s max and average of 26.6Mb/s. This unit works with the JVC Share Station which allows for the transfer of HD content to a disc. The camera uses 3 CCDs. The camcorder will be priced at approximately $1,800.
The GZ-MG555 sets new ground with a 5.37Mp CCD for a video camcorder. The still image recorded is 2592 X 1944. It has a 30GB disk drive and a 10X zoom lens. This is one of the most advanced merged image recording devices – both a camcorder and still camera in one unit. Price is $900.
Panasonic
No support for GPS or wireless in the digital camera line at present. Being considered for future products.
Digital Panoramic Camera Shown
Seeking to bring new functionality to the digital camera market Libao Cyber-tech in Shangai, was showing its E301 digital panoramic camera. The camera uses a line sensor for imaging as the camera rotates up to 360 degrees. The lens mount is flexible and will support Nikon, Canon, Leica and other lenses. The maximum length of the vertical sensor is 12,000 pixels. A 360 degree scan can be done in a few as 8 seconds. A 360 degree scan with a 5340 element sensor will net a 1.5G pixel image.
Mega Pixel Arms Race Closes – the Life After
With digital cameras as commodities the challenge becomes one of differentiation. This was seen extensively at PMA. Examples include.
Samsung use of face tracker technology from FotoNation in the Samsung S1050, S850, L73, i70, i7, NV11 and L74 Wide digital cameras.
Extensive use of in-camera motion stabilization.
Red eye reduction in-camera.
There is also a trend for features to migrate downward from the professional cameras. At PMA Canon announced the 1D Mark III professional sports camera which represents an significant leap in an integrated photo shooting platform. Some of its advancements include:
14 bit dynamic range images
Significant image noise reduction enabling imagery up to ISO 6400
11f/s shooting rate
Shutter speed to 1/8000 sec.
Shutter lag time 55ms.
GPS integration with full GPS information recorded with the image EXIF data.
Wireless transmission of images.
Thus, this illustrates some of the capabilities that could migrate down market. But more importantly, what are the other trends which are likely to happen.
Market Dynamics at PMA
Digital photo frames everywhere.
It was very interesting that a number of individuals cited the photo frame in the same context as the camera. Digital cameras require photo frames. Even Kodak provided an end user price criteria based on the approximate cost of image processing over the life of the camera. Increasingly we expect to see the photo frame in the same context as the 1 hour print shop – just a part of the camera use profile. Mustek even put a bound on the size of the frame – 10” maximum size which consumers will place on a counter top or horizontal surface. Thus, the use bounds and attractiveness of photo frames is becoming much better defined.
It was interesting that Sony and others stated that photo frames have been around for 5 years and it was only in October, 2006 did the category become accepted and then it took off to the point where demand outstripped supply.
Camera is connected.
The move by Sony to put dlna in a camera is risky and a forward action. One of the penalties is the high pricing. Yet, the ability to seamlessly integrate the camera into the home environment with virtually no action on the part of the consumer is a major leap. This very much depends on the market acceptance of a pervasive home network, enabled by dlna. That has not happened. We also assess that for the camera dlna proposition to work that the use of the camera must change – the frequency of use will rise significantly. Again this has not happened.
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Copyright 2007 4th WAVE, Inc.
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