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Serving Canada’s Consumer Electronics,
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CONTRIBUTING EDITORS
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features
custom corner
Energy Management
It’s not one of the more glamorous trends in integration, but energy management is an
integral part of the automation setup that can capture the attention of clients for a number
of reasons, from convenience, to energy and cost savings.
By Lee Distad ..........................................................................................................6
PVRs are Energy Hogs. But Did You Know How Much?..................................10
Power Monitoring Systems & Time-of-Use Billing............................................11
commercial
Digital Signage: A Fresh Take – Part 1
In Part 1 of this two-part series, we look at the latest trends in digital signage, revisit
what makes a commercial panel different from a consumer one, and examine the
importance of software in the equation. In Part 2 this October, we’ll look at video walls.
By Gerry Blackwell................................................................................................12
digital imaging
Money Bags
With every DSLR purchase comes the need for something to carry it in. And for professionals
and enthusiasts, they’ll be looking for sophisticated bags and backpacks to
meet their particular needs and design preferences, and accommodate accessories.
By Peter Burian ....................................................................................................20
retail tips
Dealing with the Competition
With the ever-growing competition independent retailers face from big boxes and other
local independents, not to mention among big boxes themselves, industry folks weigh
in on what steps one can take to set a store apart from the pack.
By Adam Grant ....................................................................................................26
going mobile
Wireless Acronyms, Terms, & Brands From A-Z
In this guide, that can easily be cut out and used as reference for new sales staff, we
look at some of the most influential, and sometimes confusing, terms in the wireless
industry.
By Christine Persaud ............................................................................................32
Wireless Timelines ................................................................................................40
business matters
Benefits: It Doesn’t Have to be a Bad Word
Benefits can often be an important incentive with a job. And companies don’t have to
opt for a one-size-fits-all package for employees. There are several options available,
and considerations to be made before choosing the right one for you.
By Vawn Himmelsbach ........................................................................................42
Building a Benefits Plan ......................................................................................44
Part-Time Benefits? ..............................................................................................45
networking
The Copyright Battles Rage On
Several issues continue in copyright, while new ones emerge, like UltraViolet DRM for
video content, plus new methods of protection that could result in drastic changes for
the used retail gaming market.
By Frank Lenk ......................................................................................................46
The Internet & UBB ..............................................................................................49
shop talk
Centre Hi-Fi signs first three new members; Tony Scaffeo joins Future Shop; and new
name for 12V specialty shop are just a few of this month’s headlines.
By Wally Hucker ....................................................................................................50
marketnews
Yamaha Canada emphasizes two-channel music, network capability at 2011
dealer shows ........................................................................................................58
HP to discontinue webOS mobile platform ..............................................................58
Sharp intros Elite LED LCD TVs ..............................................................................59
Koss teams up with Tony Bennett for new headphones ..........................................59
Personnel Appointments ..........................................................................................59
TV makers announce plans to standardize active 3D glasses..................................60
Paradigm announces new Monitor Series speaker lineup ........................................60
Distribution Appointments ........................................................................................60
Sennheiser debuts noise-canceling headphones with three modes ........................61
Appointment Notice – Panasonic ............................................................................61
Panasonic welcomes full HD home theatre projector ..............................................61
rep wrap
Jim Kovacs moved to Canada with the intention of staying for just a year. But six years
and a wealth of CE knowledge and experience later, he’s finally landed his dream job
with LG Electronics. ................................................................................................62

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By Lee Distad
It sometimes seems like there are only
two speeds in the gearbox that drives the
custom channel: slow and fast. Change
either comes overnight, as in the way
that the iPad has suddenly taken over the
world, or it’s a long time coming, like
HDTV was at the end of the last century.
While nowhere near as exciting, nor
garnering as much press as trends like
3D and iPad automation, home energy
management is a trend that has been a
long time in the making, only slowly building
up steam. It was at CEDIA Expo back
in 2008 that Crestron showed its plans
for energy monitoring and control, but
without a clear timetable for rolling out
that functionality. For quite some time it
was the case that, like the weather,
everybody talked about it, but nobody
was really doing anything about it.
However, the energy management category
is heating up. Consequently,
automation vendors have invested heavily
in the category, and are prepared to
help integrators tackle it and succeed.
Is There Really
A Demand?
Paul MacAloney and his partner Jay
Hough at NXNW Marketing distribute
Vantage Controls in Canada, and have
observed a rise in demand. MacAloney
notes, however, that some dealers still
don’t see it for what it is.
“There are obviously some homeowners
who are very conscious of it,” he
says, “But there are people building multimillion
dollar homes who may not be
aware of it.”
Mark Gillner, Technical Resource
Specialist/Technical Trainer for AMX
Canada, explains that energy management
and conservation is becoming more
and more commonplace and businesses,
and individuals are seeing the need to
maintain a “greener environment”.
“Whether it’s in the IT sector and the
move to cloud-based computing to
reduce server footprint,” he explains, “or
the AV industry and the need to turn
lights and systems off when people aren’t
in a room, the consensus is that we’re
more energy conscientious than ever.
Energy Management
Dimming lights to reduce power consumption is the most obvious, but often overlooked, way to conserve energy. Dimming lights 10%
can save approx. 10% in power consumption, with reduced light output that’s not really noticeable to the human eye. Seen here is
Lutron’s Maestro IR dimmer in action, which comes in a variety of colours, plus a silver button on the fact that recalls the user’s
favourite light level.
There is a definite growing demand for
LEED-certified designs, and this doesn’t
just hold true for businesses; more and
more residential clients are requesting it.”
Building on that, Gillner suggests that
the majority of clients want the most out
of their automated systems when it
comes to energy savings. Having remote
control capabilities of their systems, or
the components in their environment,
appears to be more for convenience than
energy management. They would much
rather have their automated systems take
care of that for them without the need for
user input.
How many clients ask for energy management
as part of an installation?
According to Scot Kerek, Sales Manager
for AVAD Canada, when you install a complete
lighting package that includes
shades, dimmers and HVAC control, you
get energy management by default. In the
commercial world, energy conservation is
usually the largest driver for installing the
system in the first place, as there is a recognized
point in time where the savings in
energy covers the initial fixed cost of the
system installed. Beyond that date, pure
savings are realized.
“As most businesses are looking to
reduce their OPEX wherever possible,
this makes solid financial sense,” says
Kerek. “There is also a ‘green culture’
that most progressive businesses
acknowledge and want to participate in
and promote.” That means, according to
Kerek, “Presenting a real-time energy
saving return to a commercial customer
needs to be part of the proposal, and is
the key to closing the deal.”
Agata Mossop, Director of Sales for
Lenbrook Canada, which distributes
Lutron Lighting products, explains that
energy efficiency, more commonly known
as being ‘green,’ is at the forefront of all
industries.
“With government led initiatives such
as smart meters and various rebates, the
consumer is becoming increasingly educated
and aware,” she states. “That said,
energy management as it pertains to the
world of custom must follow the same
rules that govern all other areas of a custom
installation: it must be easy to use.”
She points out that there is a correlation
between ‘user-friendliness’ and customer
satisfaction, which is to say that the best
systems are integrated smoothly and
seamlessly.
Conversely, and somewhat oddly, in
Kerek’s opinion, is that in the residential
market, energy savings is not usually a
prime motivator for installing a system in
the home. Rather, according to Kerek,
“Most of these types of systems are
added on by the integrator as a result of
doing other work already in the home,
such as adding a theatre or music distribution
system.”
It’s quite common for the lighting/energy
management part of the sale to only be in
part of the house initially, but within six
months to a year, the integrator is often
called back to include the remainder of the
Overview
• The home energy management category is heating up, leading to new opportunities for vendors
and integrators
• Some form of energy management is often included by default in a whole-home automation
system
• Both businesses and consumers are placing more emphasis on energy efficiency and savings,
making it more of a necessity than a luxury
• There is both software and hardware to help in energy management, allowing customers to do
things like remotely manage settings, and even view real-time reports of usage
• Integrators need to take the lead, and introduce energy management to clients as part of an
overall system design
house, as the client now better understands
the benefits of the system and has
lived with it for a while. It’s then common
for clients to “resent” having to operate a
standard switch in the part of the house
not yet set up. “So there are very real
opportunities for additional revenue on
homes dealers may have previously
thought were complete,” Kerek adds.
However, Kerek asserts that the opportunities
remain untapped. “The gap
between dealers on presenting these
options is huge. Some low voltage dealers
won’t even bring up the concept of
lighting control/HVAC or energy conservation
during a proposal, while other
dealers are on the opposite end and may
lead with the topic. And, as a result, it’s
installed in almost every one of their
jobs,” he says. Much like in a commercial
sale, these dealers will often present
factual energy savings opportunities to a
potential client to help close the
deal. After all, if you can demonstrate that
the system actually pays for itself in time,
there isn’t much objection to moving forward
with the concept.
Regional
Differences
According to David Wilts, Crestron’s
Director of Integrated Building
Technology, from a top-down view, there
is little difference in demand between the
Canadian and the U.S. markets, with the
exception that primary interest is centered
on both coasts.
Hough notes that the dollar costs for
kWh in Toronto and Chicago, to use two
comparative markets in the countries, are
actually quite similar, with equally similar
levels of engagement from both dealers
and clients. Looking at the Canadian
market, he’s observed that Ontario is further
ahead than other provinces in adoption,
while Alberta seems the least interested
in adoption.
Mossop suggests that on the outset,
one would assume that differences in
energy costs would impact consumer

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Scot Kerek, Sales Manager, AVAD
Canada: “The gap between dealers on
presenting these options is huge. Some
low voltage dealers won’t even bring up
the concept of lighting control/HVAC or
energy conservation during a proposal,
while other dealers are on the opposite
end and may lead with the topic. And, as
a result, it’s installed in almost every one
of their jobs.”
preferences. “For instance,” she explains,
“while Quebec electricity costs are significantly
lower than the rest of Canada,
consumers in that province have been
early adopters of new technologies
offered by Lutron.”
Regardless of whether or not there’s a
market demand, there’s also a political
will to make it so. Gerald Prolas, National
Business Development Manager, Home
Systems Division for Legrand Canada,
explains that changes are afoot that are
driven by legislation. For instance, the
state of California has automatic light on
and off based on input by an occupancy
sensor, turning on the lights manually and
turning off by a vacancy sensor would
add up to 20% in light energy saving.
Areas in Toronto, ON now have something
called time-of-use billing, where
energy prices vary depending on the time
of day. (See sidebar.)
What Does It Do?
While energy management has traditionally
been an added value service,
Mossop thinks that is changing. “This
has become a necessity given the competitive
nature of the CE industry. I suspect
that during the transition period, we
will see the emergence of specialized
installers offering energy management as
their key solution,” she predicts.
Prolas asserts that energy management
is an essential part of every new
building project that targets long-term
energy efficiency and applies for LEED
certification. “Clients understand that
energy management systems and energy
saving measures bear additional
costs. However, each system has a clear
and relatively short return on investment
based on reduction in utility bills.”
Building on that, Prolas explains that
there are two types of systems. The first
are stand-alone and local passive systems
in the form of occupancy or vacancy
sensors that automatically shut-off
lights and payloads, and dimmers controlled
by occupants who reduce the
amount of load. These are more suited
for single rooms or limited areas or retrofit
projects. The second type is programmable
and networked energy controls
that are flexible enough to deactivate
lights and loads based on time and occupancy
patterns while, at the same time,
providing data analysis on the amount of
energy consumed. These systems are
installed in new facilities or homes, control
the entire site, and can be remotely
monitored. “Multi zone energy management
systems could be programmed for
security reasons to turn off all loads
except the refrigerator and turn on and
off lights based on time schedules as if
occupants are at home,” explains Prolas.
Hough notes that Vantage is moving
forward to seize the opportunities that
energy management presents.
“What we’re doing primarily is clamping
the main feed going into the home, and
sending it to managed meter that sends
data straight to a touch panel.” In fact,
Hough has set up a system in his own
home and confesses that it can be quite
addictive to watch. “It’s been super-hot
here, and I can watch how much hydro
I’m consuming. Right now as I’m talking,
I can see that my house is pretty much
off. If I turn on a light or a fixture, I can see
how much wattage its drawing.”
Hough explains that his baseline
household usage is 1847kwh, whereas
during our conversation, his house was
currently using 640.
According to MacAloney, there are four
characteristics of active energy management.
The first is temperature setback,
where the temperature is automatically set
to a comfortable level based on outside
temperature. Next is dimming. Says
MacAloney, “Dimming the lights provides
instant feedback.” Which means that users
are more inclined to leave lights off after
seeing what leaving them on actually costs.
The third characteristic is dormancy settings.
Hough explains that in California,
Title 24 legislation states that rooms need
to have occupancy sensors based on
size, and systems must be programmed
to put unused rooms into sleep mode. It’s
a philosophy central to energy control,
even in municipalities where it’s not law.
Last, daylight harvesting is a huge way
to conserve management and show
clients the savings, says MacAloney.
Daylight harvesting uses photo sensors
to scale the output of the building’s lighting
fixtures to the ambient natural light
from outside. This both saves energy and
increases occupant comfort.
According to Hough, central to energy
management is being able to plug in the
user’s characteristics and the system will
change itself based on behaviour, and can
work with peak usage pricing. “The concerns
over usage are pretty much the
same in both Canada and the U.S,” he
says, but notes that “I do see a lot more
interaction and a lot more usage in the
exterior in the U.S. than what we see in
Canada.” He associates this with swimming
pool control, for example. “More
U.S. installs focusing on pool management
which, like house occupancy sensors,
when there’s no pool occupancy, the
pumps use variable speed motors to slow
down the water management, and temperature
control for water temperature.”
What’s Out There
There are a number of vendors and products
on the market that work with, specialize
in, and enhance energy management.
“AMX offers both software and hardware
components to facilitate energy
management,” explains Gillner. From a
software standpoint, he adds, RMS
(Resource Management Suite) is the
foundation and presents users with vital
system information at a glance by way of
easy to read, graphical interfaces.
“At the end of the month,” he describes,
“users have the ability to generate various
reports which can outline how much energy
was used, and which piece of equipment
consumed the most.”
RMS also has a scheduling component
and can turn systems on/off at specific
times of the day, ensuring that energy is
not being unnecessarily wasted.
On the hardware side, AMX offers
options like the AMX NXA-PDU-1508
Power Distribution Unit, which allows for
complete energy monitoring of connect-
Gerald Prolas, National Business
Development Manager, Home Systems
Division, Legrand Canada: “Clients
understand that energy management
systems and energy saving measures
bear additional costs. However, each
system has a clear and relatively short
return on investment based on reduction
in utility bills.”
ed devices to help control standby power
(or vampire power) by completely turning
off individual pieces of equipment when
not in use. “When the PDU is combined
with the powerful features of RMS,”
Gillner notes, “it allows for a truly energy
managed and maintained environment.”
Most important, AMX also seamlessly
integrates with FieldServer, DENT and
other BMS/energy gateways which
allows for complete control of building
management systems, including lighting,
HVAC, et cetera.
Wilts points out that Crestron has recognized
an opportunity to assist building
owners and facility managers in reducing
energy while simultaneously improving
the user experience.
“This is a growth market,” he says,
“because it applies to not only new construction,
but also for every existing
building. Traditionally, facility managers
and building engineers have not had the
tools they need to continually improve the
performance of energy consuming building
systems.”
To address these needs, Crestron has
developed Fusion Energy Management.
This server-based app combines multiple
tools into one package; including energy
monitoring, energy recording, dynamic
building automation, and interfacing with
occupant scheduled apps such as
Outlook and a building dashboard. “By
simply adding a building dashboard in
the lobby,” explains Wilts, “facility managers
and building engineers have been
able to achieve five-to-seven per cent
reductions in energy use. People seem to
want to do the right thing once they are
aware of the impact of their actions.”
According to Wilts, while Crestron is
seeing push back from non-computer
savvy facility/building managers and
David Wilts, Director of Integrated
Building Technology, Crestron: “By simply
adding a building dashboard in the
lobby, facility managers and building
engineers have been able to achieve fiveto-seven
per cent reductions in energy
use. People seem to want to do the right
thing once they are aware of the impact
of their actions.”

10
Crestron offers a full range of energy
management products for both residential
and commercial use, including standalone
products, and those that can be
integrated into a full whole-home
automation system. The CHV-TSTATEX
infiNET EX thermostat, for example, can
connect wirelessly to a control system,
then use advanced programming to save
on energy usage. It can be controlled by
anything from a touch panel, to a computer
or even mobile device.
building engineers, the up-and-coming
generation embraces all of this technology
with open arms, as does the IT group
once they realize the opportunity. “We are
seeing a dramatic increase in interest for
energy management,” he says, further
pointing out that they are seeing these
capability requirements frequently from all
market segments, including residential.
Jeffery Singer, Crestron’s Marketing
Communications Director, explains that
Crestron offers what he dubs a complete,
end-to-end whole house control solution.
“We have touch screens, handheld
remotes, keypads, dimmers/switches
and mobile control apps. We have audio
and video amplifiers, surround sound
processors, multi-window digital video
processors, lighting control, programmable
thermostats, shade/drape control,
Mark Gillner, Technical Resource Specialist/Technical
Trainer, AMX Canada:
“There is a definite growing demand for
LEED-certified designs, and this doesn’t
just hold true for businesses; more and
more residential clients are requesting it.”
Jay Hough, Partner, NXNW Marketing:
“It’s been super-hot here, and I can
watch how much hydro I’m consuming.
Right now as I’m talking, I can see that
my house is pretty much off. If I turn on a
light or a fixture, I can see how much
wattage it’s drawing.”
AMX’s NXA-PDU-1508 power distribution unit allows for complete energy monitoring of connected devices to help control standby
power by completely turning off individual pieces of equipment when not in use.
pool/spa control, remote sensors (photo,
motion, occupancy, temperature and
humidity), audio and video distribution,
intercom systems, security camera control,
and more. Everything operates on a
single platform and intelligently communicates
with each other for maximum ease
and efficiency.”
However, with all that, Singer asserts
that end users need to go one step further
and take this level of control where
they can set lights and temperature to
automatically adjust based on if they’re
home, on vacation, or got up in the middle
of the night to go to the bathroom
and forgot to turn the lights back off.
“We can and do all levels of home
automation,” says Singer. “The trend is
more technology going into the home and
managing it more intelligently. So, yes,
we’re seeing homes that traditionally didn’t
have control systems installing basic
systems to control lights, thermostats and
shades. At the same time, homes that historically
may have been content with basic
control are now adding additional layers of
automation to maximize energy efficiency
and cost savings.”
According to Singer, central to energy
management is software that monitors,
manages and displays real time and historical
energy consumption, usage patterns,
and costs. Users can make intelligent
decisions and behavioural modifications
based on real data. The system can
automatically change energy sources (if
the home takes advantage of natural
sources such as wind, solar and geothermal
in addition to drawing energy from the
grid) based on varying weather conditions
and costs from the local utility company.
AVAD’s Kerek notes that his company
offers a few brands, such as Lutron,
Aprilaire, URC, Crestron and RTI, that can
be used as stand alone devices, or combined
with various ancillary products to
reduce or monitor energy consumption.
Lutron, Kerek gives as an example, is one
of the more advanced and complete systems
that offers both lighting control (natural
and artificial), as well as HVAC control.
Lutron systems can even be used to
turn off standby power to small appliances
when they are not in use.
In terms of energy management, dimming
lights to reduce power consumption
is the most obvious, but many times
still an overlooked way to conserve energy.
“Dimming lights 10 per cent will save
approximately 10 per cent in power consumption,
and the reduced light output is
pretty much not noticeable to the human
eye from running the lights at 100 per
cent,” says Kerek. Going further, dimming
lights 24% will save about 20% in
power consumption. To save 50% you
would have to dim the lights by over
60%, which may not be practical, suggests
Kerek.
The less obvious ways to save energy,
and the ones that Kerek says integrators
most need to promote to their clients, is to
incorporate blinds into a system to reduce
(during the summer) or increase (during
the winter) the amount of natural solar
heating into a room or hallway to reduce
the load on the HVAC system. “These are
quite often tied into a temperature sensor
that can be programmed to open or close
the blinds automatically through the day,
helping to offset the natural solar load,”
explains Kerek.
Lutron temperature sensors and controllers
are available in wireless configurations
now as well, allowing sensors to be
placed where readings would be most
accurate, helping to create the right temperature
in the location it’s actually
required, versus setting a temperature
either too high or too low in another location
to compensate. Lutron claims that
energy savings of up to 16% can be
obtained when using Lutron Temp control
on the HVAC system. All of these systems
can be run from a conveniently
located Lutron keypad, iPhone, iPad,
iTouch or a third-party remote control.
Summing up the company’s position,
Wilts asserts that from Crestron’s residential
experience, the company sees end
users controlling all building systems from
a single user interface. From the commercial
world, Creston is seeing energy
reduction best practices, such as leveraging
occupancy sensors for all buildings
and daylight harvesting. “Crestron is
uniquely positioned to empower the
industry with unique solutions that cross
PVRs are Energy Hogs. But Did You Know How Much?
Upgrading to new set-top box technology might not just be about the cool, new technologically-savvy features. It can also result
in significant energy savings. You may have heard that personal video recorders (PVRs; known more commonly in the U.S. as
DVRs), are one of the categories of AV devices that tends to hog the most power, particularly because they operate at near full
power when the consumer isn’t even watching or recording anything. The reason is because even if nothing’s happening, the box
needs to be ready to initiate a recording should one have been, or be, scheduled; especially if it’s being done from a remote computer,
or even a smartphone on the fly.
But does this mean it’s sucking up just a bit of power while you’re long tucked into bed, or plugging away at work while the
house is empty? No. And the real figures may astound you. According to the Natural Resources Defense Council (NRDC) in the
U.S. PVRs draw nearly as much power when they’re not being used as they do when they are. When running, the average new
cable HD PVR consumes more than half the energy of an average new refrigerator, and more than the average flat panel. PVRs
typically use 40% more energy each year than their non-PVR counterparts.
The NRDC reports that Americans spend US$2 billion each year to power these boxes when they’re not actively being used.
They consumed nearly 27 billion kilowatt hours of electricity in 2012, equivalent to nine average coal-fired power plants, and to the
annual household electricity consumption of the state of Maryland. The resulting cost? More than US$3 billion each year, not to
mention 16 million metric tons of carbon dioxide.
So what does the NRDC propose we do about it? After all, society is filled with people who want to watch what they want, when
they want it. We’re no longer confined to the schedules cable and satellite TV providers make for us. And PVRs are just one of the
many devices that afford this such luxury. Better-designed set-top boxes that consume less energy are a start. But the NRDC also
points out that newer innovations, like IPTV boxes or Apple TV, actually lead to the consumption of less electricity, making them
attractive alternatives. This is because they often involve just one main PVR in the home that connects to several other receivers
in other rooms. Because there’s only one main PVR versus multiples, not to mention ones that tend to run on lower power, this
can result in significant energy savings. The NRDC also suggests that manufacturers look at ways the boxes can automatically
power down to much lower power levels when they are not being used.
Interestingly, the Council pegs Apple TV as being one of the most efficient devices, drawing just 3 watts in On mode and less
than one watt in Sleep mode. AT&T’s IPTV set-top boxes ranked the most efficient in the U.S., drawing approximately 18 watts in
On mode and 12 watts in light Sleep mode. Europe’s Sky Broadcasting adds some interesting options. Its HD DVRs draw 23 watts
in On mode and 13 watts in light Sleep. Light sleep can be activated by pressing the power button, then the box can be powered
back on instantly, allowing for more energy savings when they’re not in use. But the boxes also default to a less than one watt
deep sleep state automatically at 11 p.m. each evening, waking briefly every half hour to check for new recording requests.
Streaming services, like Netflix and Hulu, are very convenient options since content is streamed from the ‘Net when you want.
But they’re also energy efficient ones. And this is just yet another reason how they may prompt manufacturers to ramp up their
games. Now convenience isn’t the only factor; energy consumption is an area worth competing in as well. Naturally, with the state
of the economy, not to mention the fact that many consumers have “being green” on their minds, this feature will be of growing
importance in the future.
PVRs are the way of the future. According to the NRDC, the percentage of boxes with PVR capabilities has grown from 10% in 2007
to 35% today. Which means the amount of energy consumption equates to the use from three more power plants; from six to nine. By
using a multi-room configuration with lower power boxes, the NRDC estimates that we could consume up to 70% less energy.
And the need to do just this may be more pressing than realized. Should nothing be done to address the problem, the NRDC
says that we’ll see the electric bill required to power these devices increase by US$3.5 billion by 2020. Should moves be made in
the right direction, we could save as much energy as is generated by seven large power plants within the same time frame.
It’s an interesting consideration, and one that, while realized in the past, may not have been given the due concern it deserves.
– Christine Persaud

Agata Mossop, Director of Sales, Lenbrook
Canada: “With government led initiatives
such as smart meters and various
rebates, the consumer is becoming
increasingly educated and aware.”
pollinate all of these best practices to the
owner’s advantage,” he asserts.
Making It Happen
In broad terms, Legrand’s Prolas thinks
integrators can’t afford to discount the
energy management business. As he
explains, “In large installations, lighting
control systems provide integrators with
a competitive edge and higher profitability
than lighting devices. The control and
system diagnostic aspect of the system
might add value and periodical revenue
stream for the system integrator in facilities
and homes.”
It’s Singer’s opinion that integrators need
to take on the role of energy advisors to
their clients, providing counselling on
options when it comes to the energy consumption.
And this should not be just
about TVs, but also appliances and other
devices. “We have energy efficient amplifiers,
for example,” Singer points out, elaborating
that most people overlook the
home computer and entertainment components
when thinking about energy savings.
“There’s so much more electronics in
the home today than ever before, and all
these devices, from TVs and receivers to
printers and WiFi routers, all consume
tremendous amounts of energy.” Often
these devices are left on standby and continue
to draw a lot of energy. Electric bills
can be significantly reduced by automatically
turning off components and properly
managing them. “Walk up to your cable
box right now, even if it’s ‘off,’ and listen to
the hum. That’s your electric bill running
up,” he muses.
Integrators often need a story to tell
when pitching automation to clients.
According to Mossop, Lutron has saved
its customers over $2.9 billion dollars in
lamp costs and electricity. Says Mossop,
“While commercial projects have been
the subject of various studies, residential
consumers can use a simple Energy
Savings Calculator to instantly calculate
their expected savings.”
MacAloney thinks that it’s very important
for dealers to offer energy management
to their clients. That’s why some
Vantage dealers are offering it as part of a
system: lighting control that includes
energy management. “We’ve even seen
guys see the value and the principle
behind it, not to mention that it adds revenue
to the dealer, as well as value to the
client.” And that client value, according to
MacAloney, needs to be addressed. “My
house is of modest size, and I’m drawing
almost half a kW an hour with almost
nothing on. If I had a larger home, I would
be more prone to be open to an energy
management solution.”
Gillner suggests that integrators need
to champion energy management to their
clients. “For many integrators, their system
designs are built around energy
management and are integral to it. I’ve
spoken with many integrators and have
often asked the question ‘Why did your
client request environmental automation?’
And many times the response was
‘They want to do their part for the environment
and the cost savings alone are
Paul MacAloney, Partner, NXNW Marketing:
“We’ve even seen guys see the value
and the principle behind it, not to mention
that it adds revenue to the dealer, as
well as value to the client.”
hugely beneficial.”
According to Kerek, it’s good practice for
the integrator to have these settings built
into the designed system. “The customer
is likely unaware of the options available to
them initially, unless explained. Remotely
monitoring temperature or controlling lights
is becoming a more common request from
clients that have second homes or cottages.
That means that before they arrive
or after they have left, they can reset the
system to the desired appropriate state,
again from an iPhone or the office computer,
for example.
Is energy management an added value
for integrators or a standalone service?
Both, Kerek says.
“We have had a few dealers quote an
entire home theatre, music distribution
project, and only land the lighting control
part of the job. We have dealers that
cater specifically to this service, so it definitely
can be a standalone project or just
an add-on sale to the home theatre
installation.
Progressive integrators, says Kerek,
include lighting control in the home theatre
project, even if the client isn’t aware
of it until after the project is done. “This
helps to set the stage for additional
rooms or perhaps ‘whole house’ solutions,”
he opines. MN
Crestron’s Fusion Energy Management
system includes energy monitoring,
energy recording, dynamic building
automation, and interfacing with occupant
scheduled apps like Microsoft’s
Outlook and a building dashboard.
Power Monitoring Systems
& Time-of-Use Billing
Residents in Toronto may have noticed new account numbers on their latest bills in
order to comply with the city’s upgraded smart meter system. It’s a cost saving
measure meant to help the organization more effectively collect usage data per
household. And it now includes a Web monitoring feature for the homeowner.
While the Web portal shows up to the previous day’s usage, because it’s not in
real time, it’s difficult to identify what actually causes a spike in demand. One potential
reason for certain spikes is that Toronto, like many growing cities in North
America, is now under Time Of Use (TOU) billing. This means that during peak periods,
residents can pay up to almost twice per kilowatt versus usage during off peak
times. That’s a huge difference.
There’s an opportunity for technology and home integrators in this space with new
products that offer energy monitoring in real time via a home’s smart meter. Control4,
for example, is currently working with various power companies and integrators to
offer an affordable monitoring system as a standalone product for homeowners.
Control4 dealers will recognize the potential for more business through attachment
sales here. These monitoring systems will not only help identify usage, but even automate
or regulate the actual device(s) to limit use while avoiding discomfort. TOU billing
rates can even be programmed into the device(s). This way, it can forecast your next
bill by continuously monitoring usage and comparing it to recent usage history.
Think TOU wont happen in your city? Think again. Our national power grid system
hasn’t truly undergone significant upgrades since the ‘70s, while our demand for
those precious kilowatts has gone up. Within the next 10 years, energy management
systems in North America may very well become as common as the thermostat.
Technology will become more affordable, and even subsidized by local governments.
TOU billing will be that nudge consumers need to start better managing
their usage. And that’s good news for companies offering compelling energy management
systems.
– Marcel Mukerjee. Marcel has over 20 years of experience in the AV industry,
working on the manufacturer, distribution, and retail sides.
11

12
By Gerry Blackwell
Sign, sign, everywhere a sign. Blockin’ out
the scenery…demonstrating products,
helping people find their way, providing
information. In the old Five Man Electrical
Band song from 1971, signs were
evil…man. But in 2011, especially if you
sell and install flat panels, signs are good.
Even in the two years since we first
looked at this market, digital signage, has
leapt ahead. In “Digital Signage Future
Trends 2011,” a report from industry
publisher DigitalSignageToday.com, 16%
of survey respondents in 2011 said they
would spend more than $1 million this
year on digital signage, compared to just
6% of respondents who said they’d
spend that much in 2009.
According to the latest data from Partner
Research Corp. (PRC), Canadian unit sales
of large-scale commercial panels for signage
jumped another 8% year-over-year in
the first quarter of 2011 to more than
13,000 units. PRC expects sales to grow
even faster later this year when more LED
product comes into the market.
The panels are just one part of it, of
course, albeit the most visible.
Customers also buy software, which
increasingly is the core component and
starting point in digital signage projects.
They pay for media players, the devices
that ‘play’ content on digital signs. Those
players are often networked, so they’re
buying network services too.
And they buy fixtures, enclosures,
mounting gear, cabling, etc. Plus, of
course, installation and integration services,
at least some of which are provided
by AV integrators, including residential
integrators transitioning into commercial
markets.
It’s such a multi-faceted market that, as
Jeff Collard, President of Toronto, ONbased
digital signage software company
Omnivex Corp., notes, there really isn’t
any reliable data on its overall size. Collard
estimates growth in digital signage software
sales at a consistent 20% per year.
Wayne Ruttle, Vice President of Sales
at Adflow Networks Inc., a 10-year-old
U.S.-based software provider, says his
company has also seen “substantial”
growth every year, often doubling revenues
year-over-year in the early going.
Digital Signage:
A Fresh Take–Part1
Suffice to say the digital signage market
is huge, and growing fast. And it’s evolving.
In this article, we look at some of the
latest trends, both in the technology and
the way the industry operates. In Part 2
of this topic series in October, we’ll look
more specifically at the growing trend
toward video walls.
Consumerization
One key trend reported by panel vendors
and others is pressure from customers to
make the commercial panels used in digital
signage more like consumer TVs.
In some cases, it’s simply pressure to
make commercial panel prices more like
prices in the cut-throat consumer TV
market. But customers also often want
the look of consumer products, and they
want a tuner and sometimes speakers so
they can use the panel for multiple purposes:
sometimes for signage, sometimes
to entertain customers.
“We see a lot of bottom-up driving of
design in this space,” says Marco Nalli,
Sales Manager for Professional Displays
at Samsung Canada. “What they’re using
at home, they want to see in their storefront
or corporate environment. There’s
definitely a heavy influence.
“And we are moving to fit with those
requirements,” he continues. “Our products
are slowly becoming more consumer-centric.
We’re trying to use thinner
bezels and we’re moving commercial
products more towards LED.”
This is a good thing for the vendors in
some ways, Nalli points out. It means they
can save money by building chassis and
some other components for use in both
Alex Romanov, CEO of iSign, explains
that the company’s Bluetooth proximity
marketing process completely bypasses
cellular operator networks, which is one
of the beauties of the system. It costs the
mobile device owner nothing to receive
the message, and iSign and its customers
nothing to send them.
consumer and commercial products.
He adds, however, that thinner bezels
in particular actually gained momentum
in commercial products first, where they
were introduced in part to enable as
seamless as possible tiling of panels in
video walls.
Bruno Pupo, National Sales Manager
for Digital Signage Solutions at LG
Overview
• Commercial-grade panels are becoming more consumerized in their look and feel, thanks to
trends like thinner LED technology and video walls
• Commercial panels continue to employ features like more durable components, special dust-proofing,
higher cooling, longer operating times, RS232 inputs, and higher contrast, just to name a few
• Some of the latest trends in commercial signage include special size formats, kiosks, touch, RFID,
Bluetooth, and back-end integration
• At the heart of any signage system is software, and there are several companies that specialize
in the field
• Who becomes the first line of support when an issue arises is debatable, but will often depend on
the issue at hand
Photo: Omnivex Corp.
Electronics Canada, notes too that while
commercial customers may want some
consumer design features, they usually
don’t want a consumer TV-like bezel that
is thin at the top and sides but fatter at
bottom to accommodate a control panel.
They want an even width all the way
around, more like a picture frame. Partly,
again, to enable video walls, partly to
accommodate portrait-mode installation.
Adflow’s Ruttle makes the case that
customers shouldn’t want the look of
consumer TVs for signage.
“Digital signage should be part of the
design DNA of the store,” Ruttle says.
“The displays should be built into fixtures
or inset into the wall, everything flush, so
it doesn’t look like a TV. We’ve learned
from experience that that’s by far the
most successful way to deploy digital
signage technology.”
Price Pressure
At the end of the day, the main impetus
for consumerization in digital signage is
price. “We often say, tongue-in-cheek,
that our biggest competitor is our own
consumer TV division,” says Nalli.
“It’s a real challenge,” Pupo agrees.
“We’re always measured by the same
yardstick. Customers will say, ‘We can
buy a 42-inch consumer LCD TV for X
dollars. Why is yours twice the price?”
The vendors have good answers. For
one thing, the price delta between comparable
commercial and consumer panels
isn’t that big, Pupo insists. LG
“strives” to keep it at about 20%,
although he admits it’s difficult because
the consumer TV business is driven by
special promotions and controlled to a
large extent by the retail channel.
Many customers can’t accept even a
20% premium, Pupo adds.
Gene Ornstead, Director of Product
Marketing at ViewSonic Corp., has
research (of unknown provenance)
showing that more and more panels
used for public display, especially at bars
and restaurants and in small businesses,
are consumer TVs, with the ratio tipping
this year to more consumer TVs than
commercial panels. This is despite some
very good reasons not to use consumer
product. Many panel vendors will not

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14
Jeff Collard, President, Omnivex Corp.,
Toronto, ON: “We’re a Microsoft Gold
Partner, so by default, like it or not, we’re
going to the cloud with them…it’s very,
very small so far. It’s early days in the
cloud.”
honour warranties on consumer TVs
used in commercial environments, or
they shorten the warranty period.
(ViewSonic is one manufacturer that will
warrant them for use in commercial applications,
Ornstead points out, although it
has relatively few consumer products.)
There’s good reason why vendors usually
void warranties: consumer TVs are not
designed to stand up to the rigours of
being used in commercial settings. “Living
rooms don’t have a lot of dust compared
to commercial premises,” Pupo points
out. “Dust alone has a huge impact [on
consumer TVs used for signage.]”
Just having TVs running 12 or 16 hours
a day, overheated and exposed to power
spikes, is another hazard to their health.
And you cannot mount most in portrait
mode. Quite aside from looking silly when
they have the typical uneven-width bezel
of consumer TVs, they’re also, and more
importantly, vulnerable to “pixel bleeding,”
in which the liquid crystals fall down the
screen when it’s turned on end, damaging
the panel and degrading picture quality.
Commercial
Differentiators
Digital signage customers get a lot for the
20% (or so) extra they pay for commercial
product. Pupo reels off a long list of
features and capabilities not found in
consumer TVs. Some simply make commercial
panels more robust.
Virtually all can be safely mounted in
portrait or landscape mode, for example.
They often have special dust proofing.
LG’s products use convection cooling
technology, eliminating internal fans that
may inadvertently pull dust into LCDs.
And some can run at much higher temperatures:
up to 110° C compared to 70
or 80° C for most panels, without degradation
in picture quality.
A lot of it, Nalli says, is just building
panels with more durable components:
“glass,” the LCD itself, designed to be
used for up to 15 hours a day, for example,
and semiconductors and other componentry
with higher tolerances, able to
run for longer. “It’s mainly because [these
products] are better at dissipating heat,”
he says. “That’s the biggest problem for
panel failure: overheating.”
Some other features improve performance
in the special circumstances often
found in commercial settings. For example,
the “super in-plane switching” that is
Gene Ornstead, Director of Product
Marketing, ViewSonic Corp.: “The
installer wheels [signage kiosks] in, loads
the customer’s content [via a USB card],
and they’re done. Or they can be
installed as part of a more sophisticated
digital signage network. They’re very,
very versatile.”
more often found in LG’s commercial
products than its consumer TVs, increases
the effective viewing angle and, critically,
the accuracy of colour in off-angle
viewing.
“How consistent the colours are at all
angles is important to a lot of customers,”
Pupo points out. “If they’re putting
up their brand, they can be very
picky about colour. They don’t want to
see huge colour shifts.”
LG and some other manufacturers also
use a transflexive coating on the glass in
some models that converts ambient light
into backlight, making it possible to place
signs facing a window or in a brightly lit
atrium and not have the image wash out.
Commercial panels are usually brighter
and have a higher contrast ratio than
consumer TVs too, so they can display
signage content more clearly even at a
distance.
Finally, there are crucial features that
make it easier to install and control panels
in commercial settings.
Most have RS232 inputs, the preferred
method for connecting media players
and other control devices. Some have
computers built in, or the option of building
in a computer, eliminating the need
for separate controllers or media players.
Most have front-panel lock-out features
that make it possible to prevent customers
changing picture adjustments,
volume and other settings.
And most have USB ports and support
configuration cloning. The installer adjusts
settings on one panel in a multi-screen
installation, copies the configuration to a
USB thumb drive, plugs the drive into each
of the other panels in turn, and copies over
identical configuration settings.
Special Formats
Running contrary, in some ways, to the
consumerization trend is a trend to using
odd-sized and odd-shaped panels to fit
in tight spaces, and panels built into selfstanding
kiosks. They’re used in installations
in which signage actually looks less
like a consumer TV, exactly what Ruttle
recommends.
A few manufacturers now make halfheight
(or “stretch” or “extreme wide”)
panels designed to fit over doors or in
other tight spots. They’re typically, as the
name suggests, the same length as standard-format
panels but half the height.
LG claims to have been first to launch
and mass produce such products. “It’s a
key specialty for us,” Pupo says. “A lot of
customers have shown interest, but relatively
few are using them. Volume sales
have not taken off in a big way yet.” Part
of the problem, he says, is that customers
expect a bigger delta in price between
standard-format and half-height panels
than it’s possible for vendors to offer.
Samsung, meanwhile, has moved
away from producing finished products in
non-standard formats, Nalli says. But it
does provide componentry for specialty
manufacturers that build Samsung glass
into their own half-height enclosures. He
won’t say which manufacturers, but says
most with half-height products are using
Samsung parts.
ViewSonic recently introduced a line of
“extreme wide” panels (16, 19, 29 and 38
inches diagonally) for digital signage
applications. They also feature very high
brightness, making them legible at a distance,
Ornstead notes. That makes them
ideal for signage in food courts, for example,
and in transportation environments,
on ships and even tour buses.
One reason these products are important,
Collard says, is that they enable different-looking;
indeed, un-consumer-like;
installations such as the one at the Air
Canada Centre in Toronto, home of the
Toronto Maple Leafs and Toronto
Raptors.
“One of the things they did that is quite
clever is they very rarely used a single
screen, and it’s never a standard 16-by-9
box,” he says. “They try not to make it
look like a TV.” Like Ruttle, he believes
this is the most effective design for electronic
signage.
Kiosks
Kiosks similarly extend the possibilities of
where and how digital signs can be used,
and often simplify installation. There are
kiosks for indoor and outdoor use. Some
flat panel vendors are building self-standing
enclosures with their own LCDs.
Specialty OEM manufacturers also supply
aftermarket enclosures in which they integrate
LCDs from major manufacturers.
Some of these products are “off-theshelf,”
others “designed-in” to projects,
with gradations in between. It makes the
line between kiosks and custom fixtures
sometimes difficult to discern.
LG, for example, recently introduced a
custom kiosk solution co-developed with
an unnamed enclosure partner. It has
At the heart of any digital signage display is the software that runs it. Several companies
specialize in software that can be tailored to various applications. For example, Omnivex
has developed software that’s been used in everything from a Toronto university’s bookstore,
to a sporting venue’s restaurant menuboard, and even the Vancouver airport.

Omnivex used RFID to help build a digital signage network in a Hyatt Regency Hotel complex
in Chicago. Guests, usually convention attendees, wear badges with an RFID tag
embedded into them. As they approach a sign, the tag sends a signal to a receiver connected
to the signage network, and customizes the displayed content accordingly.
There’s a new trend toward odd-sized and odd-shaped panels to fit in tight spaces, or
on countertops; and half-height “stretch” panels designed to fit over doors.
been used in “large enterprise projects”
for advertising promotional boards along
drive-through laneways. The kiosks feature
a ruggedized enclosure and panels
with LG’s Shine-out technology for converting
ambient light to backlighting and
its high-temperature technology which
prevents image degradation at abovenormal
operating temperatures.
Kiosks are “a big area” for ViewSonic,
Ornstead says. His company’s ePoster
products are stand-alone, off-the-shelf
kiosks that can make installation very
simple because they include a rudimentary
built-in media player and flash memory.
“The installer wheels them in, loads
the customer’s content [via a USB card],
and they’re done,” he says. Or they can
be installed as part of a more sophisticated
digital signage network. “They’re very,
very versatile,” he says.
ViewSonic’s ePoster kiosks are being
used in Canadian new car showrooms
and on some cruise ships. The company
recently introduced new models
“because of acceptance in the market,”
including models with screens on both
sides, with one screen touch enabled.
Touch
Everybody we talked to for this article
agrees that widespread adoption of
touchscreen technology for signage is
one of the most important trends in the
industry.
Touch in the mobile phone and tablet
world is creating a “touch generation,”
Nalli says. “After years of ‘Don’t touch the
LCD,’ now it’s almost a natural instinct to
walk up to a flat panel and touch it,” he
says. Which may be one more reason to
deploy touch screens, or at least glasscovered
LCDs: to protect the screens.
“It’s one of the biggest changes in our
space in a long time,” Ruttle says. “It’s
already a big part of our business and it
delivers very solid return on investment
[for customers].”
One reason touch is so popular is that
it lets advertisers and other digital signage
implementers track the user experience
for the first time. It’s difficult to
gauge the impact of passive signage, but
with touch-enabled panels, the software
can tell you how many customers use it,
which of the products it advertises are
most popular, and more. It even opens
the possibility of capturing customer
information for loyalty programs.
“This is information our customers
would kill to get,” Ruttle says. “Touch is
solving a lot of challenges out there.”
Pupo makes the case that interactive
touch panels are by definition not digital
signs, because a sign is a one-to-many
communications device, whereas touch
panels are one-to-one. But even if they’re
not, strictly speaking, digital signs, touch
panels are increasingly being integrated
into digital signage networks and into
larger corporate communications strategies
alongside social media marketing,
he says. And many function as signs
some of the time, and interactive terminals
when someone touches them.
Most of the major panel manufacturers
have touch-enabled products, although
not all design touch into their products
from the get-go. The technology initially
came into the digital signage world via
aftermarket, overlay solutions including
infrared and 3M’s MicroTouch DST that
could be retrofitted on existing panel
products. ViewSonic still integrates the
3M technology into existing panel products,
although at the factory.
The advent of designed-in, fully-integrated
touch panels has helped bring
prices down to more affordable levels.
“Cost always seems to be the barrier,”
Pupo says. “And there was significant
cost involved when you were using an
[after-factory overlay].” Customers would
have to pay about $4,500 for a 47-inch
panel. Now 47-inch panels with integrated
IR touch technology cost between
$2,000 and $2,500, he says.
“We’re seeing some traction now
because that price means customers can
cost justify it,” Pupo says. Nalli estimates
the price delta between standard and
touch-enabled products in Samsung’s line
at a fairly reasonable 20%.
Touch does have some implications for
digital signage form factors. The technologies
used require wider bezels than
most customers would probably prefer,
but that is simply a price you pay for the
functionality.
Meanwhile, Microsoft’s Kinect and
Surface technologies are enabling new
kinds of digital signage-like touch-enabled
interactive selling devices using table tops
with embedded touch screens, and innovative
interfaces that let sellers and customers
interact with each other and with
information on the screens.
Applications
Where else are touch panels being used
in signage? Suppliers often mention wayfinding
applications: interactive maps of a
shopping mall, office complex, college
campus. Visitors use touch to choose
where they want to go, or what kind of
store they’re looking for, and the sign
shows them how to get there.
Omnivex developed an application for
one client that incorporates GPS navigation-style
traffic reporting. The touchenabled
application captures information
from cameras around the mall and if it
detects congestion in one area, it will
route shoppers a different way to avoid it.
“We’re also starting to see touch more
prominent in applications that try to find
ways to drive cost out of companies,”
Pupo says. “Things like ordering online
tickets so you don’t have to go to [a live
ticket seller], customer service applications
of various kinds, usually [with the
panel] built into a kiosk structure.”
Ruttle says Adflow customers are most
often using touch to help provide more
information about products in retail settings.
Ornstead says the same. Touch and
interactivity are used mostly at point of
sale or “point of demonstration,” he says.
Applications for touch may ultimately
be universal. “It’s pretty much going into
everything,” Nalli says. “I wouldn’t say
any one area is stronger than the rest.”
3D
3D digital signs? Well, maybe, in the
future. The trouble with 3D for digital signage
is that viewers need glasses for cur-
rent 3D technologies. Since digital signs
are mostly designed to catch eyes as
they walk or drive by, this would seem to
be an insurmountable obstacle.
But in fact, 3D is beginning to have an
impact, albeit at the leading edge. In
some hospitality locations, sports bars in
particular, panels deliver digital signage
content some of the time and entertainment
other times. On fight night, the bar
might issue glasses to patrons so they
can watch 3D broadcasts of boxing
matches. Some bars are roping in sponsors,
such as beer companies, to underwrite
the cost of 3D glasses, Pupo notes.
At LG, “3D is actually a very core strategy,”
he says. “We’re investing heavily.”
Pupo claims LG’s 3D products have a big
advantage over others in that they require
only “passive” 3D glasses that cost a few
dollars each. This makes it affordable for
a hospitality property owner, or sponsor,
to provide glasses to all patrons who
want them.
And LG has commercial 3D panels that
function in 2D mode with no degradation
in image quality. This means they can
easily do double duty as digital signs and
for entertainment.
Samsung’s Nalli concedes there could
be a market for such dual-purpose 3D signage-entertainment
screens, but his company
has not yet developed products to
pursue the opportunity. It does, however,
have technology in development that will
deliver a 3D experience; “the impression of
3D,” is how Nalli puts it; entirely without
glasses. That could push 3D to the forefront
in digital signage.
ViewSonic’s Ornstead says his company
is “staying on the leading edge of 3D”
because it’s heavily involved in other markets
where 3D is important, such as
desktop gaming and education, but isn’t
currently pushing it as a technology for
commercial digital signage.
Ruttle also says 3D doesn’t figure in
Adflow’s business yet. “I’m not saying it
isn’t a wave that’s coming,” he adds, “but
we’re not seeing anyone asking us to
support 3D content right now.”
RFID
While RFID (radio frequency identification)
is well established in industrial settings,
it’s definitely bleeding edge technology in
digital signage. RFID is more often used
to locate or count items or people. RFID
“tags” attached to products or containers
send radio signals to receivers in fixed
positions or sometimes carried by workers
in warehouses or at transportation
hubs. So how does this apply to digital
signage?
Omnivex used RFID to help build a digital
signage network in a Hyatt Regency
Hotel complex in Chicago. The object
Among the numerous features that justify the approximately 20% markup for a commercial
versus consumer display is the ability to run at much higher temperatures without
degradation in picture quality. Some even take things a step further and boast
waterproof designs.
15

16
Wayne Ruttle, Vice President of Sales,
Adflow Networks Inc.: “Digital signage
should be part of the design DNA of the
store. The displays should be built into
fixtures or inset into the wall, everything
flush, so it doesn’t look like a TV. We’ve
learned from experience that that’s by far
the most successful way to deploy digital
signage technology.”
was to customize sign content to particular
guests, usually conventioneers. The
hotel is spread over multiple buildings
and straddles streets, making it difficult to
navigate for first-time visitors, and difficult
to develop signage content that delivers
universally useful way-finding information.
Convention name badges carry an
RFID tag. As the patron approaches a
sign, the tag sends a signal to a receiver
connected to the signage network. The
tag identifies the convention the visitor is
attending and tells the network to display
relevant information. The hotel has also
used the technology to develop selfguided
tours, with way-finding and other
information displayed on the signs as visitors
approach.
This is an interesting use of the technology,
but what happens if a bunch of
attendees from different conventions
approach a sign at the same time?
Wouldn’t it be easier just to use touchscreen
technology to achieve the same
ends? Still, there could be other applications
where integrating RFID and digital
signage networks pays real dividends.
Bluetooth
This is another instance of wireless technology
being integrated with digital signage.
Some vendors, most notably
Vancouver, BC-based iSign Media, are
exploiting Bluetooth for “proximity marketing;”
sending marketing messages to
nearby Bluetooth-enabled mobile
devices.
iSign started as a digital signage software
provider, but now specializes in
Bluetooth-based proximity marketing.
“We wanted to extend the reach of digital
signage content,” explains iSign CEO
Alex Romanov. “And we wanted to be
able to provide measurement and
accountability for advertisers. One of the
best places to embed our software is in
[digital signage] media players or [PCequipped]
digital signs.”
The iSign software and Bluetooth
transmitters can be co-resident with digital
signage media players, and could
even use repurposed digital signage content
in the messages it sends out. But it
can as easily stand alone, completely
separate from a digital signage installa-
Marco Nalli, Sales Manager, Professional
Displays, Samsung Canada: “Touch in the
mobile phone and tablet world is creating
a ‘touch generation.’ After years of ‘Don’t
touch the LCD,’ now it’s almost a natural
instinct to walk up to a flat panel and
touch it.”
tion, Romanov says.
How does it work?
Bluetooth is a short-range wireless
technology, used mainly for “personal
area networking” applications such as
adding a wireless headset to a mobile
phone. According to Romanov, 98% of
mobile devices now have Bluetooth.
Some users turn Bluetooth off on their
mobiles when not using it, but he says
60% leave it on all the time so that they’re
able to receive messages.
The PC-based iSign server/media player
constantly scans the Bluetooth airwaves;
the technology has a reach of
about 300 feet; looking for nearby
devices. When it finds one, it checks to
see if it has communicated with this
device before, and if it hasn’t, sends it an
“opt-in” message.
The opt-in message shows up as a text
on the mobile’s screen, asking the user if
he would accept a coupon or special
offer from a nearby merchant. The
process completely bypasses cellular
operator networks, which is one of the
beauties of Bluetooth for proximity marketing,
Romanov says. It costs the
mobile device owner nothing to receive
the message, and iSign and its customers
nothing to send them.
If the user clicks or presses OK, iSign
sends a message with the details of the
offer or a coupon the consumer can
redeem at a merchant by showing it on
his mobile screen. Bluetooth is again the
perfect vehicle because it has enough
transmission capacity to accommodate
rich media messages including graphics,
images, animation, music and video.
“The value proposition for the advertiser
or retailer,” Romanov says, “is that there’s
no printing, no massive planning ahead
required, no massive distribution effort, no
cleaning up afterwards. And every campaign
can be changed in two minutes;
that’s the lag time for putting in new offers.
Our system also measures responses in
real time. That’s worth a fortune.”
He admits it’s still early days for
Bluetooth-based proximity marketing.
“Nobody has fully adopted it yet. We’ve
just started being discovered.” But the
company does have installations “all over
the world,” including in Singapore,
Shanghai, China, and Georgetown, ON.
In places where it’s been in use for a
couple of years, including in Singapore in
a Japanese-owned electronics retailer,
22% to 30% of consumers accept the
offers. In Canada, Romanov admits, the
initial acceptance rate started in the single
digits: 5% to 7%. “But it will climb from
there as people get used to it,” he says.
Adflow’s Ruttle, meanwhile, says his
company is “starting to hear rumblings”
about mobile marketing associated with
digital signage. “We’re not getting a lot of
interest at this point,” he says. “But I think
that’s going to change.” Ruttle claims
Adflow is “ready to go” when interest in
the concept grows.
Software
In the early days of digital signage, much
of the sales and marketing impetus came
from panel vendors. Today, software
appears to be the major driver. The digital
signage software market has exploded
in the last 10 years, and remains in
constant flux.
“When we started, you could count on
one hand the number of vendors in this
market,” says Adflow’s Ruttle. “We’ve
seen literally dozens, if not hundreds,
come and go since then.”
“[The software market] continues to
morph every 60 days or so,” Pupo
agrees. “There are more digital signage
software companies out there than you
can imagine.”
“There are no more or fewer than five or
six years ago,” Collard counters. “But
they’re constantly changing. The major
suppliers are all still in business, but in
what I think of as the fringe, 20 or 30
arrive every year, and 20 or 30 disappear.
There is a lot of activity at the low end of
the market in particular, where barriers to
entry appear to be nonexistent.”
Most agree there are 10 or a dozen
mainstream companies that have floated
to the top. According to Ruttle, they
account for as much as 80% of the market.
Who are they?
Everybody’s list is different (depending
in part on who they’ve forged partnerships
with), but some names appear
often: Omnivex, Adflow, Scala Inc., The
MediaTile Company, Stratacache,
BroadSign International Inc., VenueVision
Media Systems of Mississauga, ON,
Novra Technologies Inc., Capital
Networks Limited, ScreenScape
Networks Inc. Major players such as
Cisco Systems and Harris also have digital
signage software offerings.
The breadth of approaches and specialties
makes it difficult to generalize
about the digital signage software market,
but a couple of potentially important
trends stand out.
To the Cloud
As everywhere in the software industry,
there is a strong move to “the cloud,” to
offering subscription-based software,
sometimes referred to as software as a
service (SaaS), that resides on Internet
servers managed by the software company
and for which the customer pays a
monthly or annual subscription fee.
This is as opposed to “premise-based”
or licensed software that the customer
purchases outright and runs on his own
servers, often paying an annual maintenance
fee to the software provider to get
regular updates and fixes. The premisebased
model dominated the software
industry until five years or so ago.
Given that digital signs are increasingly
networked for remote delivery and management
of content, the cloud model probably
makes particular sense in this market.
“The bulk of our business is still premise-based,”
says Collard. “But we do
have customers who run our software
for other people.” He notes, however,
that this kind of outsourcing isn’t strictly
speaking cloud computing. Omnivex is
working with customers, developing true
cloud-based solutions. “But it’s very, very
small so far. It’s early days in the cloud.”
He adds, “We’re a Microsoft Gold
Partner, so by default, like it or not, we’re
going to the cloud with them.” Microsoft
has moved its business aggressively to
the cloud in recent months.
Back-end
Integration
Another intriguing development among
enterprise-level digital signage software
vendors is integration of customers’ backend
systems into the signage content
management system. It addresses the
“constant struggle” to source quality content
for signs and manage it, Ruttle says.
“[Content] is the most important component
in any digital signage network;
who’s providing it, how much it costs,
how often does it have to be changed.”
So software vendors are being called
on to develop ways for customers to
integrate other systems to pull alreadyexisting
content from an enterprise content
management system, or a Website
management system, into the digital signage
network. “That’s something we’ve
added to our application,” Ruttle says.
Adflow has also added the ability to
integrate its system with other customer
applications, such as inventory control
and point of sale (POS) systems to automate
selection and updating of content.
If the inventory system shows that stock
on a particular item is low, for example, it
tells the digital signage system, which
pulls signage content about that item out
of the rotation until stock is up again. Or if
a price changes in the POS system, it
could automatically update pricing information
on signage screens.
Panel Vendors
Stepping Back
The panel vendors all have digital signage
software that they include, usually at no
charge, with their hardware products,
and which they can use to engineer
turnkey solutions. But they readily concede
that these programs are rudimentary
and only intended for the simplest
applications.
Pupo says of LG’s software, Super-
Sign, “We leverage it mostly in places
where it’s a very small deployment of
signs in one location, or where the customer
wants to do it themselves. The limitations
are its ability to scale.”
In larger deployments, especially multi-
Panels are now often being built into selfstanding
kiosks for both indoor or outdoor
use. Sometimes these are touchsensitive;
yet another major area of
growth in the industry; allowing customers
to interact with information.
These kiosks can be placed everywhere
from a car dealership, to a drive-thru
restaurant menu board. ViewSonic’s
ePoster products come with a built-in
media player and flash memory.

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location digital signage networks, you
need software that can remotely and
automatically deliver and manage content,
which is what more sophisticated
products from digital signage software
specialists do.
“We offer a solution,” Nalli says of
Samsung’s MagicInfo Pro software. “But
at the same time, we offer customers a
way to work tightly with a third-party [software
provider]. We don’t want to own the
market. We want to offer choice.”
ViewSonic’s Ornstead says the same.
“We want to be agnostic to the marketplace,”
he says. “We want to provide the
best possible solution to the customer.
There are a lot of software solutions on
the market by companies that specialize
in this. We do not want to claim to be
experts in this area. We want to be
experts in the display area.”
Software-Centric
Ecosystems?
“It’s a tricky ecosystem,” Samsung’s Nalli
says when we ask which of the main
players involved, hardware vendors, AV
integrators, software providers, typically
brings in new business and takes the
lead on digital signage projects. “The
answer is, honestly, it can come from all
different directions.”
The reason this is true, to the extent that
it is true, is that digital signage projects can
originate or be sparked in different parts of
an end user organization: IT in some
cases, marketing, advertising, retail, even
HR or facilities management. The type of
vendor they approach first, Nalli says, is
conditioned by the kinds of companies
they already do business with.
Ornstead agrees that the starting
points for digital signage projects vary.
End customers do still approach
ViewSonic directly, though, he says.
“In many cases, they’re confused
about what they should buy, where they
should look. Even though this market has
gotten a lot simpler in the last year and a
half or two years, with cost reductions on
big displays and the software a lot easier
to use. At the same time, we still get a lot
of calls from customers who just don’t
know what the best display is, what software
they need, what media player.”
In projects involving ViewSonic’s
ePoster kiosk products, it’s often advertising
firms that are the prime movers,
Ornstead points out. And hardware distributors
such as Ingram Micro, BlueStar
and Tech Data Corp. are also now building
expertise in digital signage, and offering
consultative sales and even installation
services, he adds.
Still, it seems clear the balance of
power has to a large extent shifted from
hardware to software. Although, they
also want to appear “channel friendly,” as
Adflow’s Ruttle puts it, it’s probably more
important now for panel vendors to cultivate
partnerships with software providers
than the other way around.
And the software vendors are increasingly
claiming a pivotal role. “It’s always
Adflow [who takes the lead],” Ruttle says
categorically. “We very seldom hear from
a partner who has an opportunity. If
you’re a company looking for a digital
signage solution, you start looking first at
digital signage software providers.”
AV integrators, he points out, usually
don’t have the national or international
scope to be able to effectively market the
kind of widely dispersed digital signage
networks that Adflow enables.
Not all software providers claim such a
central role, though. Omnivex says inte-
gration partners still bring in a significant
percentage of its business. Calgary, ABbased
Sharp’s Audio Visual has been
particularly successful on Omnivex’s
behalf, partly because Sharp’s hired a
former Omnivex executive to head up its
digital signage group, Collard says.
Omnivex also brings in customers itself,
often from trade show activity. Hardware
vendors are the third most likely type of
vendor to bring in new business, he adds.
iSign, because it’s still leading edge, is
more apt to ride on the coattails of mature
players in the market. It works closely with
one hardware partner in particular, IBM,
maker of the AnyPlace Kiosk, a specialty
all-in-one digital signage product designed
for self-service applications. iSign also
sells through the distributor BlueStar,
which is now offering digital signage-specific
products and services.
First-Level Support
The ecosystem configures itself differently
again after implementation, but also with
little consistency. When we asked who
looks after first-level support and maintenance,
we heard a few different answers.
“I would say the software provider,”
Nalli says. “[Customers] always start
marketing
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there. They’re [software providers] the
ones who are responsible for delivery of
content. The second the screen goes
black, the assumption is there’s something
wrong with the delivery system.
Then it may work down to a hardware
issue and we get involved.”
Ornstead says the exact opposite. “We
get a lot of the calls because of our
brand. So if the screen goes dark, we
would get the call.” Again, he says, if the
initial triage points to other issues,
ViewSonic will refer the problem, usually
first to the integrator.
Omnivex’s Collard offers a third answer:
the first level of support is provided by the
company’s resellers, mostly integrators.
“We provide them with training materials
when we’re supplying our software. They
install the screens and the PCs, so they’re
the first-line support.” Omnivex’s own engineering
staff would be the second line.
Digital signage is a huge, fast-growing
and fast-changing market with a complex
ecosystem that is still evolving.
Understanding it in all or even a few of its
permutations will take more than reading
one article. But we’ve at least scratched
the surface here and provided some
avenues for exploration.
The rest is up to you. MN
Adflow Networks has handled a number of digital signage projects for retailers in Canada; from Canadian Tire and OfficeMax, to Jack
Astor’s and WIND Mobile. The company won the 2011 National Sign Competition by Sign Media in the digital signage category for
this setup, which it calls the Telus Brand Forest.
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» After opt-in, interactive and contextually
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consumers’ handheld devices to be viewed -
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» Measure results to create or refine offers
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20
By Peter K. Burian
Although almost everyone with a camera
already owns some type of bag or case,
the market for this category is surprisingly
robust. Aside from lenses, camera
bags are among the best-selling accessories
in the photo specialty sector. Since
bags and cases tend to sell for the full
MAP, they offer great opportunities for
camera retailers.
In spite of the sluggish economy, this
category is booming, partly because of
the continuing popularity of interchangeable-lens
cameras. But let’s give credit to
the manufacturers too. Perhaps it’s due to
greater competition among an increasing
number of brands; but the fact is, we’re
seeing some innovative new designs and
styling with great visual appeal.
Compact
System Bags
The arrival of compact mirrorless interchangeable-lens
cameras has motivated
the development of many new bags.
These target owners of the Compact
System Cameras: the Samsung NX,
Sony NEX, Panasonic Lumix G and
Olympus E-P series. Some are sized to
accommodate larger models with a builtin
electronic viewfinder, like Panasonic’s
Lumix GH series.
Featuring a carrying handle, belt loop,
and adjustable, removable shoulder
strap, the Tamrac Aero 36 is a perfect
example of this type. It can accommodate
a mirrorless camera with a kit zoom
lens in a foam-padded compartment with
internal dividers, while pockets hold
accessories.
Lowepro’s offerings in this category
include three slim-profile shoulder bags:
the Streamline 100 and the Compact
Courier 70 (for NEX cameras) and
Courier 80 (for other brands of cameras).
All of these bags can hold a camera body
with standard lens attached, a second
Money Bags
Lowepro’s new Photo Sport 200AW backpack targets outdoor enthusiasts who want to carry personal gear as well as photo equipment.
It’s equipped with an Ultra-Cinch Camera Chamber that keeps photo gear from bouncing around, and has a hydration pocket
for an optional two-litre reservoir.
lens and some accessories.
In addition to bags specifically targeting
owners of Compact System Cameras,
many suitable small bags of all types are
available. Ron McKerron, Senior Vice
President and General Manager at
DayMen Canada, says Lowepro’s product
roadmap includes other types of
bags for the mirrorless cameras.
Naturally, other manufacturers are also
likely to begin competing in this category.
Slots for
Electronic Devices
Slots for full-size laptop computers are
common in large bags of most types; but
as cameras and electronic devices
become smaller, we’re seeing a new
trend. Bags with smaller padded slots for
iPads, netbooks and e-readers are
becoming more readily available. A bag
like Tenba’s Mini Messenger (from
Gnigami) is designed to accommodate a
device with a screen up to 13”. This sleek
lightweight, expandable satchel with a
removable photo insert allows for a quick
conversion to a general-purpose bag.
“There is definitely an emergent need
for carrying an iPad or other tablet,” says
Hans Smarius, Vice President of Sales at
Tamrac International. “Even some serious
shooters now carry only a tablet. Some
of these have become more of a tool
than a toy with a lot of photographic
apps; and they allow for disbursement of
images via WiFi or 3G.”
Note too that sleeves and cases for the
iPad and similar devices are available from
Acme Made (from DayMen) and Targus,
for example. These can be used to update
the functionality of any camera bag.
The slim new Tamrac Rally 7 series
(from Gentec International) targets DSLR
owners who want to carry a moderately
large camera and lenses, plus a 10”
notebook, e-reader or tablet. “The narrow
profile makes the Rally more lifestyleoriented,
and they really do not look like
a traditional camera bag,” says Smarius.
Tamrac’s new Zuma series also provide a
slot for an iPad or 10” netbook, in addition
to a compartment for a camera and
paraphernalia.
The designers at Lowepro have also
recognized this change in consumer
habits. “There was a time when bags that
Overview
• Photo bags generally sell for full MAP. Some retailers boast attachment rates as high as 60% with
camera sales
• Manufacturers are developing new bags for mirrorless cameras from Olympus, Panasonic,
Samsung and Sony
• An increasing number of camera bags can accommodate a tablet, which is an important tool for
many photographers
• For style-conscious female buyers, camera bags with funky colours and attractive designs are
available from brands like Jill-e, Golla and Kelly Moore
• At many photo specialists, the best sellers are sling bags that can be worn on the back, then
rotated to the front of the body for equipment access
• Successful retailers and distributors stress the importance of helping customers select the right
bag for the equipment they currently own, and the equipment they plan to buy in the future.
carried laptops were immensely popular,”
McKerron says. “But today, the market is
leaning toward the iPad and similar products.”
A few Lowepro bags include a
suitable slot. The Optics Field Station hip
pack is also equipped with a pullout shelf
that tilts at a 45-degree angle for convenient
viewing. This is ideal for the target
market, birdwatchers, who need reference
material at hand while in the field.
“In our development of new products, for
DSLR bags in particular, everything we
do will accommodate a tablet,”
McKerron adds. “We see that as an automatic
joint usage.”
McKerron provided a hint about a new
Lowepro series to be available in three
sizes by Q4. This will be a slimmer format
that can handle multiple technologies.
“We’ll allow for both a tablet and a PC,
but will have functionality for either; this
level of flexibility for multiple technologies
will be a reality for some time,” he predicts.
Featuring a carrying handle, belt loop and
adjustable shoulder strap, the Tamrac
Aero 36 can accommodate a mirrorless
camera with a kit zoom lens in a foampadded
compartment with internal
dividers, while pockets hold accessories

Lowepro’s Streamline 100 shoulder bag can accommodate a Compact System
Camera like an Olympus Digital PEN, Panasonic Lumix G, Samsung NX and Sony NEX,
plus a second lens and accessories.
Distributed by Gnigami, Tenba’s Mini Messenger bags have a dedicated sleeve that can
accommodate a tablet or small notebook PC.
Bags with Style
With a few exceptions, the vast majority
of camera bags are unisex. They may be
stylish, but they’re not specifically
designed to appeal to female buyers.
One exception includes some products
from Jill-e Designs (distributed in Canada
by Fidelity Electronics). Robert Bagliolid,
Owner of BellArte Camera in Hamilton,
ON, decided on the Finnish brand Golla,
also distributed by Fidelity Electronics.
“They have a lot of interesting funky
colours,” he explains. “Some of the bags
look more like purses.”
Vistek is carrying Kelly Moore bags, some
in bright pop colours. “We decided to bring
in a new line appealing to women,” says
Gary Goldberg, Product Manager,
Professional Photo. “One of our female
customers asked us to bring it in because
she wanted to buy one, so we decided to
give the Kelly bags a try. There might be a
niche market there, in carrying bags that
appeal to women. They look less conspicuous,
more like a purse. But if they can
grab their camera out of it, they may feel
more comfortable about carrying it around.”
5.2 OUNCES OF OMG
Available in different sizes and configurations, Tamrac’s new Zuma series provide a slot for
an iPad or 10” netbook, in addition to a compartment for a camera and paraphernalia.
Retro Style Bags
As discussed in our June issue, retro
styling has become popular in some
types of photo equipment. The retro
trend extends to camera bags such as
several of Domke’s canvas soft-sided
models and ThinkTank’s Retrospective
series (both distributed by Nadel
Enterprises). “The soft-sided
Retrospective bags naturally compress
to protect your gear,” says Bill Wood,
Nadel’s Vice President, Merchandise and
Marketing. “They look like bags from 25
years ago, but with far more functional
design on the inside. Unlike bags with
stiff, foam-padded sides, they grow or
shrink in size to match the gear you’re
putting inside.” They’re made of a soft
poly-nylon weave, with a water-resistant
coating, while those in the Pinestone
colour are made of a soft but thick cotton-canvas.
More affluent customers might prefer
the English-made Billingham line, with its
classic styling and quality. Distributed by
Kindermann Canada, Billingham bags
offer features such as waterproof canvas
with top-grain leather trim, solid brass
buckles, zippers that should last a lifetime,
and woven web strapping with a
large shoulder pad. Some models
include removable inserts with dividers.
To my eye, the Billingham bags, including
the popular Hadley series, look oldfashioned.
Not surprisingly, Kindermann’s
Boylan has a different perspective.
“They’re traditional; this has been their
style for decades. It seems uniquely
British. It sells especially to older customers
with a refined sense of quality,
including quite a few from the Leica
crowd. And the bags are extremely
rugged; I’ve never seen anyone actually
wear one out.”
Convenient
Sling Packs
Providing some of the comfort of a backpack
with more convenient access to
equipment, the sling-type pack has a
great deal of appeal. “It’s definitely becoming
the most popular option because of
ease of use,” says Vistek’s Goldberg. “It’s
basically like a messenger style bag, but
more like a backpack with a single strap. It
goes over one shoulder and you swing it
around to the front for easy access to gear
through a door. After grabbing your gear,
you just swing it back.”
BellArte’s Bagliolid is a strong proponent
of the sling. “In the past, serious
shooters with DSLR cameras might have
used another type of case, but today,
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22
Designed for birdwatchers and other nature hobbyists, Lowepro’s Optic Field Station
has a pullout shelf that can accommodate a tablet, providing ready access to reference
material in the field.
Distributed by Fidelity Electronics, the Finnish brand Golla targets style-conscious photographers,
with a large variety of configurations and funky colours.
many are switching to a sling. Some
weeks, they make up 80% of our bag
sales,” he estimates. “They don’t look like
camera bags, so they’re less conspicuous.
Some are quite large, so they’re
attractive to DSLR buyers who own multiple
lenses and accessories.”
Vistek has been doing well with Tenba’s
Shootout Sling series, which provides
quick access to the camera compartment.
Features include durable, water-resistant
nylon instead of the more common polyester
for the exterior, weather-sealed YKK
zippers, and a WeatherWrap rain cover.
Some retailers carry Tamrac’s Velocity Sling
series instead, with a comfortable padded
Notebook and iPad sleeves like this model from Acme Made can be used to update the
functionality of many full-size camera bags.
Kelly Moore camera bags, some of which come in bright pop colours, look like purses.
They have internal dividers, and are available in different styles and configurations.
strap and a Tuck-A-Way waist belt, plus
Quick Flip top door that flips away from the
user’s body for convenience.
Popular in many other countries but less
well known in Canada are Vanguard’s UP-
Rise bags, distributed in Canada by
Digitec Trading. Vanguard’s UP-Rise 43
DSLR Sling received an international
award from TIPA as Best Photo Bag 2010.
The panel praised the series’ innovative
ability to expand in size and its versatility in
use. This full-featured case has an
ergonomic sling-adjustment system,
quick-zip access via openings in the front
and back, and a removable rain cover. It
expands when necessary with one easy
zipper motion, and can shrink back down
when less equipment is being carried.
For maximum versatility, it’s tough to
beat the ThinkTank Sling-O-Matic series.
This one can be easily switched from one
shoulder to the other. The fully padded
shoulder strap slides along a set of rails,
making it easy to change its location.
Access to equipment via the top door is
convenient in either orientation.
Lowepro was the first major camera
bag manufacturer to introduce a sling in
2005, and its Slingshot is still a worldwide
best seller. The newer Classified Sling
AW is slimmer and highly suited to urban
environments, while the latest Photo
Sport Sling 100AW would be ideal for trail
runners, cyclists, snowboarders and
other active people. This dual-compartment
case provides ample space for personal
gear, while the Ultra-Cinch Camera
Chamber holds equipment securely to
help prevent bouncing while in motion.
Features include easy rotation to the
front, front and top access doors, multiple
accessory attachment points and a
built-in All Weather Cover.
McKerron explains the design philosophy
for the Photo Sport Sling 100AW. “It’s
geared more to outdoor enthusiasts who
carry a camera in addition to a lot of other
gear, and want to be active while carrying
it. We’ve accommodated their needs in
every way. It’s lightweight, comfortable to
ThinkTank’s soft-sided Retrospective bags, distributed in Canada by Nadel Enterprises,
compress naturally to fit the gear they contain.

Distributed in Canada by Digitec Trading, Vanguard’s UP-Rise 43 DSLR Sling expands
when necessary with one easy zipper motion, and can shrink back down when less
equipment is being carried.
24 British-made Billingham bags, distributed by Kindermann Canada, feature waterproof
canvas, leather trim, brass buckles, woven web strapping, and large shoulder pads.
wear and makes it easy to get at your
gear; the Ultra-Cinch Camera Chamber
holds equipment snugly so it does not
bounce around while in motion.”
Featuring distinctive new styling, the
Photo Sport Slight 100AW is available in
black with grey accents and also in orange.
“The latter especially is getting away from
the traditional black box that photographers
tend to carry,” McKerron observes.
Versatile Backpacks
Slings may be bestsellers, but many serious
outdoor photographers still want a
photo backpack. “The primary benefit is
an adjustable harness system for comfort
when carrying heavy equipment, since the
weight is distributed over two shoulders
and the hips,” says Vistek’s Goldberg.
Available in sizes from very small to very
large, photo backpacks are more suitable
for adventure than a sling, which is mostly
for urban use. “You’ll even see people
buying them to use once or twice a year
for canoe trips to Algonquin Park, for
example,” Goldberg notes.
Most of the latest backpacks in larger
sizes provide a padded slot for a full-size
laptop computer; and some of the packs
are primarily for urban use. The Roots
Leather Digital Camera Backpack (from
Gentec) and the Lowepro CompuDay
250 (a multi-purpose daypack) qualify in
this respect. Some Targus cases, like the
16” CityGear Chicago model, are primarily
intended for business travel. This one
will hold a 16” laptop computer, but provides
space for various other equipment
and accessories as well.
In addition to these familiar names,
there are other brands such as Clik Elite
(from Digitec Trading). Some of their
backpacks are quite impressive, with a
high-quality harness, padded camera
bay with cradle dividers, a hydration
sleeve for a reservoir, hide-away rain
cover, and rugged construction.
Lowepro’s Photo Sport 200AW backpack
targets outdoor enthusiasts who want
to carry personal gear as well as photo
equipment. This contoured adventure-pack
with dual-compartment design features
resilient, high-performance technical fabrics
for great durability during extreme activity.
It’s also equipped with the Ultra-Cinch
Camera Chamber and All Weather cover,
and gains a hydration pocket for an optional
two-litre reservoir. In addition to black, it’s
also available in orange.
Bird watchers should love the new
Lowepro Optics series of backpacks,
with a unique attachment system for
connecting a full-size tripod with spotting
scope to the case. This series features a
superb harness system, loops for attaching
accessories, a built-in All Weather
cover and all of the benefits of a highgrade
photo backpack.
Photographers who want the benefits
Providing quick access to camera and
accessories, Tenba’s Shootout Sling
bags are made of water-resistant nylon
and feature weather-sealed zippers and
a WeatherWrap rain cover.
of a sling and a backpack will appreciate
the Tamrac Evolution Sling Backpack
series. It can be carried as a backpack,
or as a sling pack over either shoulder.
(The extra strap can be neatly tucked
away.) Gear can be accessed in any of
three ways: through the front panel or
through either of two side doors when
the Evolution pack is used as a sling.
Tenba’s new Discovery series includes
the Mini Photo/Tablet Daypack (backpack
with a comfortable harness) with a
padded rear pocket for a notebook or the
11” MacBook Air, in addition to a DSLR
with two to four lenses. Gnigami will offer
this case in Canada before
December. Features include lightweight
(0.9kg), self-healing zippers, rugged
weather-repellent nylon construction, a
waterproof bottom panel and a rain cover.
Note: When selecting a bag, customers
who travel should be aware of airline
restrictions on the size and weight of
carry-on luggage. While regulations differ,
all carriers should accept a case that’s no
larger than 55 x 35 x 22cm. The weight
limit varies from 10 to 18kg, depending on
the carrier. Some countries, including
China, India and Japan, allow only a single,
small carry-on such as a purse or laptop
computer. While that restriction may
not always be enforced, travellers should
check their airline Website for specifics.
Stock, Display
& Sell
There’s definitely an opportunity
for greater profitability
by increasing
the attachment rate
of bags to new cameras.
Some photo
specialty retailers
already boast
impressive numbers.
At BellArte
Camera, it’s roughly
60%. In spite of having
relatively small
premises, BellArte
devotes a 30x10-foot
wall to bags. But it’s really
customer service that has
been responsible for steady
sales.
Tamrac Evolution Sling Backpacks can
be worn as a backpack, or as a sling
pack over either shoulder.
In addition to the display with the most
popular products in three or four brands,
store staff is well versed in the specific
features and benefits of each product.
“We’re there to educate the consumer,”
Bagliolid says. “Most people buying a
camera outfit are spending $800 to
$1,200, so it makes sense to protect that
investment with just the right bag.” Some
customers already own several DSLRs,
lenses and flash units. “We encourage
them to bring in all of their equipment,
and we then help them try several bags
to find the one that’s most suitable and
most convenient,” he relates.
This level of service can be a bit timeconsuming,
but it pays off. “There’s not
much markup in cameras,” Bagliolid
notes, “but you make a decent profit in
bags, and it rolls out to the staff as commission
too. And most bags sell for the
full MAP.” BellArte’s average sale is quite
high too. They stock sling cases with an
MAP as low as $60, but they sell far more
of the $120 products. “That’s because
we carry the better slings and we recommend
larger bags for photo enthusiasts,”
Bagliolid explains. “We remind customers
that if they’re going to buy more equipment
down the
road, they
need to
The CityGear Chicago backpack from Targus can hold
a 16” laptop, but also provides lots of space for other
equipment, including cameras and accessories.
ThinkTank’s Sling-O-Matic series can be switched from one shoulder to the other. The fully padded shoulder strap slides along a set of rails, making it easy to change its location.

Most of the latest backpacks in larger sizes provide a padded slot for a full-size laptop
computer; and some of the packs are primarily for urban use. The Roots Leather
Digital Camera Backpack qualifies in this respect.
look at something with space for their
future investment.”
Goldberg says Vistek is very successful
in this category. Sales staff is highly experienced
and the stores devote considerable
space to camera bags, with impressive
displays.
“Typically, we put out the best sellers
from each brand,” Goldberg says. “But
we can pull other products from the
warehouse. Some bags sell themselves
by being on display with good branding
and signage. Of course there’s also variety.
You can walk into our stores and we
have almost every major manufacturer
represented. Ultimately, we have what
the customer wants.”
Distributors’
Recommendations
Since Tamrac and Lowepro have achieved
great international success with their wide
range of products, I asked them to relate
successful retail strategies. In addition to a
professional display and POP materials,
both emphasized the value of staff training.
This is a key factor to success in the
photo specialty channel.
“Make sure you understand a customers’
needs, his carrying style, the kind
of equipment he owns, whether he wants
to take a laptop or an iPad, and whether
he usually carries a tripod,” Tamrac’s
Smarius recommends. That will determine
the most important features and
hence, the most suitable bag. “Of
course, that calls for understanding all of
the specific features and benefits and
illustrating them to a customer. That’s
why we spend a great deal of time training
retail staff about innovative features
and how they relate to consumers in a
certain purchasing situation.”
In a recent training session in Asia, an
attendee provided an interesting comment
during the break after two hours,
Smarius recalls. “He said he had no idea
that a bag is so complex. Especially with
a brand like Tamrac that’s very featurerich,
training is essential.”
Hang tags can provide some of the information
a customer requires, and Smarius
agrees that is useful for less complex products.
“But many of our bags have an
incredible number of features, so a video is
better; and you’ll find them on our Website.
They illustrate how a specific bag is best
used, its features, advantages, and when
this is the right product or when another
one would be a better option.”
Daymen’s McKerron agrees. “We’re
using demo videos on the Lowepro
Website and they’re available to retailers
for use in their own online selling. Some
of the big photo specialty accounts have
10-12 screens around their location constantly
running videos with product information
for their customers. Consumers
can also access a Bag Finder at lowepro.com;
they can input their equipment
and their specific needs and the system
will automatically find suitable bags.
Before too long, that may be adapted for
use in retail locations as well.”
Opportunities for
Other Channels
CE retailers and mass merchandisers sell a
lot of camera bags too, typically smaller
products, employing a different strategy.
“They’re not as engaged with the customer
as the photo specialty retailer, so merchandising
has much greater importance,”
McKerron says. “Forward-thinking people
do in-store promotions with coupons and
flyers to get consumers to think of accessories
when thinking of cameras.”
Many retailers target pouches for pointand-shoots,
with 10-20 different SKUs in
various sizes and colours, near an end
cap or other high-traffic area. “In some
channels, we provide Lowepro or Acme
Made displayers, especially during the
fourth quarter,” McKerron says. “The POP
materials that are there to support good
bags can make a difference. Even if
they’re not shopping for a camera, many
consumers will buy a small bag or pouch
because it’s right there.”
Bundling is also a valuable tool, McKerron
adds. “The CE channel especially has been
doing well with accessory kits provided by
the camera manufacturers. If you buy this
camera, you’ll get the extras at a reduced
price as an incentive to buy both. All of the
hardware vendors are getting into this in
one form or another, and we have a co-op
agreement with some of them.”
Regardless of the branding on
the bag, McKerron is bullish
on the concept.
“Whether it’s a hard
bundle or a soft bundle,
that can have a
profound effect on
the attachment
rate.” He
relates a
recent experience
with a
retail chain that
consumers do
not usually
associate with
cameras. “Their
flyer listed a
bundle offer: one of our best pouches
free with a specific point-and-shoot camera.
The increase we saw in a two-week
period was massive. There’s good profitability
for the retailer in getting that high
attachment rate.”
Granted, the retailer wasn’t getting the
pouch for free. “They reduced the price of
the camera and the bag so it would fit their
bundled price and amortized it as such,”
McKerron relates. “And it worked, selling
about 4,000 units. Retailers need to think
about margin dollars, as opposed to margin
percentages. Even if there’s fewer dollars
or a smaller margin with the hardware,
an accessory becomes an important
focus. You know the old line, ‘You can’t
take percentages to the bank’. Savvy
retailers recognize that volume adds more
money to the bottom line than just pure
percentage margin.”
MN
Vanguard’s Skyborne 53 photo backpack can accommodate two DLSR bodies, plus
seven (or more) lenses, and a couple of flash units; plus zippered pockets for memory
cards and other small items, and a separate section for a 17” notebook. A rain cover
protects contents from the elements, while air-infused padding helps prevents damage
from bumps. Interestingly, the $330 backpack also has a tripod holder on the outside.
25

26
Dealing with the Competition
By Adam Grant
Competition surrounds us all on a daily
basis. Whether it’s two guys vying for the
attention of the same woman, two sports
teams squaring off for one trophy, or a
table full of poker players looking to outbluff
their opponents, competition is
always happening somewhere, in some
way.
Business is no different, and can arguably
be looked at as one of the most competitive
landscapes this world has to offer.
In the consumer electronics industry,
competition is even more cutthroat.
Manufacturers compete with other manufacturers
to be the first to unveil a product
with technology not yet explored or
fully exercised. Meanwhile, a customer
will compete with other customers by
camping out in line for six extra hours
than everyone else just to be one of the
first to get the latest, hottest product.
On a retail level, the competition is just
as fierce, if not more so than anywhere
else in the CE realm. Independent stores
have to keep an eye out for incoming independents
moving into the area that may
offer better pricing, service or brand selection;
as well as big box retailers like Best
Buy, Future Shop and Walmart, invading
their territories. The latter three, and other
like retailers, subsequently have to battle it
out with one another. And a new big box,
Target, will soon be moving into Canada
as yet another retailer vying to get into the
pocketbooks of consumers.
Then, there are the ‘trunk slammers,’
which many define as individuals that
merely sell products and services at a
lower price point literally out of a vehicle
with a company name slapped across its
side. What kind of a wrench do people like
these throw into the plans of retailers?
No matter who the competitor may be,
CE retailers not only need to be aware of
who is out there, but how they can differentiate
themselves from everyone else.
Perhaps carrying A-list only brands
brings in a higher volume of shoppers, or
maybe having an exclusivity arrangement
with a brand within a certain region
makes a giant impact. Could it also come
down to something as simple as hard
work and customer focus that keeps a
shop running at a certain clip?
There are a lot of factors out there that
retailers have to consider. It’s survival of
the fittest, and remaining fit nowadays
takes a lot of work. But it’s possible if
done right.
Big Box vs.
Independent Shops
On one side, there are the big box mass
retailers like Best Buy, Future Shop,
Walmart and Costco luring in consumers
with a sizeable volume of low, mid-level,
and high-end priced products, rock-bottom
prices, and endless customer serv-
Overview
• Competition is a continuous theme in the retail world, thus forcing businesses to find new ways
to differentiate themselves
• Not all independent retailers feel the need to price match with big box retailers because they don’t
want to focus on the same clientele
• Target is coming to Canada is 2013, but it’s still unknown what its impact will be on the retail market
• Wireless competition is fierce, as some shopping centres will now host upwards of 10 providers
within the same building
• Sometimes the key to outdoing, or at least keeping pace, with a competitor is offering strong and
respected product lines
At Sherway Gardens in Etobicoke, ON, a Virgin Mobile kiosk is situated right across
from a Tbooth store. Considering that several shopping centres contain multiple wireless
retailers now, this is becoming less of an uncommon sight.
ice strategies geared toward maintaining
shopper loyalty.
On the other side are independents like
Omega Audio Video and HiFi Centre
which, by comparison, strictly cater to
shoppers looking for top-level electronic
products and vast installation knowledge/services.
These are generally
offered at a higher price.
Determining which type of store is best
is really up to the customer. However,
when you’re working for or running one
of these places, understanding how
competitors do business and how you
can differentiate from them is the key to
securing a distinct pack of shoppers.
“The reason why we’ve been able to
survive is that we’re so significantly different
from any of the other stores,”
declares Igor Kivritsky, General Manager
of Vancouver B.C.-based high-end audio
video store and custom installation company
HiFi Centre. “It’s so blatantly obvious
how different we are. There’s nothing
similar between us and Best Buy whatsoever,
whereas other (smaller) companies
that tried to be sort of similar, but a
bit better, got wiped out.”
Kivritsky has essentially determined
that the best way to compete against the
Best Buys of the world is to be as far
removed from that kind of customer base
as possible. In order to do that, his HiFi
Centre location has made a point to
Jeff Rush, Vice President of Sales, Virgin Mobile Canada: “We are a challenger brand.
That was a platform off of which we launched.”

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28
Matt D. Scott, President, Omega Audio
Video, London, ON: “There are a lot of
times when we run into people pricing us
against Best Buy on certain products
with the installation. Usually our installation
rates are higher than Best Buy. I am
not trying to compete with them on the
price of an installation, because that’s not
the game I’m trying to play.”
“focus on products that (big box stores)
don’t sell.”
Even if said retailer does happen to
carry something that HiFi does, like a
particular TV, his store refuses to price
match because he isn’t interested in
attracting those who are hunting for the
lowest price.
“Because we sell TVs, people will
check out the price of a bigger retailer
and say, ‘oh, we can buy this product for
this much, from there.’ Great, go and buy
it there. It doesn’t matter to us,” he adds.
“For the client that’s looking for the lowest
price…we don’t want to waste our
time with them anyways.”
Matt D. Scott, President of Omega
Audio Video, which operates in London,
ON predominantly on referrals (the company
doesn’t have a showroom), shares
a similar perspective when it comes to
matching prices with larger entities.
“There are a lot of times when we run
into people pricing us against Best Buy
on certain products, with the installation,”
reveals Scott. “Usually our installation
rates are higher than Best Buy. I am not
trying to compete with them on the price
of an installation, because that’s not the
game I’m trying to play. But, we do see a
lot of people pricing us against Best Buy
on some products.”
Aliya Kara, Director of Marketing for
Best Buy Canada, says the retailer
attempts to differentiate itself from other
retailers by offering a “consumer-centric
approach” to everything the company
does. This, of course, includes Best
Buy’s no commission model and Geek
Squad installation services.
But the real question is how can an
independent price match Best Buy, a
company that has a specifically designed
lowest price policy for the product it carries;
not to mention bulk volume purchases
that can afford such lower
prices? If a store like that is willing to sell
an item for less than anyone else, it
seemingly makes more sense for the
independent to stick to his guns and offer
a product at a price point that makes
sense to him. But that means the independent’s
focus needs to shift to what it
can offer the customer in place of rock
bottom prices.
The Geek Squad is where the gloves
really come off for independent retailers
and integrators like Kivritsky and Scott.
Because, in their eyes, it’s one thing for a
retailer to compete with them through
lower prices; it’s another to try and undercut
what can be a rather lucrative integration
business by sending what they call
potentially inexperienced individuals into
someone’s home to set up TV or system.
“They (Geek Squad members) may be
okay inside of their little bubble,” says
Scott. “But, the amount of knowledge
they have inside of their bubble is usually
a lot less than somebody like myself or
any other custom integrators have.”
Service Call Outs
Best Buy (depending on who you ask)
has done an intelligent thing by offering
customers integration services through
its Geek Squad. For rates as low as $99,
someone from the Squad can deliver a
TV to a person’s home, set it up, and
even calibrate and mount it.
For a customer that doesn’t have the
knowledge, time, or ability to set up a TV
himself, this seems like a reasonable
price and a no-brainer decision.
However, according to those who have
spent years installing such products,
customers should really think hard about
the type of individual that may be doing
the installation.
“(Customers) are not going to get the
service and the knowledge that they’re
going to get from somebody that was
hired three weeks ago because he happened
to have a clean shirt, and so he
got a job at Best Buy…that is pretty well
the qualification you need,” remarks
Kivritsky. “Here, we have people with 15-
20 years experience that can make a
proper recommendation.
“For the clients for whom that’s important,”
he adds, “a Best Buy or a Future
Shop isn’t competition to us.”
Best Buy’s Kara, however, is quick to
defend the Geek Squad.
“We know that most consumers don’t
know how to get the most of their technology,
so we offer end-to-end tech support
with our Geek Squad,” she asserts.
“Our team of qualified Geek Squad
Agents requires A+ certification, and
many go through additional specific vendor
training so that they are experts in
their field of work.
“Whether it’s home theatre, computers,
tablets,” she continues, “our agents are
highly trained and qualified experts in their
field, and we stand behind the service and
experience they provide our customers.”
Kara, however, didn’t get into the
specifics about how much training a
potential Geek Squad Agent must go
through in order to become someone
trusted enough by the company to be
sent out as an installation representative.
“The biggest difference that I find is yes,
we know our products, and yes, they
know the products that they sell,” offers
Scott. “But, we’re usually going to know
it better because we put a whole lot more
time into the training and on-the-job stuff.
We have a lot of that advanced knowledge,
so even if we’re just hanging a TV
and putting in a surround bar, we will
bring those skills with us to the table.”
Scott isn’t asserting that all Geek
Squad installations are terrible. But he
says he has been called in to repair the
work of Geek Squad agents in the past.
On one occasion, he had to re-wire a
home theatre in-a-box (HTiB) system.
When he got to the scene, he noticed
that the installer had cut out four supporting
wall studs to run the wires, and
didn’t properly re-attach the drywall afterward.
What’s more, this was all done
behind a fireplace, which is something
Scott sees as a big no-no.
Nevertheless, it appears that Best Buy’s
presence in the AV installation game has
rattled some cages. Needless to say, not
everyone wants or needs a high-level
installation job done in his home. Some
customers just don’t care enough.
However, the fact that Best Buy is out
there doing it obviously bothers some
independents. Even if they believe that
they can do better installation jobs than
Geek Squad agents, the competition is
still there to be dealt with.
On Target
Big box retailers aren’t immune to competition
among themselves. A company that
has to be on the minds of those retailers,
as well as independents, is Target. The
giant American retailer announced back in
January that it had agreed to purchase up
to 220 leaseholds from Zellers Inc., a subsidiary
of Hudson’s Bay Company, for
$1.825 billion.
Having launched in Minnesota back in
1962, Target now has 1,762 stores
across 49 states that offer “trendy merchandise
at affordable prices.” Included
in that number is 240 SuperTarget stores
that include a grocery section, restaurant,
and photo-processing centre.
Target plans on opening 100-150
stores in Canada between 2013-2014,
and could employ upwards of 200 workers
per store.
The company declined Marketnews’
request to discuss its Canadian plans and
how it expects to compete in the market,
citing that it’s too early for it “to talk about
specific merchandising efforts.”
One has to think that Target’s arrival
won’t be a quiet one, though. And it will
quickly force retailers of all shapes and
sizes to develop new ways to keep pace.
“I believe they will take a chunk out of
Best Buy and Future Shop who are both
very much price-oriented,” says Kivritsky.
“It also depends on what they do. I’ve
never been to a Target so I don’t know
what their AV sections look like. If they
have good displays with good products
and competent salespeople, then they
will absolutely have an impact on the
retail landscape.
“Conversely, if they only focus on the
lowest price, then they can duke it out
with Walmart while the rest of the players
will probably not even notice they exist.”
In fact, the battle of which Kivritsky
speaks could be a good one. A recent
study by SATOV Consultants finds that
57% of current Canadian Walmart consumers
will shop less frequently at that
chain once Target arrives. Customers of
Sears (41%) and The Bay (37%)
expressed similar opinions.
That said, Mark Satov, President and
Founder of SATOV Consultants, doesn’t
believe that Target will be able to win a
pricing war against Walmart.
“Target’s biggest challenge in entering
the Canadian market will be to differentiate
itself from Walmart by demonstrating
its unique value proposition, which values
shopping experience and quality over
rock-bottom pricing,” he says.
“Capitalizing on Canadians’ curiosity, it’s
important for Target to change consumers’
brand perceptions to fit its
affordable quality platform.”
A major hurdle for Target’s Canadian
integration, SATOV notes, is the volume
of ethnic populations. Twenty-two per
cent of the Canadian population is foreign-born
compared to just 12% in the
U.S., which means Target will need to
cater communications to specific ethnic
markets more than ever. What’s more,
the types of ethnicities found across
Canadian represents a more diverse mix
than in the U.S. The American foreignborn
population is comprised largely of
Mexican-born citizens (30%), while in
Canada, there are large communities of
immigrants from China (15%) and India
Igor Kivritsky, General Manager, HiFi Centre, Vancouver, BC: “Because we sell TVs, people will check out the price of a bigger retailer and
say, ‘oh, we can buy this product for this much, from there.’ Great, go and buy it there. It doesn’t matter to us. For the client that’s looking
for the lowest price…we don’t want to waste our time with them anyways.”

Aliya Kara, Director of Marketing, Best Buy Canada: “Our team of qualified Geek Squad
Agents require A+ certification, and many go through additional specific vendor training
so that they are experts in their field of work.”
(10%), among others.
“In Canada, Target won’t have the luxury
of simply translating communications
materials to Spanish,” Satov notes. “With
Zellers locations currently serving a number
of ethnic communities, Target will
need to focus on how the different ethnic
groups react to the brand while investing
in communicating with them effectively.”
While it should be intriguing to see
these two big time retailers battle it out,
what could be dangerous for independents
is if Target begins to get too close to
the Walmart pricing model.
“Target will definitely have an impact on
the Canadian market provided their pricing
is comparable to their U.S. pricing,”
Scott predicts. “They are a lower range
store compared to the custom AV market,
but just as we (the custom AV mar-
ket in general) occasionally sees direct
competition from Walmart, we will begin
to see the same with respect to Target.
“I was in (a Target store) in the states
recently,” he recalls, “and they had a flat
panel mount for US$29.99 that was
capable of supporting a 55” screen. I
don’t have a product that can touch that,
and will need to address that type of situation
when it arises.”
The Ever-Present
“Trunk Slammers”
While it is easy to spot a competitor moving
into a vacant building in the neighbourhood,
keeping a close eye on those
that independently sell product out of the
back of a moving vehicle is a whole other
challenge.
The literal trunk slammers (though this
term has also been used by some to
describe anyone who operates a business
with minimal skill sets in the field,
whether it’s out of a car or actual shop,)
give headaches to people like Kivritsky.
“Bad competition should go away,”
states Kivritsky. “Nobody needs trunk
slammers.
“A trunk slammer is a guy that works
out of his van,” he continues. “It’s a guy
who doesn’t have a store front, an office,
or a staff. It’s usually a one-man show
with maybe one assistant, and he has a
van with a sign on it that says ‘Joe’s
Custom Audio Video.’ He goes out and
gets business by undercutting prices.
Guys like that have very little overhead.
They have their salary and their van.”
Kivritsky notes that what makes these
individuals a challenge to compete with is
their willingness to offer “ridiculously” low
labour rates and discounted product,
which is usually more B grade in nature. For
an unsuspecting customer that can’t adequately
decipher between high-grade and
low-grade products and installation techniques,
these people can be dangerous.
He also says that many of these slammers
lack the experience of a true custom
integrator, and are primarily former
alarm system installers or electricians
looking to make a couple of extra bucks
setting up appealing products like entertainment
systems.
“They end up doing a disservice,”
relays Scott, who admits to technically
being a trunk slammer during the early
days of his AV career. “I know that’s
where a lot of people start and have to
start because of the time and money it
takes to turn into a full-fledged company.
But, the problem is when they don’t have
the knowledge or haven’t put the investment
into the education of the industry.
“Where I would say that it’s most detrimental
is to our industry in general,” he
adds. “In the sense that when you have
guys that aren’t doing the same level or
quality of work, you get people that do
not do as professional a job as someone
like ourselves or any of the bigger players.
It leaves a bad taste in the customer’s
mouth.”
By creating this “bad taste,” Scott notes
that customers become incredibly wary
when it comes to seeking out future instal-
lation services, thus forcing whomever
they choose afterward to “do more, more,
and more” to win the trust back.
Trust is a big deal, whether those with
the vans are in the picture or not.
Bringing
the Brands
Sometimes all it takes to stay ahead of
the competition is a product and service
quality record that a customer base can
perpetually have faith in. Sometimes
what can really drive retail competition is
in-store brand selection.
While some retailers would like to be
able to carry just about anything in hopes
of attracting a broader clientele, manufacturers
don’t always want to do business
that way. In some cases, they
instead choose to set up exclusivity
arrangements with certain stores, or simply
choose to leave designated stores off
of their partner lists.
These deals are pretty much determined
based on where a manufacturer
figures that its product can be best represented.
This could include (but is not
limited to) a store’s location, customer
demographic, reputation, or the manufacturer
seeing an individual retailer as a
place to “test the waters” to see how a
specific product does in-store.
“I believe we’re one of the most conscientious
manufacturers when it comes to
what goes into the stores,” states Kim
Francis, Director of Retail Sales for
Targus Canada. “The only time we would
maybe shy away from putting a product
in store is when we aren’t 100 per cent
convinced that the product is right for
that particular retailer/location.”
This isn’t a new thing, but Kivritsky
believes that the idea of product exclusivity
is dying down. While he recalls a time
when dealers would be continuously
competing to get brands into their shops,
he now says that it’s the other way
around. Manufacturers are scrambling to
get in with certain dealers because there
are so few of them left.
“Every single manufacturer under the
sun wants to be here,” says Kivritsky
about HiFi Centre. “If we’re talking about
popular, well-known, hi-fi brands, every
single brand wants to be here.”
Scott finds, however, that as a smaller
dealer without an actual storefront, he
29

30
Kim Francis, Director of Retail Sales, Targus Canada: “I believe we’re one of the most conscientious manufacturers when it comes to
what goes into the stores. The only time we would maybe shy away from putting a product in store is when we aren’t 100 per cent
convinced that the product is right for that particular retailer/location.”
does still receive some pushback from
manufacturers because another close by
dealer already has a particular line. He
uses the example of a prominent multiroom
audio brand that, while he wasn’t
big on carrying himself, the products
were being requested by a lot of
Omega’s customers. “We decided
maybe we should carry it ourselves,” he
recalls, “but the distributor didn’t want to
give it to us because of another dealer in
the area.” Eventually, the distributor
relented, but with a number of restrictions
and parameters on things like quotas
that Scott was just unwilling to meet.
Scott also thinks that a lot of that has
changed today; and chances are much
of this has been influenced by the recession.
He cites another example of a vendor
that similarly, was originally reluctant
to sign Omega because of another
strong dealer in town, but has since
changed its tune.
While chances are that not every retailer
has the luxury that Kivritsky or a big
box has in terms of product selection,
Francis notes that if a retailer truly wants
to compete, it has to find a way to carry
the best possible products available so
that potential sales aren’t lost.
“I think most retailers would agree that
having a recognizable brand offering in
store is key, and that most consumers
will look for a brand that they know and
can trust,” she says. “If the retailer doesn’t
carry that brand, they run the risk of
the consumer going elsewhere for the
purchase, whether it be in its entirety (if
there are multiple items included in the
purchase), or just that one particular item
they were looking for.”
Scott agrees, citing that while it is difficult,
Omega tries hard not to carry a lot of
the same products as other dealers in the
area. And where there is overlap, he tries
to offer superior support, and stays away
from offering pre-defined packages, or
doing business over the phone.
“We pride ourselves on having a custom
solution for any and every person,”
he says. “We try to meet with everyone
from wherever we’re working, and we
don’t try to dovetail them into a package
we sell every day.”
Of course this may be easier to do for
a dealer like Omega that currently operates
without a showroom. In fact, Scott
says the absence of the showroom is
one of the areas that helps Omega better
compete.
“I can’t see the smaller guys being able
to run a showroom unless you have a
large number of clientele that will come in
and buy stuff they won’t buy at Future
Shop,” he opines. “Guys like Bay Bloor
Radio [in Toronto], they’re huge, and they
have the name and the clout. So they can
draw people in. But guys like me, it would
be tough.”
Scott says Omega takes further measures
to help differentiate it from other
dealers.
“We also don’t sell any system without
a remote,” he adds, “whether it’s an
entry-level device or a higher-end
Crestron system, for example. And on
any job, we try to include some form of
lighting control. It adds to the ‘wow’ factor,
and turns back on promoting us
when the client is showing his friends the
system. They can show the TV and the
audio, but for some reason, they swear
by showing that they can turn the lights
on and off. It tends to be one of the
biggest features customers highlight.”
Call it Good
Competition
Perhaps one of the more compelling forms
of retail competition is found in the wireless
world. In Canada, there’s seemingly an
endless line of carriers hoping to get into
the pockets of consumers, including
Rogers, Fido, Virgin, Bell, Telus, Koodo,
and WIND Mobile, just to name a few.
If you were to walk around a shopping
mall in the Greater Toronto Area, there’s a
tremendously high chance that you’d
encounter a store or kiosk of each of the
aforementioned providers. All will have
special promotions, device/accessory
sales, and potentially even the ability to
one-up each other if a shopper were to
tell one provider’s customer service rep
that another provider literally down the
hall was offering him “x” package for “y”
price and that he was seriously considering
signing up for it if a better offer is not
presented to him.
“It’s about as competitive as it could
be,” reveals Jeff Rush, Vice President of
Sales for Virgin Mobile Canada. “It’s pretty
difficult now to even secure a spot in a
mall because with nine or 10 different
brands, I think most landlords now think
that they have more than enough. So,
everybody is basically at every mall that
you’d ever want to be in. It’s very, very
competitive.”
At Sherway Gardens in Etobicoke, ON
sits a prime example of just how on top
of each other wireless retailers really are
in the mall environment. On the shopping
centre’s main level is a Virgin Mobile kiosk
right across from a Tbooth wireless store.
There is maybe six feet of floor space
separating the two. Elsewhere in the mall
is a WirelessWave store, stores for all the
major incumbent carriers (Bell, Rogers,
and Telus), Koodo and WIND Mobile
kiosks, and even further Telus presence
through Black’s stores.
Although the Virgin location is right up
against a retailer that sells other brands
as well, Rush finds an advantage in the
kiosk set up. He feels that being out in
the open amidst shoppers gives the
company the chance to continually reach
the thousands of shoppers that could
pass by it each day. This, he explains,
makes it easier for the customer to see
which offers and products are available
to him.
However, with so many factors to deal
with for these carriers aside from a store’s
location or look, finding unique ways to
market the brand is another good way to
stand out from the crowd.
For instance, back in March, Virgin
Mobile brought Mandy Moore to Toronto,
ON to act as the spokeswoman for the
company’s “Love Button” campaign. The
initiative was designed in hopes of convincing
Facebook that it needed some-
thing stronger than its “Like” Button.
Additionally, the provider offers up special
event ticket giveaways and discounts at
fashion retailer H&M to its phone clientele;
plus provides things like VIP access
to concerts through its Member program.
None of these things directly promotes a
specific phone or plan, but it does keep
Virgin’s name on the minds of those looking
for a device.
“We’re pretty much all selling the same
phones,” Rush declares. “I’d hate to say
that they’ve become commoditized, but
basically everybody has everything. From
a plan’s perspective, if you have something
that’s unique and interesting and
people are buying it, it’ll probably be
matched within 24 hours. There are very
few things you can own in this space at
this point.
“The way you take care of your customers
is through members benefits,” he
continues. “I think that’s the thing that we
feel we can own, that we can do most
legitimately versus our competitors, and
we think that’s the tie-breaker. It’s very
important. We’re doing very, very well.
We’ve been differentiating ourselves
since we launched (in 2005), specifically
with members benefits. We would attribute
a lot of that to our success. But
again, you have to have it all.”
He makes an interesting point here,
especially when you consider that his
company has to compete with recognizable
and well-sustained Canadian wireless
providers like Rogers, Telus, and, to
some degree, Bell, which owns the Virgin
brand. Combined, the former two
(according to Rush) boast 14 million customers,
therefore making it paramount
for a relative newcomer to the Canadian
wireless scene like Virgin Mobile Canada
to give its customers engaging perks in
hopes of improving the size of its own
client base.
This isn’t viewed as a scary situation for
Virgin, though. Rush does see good
competition in the wireless landscape as
a beneficial thing for the companies
involved, as well as the shoppers.
“We absolutely believe in that,” says
Rush. “We’re hardly the first in the
Canadian market. We are a challenger
brand. That was a platform off of which
we launched. We challenged the existing
brands in the space to give people better
products and services, and better customer
service.
“If you’re going to do that, you better
do all of those things well yourself,” he
adds. “We believe that lots of competition
is the right thing for everybody, especially
the consumer.”
Final Thoughts
In any great competitive environment,
there are going to be situations that genuinely
challenge participants. In retail,
that could mean sales slumps, not being
able to carry certain products, or acting
as a scratching post for a competitor’s
claws.
At the end of the day, though, competition
is healthy. It keeps everyone
involved focused on offering the best
products and services that they can.
Beyond that, it’s up to the customer to
choose based on whatever parameters
matter most to him.
“The best part of competition is that it
really helps determine the professionals,
because when the competition is high, it
not only forces you to be creative and
effective, but you also have to be able to
back your lines, products and company,”
concludes Scott. “There is enough competition
around where if you’re not competitive
or capable, you’re not going to
last long. It forces you to be aggressive
and work hard.”
“If you do a really good job,” adds
Kivritsky, “you have a very good chance
of keeping a customer for life.” MN

32
By Christine Persaud
The cellular industry was rife with confusing acronyms, terminology, organizations, and
brand names when we first tackled this A-Z guide two years ago. Today, the situation is
even more so as we see the wireless market encompass more products, like tablets,
Internet sticks, and hubs; and tremendous growth continue in smartphones thanks to
the success of Android and its various supporters, along withBlackBerry, Windows 7,
and, of course, iPhone.
This inevitably leads to a host of questions from consumers, and even new and existing
sales staff trying to keep on top of the rapid pace of change. How does the cloud
play into the wireless experience? What does Honeycomb have over Gingerbread?
What’s MHL and do I need to be involved with it? We provide short answers to these
A
SPECIAL
FEATURE
Wireless Acronyms, Terms, & Brands From A-Z
Accelerometer: A system that senses the physical movement of the device, then adjusts the screen
accordingly so that it will orient content based on the way you’re holding the device. Hold it upright, and
text will run from left to right on the page. Turn it horizontally, and the text will follow so that you can continue
reading. The Apple iPhone, for example, is just one of many smartphones with a built-in accelerometer.
In fact, most smartphones today boast this technology as a standard.
Android: An open platform developed by Google that aims to unify cell phone operating systems. The
company has support from several manufacturers, including HTC, Samsung, Motorola, and LG, and has
become a top contender in the mobile race. In addition to smartphones, the Android OS is also available
for tablets. Android has also allowed a number of non-wireless companies to enter the wireless market
with smartphones and tablets, including Dell, Acer, and Asus, just to name a few.
Apple: Although best known for Mac computers and iPods, in 2007, Apple broke out into the cellular
industry with its first cellular device, the iPhone. The first-generation iPhone was never legally available in
Canada (although many were able to get their hands on U.S. versions and unlocked them for use in
Canada). The second-generation iPhone 3G was the first iPhone available in Canada. The iPhone 3G S
launched in June. The latest is the iPhone 4, which launched in February. And the iPhone 5 is rumoured
to hit the market this September. In Q3 2011 alone, Apple sold 20.34 million iPhones. (See “iPhone”)
Apps: Short for “applications”, apps have taken the industry by storm. An app can be a fun game or functional
tool available for download through an app store, like the iTunes App Store or BlackBerry App World,
or any application you download to a phone, like access to a social networking site, instant messaging, or
navigation. The advantage with apps is that a customer can personalize a device to his liking, so the more
apps available for a phone, the better. Some of the most popular gaming apps include titles like Angry Birds
and Bejeweled. Popular apps in other genres include Skype, Facebook, Twitter, and Netflix.
AWS Auction: The Advanced Wireless Spectrum (AWS) Auction is when Industry Canada auctions off
the airwaves required for cellular services to operate. Typically, the “big three” main carriers are the only
ones with the financial means to acquire a significant amount of spectrum, and they use this to expand
their service footprint and enhance existing services. In 2008, Industry Canada, for the first time, set aside
40 MHz of spectrum exclusively for potential new carriers to bid on, which led to the launch of new carrier
services like Mobilicity, Public Mobile, and WIND Mobile. A new auction for the 700 MHz spectrum is set
to take place soon, though terms of this auction have yet to be determined.
A2DP: (Advanced Audio Distribution Profile) A standard that refers to a phone’s ability to port stored
music through a third-party Bluetooth device, like a headset or speakerphone. While many mobile phones
can store and play back music through built-in speakers or connected headphones, not all of them will let
you listen to that music through a wireless headset. Likewise, not all Bluetooth headsets play back music.
If a customer uses this function, he will need both an A2DP-compatible mobile phone and an A2DP-compatible
headset.
B
Bell Mobility: Originally one of two main CDMA carriers in Canada, Bell has built its own GSM, and now
fourth-generation (4G) Long-Term Evolution (LTE) network that will work overtop the CDMA service, putting it in
direct competition with rivals like Rogers. GSM is the world standard for mobile communication. While Bell will
likely move completely away from the CDMA standard, such a migration will take many years. In the interim,
we can expect Bell to continue to offer both CDMA and GSM services. In March 2009, Bell bought The Source,
a retailer in Canada formerly owned by the now defunct U.S. retailer Circuit City. In July, the company purchased
the remaining 50% of Virgin Mobile it did not already own. In late 2010, the company announced its acquisition
of CTV, and in early 2011, launched a mobile TV service based on content from that network.
questions, plus touch upon the basics for new staff; everything from what 4G and LTE
means, to quick looks at each major handset maker’s position in the market.
Note that while many of the terms in this list apply to various segments of the CE industry,
for the purpose of this article, I’ll look at them solely in terms of how they pertain to the
wireless industry specifically. Some terms are defined in a simple-to-understand manner,
while others, like company names, are examined in terms of how they influence, or have
influenced, the wireless industry, and how they’ve evolved over the past few years.
While I have tried to include all of the major carriers and phone manufacturers that
have played an integral role in the development and evolvement of the cellular industry,
it would be impossible to cover them all, as well as the abundance of third-party accessory
makers and retailers in these pages. Nevertheless, this list will be made available
online at www.marketnews.ca and continually expanded.
Big Three: Talk of the “big three” is referring to the three main wireless carriers in Canada: Bell Mobility,
Rogers Wireless, and Telus Mobility. It has long been considered an oligopoly in the Canadian wireless industry,
whereby these three companies control wireless services and pricing. However, this has changed to some
degree with new carriers, though the big three still arguably dominate the market. (See “AWS Auction”)
Bill 118: The legislative bill that passed in Ontario to prevent drivers from using a handheld electronic
device, including a cell phone, while driving. While drivers cannot hold their phones to talk, they are permitted
to use hands-free devices like Bluetooth headsets or speakerphones. (See “Hands-free”)
BlackBerry: This smartphone, developed by Canadian company
Research in Motion (RIM), originally became popular in the
business world as a way for corporate employees to stay connected
with the office while traveling. Today, the device has
emerged as a serious player on the consumer side of the business
as well. In 2006, RIM developed the first BlackBerry that
included a built-in media player and digital camera. Since then,
the BlackBerry has become available in a variety of forms, many
targeted toward consumers and the youth market. (See
“Research in Motion”)
BlackBerry Bridge: A proprietary RIM technology that
allows a BlackBerry smartphone to communicate wirelessly
with a BlackBerry PlayBook tablet to afford access to the
phone’s contents, like contact list, e-mail account, and
BlackBerry Messenger service, on the tablet. The tablet simply
mirrors the phone when connected, than content disappears
when disconnected. Data is never stored on the PlayBook
through a Bridge connection.
BlackBerry Messenger: An instant messaging service
specific to BlackBerries that allows BlackBerry users to communicate
with one another in real time by sending text-based
messages, photos, and video. The service has been praised for
its reliability, ease of use, affordability (it uses minimal data),
and unique function, like the confirmation of a sent message via
a small “D” for delivered, which changes to a small “R” when
the person has read the note.
Bluetooth: A short-range wireless (2.4-2.485 GHz spectrum)
technology that allows for the communication between
two devices in close proximity (about 10 metres or 150 feet) to
one another. This is the method used for a wireless headset to
connect to a mobile phone, for example, or for transferring an
electronic business card or ringtone from one phone to another.
Other Bluetooth-compatible devices exist, like speakers or
digital photo frames. Some phones can connect to more than
one Bluetooth device at a time, and others can stream music
through the technology. Typically, a four-digit code (“0000” in
Canada) must be entered in order to initiate a Bluetooth connection,
but the latest iteration of the technology does away
with that requirement.
Video chatting is becoming
commonplace in wireless
through applications like Skype,
as well as services like Apple’s
FaceTime.

34
C
Camera Phone: While almost every mobile phone on the market today comes with a built-in camera,
a camera phone typically refers to a model that focuses heavily on its image-taking abilities. This might
consist of a high megapixel count, advanced features like auto-focus and flash, dedicated photo buttons,
and quick upload functionality to popular online sharing Websites. Sony Ericsson is arguably the leader in
this category: the company refers to its dual-function Cyber-shot phones as “digital cameras that also happen
to be phones”. The latest wave of phones come with both front facing and rear facing cameras, the
former to be used for making video calls, or shooting Webcam-like videos.
Carrier: A company that’s managing and operating the wireless spectrum required for cellular voice and
data services to operate. This also includes sub-brands of these parent companies, like Virgin and Solo
(owned by Bell), Fido (owned by Rogers), and Koodo (owned by Telus); as well as other networks that a customer
might be roaming on, like AT&T or Sprint. (See “Roam”)
CDMA: (Code Division Multiple Access) The rival communication technology to GSM, and the technology
currently used in Canada by Bell and Telus, though both are migrating away from CDMA. Many believe
that with the move to LTE, CDMA, which does not work overseas, will eventually become obsolete. However,
it will be many years before CDMA is completely non-existent in the marketplace.
Cloud: In relation to mobile, the cloud refers to a phone’s ability to access Web-based content through
a Web portal, application, or other third-party service. One of the best examples is Apple’s iCloud service.
(See “iCloud”)
Contactless Payments: (See “NFC”)
Contract: A signed deal with a wireless carrier to pay a set fee each month for a specific duration of
time. Most cellular contracts are sold on 1, 2, or 3-year terms. A customer can get away with not signing
a contract by purchasing a phone outright (for a higher, unsubsidized price) and then buying buckets of
“minutes” whenever they need them. This is the method that new carriers have taken. (See “Prepaid”)
CRTC: (Canadian Radio-television Communications Commission) The Canadian equivalent to the FCC
(Federal Communications Commission). A regulatory body that ensures fair practices and legal compliance
in the industry. The CRTC currently does not regulate services accessed through mobile devices, like video
streaming options. But we may see this change in the future.
CTIA: A U.S.-based wireless association that produces CTIA WIRELESS, a trade show focused on the
wireless industry. The show is usually held early in the year (March-May) in various cities, like Las Vegas,
NV and Orlando, FL. In 2012, it will be held in New Orleans, LA.
CWTA: (Canadian Wireless Telecommunications Association) Represents the Canadian wireless industry,
and studies trends, developments, and issues surrounding it.
D
Data: Refers to essentially any function of a mobile phone that doesn’t involve voice, with the exception
of text messages. Sending an e-mail, surfing the ‘Net, or instant messaging are all considered data usage,
and are charged on a per-kilobyte basis. Most consumers, however, pay a set fee for an allotted amount
of data transfer per month. With more consumers doing things like watching video and playing graphicheavy
games on their mobile devices, the amount of data being used has grown exponentially, and will
continue to do so, resulting in the need for faster and more bandwidth.
Distracted Driving: A growing problem, with wireless devices more at the centre of the debate than
other traditional causes, like eating, putting on makeup, or fidgeting with a radio. Drivers tend to be distracted
in the car while talking on the phone, or sending texts or e-mails. The industry has developed products
like Bluetooth speakerphones to help combat this. The concentration of late has been on more sophisticated,
voice-activated gadgets, or even apps that can block access to a phone while in a moving vehicle.
DLNA: This wireless technology allows compatible consumer electronics products to communicate with
one another; from flat panel TVs, to Blu-ray players, and smartphones. Smartphones with DLNA technology
can port content over to a TV, and sometimes even be used as a remote for the display.
E
Earpiece: A small device worn around, over, or on the ear that communicates with a cell phone to act as a
microphone and speaker for wire-free communication. The majority of these will be tiny, wireless Bluetooth
devices. But some customers, like those in the business world, might still be seeking out a wired version.
EDGE: As part of the 2G GSM standard, EDGE, which stands for enhanced data GSM, offers data access
speeds that are approx. four times faster than dial-up, maxing out at 384 Kbps. Today, most new phones
being introduced operate on the 3G standard. (See “2G”)
Enstream LP: The product of a collaboration among Bell, Rogers, and Telus, aimed at developing the
mobile payment industry in Canada. The company’s first initiative, a mobile money transfer service, is
called Zoompass. (See “Zoompass”)
EVDO: (Evolution-Data Optimized) The method of transmitting data wirelessly used with Bell and Telus in
Canada. Bell reports speeds of up to 400-700 Kbps on its 1xEVDO network. Rogers’ equivalent is called GPRS.
F
FaceTime: Apple’s own technology for making and receiving video calls from iPhone 4s, iPad 2s, and
compatible Mac computers. Just like with a service like Skype, dial the person, then view his face on your
screen while the device’s integrated Webcam picks up your face.
Feature Phone: Typically refers to phones that can do things like access the Internet, but are meant
more for standard talk and text use. More and more, we’re seeing feature phones become replaced by
entry-level smartphones.
Netflix, launched in Canada in late 2010, found big potential in extending its video
streaming service over to the smartphone and tablet platforms.
2011 saw the launch of Research in Motion’s (RIM’s) first tablet, the PlayBook.
Fido Mobility: A brand of mobile phone service owned by Rogers that targets budget-conscious customers.
While the brand has gained a reputation of being the “discount” version of Rogers, it does offer
higher-end smartphones like BlackBerries and the iPhone.
4G: The standard behind LTE, and successor to 3G, with rated data speeds of up to 100 Mbps. All three
main carriers in Canada have or will launch 4G networks in 2011/2012. The service runs alongside 2G
and 3G networks, and likely will for some time to come.
Froyo: Code-name for the Android 2.2 operating system, the second major iteration to launch. Among
its main upgrades includes the ability for phones to act as wireless hotspots for other WiFi-enabled devices,
from phones to tablets and computers; plus support for Adobe Flash. (See “Android”)
G
Galaxy: Samsung’s sub-brand name for its latest generation Android-based smartphones and tablets.
Gingerbread: As at the time of this writing, Gingerbread is the code name for the most recent version
of the Android operating system, 2.3. It contains a multitude of upgrades, including faster text input via soft
keys, copy/paste of text, better management of applications to maximize battery life, the ability to make
calls over the Internet, a Near-Field Communication (NFC) reader app, and the ability to access multiple
cameras, among others. (See “Android”)
Globalive Wireless: A new wireless carrier that gained enough spectrum to become a national
Canadian carrier, only missing Quebec in its footprint. The company launched its service in late 2009 under
the name WIND Mobile, an already-established brand in Italy and Greece. Globalive is owned by Toronto,
ON-based entrepreneur Anthony Lacavera, and also includes other prominent Canadian brands, like
OneConnect and Yak Communications under its umbrella. (See “WIND Mobile”)
Google: Developer of the open source Android platform, Google has found its way into the wireless
space as a viable competitor, with support from a number of manufacturers, like Samsung, HTC, LG, and
Motorola; plus its own branded devices, like the Nexus One. In mid-August 2011, Google purchased
Motorola’s Mobility business for US$12.5 billion, marking the biggest acquisition in Google’s history to
date. The decision was made to, among other things, allow Google to leverage Motorola’s large portfolio of
patents.
GPRS: A global packet radio system that works in conjunction with 2G and provides data speeds similar
to dial-up. The higher-speed version of this is called HSPA. (See “HSPA”)
GSM: (Global System for Mobile Communications) Considered the world standard for voice and data
transmission, GSM operates in the 850 MHz band in Canada. HSPA is a technology that allows data transmission
at speed in excess of 9.6 Mbps and, in some areas, up to 21 Mbps. Because it’s global in nature,
someone using the GSM service in Canada (through Rogers) can use the same mobile device and SIM card
while traveling overseas. The next generation of GSM is LTE, a standard that all major mobile carriers in
Canada plan to adopt.
H
Hands-free Legislation: Several provinces, U.S. states, and countries around the world, including
Canada, give tickets and fines to drivers for operating a motor vehicle while using a handheld electronic
device. Most allow the use of a hands-free headset or speakerphone, and specific terms vary.
Haptic Feedback: The emitting of a slight vibration upon successfully depressing a virtual “button”
on a phone’s touch-screen interface. It is meant as physical confirmation that an alpha or numeric key, for
example, has been successfully tapped.
Headset: (See “Earpiece”)
Honeycomb: The code-name for the Android 3.0 operating system, which was optimized specifically
for tablets. This version supports the larger screen sizes, plus things like multi-core processors. Chances
are this version will be continually enhanced with new features.
HP: Short for Hewlett-Packard, this traditionally computing company delved into the wireless space with
its own line of smartphones and tablets through an acquisition of Palm. The latest HP devices all operate
on Palm’s webOS platform, which HP has enhanced leveraging its expertise. But while the company
announced plans to license the webOS platform to other products in early 2011, by August, it had confirmed
the discontinuation of operations for the operating system.
HSPA: Related to GSM and 3G technology, this is a software upgrade that allows for greater speeds.
HSPDA (High-Speed Downlink Packet Access) relates to data transfer, like sending e-mails or viewing Web
pages; while HSUPA (High-Speed Uplink Packet Access) relates to real-time communications, like video
streaming and uploading. Rogers Wireless claims HSPA peak download speeds of up to 21 Mbps.
HTC: (High Tech Computer Corp.) Having designed mobile phones for other manufacturers for more than
a decade, HTC decided to try its hand at making its own branded devices in 2007. The first models to be
available in Canada were the P4000 and S720 in March of that year through Telus. Since then, HTC has
come to market with a slew of devices; and was also the first company to make an Android-based phone
available in both the U.S. and Canada. It remains one of the top manufacturers of Android devices, just
launching a 3D-enabled smartphone, the Evo 3D, and joining the tablet market.
I-J
iDEN: (Integrated Digital Enhanced Network) Serving business customers, phones based on the iDEN system
operate like standard mobile phones, but also have integrated two-way radio functionality. In this respect,
they can operate like walkie-talkies for field workers. Developed by Motorola in 1994, iDEN phones are available
in Canada through Telus Mobility, and tend to be ruggedly-built models that can withstand the elements.
IM: Acronym for “instant message,” this characterizes any such service used on a mobile phone that
requires a data package. This could include BlackBerry Messenger, Google Talk, Yahoo! Messenger, or even
instant chats through sites like Facebook. Text messages are not instant messages, no matter how instant
they may be. IMs are billed via how much data is required to send and/or receive one, but they typically
require very few packets of data.

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One of the most influential technology innovations; and arguably even the most influential,
of this century, is Apple’s iPad touch tablet. The second generation model, the iPad
2, launched in 2011.
Incumbent: The dictionary definition is one who is “currently holding a specified office” so it comes as
no surprise that this term is often used in the wireless industry to describe the main Canadian carriers,
Bell, Rogers, and Telus. While there’s no “specified office” in particular, it has long been the notion that
these three companies control the wireless industry in Canada.
INQ: A U.K.-based phone manufacturer recently making waves in Canada with its social networking-centric
devices that come with access to sites like Facebook built right into their core.
iOS: Apple’s operating system for the iPhone, iPod Touch, and iPad. The latest iOS upgrade as of this writing,
iOS 5, includes support for Apple’s iCloud service, a notification centre that affords access to all recent
notifications in one spot, a newsstand bookshelf, Twitter integration, and iMessage, Apple’s answer to
BlackBerry Messenger.
iPhone: Apple’s first foray into the mobile phone world, and to date, the best-selling cellular device in
Canada. In addition to popularizing the touch-screen, the iPhone also brought to light the combination of
phone and music (since it operates like an iPod as well), and ushered in a new era of “apps.” There have
been four iterations so far, but only three in Canada. A fifth version, aptly-named the iPhone 5, is rumoured
to launch some time this September.
iTunes: Originally known as the source for purchasing and downloading music for the iPod, followed by
video, iTunes has now expanded as a destination for apps for the iPhone as well. These range from fun
games to sophisticated business programs. And of course “i” device owners and computer users can continue
to download music and video to their phones and enjoy that as well. (See “Apps”)
K
Koodo: Owned by Telus, Koodo is a brand that focuses on the youth market, and customers who primarily
want talk and text capability. The company entered the Canadian market in early 2008 with a bang
via colourful, ‘80s fitness-inspired ads that boasted how one could “trim the fat” from their cellular bills.
Since then, Koodo has shifted to a new branding strategy with El Tabador, a Mexican wrestler character,
as its spokesperson.
L
LG Electronics: A major supplier of cellular phones in Canada, LG focuses on all major mobile categories,
from feature phones, to smartphones, and tablets. LG’s latest products include the Optimus 3D
smartphone that allows for viewing and recording 3D content without the need for glasses, plus a 3Denabled
Android tablet.
LTE: As part of the 4G standard, LTE is the next-generation of the 3G wireless network, and promises to
offer download speeds of up to 100 Mbps and upload of 50 Mbps. All major carriers have rolled out LTE
services this year.
M
MHL: Stands for Mobile High-Definition Link, MHL is a standard for optimizing streaming uncompressed
high-definition (1,080p) signals and 7.1 digital surround sound from mobile devices to larger screen displays.
Using a specific cable, customers connect the device to the display and, in addition to playing back
content, the cable will also simultaneously charge the device. MHL adapters will be available so that consumers
can connect the smartphones to existing displays. There are additional benefits with MHL as well.
When used with an MHL-certified TV or monitor, for example, customers can use the TV’s remote to control
the mobile product, switching from watching a video, for example, to viewing a photo slideshow. The
first phones to be built around the MHL specification include the Samsung Galaxy S II and the Infuse 4G.
MicroSD/SDHC: These rectangular-shaped flash memory cards are about one-third the size of standard
SD memory cards (used in gadgets like digital cameras), but fit into mobile phones to afford additional
storage. Many come with adapters that allow them to be placed directly into a memory card reader
or computer for transferring files. (Adapter kits are also sold separately). The largest capacity microSD card
available is 32 GB, but it’s important to ensure that a phone can accept a card that big before recommending
one. Just as with SD cards, “HC” denotes high-capacity with the micro format.
Mike: Telus’ brand name for the network used with its iDEN phones. These are long-range, digital twoway
radios with GPS that allow employees to connect with one another via push technology. In addition to
instant communication, co-workers can also send images to one another to discuss in real-time, and can
track one another’s whereabouts. (See “iDEN”)
MMS: Acronym for “Multi Media Message”, this is an image or video file that can be sent to another cell
phone user without using data. Typically, MMSs cost $0.50 each, and can be sent like a text message with
an attached file. With the popularity of e-mail on smartphones, MMS could eventually become redundant. For
now, MMS remains a useful way to send images to those who don’t yet have a smartphone or data plan.
Mobile Hotspot: A feature that allows a compatible mobile phone, like one based on the Android 2.2
platform or later, or the iPhone 4, to be used for connecting other devices. Customers can leverage the
wireless connection of the one phone, and typically connect up to five or so WiFi-enabled devices, ranging
from other phones, to tablets, or even computers. A mobile hotspot may also refer to other third-party
devices that allow for connecting on-the-go, like USB Internet Sticks, or mobile routers.
Mobile Payments: (See “NFC”)
Mobilicity: The brand name for a new wireless carrier that acquired spectrum in the 2008 Auction
under the parent company DAVE Wireless. Mobilicity currently operates service in urban city areas in
Toronto, Vancouver, Calgary, Edmonton, and Ottawa. The service launched in early 2010, and focuses on
new customers, those living paycheque-to-paycheque, and its devices as affordable home phone replacements.
(See “AWS”)
Mobile Giving Foundation: An organization that handles charitable giveaways through text messaging.
Customers can donate $5 to relief efforts by texting a word to a short-code. The amount is then
charged on the customer’s next wireless bill, and the Foundation ensures it goes to the proper organization.
Mobile Security: There’s a new trend toward software that affords security on smartphones, much
like security for computers. Several companies have offerings in this space, including McAfee and Norton.
Motorola: The cell phone industry probably wouldn’t exist without Motorola, which introduced the first
modern cell phone, the DynaTAC, in 1973. At 28-ounces, it became available to consumers in 1984. The
phone didn’t make its way to Canada until 1985. It cost $5,000 and offered 30 minutes of talk time. Today,
Motorola has reinvented itself with a focus on Android smartphones and tablets, including the popular
Xoom. In mid-August 2011, Google purchased Motorola’s Mobility business for US$12.5 billion.
MTS Allstream: As a subsidiary of Manitoba Telecom Services, Inc., MTS operates broadband and
fibre optic networks that span 30,000 kilometres throughout the province of Manitoba. With more than
two-million customers on both the business and residential sides, the long-standing company has been in
business for a century.
Music Phone: Much like the “camera phone,” the music phone is characterized by its ability to download,
play back, or access music. These might include features like dedicated music buttons, headphones
in the package, and/or easy synchronization with a music store. Sony Ericsson’s Walkman-branded phones
can be characterized as music phones. While it is known as a smartphone, the iPhone could be considered
a music phone as well given its dual function as an iPod.
N
Navigation: As navigation apps, and built-in navigation functions become more robust in mobile
phones, the category has become an important one in wireless. Several companies have developed accessories
to enhance navigation in phones, making them viable alternatives to dedicated portable GPS units.
Netflix: The video streaming service includes support for tablets like the iPad, the iPhone, and some
Android devices, allowing customers to access unlimited movies and TV shows from their portable devices,
as well as TVs and computers, anywhere with a wireless connection (3G or WiFi) for one subscription price.
NFC: (Near-Field Communication) As a near-field version of Bluetooth, NFC permits connection between
two devices that are within 10 cm of one another at up to 424 kbps. In the cellular space, NFC technology
will be used for mobile payments whereby a consumer can hold an NFC-equipped mobile phone up to
a pay terminal to instantly pay for merchandise. This could be expanded to things like ticket scanning. NFC
is already being used in this manner in countries like Japan, and several mobile payment trials are taking
place in Canada. We could see the technology become commercially available next year.
Noise-Canceling: In relation to cellular, noise-canceling technology will be typically found in the
headsets or speakerphones that allow for wireless chatting. Many include noise-canceling technology that
helps to cut out ambient noise, like crowds in a mall or wind from a moving car. This allows the person on
the other end to hear your voice more clearly. It’s an important feature for any customer who often chats
hands-free in spots where there’s a lot of surrounding noise.
Nokia: The Finnish company has found 2011 to be one of its most tumultuous years, with market share
slipping, the closure of its Ovi app store, and the switch from the Symbian operating system to Windows
Phone 7. Nokia has long been the number one mobile phone and smartphone vendor worldwide, performing
particularly well in Europe. But the company now sees increasing competition from the iPhone and
Android devices. 2012, when the company launches its first wave of Windows 7 phones, will be a pivotal
time for Nokia.
Number Portability: Reaching Canada in early 2007, number portability describes the ability for a
customer to switch from one wireless carrier service to another, but still keep his telephone number. This
is, of course, provided that a handset from one provider can work on another service; or that the customer
purchases a new handset altogether. Customers can also port a landline number to a cellular service and
vice versa. Note, however, that if a customer is already tied to a lengthy contract, it might not be worth his
while to switch since he’ll pay hefty cancellation fees. But for those who aren’t tied to one carrier, number
portability offers the freedom to choose.
Numeric Keypad: The standard nine-button keypad on a mobile phone that contains numbers with corresponding
letters of the alphabet (often three to a key) on each. Numeric keypads are quickly being replaced
by QWERTY keyboards that allow for easier and quicker composition of text messages and e-mails.
O
Optimus: The sub-brand name for LG’s latest wave of smartphones and tablets. (See “LG”)
OS: Acronym for “Operating System,” this describes the software on which a smartphone runs. Much like
with a computer, smartphones must be powered by software that facilitates functions like sending and
receiving e-mail, accessing and editing documents, and playing media files. The most popular smartphone
operating systems include Android, iPhone, and BlackBerry.
P
Palm: The company arguably led the smartphone craze when PDAs (Personal Digital Assistants), pocketable
data devices without cellular antennas, were all the rage. But somehow, Palm fell off the map as
others gained steam. The company was acquired by HP in 2010 for US$1.2 billion. But less than a year
later, and after attempting to reinvent the format with new smartphones and a tablet, HP confirmed that it
would discontinue operations for webOS devices. The future of Palm, then, lies in limbo. (See “HP”)
PayPass: Retail POS terminals that work with MasterCard NFC-enabled payment cards. On the cellular
side, these terminals can accept payments from NFC-equipped mobile phones once that technology
becomes commercially available in Canada. Bell Mobility ran a four-month trial in May 2008 using PayPass
terminals, permitting purchases of $50 or less. (See “NFC”)
payWave: Retail POS terminals that work with VISA NFC-enabled payment cards. On the cellular side,
these terminals can accept payments from NFC-equipped mobile phones once that technology becomes
commercially available in Canada. Rogers Wireless ran a trial using payWave terminals, permitting purchases
of $25 or less. (See “NFC”)
PCMCIA: (Personal Computer Memory Card International Association) Cards (a.k.a. PC cards) that can
be inserted into a computer slot to permit wireless connectivity to the Internet. Many cellular service
providers offer PCMCIA cards with contracts that allow travelers to get online from a full-sized computer
using the cellular 3G network. A more popular form these days is a USB stick with wireless connectivity
built in. Some phones can tether directly to a computer, allowing you to share a 3G cellular connection with
a notebook.
Pico Projector: Tiny devices that connect to a compatible mobile phone (or other portable device or
computer), than project images or video from the device onto any flat surface. (Samsung offers a mobile
phone in Korea that has a pico projector built into it.) Pico projectors have yet hit the mainstream market.
PIN: (Personal Identification Number) Can have several meanings in the cellular industry. It can refer to a
four-digit code to access specific features of a phone. With BlackBerry users, the word PIN is often used
in reference to the Messenger feature, which requires that you know the PIN of another person’s phone to
add him to your contact list. To find out your PIN, click on Options, then Status. It is an eight-digit combination
of numbers and letters.
PlayBook: The brand name for Research in Motion’s (RIM’s) first BlackBerry tablet. The device launched
to much controversy, as many felt it took too long to come to market, then was released prematurely when
many features weren’t yet functioning properly. The PlayBook continues to work its way into the market,
focusing on features like BlackBerry Bridge, which allows consumers to essentially mirror a BlackBerry
smartphone on the device when connected, then disconnect without storing any information on the tablet.
Postpaid: Cellular phones that are sold on a contract basis, which customers sign on for 1, 2, or 3-year
terms, then pay monthly based on the features and usage. Signing on to a postpaid plan means that the
customer is locked in with a carrier for the duration of the contract. But he can also get a phone at a much
lower, subsidized price.
Prepaid: Cellular phones that aren’t sold on a contract basis, but on their own with refillable “buckets”
of voice calling minutes. When minutes are almost depleted, the customer must purchase more, by phone or

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38
New carriers like Mobilicity arrived in Canada in late 2009 and into early 2010, and all
continue to thrive, succeeding in helping change the nature of wireless pricing and services
in Canada.
Internet, or by getting a calling card at retail. Pay As You Go is one example of a prepaid service. These are
often popular with infrequent cell phones users, those with bad credit, or those who don’t own credit cards.
Public Mobile: A wireless carrier that began service in Toronto and Montreal in late 2009. The company
initially focused just on talk and text, but in 2011, added data services and a new selection of smartphones
to its roster. Public has made interesting moves on the retail front, targeting new customers to wireless
and those living paycheque-to-paycheque; plus inking distribution deals through retail partners like
Gateway Newstands.
Pull E-Mail: (See “Push E-Mail”)
Push E-Mail: The process used with devices like the BlackBerry whereby e-mails are automatically
“pushed” to the device as they come in, just as they would on your PC or Mac through a program like
Outlook or Entourage. The opposite is Pull e-mails, which require that the user logs into a Webmail-like
program through a phone’s browser to grab his e-mails.
Q
QWERTY: Just like with a standard computer, QWERTY refers to a larger-sized keyboard that consists
of one key for each letter of the alphabet, as well as a variety of symbols and characters. The name hails
from the top-left corner of the keyboard, which reads “QWERTY” left-to-right, and is designed for a comfortable
typing experience. QWERTY keyboards are becoming commonplace in mobile phones since they
allow for quicker and easier text input.
R
Regulatory Recovery Fee: A small fee on bills from carriers like Rogers that was said to replace
the System Access Fee. The explanation is vague, but Rogers says the fee is used to cover costs associated
with things like 911 fees, spectrum acquisition, licensing charges, and contribution charges to help
subsidize telephone service in rural and remote areas. However, the Government says it does not require
Rogers to collect these fees.
Research in Motion (RIM): The Canadian company that created the BlackBerry, which has become
a staple in the corporate business world in North America. The company branched out into the growing
consumer segment with versions of the popular device that focus just as much on “fun” as function. In
2011, RIM developed a tablet (See “PlayBook”) as well. 2011 also saw much controversy for RIM, beginning
with troubles surrounding the PlayBook launch, lost analyst confidence in the brand, falling market
share, and questions about the company’s leadership and future. In the summer, RIM confirmed it would
be cutting 2,000 jobs worldwide, and launched several new devices, marking its biggest global launch to
date. (See “BlackBerry”)
RFID: (Radio Frequency Identification) Microchips with transmitters that do not require close proximity or
a clear line-of-sight to be scanned. From the cellular perspective, the phone could become a portal to
accessing RFID tags via third-party applications. In business, uses range from being able to track a fleet
of trucks to maintaining inventory.
Ringtone: The sound a phone makes to indicate a call is coming through. Most phones today support polyphonic
ringtones, which allow for actual songs and multi-key tones to be used. Ringtones can include instruments,
vocals, or even funny sounds, like the voice of a popular TV character, guitar sequence, or chimes.
Roam: Canadian carriers have deals with carriers in other locations and countries that allow customers
to latch on to their services while traveling outside of their area. When a customer begins roaming, the
phone’s LCD will display this information, along with what network you’re roaming on. It is important to
note that once a cell phone is roaming, the customer will be charged additional fees for both voice and
data transmission. It’s prudent to show new smartphone owners how to turn data off once roaming so they
can still access voice calls but can halt push e-mails to save money, for example.
Rocket Stick: Rogers’ brand name for its USB Internet Stick. (See “Internet Stick”)
Rogers Wireless: Once the primary GSM carrier in Canada, Rogers now faces steep competition from
Bell and Telus, which now also operate in the GSM space; as well as new carriers like Mobilicity and WIND.
Rogers Wireless is a division of Rogers Communications, a media conglomerate that owns everything from
cable TV to Internet and media properties.
Router: Typically a term you’d hear only in the computing space, the router for sharing 3G wireless connections
is becoming more common. All the carriers offer options that are ideal for those in rural areas
where they can’t get reliable broadband; or for condo dwellers. The routers typically look just like standard
routers, but allow for connecting up to 10 devices using one 3G wireless account.
S
Samsung: The Korean company has maintained a strong position in the Canadian wireless market with
popular Android Galaxy smartphones and tablets. The company is quickly gaining marketshare in wireless,
consistently ranking in the top three vendors alongside Nokia and Apple, and showing continued growth.
In addition to supporting both Android and Windows, Samsung also has its own user interface overlay
called TouchWiz, and its own mobile operating system, Bada.
SaskTel: The dominant wireless carrier in the province of Saskatchewan, SaskTel offers a range of communication
services, including wireless. The company reports $1.1 billion in annual revenues, and 1.4 million
customer connections.
Sexting: A phenomenon whereby teens and “tweens” send racy photos or messages to one another via
cell phones. This is characterized as beyond innocent flirting, and has been likened to the distribution of
child pornography when it involves those under the age of consent. Some phones and carriers have
parental control features that can prevent such conduct.
Shaw: A major player in the Canadian communications landscape, Shaw acquired spectrum in Western
Canada to start up its own wireless network. The company is said to be aiming for late 2011 to launch,
though no official plans have been revealed just yet. (See “AWS”)
Signal Booster: Devices that come in both portable and full-sized formats, help to enhance the cellular
signal in rural areas or other spots where wireless connectivity is sub-par. In addition to increasing
signal strength, they can also help to extend a signal across further distances. If a customer resides in a
rural area, or often travels to one, it’s worth recommending one of these as an accessory purchase for the
home and/or car.
SIM Card: Used in GSM phones, the Subscriber Identity Module card securely stores a cellular phone’s
information, including the phone number. Customers can also store data, like photos and address book
contacts, directly to a SIM so it can be easily swapped from one phone to another. They are about the size
of a fingernail, and are typically loaded in the back of the phone, underneath the battery. (The iPhone’s SIM
card is unusually slotted in the top). Unlike CDMA phones, one can use an unlocked or same-system GSM
phone by inserting his SIM card into it.
Smartphone: A smartphone is a phone that operates much like a computer, often with a touch screen
and/or QWERTY keyboard, a sophisticated mobile operating system, access to apps, multimedia components,
and Word processing capabilities. Plus, of course, e-mail, Internet, and other messaging capabilities.
Most have integrated cameras/camcorders and music players. Smartphones are quickly becoming the
dominant type of mobile phone on the market.
SMS: (Short Messaging Service) Sort of like Tweets for phones! Short, 160-character-or-less text-based
messages that are almost instantly sent from one cell phone user to another. SMSs can also be sent to
multiple recipients at once, and can be sent to any cell phone user, regardless of carrier. They do not
require data, but are charged on a per-use basis at $0.15 per message. Text bundles that offer a set number
of texts per month for a set fee are becoming more and more popular. Note that SMSs can also be
sent through e-mail using a dedicated address that includes the recipient’s phone number; or through a
carrier’s Website. Canadians send, on average, 186 million text messages per day.
Solo Mobile: The “discount” cellular brand under the Bell Mobility banner that focuses on prepaid services,
basic devices, and infrequent cell phone users.
Sony Ericsson: The company has become a major player in the camera phone and music phone markets,
able to leverage relationships with Sony. Sony Ericsson is also focused on the traditional smartphone
space, with phones like its Xperia line.
Speakerphone: Chances are this is in reference to a Bluetooth device that has built-in speakers, connects
wirelessly to a phone, and lets you chat hands-free. The most common type is a unit that clips to a
car’s visor and features simple on/off and volume buttons. But others are available that can be positioned
in the centre console, on the windshield, clipped to the steering wheel, or even hard-installed into a vehicle.
Consumers are only beginning to understand these devices exist, so the category is still in its relative
infancy. Note that speakerphone can also mean a phone’s integrated speaker, which can be used to chat
hands-free. Sound quality in the latter will not be as good as with a third-party device.
Spectrum: The airwaves required for cellular services to operate. The more spectrum a wireless carrier
has, the more data its customers can transmit, like streaming video and e-mails. The greater distance
spectrum covers also means the farther distances over which that carrier’s services can function.
Stereo Bluetooth: Headsets and headphones with stereo capability allow you to stream music wirelessly
from a compatible cell phone so that you can hear it through both sides. If a mobile phone does not
support stereo Bluetooth functionality, you can wear stereo Bluetooth headphones, but will only hear sound
through one ear.
Stylus: A thin, pen-shaped metal stick used to facilitate typing, menu selection and navigation on a
touch-sensitive phone. Phones that come with styluses typically have a slot where the stylus unobtrusively
resides when not in use.
Symbian: An operating system creator acquired by Nokia in 2008. This OS rivals the likes of Windows
Mobile and Android, and is typically used in Nokia phones. But Nokia confirmed in 2011 that it would be
As wireless 3G, and now 4G, speeds get faster and more reliable, we begin to see more
robust devices come to market, like Internet hubs that allow multiple people and devices
to connect at home or on the go.

40
scaling back Symbian, and abandoning it altogether in some markets, including North America, in favour
of Windows Phone 7.
System Access Fee: An often-called “bogus” added fee of about $7/mo. that many carriers used to
charge customers, but most have since removed.
T
Tablet: A new category of product that sits between a smartphone and a notebook/netbook. A tablet
ranges from about 7” to 10” in size, comes with a touch-sensitive screen, and runs a mobile operating system,
and WiFi and/or 3G connectivity. The category was arguably ushered in by the iPad, but the market
is now flooded with options from Android supporters, to Windows 7, and even the BlackBerry PlayBook.
Telus Mobility: After merging with Clearnet in 2000, Telus became one of Canada’s biggest three wireless
carriers. The company operates on the CDMA and LTE networks. In September 2009, Telus purchased
digital imaging retailer Black Photo Corp. for $28 million, helping to widen distribution of its products.
Tethering: The act of using a mobile phone as a modem to access the Internet on a computer. This
process is typically used by business travelers while on the go, allowing them to tap into a 3G wireless network,
for example, from anywhere in the world rather than searching for a WiFi network. Some carriers
worldwide, including Rogers, support this function with the new iPhone 3G S. Tethering can be accomplished
with many other mobile phones.
Text: (See “SMS”)
Texting Phone: Typically describes a basic bar, flip or slider-styled phone that comes equipped with a
QWERTY keyboard and is used predominantly for composing SMSs. While many do have the capability to
send and receive e-mail through a carrier service, they are designed mainly for the youth market, and to
accommodate the growing text messaging trend in that age group. (See “SMS”)
Touch-Screen: An LCD, most often at least 2” in size, that responds to the touch or swipe of one’s finger
or a stylus to perform functions like typing, selecting or manipulating items, and/or scrolling through
text or pages. Devices like the iPhone rely solely on touch-screens, while others, like the BlackBerry Torch,
also include pull-out physical QWERTY keyboard.
TTS: (Text-to-speech) The ability for a speakerphone or other device to convert text information to audible
speech. For example, a speakerphone that utters the caller’s name has TTS, while one that can only
dictate the phone number does not.
2G: Speeds are rated slower than with 3G (although typical bit rate is between 9.6 and 14.4 Kbps; 2G
with GPRS is typically 32-48 Kbps), but customers can still perform tasks like viewing Web pages and
sending/receiving e-mail with ease. Where a customer will likely run into issues is in viewing video content
or accessing large data files. 2G is quickly being replaced by 3G devices, while 4G devices are only now
beginning to hit the market.
U
Microsoft’s performance
has typically been
lackluster in the
wireless space, but
the new Windows
Phone 7 mobile
operating system
is making some
positive waves,
and is poised
to continue to
do so through
a new partnership
with Nokia.
UI: (User Interface) Describes the visual menu screens and navigation structure of a phone’s display. The
home screen, for example, is central to a phone’s user interface, as is the way that applications are displayed,
how icons are, or can be, arranged, and how information can be manipulated for access.
UMA Phone: Based on the Unlicensed Mobile Access (UMA) protocol that allows for automatic, seamless
switching from a cellular to a home-based WiFi Internet connection and vice versa. Use requires the
purchase of a special voice-optimized wireless router, which then allows the customer to make and receive
calls from his cell phone while at home without using up valuable plan minutes. But there’s also an added
monthly cost of $15-$20/month. If a customer has a landline at home and intends on keeping it, there’s
no real value in this function. It’s mainly for the growing group of people who rely exclusively on a cellular
phone for voice communication. It’s also no use to customers if they’re only home in the evenings and on
weekends and their monthly plan affords free calling during these hours.
Universal Accessories: A loose term signifying products that are compatible with a large number
of devices rather than only a few. For example, the iPhone and Sony Ericsson phones both use their own
proprietary connectors, while the BlackBerry and Samsung phones use mini USB standard “universal” connectors.
A microSD memory card is considered universal since it works with virtually any phone that will
accept a memory card. A standard leather case that fits most bar-shaped phones is a universal accessory
while a specially-fitted skin for the iPhone is not. Gadgets, like chargers, that come with tips that can
accommodate a great many phones, can also be considered universal.
Unlimited: Take the use of this term with a grain of salt, and never use it with a customer unless you
literally mean unlimited. In relation to voice minutes, this could mean the customer can chat for hours on
end during a specified period of time without incurring additional charges. The most typical time period for
this is evenings and weekends. In the case of data, many of the new carriers offer unlimited Web surfing
for fixed prices within their service zones.
Unlock: The act of opening up a GSM phone for use on any carrier service, by allowing for the insertion
of a SIM card into it. Most GSM phones come locked for use with that specific carrier. For example, many
consumers purchase phones from the U.S. then unlock them for use on the Rogers or Fido network.
Unlocking can be a simple (or arduous!) process, and many carriers or third-party companies charge a
small fee to perform it. However, it is not widely considered an accepted practice.
UNO: Fido’s brand name for its UMA service and product offerings. (See “UMA”)
V
Video Call: While video calls today are most often made through services like Apple’s FaceTime, or apps
like Skype, some carriers do afford video calling as a plan option. Video calls through mobile devices require
a front-facing camera that can display the caller’s face to the recipient on his screen, and vice versa.
Videotron: Already a major force in Quebec in home telephony, Internet, and TV services, Videotron
acquired a significant amount of wireless spectrum in last year’s auction within Quebec and Toronto, and
launched its own carrier service in 2010. Videotron was actually one of the companies lobbying for Industry
Canada to open the spectrum auction up to new players. (See “AWS”)
Virgin Mobile: Originally 50% owned by Sir Richard Branson’s The Virgin Group and 50% owned by
Bell Mobility, Virgin Mobile sold its entire brand to Bell in early 2009. Playing in the “discount,” youth-oriented,
no-contract space, the brand continues to operate under the Virgin name, and will continue to be
supported by other Virgin initiatives, like Virgin Radio and Virgin Festival.
W
webOS: Palm’s operating system, which was acquired by HP along with the Palm brand. HP had made
moves to enhance webOS and launch a host of new devices based on the system, like the Palm Pre 3 and
Veer smartphones, and the TouchPad tablet. But in August 2011, HP confirmed that it would discontinue
operations for webOS devices, leaving the future of the platform up in the air. (See “HP”)
WiFi: Many mobile phones can connect to a broadband Internet hotspot or home wireless network to surf
without using up data on the cellular network. It works in the same way as a notebook: search for available
networks, enter a password if required, and surf away. Many phones, like the BlackBerry Bold and
iPhone, can store WiFi profiles, like home, work, or a coffee shop you frequent, then automatically connect
to them whenever they’re in range. If a phone detects WiFi, it will automatically override the cellular network
with that connection. However, note that voice calls will always be through the cellular network unless
you’re using a UMA phone and special router. (See “UMA”)
WIND Mobile: The brand name for Globalive’s wireless carrier service, which launched in late 2009.
The name hails from an established brand in Italy and Greece, owned by Orascom Telecom, which is a
majority owner in Globalive. That business setup has caused much controversy, which the incumbents
arguing that WIND should not be allowed to operate in Canada under that ownership structure, which is
contradictory to current Canadian legislation. WIND Mobile offers both voice and data services across
Canada, and has roaming agreements with Rogers for service outside of its coverage zones.
Windows Mobile: Microsoft’s operating system for mobile devices. It mimics the Windows OS for
PCs, with streamlined versions of software like Microsoft Word, Excel, PowerPoint, Media Player, and
Windows Live Messenger. Phones based on this platform typically also come with instant access to services
like Windows Live and Hotmail e-mail, and can seamlessly sync with a Windows PC, Microsoft Outlook
e-mail client, or corporate exchange server. The latest version, Windows Phone 7, is the most robust yet,
adding things like Xbox Live connectivity. With Nokia confirming that it will focus on Windows 7 phones
going forward, the platform is poised for growth in 2012.
WiMAX: As a next-generation extension to traditional WiFi, WiMAX permits wireless access for up to 50
km rather than the paltry 30-100 metres that 802.11 WiFi can provide. It offers download speeds of up
to 2-4 Mbps, peaking at 10 Mbps. The idea with WiMAX is to make switching between a cellular and athome
broadband network seamless, so that one can remain connected as he walks out the door, into the
car, and travels across the country.
World Phones: Offered through Bell and Telus are a limited selection of devices that are said to be
able to operate on both the CDMA network (in Canada and the U.S.) and the GSM network when traveling
abroad. Essentially any phone available through the Rogers network can be considered a “world” phone
(although countries like Japan require that a device operate on the 3G network, and no foreign cell phone
works in Korea!)
X, Y, Z
Zoompass: A mobile money transfer service developed by Bell, Rogers, and Telus through a newly-created
company called Enstream. Sign up for an account online, connect it to an existing debit or credit card
account, then download the app to a compatible phone. Then, you’re able to send and receive money with
other Zoompass users via the phone. The eventual goal for Zoompass is to merge money transfer and
mobile payment capabilities into one so that both can be achieved via a phone. (See “NFC”) MN
WIRELESS TIMELINES
1973: The first modern cell phone, the DynaTAC portable radio telephone, is built by Motorola,
although it does not reach the consumer market at this time.
1983: The first truly commercial cellular telephone service launches in Chicago by Ameritech. Analog
cellular system operates on Advanced Mobile Phone Systems (AMPS). The 28-ounce DynaTAC phone
becomes available to consumers in 1984.
1985: The first cell network is set up in Canada, offering analog service (voice only). The first phones
available tip the scales at 1kg, cost $5,000, and offer just 30 minutes of talk time.
1996: Digital cellular service launches in Canada, offering better voice quality, and essentially marking
the dawn of wireless data (call waiting, text messaging, multi-media file exchange, etc.)
1997: Cantel AT&T becomes the first wireless company in Canada to offer Digital PCS services nationwide.
2000: Rogers AT&T Wireless announces plans to build Canada’s largest GSM/GPRS (integrated wireless
voice and packet data network) in 2001, setting the stage for commercial deployment of 3rd generation
wireless services.
2001: Bell Mobility, Microcell Connexions, Rogers AT&T Wireless, and Telus Mobility join forces to
develop an initiative that will enable inter-carrier, mobile text messaging for digital wireless customers
across Canada.
2005: There are 15.3 million wireless service subscribers in Canada, representing 50% penetration.
2008: Apple’s highly-anticipated iPhone 3G becomes available in Canada in July, and quickly
becomes the best-selling phone in Rogers Wireless’ history.
2008: Industry Canada sets aside a portion of the wireless airwaves for potential new carriers to bid
on, marking a major leap in competition in the Canadian wireless arena.
2009: There are more than 22 million wireless subscribers in Canada, representing approx. 70% of
the population, and more than 80% in greater metropolitan areas.
2009: Bell and Telus launch their GSM/HSPA networks, placing them in direct competition with Rogers.
2010: The first iPad ships in April, ushering in a whole new category in wireless, and spawning competitors
like Samsung’s Galaxy series and Motorola’s Xoom. Three-million iPads sell in 80 days; 14.8
million worldwide for the year. Wireless revenue in Canada totals $18 billion.
2011: There are 24.7 million wireless phone subscribers in Canada, with smartphones quickly
becoming the fastest growth area. In March, the second-generation iPad launches, and 15 million
units sell instantly making it yet another runaway success. Meanwhile, RIM cuts 2,000 jobs worldwide,
Nokia confirms it’s dropping Symbian and supporting Windows Phone 7, and Google buys
Motorola’s mobility business.

42
Benefits:
It Doesn’t
Have to be
a Bad Word
By Vawn Himmelsbach
For many small business owners, benefit
plans are something they’d rather not
have to deal with. Some feel trapped in a
one-size-fits-all plan that doesn’t actually
fit, while others simply don’t offer any
benefits at all.
But in a highly competitive market, and
one that’s trying to attract a young, hip
workforce at a time when boomers are
retiring, being able to offer an attractive
benefits plan is a critical recruitment and
retention tool. Whether they’re a momand-pop
shop or a big-box retailer, most
employers are aware of how difficult it can
be to find and keep good employees.
And nowadays, many employees
expect benefits as part of their overall
compensation package. Salary is important,
of course, but it’s not the only criteria
that potential new hires are asking
about during a job interview.
According to a survey by the Randstad
Workmonitor published in December
2010, 49% of Canadians surveyed said
their benefits increased over the previous
year, and 61% expected their benefits to
improve in 2011. The survey demonstrated
the expectation that benefits will
improve, particularly now that the worst
of the recession is over.
Partly due to cost pressures during the
recession, the benefits market is changing,
and there are now more flexible
options for employers; even smaller companies
with a handful of employees. Still,
costs can be unpredictable, and there
are other areas where employers can find
themselves in hot water, such as legal liability.
So when determining their needs,
cost will obviously be a factor. But there’s
much more to consider when it comes to
an overall return on investment.
Why Offer a
Benefits Plan?
A benefits plan can help you attract and
retain employees, as well as improve
employee health and productivity, says
Cathy Fuchs, President of White Willow
Benefit Consultants Inc. based in
Stouffville, ON. It also provides a taxeffective
way for employees to fund dayto-day
health and dental costs, as well as
coverage for catastrophic risks.
An employer offering an A-level salary
may be able to offer a C-level benefits
plan, she says, while an employer that
offers a low hourly wage might offer a
generous benefits plan. Understand what
your employees want; larger employers
Overview
• Being able to offer an attractive benefits plan is a critical recruitment and retention tool;
especially during a time when companies are competing for young, hip workforces to replace
retiring baby boomers
• There are three components to a benefits plan: protecting employees from catastrophic events;
health and dental reimbursements, prescription medications, short hospital stays, and other
similar medical items; and administration
• Companies can opt for one-size-fits-all-type plans, or look at more customizable options that
allow for flexibility
• With packaged plans, employers could end up paying for more than what employees use
• The right broker/advisor will find a plan that’s a good fit, and that can minimize future liability
and future cost increase
typically do surveys, but this is also an
option for smaller employers.
“The small employer may not be able to
offer the high levels of coverage or choice
available in a flexible benefits plan,” says
Fuchs. “However, there are creative
options available through spending
accounts and other options such as flexible
work environments, wellness accounts
and so on. A benefit plan is an integral part
of the compensation package.”
In retail, benefits can separate employers
that are looking for clients versus
employers that are looking for customers,
adds Robert Crowder, President
of The Benefits Trust in Vaughan, ON. A
lot of higher-end electronics stores have
repeat business and want consistency of
staff, and in order to do that, they want to
retain employees over the long term.
Some employers also offer incentives
for part-time and contract employees,
but those benefits are not typically on par
with what full-time employees are entitled
to. Some employers might also offer
more benefits to employees depending
on their position, years of service, or
product expertise.
There are sometimes more paternalistic
reasons for providing benefits, particularly
within a small business. Perhaps the
business owner has worked with certain
employees for several years and someone
was diagnosed with cancer, and
now the employer is continuing that person’s
salary for an indefinite period of
time because they don’t have benefits.
“It can be messy,” says Mike
McClenahan, CEO of Business By
Design in Port Coquitlam, B.C., which
acts as a third-party administrator
between insurance companies and
employers. Oftentimes a benefits plan is
a short-term knee-jerk reaction, but
employers need to sit back, consider
their options, and figure out what it is they
want to accomplish.
Designing a Plan
Benefits form part of an overall corporate
compensation package. But in the small
group market, an employer does not normally
call up Great West Life and ask for
a proposal. Instead, distribution is typically
handled through a brokerage channel.
If you’re a small business owner, typically
the large insurers won’t deal with
you directly; instead, they’ll work through
an independent broker who can help
them design the right plan to fit the
appropriate needs and budget.
“I walk into companies all the time and
they say, ‘We hate this crap, it really
sucks.’ It really doesn’t have to. They’ve
got to pay premiums every month and
they look at it as a necessary evil. Look at
it as compensation instead,” says
Crowder.
They should avoid putting a square peg
in a round hole and settling for a package
that doesn’t make complete sense.
“They shouldn’t settle for having to buy
things they don’t want to buy,” he adds.
First, figure out why you’re offering a
benefits plan. Is it because you feel you
have to? Are you trying to recruit and
retain employees? In that case, you’ll
need to find out what employees want
and what your competitors are offering.
Should you match your competitors, or
offer a unique value-added benefit?
Should you focus on preventative medicine,
and offer options such as massage
therapy or hypnosis to stop smoking, or
do you stick with the basics? Do you give
everyone the same options, or do you
provide different benefits for different
employees, and perhaps even for different
retail locations around the country?
These are just a few questions a business
owner has to ask when designing a
benefits plan. Next, you’ll have to determine
the costs and anticipated benefits;
salary, marital status and age of employees
will all be factors.

Canada Night 2012 takes you to .
Canada Night has a
new home for 2012!
We are saying goodbye to the
ballrooms of past and moving
to the Bank Nightclub at the
Bellagio! Cool ambient background
music instead of a
band, lots of stylish seating,
two great bars, fantastic food.
This year, we are taking
Canada Night to a whole
new level of fun and sophistication.
Please join us on
Wednesday, January 11, 2012
from 7:00 p.m. to 10:00p.m.
The above companies have
already signed up to be a
Canada Night Sponsor.
Add your company and let
the industry know that your
organization helps make
Canada Night a success!
For advertising opportunities
please contact...
John Thomson at
416.667.9945 ext: 225
e-mail jthomson@marketnews.ca
Damien Donnelly at
416.667.9945 ext: 231
e-mail ddonnelly@marketnews.ca
You must RSVP to canadanight@marketnews.ca for admittance.

44
Cathy Fuchs, President, While Willow Benefit Consultants, Inc., Stouffville, ON: “The
small employer may not be able to offer the high levels of coverage or choice available
in a flexible benefits plan. However, there are creative options available through spending
accounts and other options such as flexible work environments, wellness accounts
and so on. A benefit plan is an integral part of the compensation package.”
A large electronics manufacturer or bigbox
retailer has the ability to work with
consultants to design a plan to meet their
exact needs. But the small consumer
electronics company also has that capability;
they just have to find the right advisors
to work with (and not someone who
tells them to take Package A or leave it).
“This stuff is not cheap, they’re spending
a lot of money and they want to make
sure they’re buying the right stuff,” says
Crowder. Business owners should spend
their money wisely, and they should feel
good about it.
There are typically three components to
a benefits plan. First, there are the basics,
which protect employees from catastrophic
events (such as life, accidental
death and long-term disability insurance).
The second component is typically where
customization comes into play, which
includes health and dental reimbursement,
prescription medications, short
stays in hospital, as well as items like
orthotics and knee braces. The third
component is administration, which
includes documenting and communicating
the benefits plan.
The plan needs to align with the
employer’s business objectives, says
Fuchs. Do you need to offer a top-drawer
plan in order to attract talent? How
does the benefit plan compare when you
factor in pay, incentives, flexibility,
advancement opportunities, professional
development, vacation and other pieces
of the total compensation package?
Fuchs recommends completing a
needs assessment to determine your
objectives for the plan, your budget, what
your competitors offer, your administrative
capabilities and understanding
employee needs.
Even if you already have a plan in place,
employee benefit programs should be
monitored on a regular basis. Does your
plan continue to meet the needs of the
employer by being cost-effective and
competitive, while satisfying employees
(since employee populations can change
over time)?
A common mistake employers make is
setting up a benefits plan and never look-
ing at it again; and not taking any steps
to manage it, says Fuchs. Has your
group changed? Have your competitors
changed?
Also, understand your marketplace and
your employee needs before launching a
program, says Fuchs. You may wish to
offer different levels of benefits to different
employee groups (part-time, contract or
based on years of service). But ensure all
communications to employees explains
that the plan can change at any time.
Doing a Cost
Analysis
Should someone pass away, get a critical
illness, or require a $100,000 drug, those
costs are shared among employees and
premiums generally don’t change much.
Where they change is based on utilization
of routine expenses, says Crowder.
In a traditional benefits model, it can be
tough to estimate costs. When you set
up a plan for the first year, “it’s really a
complete crap shoot in terms of what
your rates are going to look like next
year,” says McClenahan. Rates are
renewed on an annual basis, and health
and dental are the primary drivers of the
following year’s rates.
Insurers don’t typically do a medical
screening, so they accept a degree of
risk and price to the best of their ability
(factoring in, for example, age of employees).
Then they see how it all works out
12 months later. If employees are claiming
$1.50 for every $1 in premiums, the
employer is going to see a significant
increase in rates the following year.
The cost of a plan can vary from $2,000
per employee per year to $5,000, and
these costs can be shared with the
employee, adds Fuchs. If an employer is
not looking for the Cadillac version, a
decent plan will cost from 4-8% of payroll.
That’s a good gauge, McClenahan explains,
because provincial variation is huge.
“I would budget eight to 10 per cent a
year for the inflation impact on your benefits
cost,” says McClenahan. “That can be
a bit of a shock to employers, so set those
expectations.” New groups might go for
the idea of a defined contribution to start,
since they’re less likely to face this shock.
To start, focus on the basics. Offering
life and basic health coverage will protect
a company’s employees while providing
more control over the budget. You can
always add on more benefits in the
future. Employee co-payments can help
keep plan costs in check. Self-insurance
is another option that can reduce costs,
but comes with a higher level of risk.
But don’t forget about administration.
That’s part of the overall cost of the plan,
and for a lot of small businesses, those
administrative costs are often hidden in
rates, and can sometimes be as high as
30%, says Crowder.
It’s a smart idea to start small and scale
up. “We often see people who start with
100 per cent of everything, and on the
first or second renewal, usage is higher
than expected, so now they’ve got to
scale back,” says Fuchs. “It’s better to go
the other way.”
One Size
Does Not Fit All
Many consumer electronics stores may
only have a few full-time employees or a
couple of managers, while the choices
offered by insurance companies are limited
(usually to plan A, B or C). These
generic benefits packages are typically
designed around the lowest common
denominator.
You can bet, however, that the president
of a large manufacturer has a different
set of benefits than the guy working
at the loading dock. Even in a small business,
however, different benefits can be
assigned to different groups; even when
there is only one owner, one manager,
and a couple of full-time employees.
“One size does not fit all,” says
McClenahan. “We also believe one insurance
company may not have the best
solution for all the different benefits for a
single employer.” For example, one insurer
may be a specialist in health and dental,
while another might specialize in disability.
A broker or benefits consultant will
bring together the best elements of different
insurers into a custom benefits plan.
Employers can choose to offer benefits
to different groups within the group, or
based on various criteria such as years of
service, earnings, or product knowledge.
And they can make changes at any
point. “The insurance industry has done
an incredible job of screwing with people’s
heads,” Crowder opines, “but you
can revisit the benefits plan as often as
required.” Employers often feel that
they’re tied in to a plan, since it’s renewed
on an annual basis, but that’s actually
based on a 12-month snapshot; group
insurance is a 30-day contract. “You can
make any changes at any time you want.
Building a Benefits Plan
It can change as frequently as your business
requirements change. The business
owner is in control; they’re not locked in
for a year,” he says.
Another thing to consider is that different
markets have different requirements, and
that those are often in flux. “Times are
tough for certain people, but it depends on
what your market niche is. People continue
to spend money,” says Crowder.
In Sudbury, ON, for example, retailers
are having a difficult time keeping and
maintaining good employees because
the mines are so vibrant and paying
employees a great deal of money. Bob’s
electronic store might be paying $15 an
hour, whereas the mines might be paying
$25 an hour, so it may be in Bob’s best
interest to offer a highly competitive benefits
plan. In another environment where
there’s higher unemployment, a business
owner might look at it differently.
And this needs to be revisited on a regular
basis. Northern Alberta, for example,
is very different today than it was three
years ago during the oil boom, and
Sudbury is different than it was two years
ago when the mines were on strike.
“Every environment is different; it doesn’t
make sense for an electronics store in
Barrie to have the same plan in northern
Alberta. They sell different things to different
people,” says Crowder.
Traditional vs.
Alternative
Funding Models
“We’re seeing a significant change in
benefits and it’s really come about in the
last few years,” advises McClenahan.
“Cost pressures are driving benefits.”
There are pooled benefits, which include
life, disability and critical illness, which are
designed to protect against catastrophic
events. The other area; which employees
typically regard as most important;
includes health and dental, and that’s
where we’re seeing more of a change
due to cost pressures.
In a traditional benefits plan, an
employer might offer a defined benefit,
which means they define what the benefit
looks like (such as everybody gets
80% coverage for prescriptions). In most
cases, the employer is funding at least
50% of the benefits. What remains
somewhat undefined year over year is
what it will end up costing the employer
overall.
“Imagine the scenario where I as the
employer am paying the majority of the
premium,” says McClenahan. “Most
health plan inflation is running at 10 to 15
per cent annually, so you can imagine in
this economic climate that most company
revenues are not going up by the
same margin. That puts pressure on their
ability to continue to offer those benefits.”
According to Cathy Fuchs, President of White Willow Benefit Consultants, here
are some of the components to consider when building a benefits plan:
• Traditional benefits such as life insurance, accidental death, short- and longterm
disability, extended health (hospital, out-of-country emergency medical,
drugs, medical supplies and services), dental, and retirement savings vehicles.
• Other benefits such as health care spending accounts, optional life coverage,
and critical illness.
• Through a health care spending account, an employer can offer the employee
flexibility, or cover specific costs that are important to the employer at a fixed
cost.
• Taxable accounts are also available to reimburse wellness expenses, such as
a fitness membership.
• Access to additional value-added services might be available through some
consulting firms, such as pharmacy services, chronic illness and second-opinion
services.

Part-time workers generally do not get
benefits. But Chris Taylor, Vice President,
HR, Future Shop, says the retailer
launched a nationwide part-time benefits
plan in 2008 as an incentive. If the
employee moves on to a full-time position,
his benefits increase accordingly.
Most of that cost comes from prescription
drugs, and the next wave of drugs is
going to put significant pressure on these
programs over the next 3-5 years, and in
some cases, make them unsustainable
for employers, he adds.
A traditional benefits plan doesn’t provide
much flexibility, but nowadays, you
can see four generations working within a
single employer. “Having a one size fits all
can be challenging,” McClenahan states.
“Are you really getting a return if it’s this
one size fits all?” What some employers
are now doing in health and dental is providing
flexibility with benefits, specifically
through a health care spending account.
Instead of providing a defined benefit, it’s
a defined contribution, so everybody gets
a certain number of dollars per year to
use for benefits.
“If I’m 25 with no kids and I want to use
it for laser eye surgery, great. If I’m a 40year-old
with two kids and looking at
braces, then maybe I choose to use it for
that. Individually, they can tailor the plan
that way,” says McClenahan.
So why wouldn’t everybody do that?
The challenge is rooted in the fundamental
nature of health plans: Typically about
20% of employees are using about 80%
of the coverage. When you shift to this
newer model, the higher-utilization group
has fewer dollars overall, which can be a
problem for someone who has, for example,
an expensive ongoing prescription.
“This is the real crux of what’s going on
in benefits today,” McClenahan explains.
There are a number of expensive prescriptions
that can run from $10,000 to
$20,000 a year. If you have a small percentage
of your employee group racking
up 80-90% of the drug plan, that affects
your ability as an employer to offer those
benefits. You may end up in a position
where you just can’t offer it anymore or
you need to do something different. And
some of those employees with higher
claims are going to be in position of paying
a lot more.
The predictability of future plan costs is
very difficult in this marketplace, adds
Fuchs, so the health care spending
account is one way of making it completely
predictable. If you overspend, too
bad; if money is left over, you can carry it
forward. It’s a great way for an employer
to start out with a benefits plan, but it
means some employees may have a lot
of out-of-pocket costs.
Also, even if a business isn’t unionized,
it might have to be competitive with a
union program using a more traditional
model, so they’re handcuffed.
So what about government coverage?
The reality is it varies a lot province to
Mike McClenahan, CEO, Business By
Design, Port Coquitlam, BC: “Are you
really getting a return if it’s this one size
fits all? If I’m 25 with no kids and I want
to use it for laser eye surgery, great. If I’m
a 40-year-old with two kids and looking
at braces, then maybe I choose to use it
for that. Individually, they can tailor the
plan that way.”
province. In Ontario, for example, there’s
very little in the way of drug coverage for
the average worker, though it’s decent for
seniors and low-income families. In B.C.
there’s still decent PharmaCare, which
provides fairly significant drug coverage,
though there are a lot of question marks
in terms of its sustainability.
Challenges
“Packaged” plan design offers limited
choices from the insurer to reduce
administrative costs and help with cost
management, which means there’s less
flexibility in that you can’t always include
things you want, says Fuchs.
The amount of life and long-term disability
coverage available without evidence
of health and the overall maximum
available is based on number of employees.
A small employer will have low levels
of coverage, which can make it difficult to
attract employees who previously
worked for a larger employer, she says.
It’s also a lot more difficult for a small
employer to manage on a year-to-year
basis. One large claimant can have a dramatic
impact on the renewal, and in a
small business, claims are spread over a
smaller group of people.
For a small business owner, claims for
the insurer’s book of business will play a
larger roll than claims from the employees
of a specific employer. This approach is
intended to smooth out the highs and
lows of claims. The employer with lower
claims does not benefit fully, while the
employer with high claims isn’t hit as hard
as they would have otherwise been.
Essentially, you could end up paying
more than what your employees have
claimed, says Fuchs. With small employers,
they could be up 20% one year and
down 20% the next (a new spouse or an
employee with a health condition can
really skew the numbers, for example).
Another issue is that the same person
may be looking after payroll, purchasing,
HR and benefits administration, so there
may be an increased risk of incurring
employer liability due to inexperienced
plan administrators.
Offering a benefits plan increases an
employer’s exposure to liability in the
administration of the plan with respect to
human rights, says Fuchs. Key areas of
exposure are extension of benefits on termination,
communicating benefits to
employees, and misrepresentation of the
plan, as well as administrative and reporting
errors. It’s common for employees to pay a
portion of the premium in this marketplace,
so managing participation, opt-outs, and
anti-selection is a major challenge.
“Liability is where we see a lot of
issues,” says Fuchs. “The plan’s been put
in place, but not paying attention to areas
that can be a human rights challenge.”
For example, if you terminate an employee,
how long do you continue to provide
benefits? And if you tell a new hire you
can match their life insurance from a previous
employer, this might not actually be
the case. An experienced benefit consultant
can help minimize liability.
It’s also important to communicate with
employees so they’re properly enrolled in
the plan to avoid misunderstanding. If the
plan is not well understood, it could
cause problems, so explain to employees
how it all works and the amount of coverage
available; and that coverage is
subject to change.
“Unfortunately, our industry has done a
poor job of helping employees be good
consumers of these programs,” says
McClenahan. “One of the realities of the
Canadian healthcare system is a sense of
entitlement, and that really has to shift.
Employees have to understand how to
be better consumers of these programs.”
How to Find a
Consultant
The benefits industry is not that different
from the consumer electronics industry.
Anyone can walk into a big-box store and
buy a TV, or they can find a specialist
who will set up a $25,000 custom home
theatre in their cottage.
Look for an advisor who is knowledgeable,
well established and a specialist in
small group benefits, says Fuchs. A small
employer is less likely to have access to
HR expertise, and the consultant or broker
will ensure the plan is set up correctly
with respect to benefit taxability and
payroll entries, provide advice on termination
and severance, provide template
material, and handle the more difficult
employee questions on coverage and
Part-Time Benefits?
claim issues.
A good advisor will also ensure there is
no exposure to future liability, and will
design a plan to help minimize future cost
increase; and assist the employer to
select the best provider or providers for
their specific needs.
Fuchs recommends asking other
employers for references. Does the advisor
ask questions and are they interested
in and knowledgeable about your business?
Are they creative and solutionfocused,
with the ability to think outside
the box and offer value-added services?
Do they have a communication strategy?
Are they willing to provide assistance and
training for your administrator? Are they
part of a network of specialists who can
provide assistance and advice when
needed? Many small employers end up
working with brokers who are perhaps
skilled in life insurance but not in small
group benefits, so look for someone with
that skill set.
Sometimes insurance companies will
provide references to small business
owners, rather than deal with them
directly. There are also industry associations
such as advocis.ca, which is the
Financial Advisors Association of
Canada. On its Website, you can choose
a geographical location and find advisors
with certain areas of specialty. This is a
useful resource, since there’s a code of
conduct and best practices that members
must abide by.
For very small businesses, a local
chamber of commerce is often an effective
resource since they specialize in
small groups (under five employees); this
tends to be a good option in rural markets,
making benefits accessible to even
the smallest employers, says
McClenahan.
A benefits plan doesn’t have to be a
necessary evil. Finding the right advisor
and customizing a plan that works for
you can provide a myriad of benefits, not
the least of which is demonstrating to
employees that you care about their wellbeing.
MN
Back in 2006, Future Shop started to look at developing a solid part-time benefits
plan, driven in part by legislation for part-time benefits in Saskatchewan
(of its 11,000 employees, about 48% are part-time).
In 2008, it launched a nationwide part-time benefits plan; so far about 37%
of eligible part-timers have signed up. “We hire a lot of students who don’t really
need a benefits plan,” says Chris Taylor, Vice President of HR at Future Shop.
These students often still live at home and receive coverage from their parents’
plans. But Future Shop also wants to attract a more diverse workforce, and benefits
are an important recruitment tool.
Part-time benefits are not as robust as full-time benefits, as there are no flex
options. But the plan includes 50% of the coverage for health and dental that
full-timers are entitled to; as well, they can take part in the company pension
plan (which is a matching program that starts at 4% and goes up depending on
the employee’s tenure). Like full-timers, they’re also entitled to employee discounts
on purchases.
If a part-timer moves onto a full-time position, their benefits increase, and
they also receive flex options. Additions include long-term disability and
optional life insurance.
Employees are provided with an online tutorial, training with the store’s leadership
team, as well as literature. But Taylor says it’s challenging in any industry
for a new hire to retain all that information in the first few days on the job.
So Future Shop is looking at providing touch-points along the way after 30, 60
or 90 days (since some of the benefits kick in after 90 days) to remind new
hires about aspects of the program.
The next evolution will be to provide them with an online Web portal where
they can personalize their account with information about their benefits. They
also receive an annual total rewards statement, which bundles their gross savings
together in a colour brochure.
Future Shop revisits the plan annually, but every three years, it does a total
rewards survey and takes a hard look at market data and feedback from associates
to see if any changes are needed.
45

46
The Copyright Battles Rage On
By Frank Lenk
It’s an unfortunate fact that the great digital
revolution has become bogged down
in a morass of legalities. Armies of lawyers
and lobbyists do battle with legions of
public-interest activists. The fate of entire
industries hangs in the balance.
There’s so much going on, it’s impossible
to keep track of even the most contentious
debates; or those most directly
relevant to consumer electronics. So
we’ve done a quick catch-up on several
hot topics that will surely transform the
retail landscape, one way or another.
The Legislative
Environment
One landmark event took place on the
U.S. scene: the announcement, in July,
of the Copyright Alert agreement.
Essentially, some of the big content
groups (representing the movie and
music companies) have convinced the
biggest U.S. Internet Service Providers
(ISPs) to help in passing on complaints of
illegal downloading to their customers.
After five or six warnings, ISPs will inflict
‘mitigation measures’ that may include
reduction of Internet speed, redirection to
a landing page with additional warnings,
“or other measures.”
It’s an astonishing escalation of the war
on infringement, and shifts a lot of what
was handled by legal machinery into the
realm of agreements between private
corporations. It also omits legal concepts
such as ‘probable cause’ or the presumption
of innocence. Content
providers are held to no particular standard
of evidence in making accusations,
whereas users must pay a $35 fee to
appeal them (via a process that’s not yet
clearly specified.)
Hopefully, this is a move that won’t be
reflected in Canada. Apart from any other
considerations, Dr. Michael Geist,
Professor at the University of Ottawa and
Canada Research Chair in Internet and Ecommerce
Law, feels they’d be unnecessary.
“I think we already have something
better: ‘notice-and-notice,’” he says.
Under a ‘notice and notice’ system, an
ISP forwards a notice it may receive from
a rights holder to the user who is allegedly
sharing the copyrighted work. The ISP,
however, does not reveal the user’s personal
information, or take any kind of further
action. By contrast, the U.S. system
takes the more severe “notice and takedown”
approach whereby ISPs are
encouraged to remove the alleged material
without warning to the user, or investigation
into the legality of the claim.
“The U.S. approach moves to a subscriber
notice system similar to one
we’ve had informally for years.”
Similar, but notably inferior. “The difference
comes from cost allocation (subscribers
bear more) and the prospect of
escalating actions for repeat notices,”
explains Geist. “Frankly, the Canadian
system has been shown to work without
the need for questionable punishments
such as those found in the U.S.”
Another interesting development has
been the turmoil generated by new cloudbased
music services. Typically, Apple did
a deal with the content owners that
allowed it to roll its iTunes Match with little
upheaval. But the same was not true of
Amazon’s Cloud Player and Google Music,
both of which raised thorny questions.
A key issue is whether a users’ music is
actually uploaded to the cloud storage,
or whether ‘de-duplication’ measures on
the server simply give each user a pointer
to a single copy of a given track, provided
by the service itself. Is the service
just storing, or is it playing the music live
to each user?
If these services are to move forward,
some legal clarity will be needed.
Unfortunately, copyright law in the U.S.
(supported by several key court decisions)
does not offer an unambiguous
guide. Is Canadian law any clearer?
“We’re not well positioned for a cloudbased
future given the restrictiveness of
fair dealing,” says Geist. “A U.S.-style fair
use provision would be far better.”
For now, cloud services serve as yet
another example of how copyright law
has failed to keep up with technological
reality. And it seems unlikely that
Canada’s still-pending copyright reform
legislation will improve the situation.
“Expect a bill early in the fall,” advises
Geist. And expect it to pick up pretty
much where the minority Harper
Government left off. “It seems likely the
bill will be largely unchanged from C-32.”
That’s not exactly a good thing. “There
was a lot to like about the last bill,” says
Geist, “but it also means the problematic
digital lock rules may remain the same.”
Geist has repeatedly pointed out that
while the bulk of Bill C-32 was well written,
its overall balance was distorted by
the inclusion of inordinate protection for
‘digital locks’ (i.e. DRM). The ability of
DRM to over-rule most any consumer
rights became the key issue that created
strong opposition to Bill C-32, and ultimately
led to its demise.
Unfortunately, the Harper Government,
armed with an unshakeable majority, is
much less likely to pay attention to dissenting
voices this time around. Unless
those voices are louder than ever,
Canada could end up with cumbersome,
unrealistic copyright legislation that will
continue to hold back innovation and
leave consumers open to liability for
actions that most everyone agrees
should be acceptable.
UltraViolet: DRM
Done Right?
Coincidentally, the content industries are
about to launch exactly the sort of allpervading
DRM scheme that would most
benefit from legislation along the lines of
Bill C-32. The surprising thing about this
new standard, UltraViolet, is that it may
Overview
• A landmark decision in the U.S. will see big Internet Service Providers (ISPs) inflict ‘mitigation
measures’ regarding illegal downloading, including reducing Internet speeds, and redirecting
pages to warnings
• Canada will see a legislative bill this fall that will likely look much like Bill C-32 from the Harper
Government, leaving problematic digital lock rules in place
• UltraViolet could make a positive step for DRM, restricting content, but also storing customer
information in the cloud so he can access the content from virtually anywhere and on virtually
and device
• New technologies in video games may negatively impact the highly profitable used game retail
business, preventing games from being accessible to anyone but the original owner without
consumers paying an added fee
• Also on the legislative end with regards to content, debates continue on usage-based billing (UBB),
raising questions about network congestion, metering Internet usage, and the effects this could
have on new over-the-top (OTT) services like Netflix
actually be pretty helpful.
Historically, the only effective means of
discouraging ‘piracy’ has been to
encourage legal distribution; making it
more convenient, or more attractively
priced. UltraViolet has the promise to do
exactly that.
And it’s about to become a reality. In
July, the Digital Entertainment Content
Ecosystem (DECE) announced the launch
of its “licensing program for content, technology
and service providers.” The license
will enable companies to supply content
using the UltraViolet specification, and to
use the centralized “digital rights locker
system” for consumers to manage their
“proofs-of-puchase.”
DECE also published the technical
specs for UltraViolet. These include a universal
Common File Format.
DECE stresses that UltraViolet is not
itself a DRM system. Rather, it uses ‘the
cloud’ to unify all of today’s proprietary
DRM formats. A user’s online locker
holds ownership information, which can
be instantly retrieved to allow content
from any source to play on any device.
UltraViolet thus holds the promise to
eliminate two of the biggest problems
with DRM. First, the inconvenience: given
even an occasional Internet connection,
it should ‘just work.’ And second, the
notorious lock-in factor. DRM has tended
to make digital content playable only
within a single vendor’s ecosystem.
UltraViolet is more like the CD or DVD
standards, where you don’t need a Sony
player to play a Sony disc.
“UltraViolet gives you flexibility and free-
Despite being built on the principles of
DRM, UltraViolet could actually be helpful.
A user’s online lock holds ownership
information in the cloud, allowing it to be
instantly retrieved and played back on
any source device. Several major manufacturers
have already jumped on board
with the format.

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48
Retailers like Future Shop have found a lucrative business in selling used games, which
tend to see better margins than new games. But new technologies that make some
games accessible only to the original owner, requiring new buyers to pay an extra $10
for access; could put a major damper on this market.
dom across different brands of devices,”
says Mark Teitell, General Manager &
Executive Director, DECE, LLC. “You
won’t have to do a ‘family procurement
pledge’ to one type of device.” It also
provides certainty that purchased content
will remain playable over time, even if
the original vendor goes out of business.
Accessibility is global, as well: content
purchased in Canada will remain playable
in, say, Russia. “We don’t have any
regionality where the content is concerned,”
says Teitell. “You can take it anywhere.
There are no time constraints, no
geographic constraints.”
Of course, as with cellular roaming,
there are real-world caveats. “There is
some regionality in our ability to provide
real-time authentication,” Teitell admits.
He notes that UltraViolet actually covers
three types of media: streaming, downloaded
and physical. Only streaming
needs real-time authentication. For
example, if you begin streaming a movie
in Vancouver, there may be no provider
able to continue the stream in Moscow.
But as UltraViolet adoption expands,
these will become increasingly rare “edge
cases.”
A more likely scenario would be downloading
a video file via Xbox Live.
Microsoft’s PlayReady DRM would
enable viewing on any Xbox 360 or
Windows Phone. But UltraViolet would
further allow the file to be played on a
PlayStation 3, which uses Sony’s Marlin
DRM. A message would simply pop up
saying something like “acquiring content
license.”
Access is enabled using a single quick
Internet check when the license is first
acquired. “After that, it’s not required to
keep on doing what you’d call ‘phoning
home,” emphasizes Teitell.
In fact, Teitell emphasizes that there will
be a built-in hardcopy fall-back.
“Consumers will always see an option
that lets them burn a DVD,” he says.
Although different content providers will
have the ability to specify rights, the
default should be to allow a single disc
copy to be burned.
Roll-out of UltraViolet has been
planned so as to avoid disrupting existing
markets. “We’ll see the announcements
coming first from the content side,” says
Teitell. “That’s where the story starts.”
Teitell notes that UltraViolet will not be
“a new destination” for content, but
rather a new feature offered through
existing sources; a bonus on Blu-ray
discs, perhaps, or an invisible inclusion in
streaming video.
Because UltraViolet is essentially a software
standard, a vast array of existing
devices can become compatible with a
simple online update. “Streaming can
work where people stream today,” says
Teitell. Set-top boxes for satellite and
cable, for example. Game consoles.
Tablets. Smartphones. And, of course,
personal computers.
Longer term, however, UltraViolet will
open up “an exciting world of new
devices,” according to Teitell. This might
include things like TVs or Blu-ray players
with storage built in. Or specialty mobile
devices. These will become increasingly
attractive as consumers build up their
libraries of UltraViolet-enabled content.
Teitell notes that this is what happened
with digital music. “There was a series of
events that allowed consumers to build a
content collection,” he says. “This predated
the decision to buy content
devices.” UltraViolet aims to repeat this
ultimately successful scenario.
Movie studios have been particularly visible
in announcing their desire to start
using UltraViolet. But over the next month
or two, Teitell expects a lot of other companies
to join the chorus. “There are lots of
entities that might have taken a kind of
wait-and-see approach,” he says.
Several prominent content providers do
remain conspicuously absent from
UltraViolet; most notably Apple, Amazon,
Google and Disney. But Teitell is hopeful
about adoption generally. He notes that
in the past year, Walmart (Vudu),
Blockbuster, NVIDIA and CyberLink have
come on board.
“We are seeing a ton of activity, both
among member companies, and hundreds
of companies who are not members,”
says Teitell. He expects remaining
hold-outs will be pulled in as content
providers gear up. “It’s not as if some
breakthrough has to occur,” he says.
Rather, UltraViolet should spread painlessly,
as the motivation to be on-board
continues to increase.
“We’re now emerging from R&D,” Teitell
points out. “We have big relationships
with the movie studios, and they’re starting
to talk about UltraViolet more intensely.”
UltraViolet will thus naturally become
part of “the commercial conversation,”
between non-participants and their content
sources.
The first UltraViolet content is expected
to become available this fall in the U.S.
This might include discs with digital
extras, or digital downloads. Throwing
the switch in Canada (and the U.K.) will
take a few months longer.
“We’re on-track to enable the
UltraViolet ecosystem in Canada within
2011,” says Teitell. “This will include
operational readiness of the accounts
and media systems.” There will be “some
kind of B2B hand-off,” he notes; a notification
that the system is ready to use;
allowing providers to plan deployment of
content “for some time early in 2012.”
The delay allows for a multitude of
Many have suggested that retailers stopped stocking PC games, largely because of
DRM that prevented used game sales, thus forcing the business to move to online services
like Valve’s Steam.
localization tweaks. For example, video
ratings are different here than in the U.S.
Parental controls will need to be adjusted.
Accessibility requirements are more
stringent. Content licenses need to be
fine-tuned. And, of course, French language
needs to be added.
There’s a need to work with Canadian
content providers in all this. “They would
be deploying code that we’ve spec’ed,
FAQs and marketing language that we’ve
provided to them,” says Teitell. A variety
of things are standardized for the consumer
by DECE, while others remain to
be implemented by the providers.
The central uvvu.com site also needs to
be kept up to date for each country. “For
a variety of reasons, a consumer may
want to go to a central destination,” says
Teitell. “For example, he gets a Blu-ray for
Christmas that includes UltraViolet rights,
and needs to figure out what that means.”
The delay in roll-out will also allow for “a
bit of a shake-down cruise” in the U.S.
market, to ensure that all the bugs are out.
True, UltraViolet is still ultimately about
DRM, damming the free flow of digital
content. But it could be a more benign
form of DRM. “The possibility is there for
these services to do the right thing,”
admits Matt Lee, Campaigns Manager
with the Electronic Frontier Foundation,
which runs the Defective By Design campaign
against excessive DRM.
But Lee cautions that support for free
and open platforms (such as GNU/Linux)
is often omitted. It remains to be seen if
UltraViolet can truly become as inclusive
as it should.
Still, it’s just possible that what consumers
resent most about DRM is not so
much the principle as the lousy implementations
they’ve seen so far: Blu-ray
movies that won’t play, games that suddenly
stop working, devices that constantly
violate their expectation of privacy.
Unless it makes some unexpected misstep,
UltraViolet could be a huge step
forward.
Games: New
Moves to Impact
Used Game Sales
One of the few examples of ‘DRM done
right’ comes from the world of computer
games. In exchange for online validation,
Valve’s Steam download service offers
painless cross-platform operation and
UltraViolet may not necessarily mean a
new destination for content, but rather a
feature offered through existing sources;
a bonus on a Blu-ray disc, perhaps; or an
invisible inclusion with streaming video.
frequent bargains. There’s a strong
impression that the benefits of digital distribution
are being fairly shared between
vendor and customer.
But unfortunately, DRM remains a
painful topic in the gaming world. For
example, Ubisoft recently reverted to its
widely-criticized system of requiring a
constant Internet connection on its single-player
PC games. This approach
seems much more likely to create technical
problems than to reduce piracy.
But the worst escalation in content
control has less to do with limiting illegal
copying than with limiting retailers’
options. Several publishers have recently
made moves to reduce the resale value
of their console games.
This has major ramifications for games
retailers, who have come to depend on
used-game sales for a big chunk of their
earnings. In this, stores differ from publishers
and distributors. “As soon as
they’ve sold it, they’ve made their
money,” says Luigi Vaccaro, Sales
Associate at a downtown Toronto Game
Shack Inc. store. “We see the money on
the used copy.”
“On new games, the margin is next to
nothing,” Vaccaro explains. A recent
game might cost the store $53, and sell
for $60. That same game used would
likely be purchased by the store for $20,
and re-sold for $44 or $50.
But now, both Electronic Arts and
Ubisoft have created online services;
Online Pass and Uplay Passport, respectively;
that are accessible only to the original
owner of a game. Second-hand purchasers
need to fork over an extra $10
for access.
“It’s a huge, sweeping phenomenon,”
says Vaccaro. “All games today have a
good chunk of multiplayer.” Sports titles
are particularly affected.
Game Shack warns customers when
Dr. Michael Geist, Professor, University of
Ottawa and Canada Research Chair in
Internet & E-Commerce Law: “We’re not
well-positioned for a cloud-based future
given the restrictiveness of fair dealing.”

Mark Teitell, General Manager &
Executive Director, Digital Entertainment
Content Ecosystem (DECE): “UltraViolet
gives you flexibility and freedom across
different brands of devices. You won’t
have to do a ‘family procurement pledge’
to one type of device.”
games require an additional online
charge. “When you need an online pass,
we have to make the game cheaper to
compensate for that,” notes Vaccaro. So
a lot of the extra fees end up coming out
of the store’s bottom line.
There’s going to be some lag before
this really filters down to the retail usedgame
business. “One and-a-half-to-two
years from now, we’ll start to feel more
impact,” says Vaccaro.
Vaccaro points out that this is particularly
hard on smaller stores, which have
already taken a hit from the big-box
stores, and can’t stock the blockbuster
Capcom’s Resident Evil: The
Mercenaries 3D for the Nintendo DS
allows only a single save that cannot be
reset, effectively limiting the game to a
single play-through. With technologies
like this, it’s the retail stores that suffer
because customers can’t trade it in, and
blame them for the lack of notification.
titles in huge numbers. Smaller retailers
counter by offering the customer extra
service. For example, while big retailers
tend to purchase used games for store
credit, small independent retailers like
Game Shack may give cash.
A more extreme way of limiting resale
value was employed by Capcom on its
recent Resident Evil: The Mercenaries
3D, for the Nintendo 3DS. Amazingly, the
game allows only a single save that cannot
be reset, effectively limiting the game
to a single play-through.
Again, it’s the stores that see the fallout.
“It ends up being the retailer that takes
the blame,” says Vaccaro. “We had
Though not specifically tied to copyright issues (at the moment), Internet access
remains a thorny legislative issue for Canadians. With over the top (OTT) services like
Netflix (already well-established) and CinemaNow (starting in August) competing for
bandwidth, the stakes are rapidly increasing.
In July, the Canadian Radio-television and Telecommunications Commission (CRTC)
held hearings to again consider the pros and cons of ‘usage-based billing’ (UBB).
Given that the deck seemed stacked in favour of the large ‘incumbent’ ISPs (especially
Rogers and Bell), the outcome was rather surprising.
On the first day of the week-long session, remarks by Bell made it fairly clear that
“network congestion” was not really an issue, and that metered billing and caps were
driven primarily by competitive forces. The question was raised as to why metering
was being used to attack congestion at all. Logically, metering tends to reduce overall
usage, not the peak usage that might lead to congestion.
That point has been previously raised by Netflix, most notably in a Wall Street
Journal piece by the company’s general counsel, David Hyman: “Bandwidth caps with
fees piled on top are a lousy way to manage traffic… If Internet service providers really
wanted to manage traffic efficiently, they would limit speeds at peak times.”
Telus countered that there really are no peaks any more (strange as that may seem),
but ultimately noted that “economic and competitive circumstances” were leading it to
prefer a flat-rate model as opposed to UBB. Telus also stated that “proactive investments
in advanced networks” have permitted it to offer bandwidth tiers of up to
500GB per month.
Telus added that even if the CRTC were to approve UBB, it would likely “continue to
offer services on a flat-rate basis if that is what the market in our territory demands.” It
seemed apparent that consumers generally found the flat rate model more attractive.
In summing up many hours of often technical debate, the key take-aways would
seem to be that UBB really isn’t needed, and that even in the most competitive
Canadian markets, ISPs are managing to keep ahead of demand while still turning a
reasonable profit.
But while the hearings did spotlight the fact that service is dramatically better in areas
of Canada that are seeing strong competition, Dr. Michael Geist, Professor, University
of Ottawa and Canada Research Chair in Internet & E-Commerce Law, remains concerned
about the CRTC’s ability to mandate that level of competitiveness for all parts
of the country.
“I think the CRTC may have finally realized the competition concerns in Canada, but
it may have come too late,” he says. “I think we may get wholesale rules better than
the UBB that was almost approved, but they will be delayed over disputes about costs
and will still have little effect on the broader retail concerns.”
Still, the fact that Rogers raised its monthly caps (albeit slightly) just after the hearings
suggests that improved consumer awareness of the competitive issues could
spur ISPs to move forward.
OpenMedia.ca knows that public pressure can be effective. Its “Stop the Meter”
petition against UBB (http://openmedia.ca/meter) has garnered nearly half-a-million
signatures to date, representing about one in 54 Canadian Internet users. OpenMedia
appeared before the CRTC, and was obviously an important force in bringing forward
consumer concerns.
“We fight for an open participatory system of media in Canada,” says Lindsey Pinto,
Communications Manager with OpenMedia.ca. “That includes an open Internet that
will allow small businesses to compete.”
Pinto feels that the congestion argument probably isn’t over yet, but she agrees that
congestion, or shortage of bandwidth, is not a real issue. “That’s the first myth,” says
someone who wanted to trade it in, and
didn’t even know it couldn’t be replayed.
This person played it for an hour and realized
it’s not his kind of thing.”
Vaccaro notes that the single-play limitation
wasn’t marked on the outside of
the box, and appeared only in small print
in the manual. “You have to sympathize,”
he says. (The store ended up suggesting
the customer pass the part-used game
to a friend or relative.)
Last summer, one games executive,
Louis Castle, CEO of InstantAction, went
so far as to call retailers “parasites and
thieves,” because they don’t share usedgame
profits with the publishers. Other
industry spokespersons have said that
the used-game sales are a bigger problem
than piracy.
If this rhetoric seems hauntingly familiar,
it’s because it has in fact happened
before; in the music industry. Back in the
early 1990s, artists such as Garth Brooks
and Bonnie Raitt complained that used-
CD sales were cheating them out of
hard-earned royalties. Brooks, in particular,
demanded that his new CD be withheld
from stores selling used CDs.
Threatened with antitrust litigation, the
distributor was ultimately forced to relent.
Today, used CD stores and music publishers
both are still (more or less) in business.
But there can be a price to pay. It’s
been suggested that retailers stopped
stocking PC games largely because of
DRM that whittled away their used-resale
potential. “So many stores don’t want to
carry PC games any more,” says Vaccaro.
That business has moved, perhaps per-
The Internet & UBB
manently, to online services like Steam.
On the other hand, there is at least one
argument in the publisher’s favour. When,
say, a car is sold second-hand, it is likely
to be the worse for wear. A used game
(or music CD) is functionally indistinguishable
from the new item, and therefore
competes more strongly against new
sales. Yet, the same could be said for
used books, and somehow the book
trade business has survived used-book
stores, not to mention public libraries.
The fact is, there are no absolutes in
copyright law, which is more about commercial
give-and-take than about morals.
In North America, the doctrine of first sale
generally allows resale of products. But in
Europe, artists may indeed claim royalties
on some downstream sales.
Unfortunately, technology is increasingly
being used to over-rule the law.
“Technology is restricting all sorts of
consumer uses that were viewed as standard
not too long ago,” points out Geist.
Conclusion
Copyright is a rather arbitrary system of
rules that tries to ensure fair rewards for
all parties involved in the creative process
(or what has become the content business).
But that system remains out of
step with the realities of today’s technology,
and of today’s wired marketplace.
What’s lost in such struggles is the realization
that publishers, manufacturers
and retailers all need each other. And that
none of them will benefit from DRM technologies
that do more to alienate consumers
than to protect content. MN
Pinto. In fact, she suggests that if anything, rates of adoption are declining. “A lot of it
is based on the fact that the incumbent ISPs are also content providers,” she adds.
Longer-term, OpenMedia sees a need for reform in the regulatory process itself.
“Ideally, we’d like to see the CRTC adopt a public-interest mandate,” suggests Pinto.
“We’d like to see a more-transparent process.” That would include having members
on the CRTC who would directly represent consumer interests.
Clearly, the whole debate is far from over. It’s likely that there will be further hearings this
fall, specifically to consider the impact of new OTT services on Canada’s infrastructure.
There are also major new concerns about Internet privacy, with the Harper Government
promising to pass sweeping new police-access laws. (An OpenMedia petition against this
legislation, at stopspying.ca, has so far gathered some 30,000 signatures.)
On a hopeful note, a June announcement from Waterfront Toronto emphasizes that
the Internet is a vital part of Canada’s economic future, and demonstrates the kind of
service that can be delivered in today’s market. The new downtown development will
be wired for blistering speeds up to 10 gigabits per second, at rates lower than those
offered a block away by Rogers and Bell.
“At present, broadband of this calibre is not available for residential users in Toronto,
and commercial access is significantly less affordable in Toronto than in other leading
world cities,” the announcement points out. It adds that the new development would
“help Toronto remain competitive with other world-leading cities.”
There’s no question that other cities, and other countries are doing it, and we need
to keep up. “Canada should be striving to be a major player,” agrees Pinto.
Lindsey Pinto, Communications Manager, OpenMedia.ca (seen her with Steve
Anderson, Executive Director): “Ideally, we’d like to see the CRTC adopt a public-interest
mandate. We’d like to see a more-transparent process.”
49

50
Got a retail story that should be told? Contact Wally Hucker at: whucker@marketnews.ca
Former Groupe Dumoulin stores, one
each in Drummondville, Sorel, and Ste-
Catherine, are the first to join the new
Centre Hi-Fi Groupe Sélect.
This new buying group for independent
CE retailers has been formed as an offshoot
of the Centre Hi-Fi chain. Michael
Sciscente, Vice President of Operations
for the Laval, QC-based Centre Hi-Fi
organization, confirms that it will consist
“entirely of independent CE retailers.
We’re looking for quality,” he adds, “not
quantity.” This venture is the first foray
into franchising for the Centre Hi-Fi
organization in its 25-year history.
Its 32 existing stores, mostly in Montreal
or within a 45-minute drive of that city, are
all corporately owned and operated. Most
are on the north shore of the St. Lawrence
River, although its newest, a 5,500
square-foot store, which opened just three
months ago, is just south of Montreal in
Brossard. All three of the new franchise
stores are within the same radius.
First of the new franchises to sign was
J.M. Saucier of Drummondville. Principals
from that store joined the two other initial
members at Centre Hi-Fi’s head office on
By Wally Hucker
FIRST THREE NEW CENTRE HI-FI FRANCHISE
BUYING GROUP ARE EX-DUMOULIN
From l-r: Alain Renaud, V.P., Development, Maurice Pesant, V.P., Sales and Marketing,
and Mike Sciscente V.P. of Centre Hi-Fi Groupe Sélect are joined by M. Jean-Marc
Saucier & M. Marcel Saucier, Owners of J.M. Saucier Drummondville, the first franchise
to sign with the new group.
August 5 at CHF’s head office on Rue
Jean-Talon in Montreal to put ink to paper.
“This new buying group,” says Alain
Renaud, Vice President, Development,
Centre Hi-Fi Groupe Sélect, “will consist of
strong, independent quality consumer
electronic retailers, who will have the
opportunity to take advantage of the best
CE vendors programs combined with the
advertising and the buying power of Centre
Hi-Fi’s 30 corporate stores in Quebec and
the 27 stores of our associate company
2001 Audio Video in Toronto.
“We feel,” Renaud continues, “that we
are offering the most honest¸ easy, and
transparent ways to do business with our
partners. With our advertising power, we
will be able to offer our partner franchisees
the possibility to have weekly or
bi-weekly flyers at very low cost.
“We are looking for more strong regional
retailers,” Renaud concludes, “and we
are currently finalizing the details and the
signatures of many more franchisees
Centre Hi-Fi Groupe Sélect. We will
announce these very soon.”
“While we’ve never been in franchising
before,” says Sciscente, “we felt that the
time is right. It’s not a complicated model.
It’s very simple and transparent. The fran-
chise members will all be quality retailers
well known in their communities, with
local allegiance, and their names will be a
prominent part of their stores’ names.
We, along with our affiliated company
2001 Audio Video in Toronto, can immediately
offer them negotiating power for
purchasing both product and advertising.”
He states that between Centre Hi-Fi
and 2001, the annual advertising budget
in the two most populous urban centres
in Canada is about $10 million.
Sciscente declined to speak for allied
company 2001 Audio Video, which could
also be in a position to launch a franchise
branch. At this writing, shop talk was
awaiting return communication from
2001 Audio Video.
Centre Hi-Fi has been introducing new
lines and categories to its corporate stores,
including Nespresso coffee machines at a
half dozen stores, and Sciscente expects
that the new franchisees will adopt these
as well. Renovations have been undertaken
to introduce new product in half of its
stores including Apple products from the
iPhone to computers in 15 stores. Three
Centre Hi-Fi corporate stores installed
Samsung IT Centres as a trial before
expanding the concept to other stores.
MINI RETAIL Q&A
Our mini profile this issue features a veteran of the industry, who just last year opened his own 12V custom design and installation shop in Abbotsford, in BC’s lower mainland.
Known then as 604 Autosound Abbotsford, it has recently rebranded, as noted elsewhere in shop talk.
Name: Tony Dehnke
Company: Driven Audio Ltd.
Years in the Industry: About 16 years
Hobbies: Camping, Hunting, Fishing. Technology is my
business and my whole life.
How did you get into this industry?
I’ve always been a music and technology enthusiast. Around 1987, when I was 12
years old, I saved money from part-time jobs and bought a $300 ghetto blaster with
a CD player. At 16, I got a car and got bitten by the car stereo bug. I was fortunate
that we had a good mom & pop AV shop nearby. It was Unruh’s Audio Video, and I
hung around there a lot. One day a staff guy quit, and they had me go on the floor and
try to answer questions and help out. I started working there part-time when I was 18,
and eventually became full-time. I worked there for three years, and then at age 22, I
became an independent rep in the prairies for Korbon Trading.
If you were not in this industry, what would you be doing?
I would probably be in Web marketing.
Tell us about an interesting encounter you had at your store.
During my first couple months in retail, when I had just enough knowledge to be dangerous,
a customer came in wanting a small bookshelf speaker for his kitchen. So I
sold him a small set of B&W speakers for the price of a large set. At $600, it was about
$200 over suggested retail. Shirley Unruh was amused and understanding, and we
From l-r: Maurice Pesant, V.P., Sales and Marketing, Centre Hi-Fi Groupe Sélect; Jean-Marc Saucier & Marcel Saucier, J.M.Saucier
Ltée, Drummondville, QC; Mike Sciscente, V.P., Centre Hi-Fi Groupe Select; Gaétan Bergeron, Owner, Gaétan Bergeron TV, Sorel,
QC; Patrice Robidoux and Jean-Francois Pelchat, Owners of the new Centre Hi-FI Groupe Sélect store in Ville Ste-Catherine, QC; and
Alain Renaud, V.P., Development, Centre Hi-Fi Groupe Sélect.
called up the customer, who loved the speakers, and offered him a refund or credit. It
just goes to show if you present the right product in the right way, price is not always
an object.
Do you find trade shows worthwhile? Why or why not?
Definitely they are worthwhile to develop relationships, and to see and touch new technology.
I find CES less useful than it used to be. There is too much vapourware, and it’s
hard to see the entire floor. I went to MIRA last year for the first time, and found it very
valuable, with much more face time than CES. This year I will take an installer with me.
What would you deem the most influential product introduction of your time?
Compressed information files that have changed the way people listen to and share
music would be number one. Beyond those, smartphones have centralized life on
those devices.
Which was the best year of your life in the industry and why?
It would be last year, opening my own store, after taking a couple years off from the
industry because I was burned out. I was selling radio advertising, and it became clear
that this is the stuff I love to do.
Where do you see the industry going?
I see 12V, while not growing in general, re-centring itself around specialists with the
technical ability and education to provide the AV experience the customer wants. It’s
like the early ‘80s, before the introduction of harnesses and wiring kits allowed big
boxes to get into the installation business, and when we would modify the dash for
custom installations. We will see the big boxes pull back. I believe Best Buy now has
six stores without 12V.

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52
NEW DUMOULIN ORGANIZATION PLANS BIG SPLASH FOR
BACK-TO-SCHOOL; LOSES FOUR FRANCHISE STORES IN QC
Francois Lemieux, Director of Brand
Experience, Training, & Communications,
Reseau Dumoulin Network Inc., says the
new franchise network is planning a “big
splash” for back-to-school through its new
smaller, boutique-style approach in stores.
It has been confirmed that four franchise
stores have opted not to continue with
the new Réseau Dumoulin Network Inc.,
the entity rising from the ashes of Groupe
Dumoulin to operate with only franchise
stores. Three of them are set to join the
new Centre Hi-Fi Select Group, as noted
elsewhere in shop talk. All within 30 minutes
of Montreal, the stores are in
Drummondville, Sorel, and Ste-
Catherine. The fourth store, in Alma, was
never signed on with the new Dumoulin
organization, says Francois Lemieux that
company’s Director of Brand Experience,
Training, & Communications.
Two of the three joining Centre Hi-Fi
Select, adds Lemieux, had actually
invested in the new company, buying
shares. Those stores, Sorel and Ste-
Catherine, have asked for the return of
their money, and it is Lemieux’s understanding
that the franchise side of the
Réseau Dumoulin Network Inc. has
arranged to reimburse them. “Alma was
a new store with Dumoulin last year,” he
notes, “and was sort of waiting on the
sidelines, and never really committed to
the new concept.”
“Everyone is antsy,” he muses. “I
understand the reasons why the other
three chose to join Centre Hi-Fi. All their
stores are within 30 minutes of Montreal,
and they will get the exposure in the
Journal de Montreal. Unfortunately, they
were big players in the Dumoulin name,
but we wish them all the best.” In
Brantford, ON, Brant Stereo has left the
Audiotronic banner to join with Audio
Video Unlimited.
The new Dumoulin-Audiotronic franchise
network, concludes Lemieux, “will still
Many people in the Canadian photo retailing business
know Brian George. And as well they should, with about 40
years behind him in the industry, most of it in retail sales,
and the last 22 at Vistek. Renowned for his fascination with
photos of trains, and his passion for his MGB convertible,
British Racing Green, George has developed a loyal clientele
over the decades, which included the late great jazz
pianist Oscar Peterson. The encounter which follows, for
better or worse, however, was a one-off. “It was a really
unusual sale,” George recalls. “It was about 15 years ago,
when this man in a white hardhat with NASA written on it,
and a dirty T-shirt and jeans and gumboots, came wandering
in. He was dirty and smelled like manure. He spent a long time looking around.
Everybody laughed, and urged me to go over and talk to him.” Anyone acquainted with
George knows that his demeanour would not change, whether the shopper was a pauper
or a prince, and he would be relaxed, gracious, and interested in what the shopper
needed or wanted. “‘I wanna buy one of them Hasselblads with the focal plane shutter,’”
make a big splash for back-to-school.”
As readers of Marketnews.ca will have
seen, Groupe Dumoulin had the court end
its CCAA (Companies’ Creditors
Arrangements Act) protection on July 14,
after five months, and Lemieux described
it at the time as “the last step before ceasing
business.” That meant nobody is
employed at Groupe Dumoulin, including
executives Jacques Dumoulin and
Hugues Léger, GD’s President & CEO and
Vice President, Marketing, respectively.
Lemieux stated that all secured creditors
have been paid up or arrangements made
to their satisfaction.
All nine lots of inventory assets has been
sold to the liquidator Maynard’s Industries
Ltd. and said to be worth an estimated
$6.5 million retail. Maynards also bought
the lot comprised of office furniture and
equipment from GD’s HQ in Laval.
Another lot of assets, of intangibles such
as names, trademarks, phone numbers,
and business operating software and systems,
was bought by Réseau Dumoulin
Network Inc., which paid in the range of
$150,000 to $175,000.
Monies from these assets went directly
to the monitor, Raymond Chabot Grant
Thornton, which is now said to be calculating
monies owed and monies paid to
see whether there will be any funds left
TALES FROM THE FLOOR
over to distribute among the unsecured
creditors. A public liquidation sale was
held July 21, at the Dumoulin HQ in Laval.
Réseau Dumoulin Network Inc. is
owned 51% by Dumoulin and
Audiotronic franchise partners, and 49%
by management executives Dumoulin,
Léger, Lemieux, and Michel Plante. Léger
is President & CEO, and the others are
directors. At latest count, there are 57
storefronts in the franchise-only operation:
Dumoulin franchise partners have
31 stores, and Audiotronic franchisees
have 26 stores.
Of the former, 24 partners have invested
in the shares of the company, as have
11 of the latter.
Bruno Anania is the Marketing
Manager for the company, which now
numbers about 15 people, and Luc
Fournier is Sales & Marketing Coordinator
for the Audiotronic banner. Sophie
Poitras will rejoin ex-GD colleagues to be
the Sales & Marketing Coordinator for
the Dumoulin banner. Regional Manager
for the Dumoulin stores in Quebec is
Lucien Poirier.
The new approach to the market for
the company is to be a smaller, boutiquestyle
footprint. For the time being, the
new company is working out of GD’s former
HQ in Laval, north of Montreal.
NEW PRESIDENT CONTINUES BUSINESS AT TBS
ALONG PATH STARTED BY LATE COLLEAGUE & FRIEND
“The path that Jack started us down,”
reflects Lloyd Davis, “is the one we are
taking. We’re making the changes as if
he were still here.” Davis has been
named President of Mississauga, ONbased
The Bargain Shops chain of 239
discount-plus stores. As reported in last
month’s news briefs, his predecessor
Jack Buley tragically died in May on his
50th birthday after his car left the road in
Tennessee. Buley’s car, notes Davis, who
was in Tennessee to celebrate his friend’s
birthday along with 100 other friends and
family members, went off the road for
reasons as yet unknown as he was
returning from an airport after dropping
off relatives.
“I was Jack’s best friend, but,” remembers
Davis, “as I said in my eulogy, so
were a lot of people. Even if you knew him
a short time, you couldn’t help but feel as
if you’d known him all your life.” The two
men came to TBS earlier this year from
Dollar General in the U.S. Davis came up
in late January as executive vice president,
supply chain, while Buley arrived
two months later to become president
and CEO. The latter immediately
embarked upon a course of renovation
and expansion, and Davis is carrying on.
A total of 54 stores will have been renovated
by September 1, and 34 have
been completed to date. “In Q4,” says
Davis, “we’ll be taking care of business.”
Buley expanded the electronics section,
telling shop talk that it would not have
TVs in all stores, noting that it would not
make sense to compete with big box
electronics stores on such low margin
items that occupy so much shelf space.
He quickly added that TBS is in many
rural markets where its stores may be
100 miles from others selling TVs. All
stores stock MP3 and DVD players,
boom boxes, digital cameras, batteries,
and accessories. CE and small appliance
brands offered include: Toshiba, RCA,
GE, Kodak, Duracell, Energizer,
Sunbeam, and Proctor Silex.
Davis has continued improving the
stores. The 54 renovations are slightly
fewer than targeted, he notes, “but deeper
in remodeling, and that has had a very
positive consumer reaction. After every
round of renovations, we find something
else that we can tweak. We are giving the
stores back to the customers by providing
wider aisles, cleaning up adjacencies, and
putting things in a more logical order. Our
small electronics, for example, are close to
DVD sales, and a little more accessible.
Our latest iteration puts soft home, like
towels, with home décor. Renovations to
more stores will commence in January or
February 2012.”
One or two more stores will be opening
by November 1. A large location, bigger
than the usual 5,000 to 6,000 square foot
model, on a commercial street in the east
end of the city of Toronto, is being negotiated.
The opening is slated for next year.
Davis says that the company is actively
looking for more locations in the Greater
Toronto Area. In the conceptual stage is a
smaller format model. “We want to be a
fast fad follower, not setting trends.
“Jack envisioned 500 stores across the
country,” says Davis. “To achieve that, we
would need organic growth plus acquisitions.”
There are TBS stores in every
province except Quebec. “That’s an interesting
market. We just want to make sure
we understand it before entering it.”
One of Buley’s goals was to capitalize on
the shut down of Zellers stores and their
lengthy renovations into Target or Wal-Mart
stores. Next year, Davis envisions at least
15 new stores in the TBS chain. “But that’s
not hard and fast. If our equity owners
agree, it could be wide open.”
Lloyd Davis, President, The Bargain
Shops, says he will continue to take the
company down the path that the late
Jack Buley began.
George remembers, imitating the man’s voice. “That model was really uncommon, and
cost about $13,000 or $14,000. Then he took a dirty plastic bag out of his pocket, and
it was full of money. I worked out a quick price in my head for him for the 2000FC with
the focal plane shutter.” While doing so, George tried to engage him in conversation, and
offered to take him to lunch. “He was very difficult to talk to, but I found out that he had
taken the train from Windsor to Union Station, and then a taxi to Vistek.” Train buff
George is, he tried to ask the man about his journey. “‘Did you take The Tempo? Did you
take Via 1?,’ I asked him, but he didn’t want to be sociable. He just put cash all over the
counter. I tried to count it, but it was mostly fives, 10s, and 20s; very few 50s. I had to
take it into the office of manager Bill Wood, now with Nadel, for us to count. There was
$13,900, and the bill was $13,700.” Having his purchase and change, the man wanted
to depart right away, and staff called a taxi to take him back to the train station. As far
as George knows, the man never returned to Vistek. “There is a sad ending to the story,”
he says. “About two years later, we got a letter from Windsor, from the sister of a man
who had died, and who wanted to sell his camera. From the serial numbers we knew
that it was this man’s camera. We found out later that he had won the money at a casino,
but whether it was one big win or a lot of little ones, we don’t know.”

NEW NAME FOR BC 12V SPECIALTY SHOP AS OWNER GOES SOLO
Tony Dehnke has bought out his partner
in 604 Autosound Abbotsford, and
renamed the one-year-old shop Driven
Audio. Jeff Champ continues to run the
original 604 Autosound in Chilliwack, also
in BC’s lower mainland. Champ founded
the original shop five years ago. Differing
philosophies on the business led the men
to agree to disagree, and follow their own
paths in July.
Driven Audio kept the same staff, featuring
Steve Sheppe, Nick Pocklington,
and Ben Lowe, and the same brands.
“The signage changed,” says Dehnke,
“otherwise it was status quo. We’re not
joining any group at this time.
“I’d be interested in joining a Canadian
12V group,” he adds, “but most buying
groups are into home (electronics) and
12V, while we are not moving into home
at this time.” As he sees it, “12V is rapidly
becoming much more specialized, and
changes in technologies and information
are needed. Doing home doesn’t work
unless you have a separate division and
staff.” As he opines in this issue’s
Question of the Month, “12V won’t grow,
but 12V specialty will.”
Unasked, Dehnke provided an update
on the efficacy of electrical energy conservation
measures undertaken recently
and detailed in a recent issue. “Our
power consumption is down quite a bit
after the lighting change, even though
this is a time when we’ve started to use
the air conditioning in the store too. Our
power bills have averaged $700 per twomonth
period as opposed to just over
$1,000 or so in the two billing periods
since we started the project, we have
recouped about 22% of the net cost after
the rebates from the government and
power company.
“The customers and staff love the new
lighting too, “he concludes,” and we
have not had to replace a bulb gone
dead from too much bass!”
POWER AUDIO VIDEO GROUP ADDS MORE MEMBERS
Upstart buying group 1670729 Ontario
Inc., doing business as Power Audio
Video Group, continues to add members.
Having kicked off its membership
drive by signing the 14-store SonX Plus
co-op, it is now up to 32 storefronts.
New members include Advanced
Technology, a brand new retail store in
southern Ontario, featured elsewhere in
this column, and McKay’s Electronics
Experts, with three locations on
Vancouver Island.
Stores formerly under the Audiotronic
banner comprise more than half the
retailer roster thus far. Krazy Krazy and
Electronics North, sole operations located
in Timmins and New Liskeard,
respectively, have followed Bianco’s
Electronic Superstore of Sudbury, all
cities in northern Ontario. Other Ex-
Audiotronic outlets now affiliated with
Power Group include eight Andre’s
Electronics stores in BC, and Kawartha
TV in Peterborough, Ontario. Brian
Daniels also formerly an Audiotronic franchisee
has three stores, one each in
Thunder Bay, Regina, and Saskatoon.
Robert Gumiela, Vice President of
Marketing, says that the entire cost to
Power Audio Video Group member retailers
is a flat fee of $2,000 per month,
based on one store. There is a sliding
scale, he adds, lowering the per store cost
for each one run by any given retailer. The
SonX Plus co-op’s fee per store averages
about $1,000 per month, and that organization
can set its own rate pro-rated on
store size or sales volume, if it wishes.
“There are no royalties or percentages,”
he states. “All rebates are 100 per
cent direct to the retailers, and we don’t
interfere with any of them.
“We’ve found a niche,” he continues.
“The key is that this is not a franchise
operation, and our supplier experience is
the most significant strength we have to
bring these people together. Among us
(Power Audio Video Group management)
we have 60 to 70 years experience in the
industry. We know what works, and what
doesn’t. “We’re being fairly selective
among high volume retailers, who can
use our vendor expertise in negotiation.”
Power Audio Video Group, reckons
Gumiela, “can save a retailer $150,000
on $2.5 million in annual purchases.”
The roadmap, he says, points first to
CE sales for Power Audio Video Group,
QUESTION OF THE MONTH
This month we asked: what has surprised you the most throughout your career in the industry in regard to CE products or technologies, and why?
Matt Scott, Omega Audio Video, London, ON:
“What has surprised me most in the CE industry is the emergence
of connected devices. We have amazing interconnectivity with our
devices, and the ability to view or use our content anywhere, and
in turn control those devices anywhere in the world. I remember
watching The Jetsons as a kid, and thinking that I’d never see anything
that cool in my lifetime. Now minus the hover cars, we are
there. I can control my house from anywhere in the world, not to
mention watch or listen to anything I want, anywhere.”
Derek Collier, Audio Video Unlimited, Coquitlam, BC:
“The fact that whole categories are merging into one technology,
the iPad or iPhone, is surprising, as is the way society has quickly
changed to adopt change, which has not been our culture. In
today’s market, as a result, we have the fast pace or cycle in which
new technologies now get accepted, rejected, reduced in price,
and replaced. The turntable, then the VHS, then the CD player,
lived longer shelf lives than today’s technologies and at lower price
erosions over their life cycles. Today’s electronics, although
smarter, faster, lighter, and more featured-packed, have also
become fashionable and more convenient. Being fashionable, convenient, and feature
packed has become more the consumers’ focus, with a societal shifting from high
quality. As an example, I owned an SLR camera for 15 years, and then when digital
came out, I purchased over six DSC cameras in the last nine years to keep pace with
advancements in quality. Now, the biggest change is more and more electronics products
try and fulfill multiple jobs, so I no longer need a DSC camera and a Palm pilot or
an MP3 player, as I sacrifice quality for convenience and sex appeal with my new
iPhone 3G. Electronics manufacturers continue to add more and more features to their
existing products, but the manufacturers that are now successful, such as Apple, continue
to challenge the way we use electronics, and innovate or reinvent the wheel. This
is why, in Charlie Sheen’s words, they’re “Winning!”
Mike Jamison, Brentview Electronics, Toronto, ON:
“The most surprising thing to me was the speed at which consumer
televisions changed to flat panel technology. Over the span
of 12 months, somewhere around 2003 or 2004, Brentview
Electronics went from 90 per cent CRT sets to 90 per cent flat
panel sets. I was working elsewhere at the time, and was told this
by Steve de Weerd’s dad John, who founded the business. But I
didn’t believe it. Then I saw the numbers. He was right, and 12
months was all it took. That rate of change is almost expected
these days, but back then, it was very surprising.”
“and some IT programs are in place, and
because some of our members are into
appliances, we are securing programs
for those. We’re not doing furniture yet,
but I don’t say that we won’t.
Other perks of belonging to Power
Audio Video Group are being added, he
adds. “We already got a credit card rate
of a third of point better, and getting
quotes on gift cards, as well as working
on a loyalty program.” Aeroplan, “at two
points per transaction,” will not be
offered by Power Audio Video Group.
“We asked retailers if Aeroplan drove the
sale, and the unequivocal answer was
‘No!’ So we are not going down that
avenue, but,” he qualifies, “we will support
any member retailer who wants it.
“There is nothing mandatory in our
services. Take warranty programs, for
example. If a retailer is happy with
Comerco or W3, they can stay with
them. We might just help them negotiate
a different rate. We’re incorporating the
U.S. model of a buying group: a group
with decent volume and introducing the
economies of scale.”
Power Audio Video Group doesn’t see
the need to support a big head office.
“We have sophisticated internal communications,”
according to Gumiela,
“and I’m on the road three or four
days a week, the first rule of sales
being always go to the customer. He,
James Murphy (President), and
Michel Paul (V.P. Product Planning)
operate what Gumiela calls satellite
offices in Mississauga, London, and
Montreal, respectively. “In Thunder
Bay, we have a central repository for
contracts, et cetera. Our flyers and
legal are based in Montreal. Our dealer
management system is handled by
a third party in Scarborough.” The
template for that is, he says, the
Toyota dealer management. “We outsource
as much as possible for better
quality and lower cost.
“Our short term goal is getting the
best CE deals for our members,”
Gumiela concludes. “We can also analyze
their space use to see if any can
be used for other profitable purposes,
like rentals or pro installations.
“Midterm goals are to expand our
horizons, like supplying DJ equipment,
or commercial products to those who
don’t have access to them.”
Bill Wood, Nadel Enterprises, Toronto, ON:
“Having been in the photo industry since the early 1970s, I was onhand
to literally introduce the concept of video-imaging to consumers
in the early ‘80s with the first consumer-camcorders featuring
8mm or VHS-C formats. Transitioning from film to tape was
really easy for most consumers, and in the end, that meant a larger
consumer-base was shooting video, which was good for business
and the industry overall. Fast forward to 2011, and we’ve got
DSLRs that can also shoot high-def video with sound, plus great
stills, all in the same camera. I never would have thought that
would happen. So now, standalone camcorder sales are being negatively affected.
But the biggest surprise was about three years ago with the era of the Flip camcorder.
It was a single purpose device, inexpensive, with not bad quality, but it never caught
on in Canada. It had huge adoption in the U.S., but Canadian-based photographers
and video shooters always seemed to spend a bit more money to get the ‘step-up’
piece of hardware. Personally, I believe this was a result of our small population-base
and a vast empty expanse of land. This simply added up to a better appreciation of
nature, landscapes, and image quality overall. Now as of this spring, the Flip is dead.
It was a video transition that never hit Canada.”
Carlo Urbisci, Stereo Plus & Design, Orleans, ON:
“First, I’ve been really surprised by the price of TVs dropping so rapidly.
Second, I’m surprised at the strength of any Apple product.
Just call it an iAnything, and it sells. They’ve become so big in the
industry, and it’s making a drastic change in the market. That’s a big
deal, and although they work, they are very low margin. Between
them and televisions, the price erosion is awful. A few years ago, we
would never have expected this. One bright spot may be the rebirth
of the Pioneer Elite video line. But a 60” at $3,000? I don’t know.
Maybe three or four years ago. I know it will be good, but at twice
the price, it had better be great. But hey, I’m an eternally positive
guy. If the product is good, I can sell it.”
Trevor Robertson, Atlantia, Vancouver, BC:
“I would have to say Apple’s switch to Intel processors and how well
it worked out for the company. At the time, it seemed like a crazy
mistake that would cause clones and the fall of the look and feel of
Apple computers. But now years have passed, and it was something
that needed to be done. It has paid off very well for them.”
Visit www.marketnews.ca for daily breaking news.
53

54
Bill McQuiggin, Owner & Founder,
Advanced Technologies.
After 22 years in the southern Ontario
town of Wingham, Advanced Technologies
is moving to Southampton, about
60 kilometres to the north on the shores
of Lake Huron, and will open a retail location,
a first for this Tier 1 computer
reseller. “I’ve been planning this move for
four years,” says Owner and Founder Bill
McQuiggin. “Ever since I moved to
As of October 1, Tony Scaffeo, the outspoken
public face of Calgary, AB’s
Sounds-around chain for the last two
decades, will officially join Future Shop as
Vice President of Business Development.
The position Scaffeo will take at Future
Shop is a new one, says Christopher Ian
Bennett, Director of Communications at
Best Buy Canada, parent of Future Shop.
“Tony’s experience and understanding
is well known,” says Bennett. “He’s well
respected, and in today’s market,
Future Shop wanted him in a dedicated
position with the primary focus on seeking
emerging ideas and opportunities.
We were eager to have him and excited
to have him. He is a great and valuable
addition.” Further than that, Bennett will
not elaborate on Scaffeo’s role at Future
Shop. “We’re playing it close to the
chest.”
He does add, however that Scaffeo will
be spending some time “learning our
FIRST RETAIL STORE FOR VETERAN IT SPECIALIST
Southampton myself.”
The new shop will have 1,800 square
feet of retail space, plus storage,
McQuiggin adds. Retail space will be split
about 80-20 between CE and computer
products. Advanced Technologies is one
of the latest members of Power Audio
Video Group, through which it will have
access to major lines, greatly expanding
what the business can supply to its customers
beyond the corporate employee
purchase program it could offer some
customers in the way of CE for the past
four or five years.
It will continue as a Tier 1 computer distributor
for HP, IBM, Lenovo, Samsung,
and Sharp. “A Tier 1 sells higher and commercial
and office machines,” explains
McQuiggin. While the store is being furnished
and decorated, the B2B sales and
service are continuing. As one of just three
Tier 1 computer dealers in the area from
London to Owen Sound, business sales
and maintenance are steady.
After waiting four years for suitable
commercial property to be available, a
soft opening was penciled in for the end
of August. The new shop is at 221
Adelaide St., a.k.a. Highway 21, in a
commercial condo kitty-corner from a
Tim Hortons and a Rexall drug store.
Talking to McQuiggin in mid-July, he
TONY SCAFFEO TO JOIN FUTURE SHOP
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model” and adapting to a different corporate
culture.
Tony Scaffeo will be leaving his long-term
position at Soundsaround to join Future
Shop this Fall.
Audio Video Unlimited’s President Jim Orr says that Brant Stereo has joined AVU.
Located in Brantford, ON and owned by John O’Neill, it had been an Audiotronic franchise
for the better part of a decade.
The Province of Alberta has reduced the point of purchase recycling fee on consumer
electronics effective August 1, citing lighter products which are more easily
recycled and new, more efficient recycling techniques. POP fees for TVs now range
from $4 per 19” set to $24 for sets 46” or bigger. Computer monitors, however, are
$6 (go figure) while the following fees apply to other IT detritus: printers, $4.80; CPUs
and servers, $4.40; notebooks computers and pads, $1.20. The province has over
300 drop-off sites for the public, many of which accept e-waste from businesses, as
do six government registered collection companies. For more information, contact
Betty Gray, Alberta Recycling’s Communications Manager, 1-888-999-8762 or electronics@albertarecycling.ca.
Big US bookseller Borders announced July 19 that it was liquidating, and that the
chain of 399 stores would go down. Its president Mike Edwards blames e-readers for
the company’s problems. Amazon and Barnes & Noble swam with the flow by developing
in-house an e-reader platform, while Apple included e-reading capability in the
iPad and iPhone. Borders, on the other hand, allied with third-party e-book vendors
like Sony and Kobo (which is majority owned by Canadian bookstore chain Indigo
Books), but did not really embrace e-readers itself.
The Brick, headquartered in Edmonton, AB, appointed Ken Grondin as CFO and
President, Financial Operations effective August 2, 2011, succeeding David Merkley,
its current CFO who is relocating to Ontario for personal reasons. Before joining The
NEWS BRIEFS
had expected the retail store to open by
August 1, but it has been delayed by display
furnishings and fixtures being held
up by customs at the U.S. border. A
grand opening is being considered for
October or November. Staff complement
is five, including two sales staff.
There will be a synergy with the CE and
IT in one location, he expects. “More
people are adding wireless and sharing
information in their houses. We can tie all
that together. Custom home will be a
Canadian Tire plans to install solar panels
on the roofs of 40 stores in Ontario by the
end of 2013. And the retailer has already
begun with construction nearing completion
at its Lakeshore and Leslie store.
Canadian Tire’s Kemptville store, which
will also eventually get solar panels, is
known to be 75% more energy efficient
than other stores. Opened this past May,
the store consumes just 9.7
ekWh/square-foot (unit of energy usage
for gas and hydro in kilowatt hours), versus
17.8 consumed in existing stores.
Installation of solar panels has already
begun in 16 other stores within the
growing field for us. We want to focus
much more on and develop relations with
builders and home construction people.”
The affiliation with Power Audio Video
Group was chosen because of “the
industry reputation of those three guys in
the group,” he says of Jim Murphy,
Robert Gumiela, and Michel Paul.
“Although being in computers, I only had
passing contact with them, I’m well
rounded and pay attention. They do what
they say they will.”
CANADIAN TIRE TO INSTALL
ROOFTOP SOLAR PANELS
IN 40 ONTARIO STORES
L-r: Bob Oliver, CEO, Pollution Probe,
Stephen Wetmore, President and CEO,
Canadian Tire Corp., and Peter Oliver,
Canadian Tire Dealer, Lakeshore and
Leslie (Toronto), display a sampling of offgrid
solar products available in stores in
celebration of the first of 40 Canadian
Tire stores to have a rooftop solar system
installed.
greater Toronto area, with the project to
then expand to include stores in
Waterloo, Windsor, and Kenora.
Renewable energy generated by the
systems will be fed into the electrical grid.
When all 40 sites are complete,
Canadian Tire says they will produce
enough renewable electricity to power
1,000 average-sized Canadian homes
every year for two decades.
“We’re very excited to see some of our
large-scale sustainability initiatives in
action,” says Stephen Wetmore, President
and CEO, Canadian Tire Corp.
“Using less energy and cleaner energy is a
large part of our sustainability strategy and
is the key to reducing the environmental
footprint of our day-to-day operations.”
“Solar energy generation is good for
the environment, it’s good for our business,
and with our off-grid Blue Planet
solar products available in our stores,
customers can benefit at their home and
cottage as well,” adds Tyler Elm, Vice
President, Business Sustainability,
Canadian Tire Corp.
“Customers have told us that they
want to use more environmentally-preferable
products, but want their retailer to
do their part as well. We hope our work
encourages customers to apply similar
solutions in their own homes.”
Canadian Tire worked with MS Solar
Solutions Canada ULC, a wholly-owned
affiliate of Morgan Stanley, which has provided
financing for the rooftop solar systems.
This arrangement allows Canadian
Tire to realize its goal of generating renewable
energy for the local community, without
any capital expenditure.
Canadian Tire, founded in 1922, has
more than 1,200 retail and gasoline outlets
across Canada. MN
Brick, Grondin was senior vice president & CFO for Parkland Fuel Corp., Canada’s
largest independent marketer and distributor of petroleum products. He also has significant
retail experience, with eight years as the CFO of Nygard International, a North
American designer and retailer of women’s fashions.
Perhaps another indicator of the trend to boutiques and away from big box electronic
stores is the decision south of the border by Sixth Avenue Electronics to close its
three New York locations, which averaged 30,000 square feet. Vice President Tom
Galanis says the closures are part of a plan to go with 5,000 to 7,000 square-foot
stores that specialize in home networking and automation, distributed audio, tablet
computers, and digital SLRs. The retailer, which maxed out at 19 stores last year, now
has four stores, all in New Jersey, but plans to return to NY, NY (New York, next year.)
A new Apple Store was officially opened in Research in Motion’s (RIM’s) hometown
of Waterloo, ON on Saturday, August 13. Located at 550 King St. N. in the city about
an hour from downtown Toronto, the Apple Store Conestoga includes all of the
expected Apple products, including the iPad 2, iPhone 4, iPod touch, the latest
MacBooks with Mac OS X Lion, plus a plethora of accessories. As with other Apple
stores, this location will also boast a number of service offerings, from technical support
and advice through the Genius Bar, to personal training and free workshops.
The Mic Mac Mall in Halifax, NS now has a new Virgin Mobile store. Designed by
IIBYIV Design Associates the store at 21 MicMac Blvd. will serve as the wireless carrier’s
flagship location for the Atlantic region. In addition to smartphones, the store will
also sell tablets, like the Samsung Galaxy Tab and BlackBerry Playbook. Store hours
are Monday through Saturday, 9:30 a.m.-9 p.m. and 12-5 p.m. on Sundays.

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58
Yamaha Canada emphasizes two-channel music,
network capability at 2011 dealer shows
Yamaha Canada Sales Consultant Paul Bawcutt poses with the new TSX-140 entertainment
system.
At its 2011 dealer shows held in
Vancouver, Toronto and Montreal,
Yamaha Canada Music Ltd. emphasized
two-channel music systems and
advanced network-capable home theatre
systems.
At the Toronto show, which took place
from August 14 to 16 at the Radisson
East Hotel, the two-channel theme was
obvious as soon as you entered the conference
room. At the entrance to the
show, a Yamaha Modus digital piano
played music through a Yamaha stereo
receiver and speakers, using its Moving
Key feature.
Yamaha is encouraging dealers to look
seriously at two-channel, Ron Zupka,
General Manager of Yamaha Canada’s
AV division, told Marketnews. Target buyers
aren’t just boomers looking for a new
Just a few months after announcing
plans to license the format to other companies,
and less than a year after acquiring
Palm, Hewlett-Packard has confirmed
that it will cease operations for
webOS devices.
HP acquired Palm in 2010 for US$1.2
billion, a decision that was made primarily
for the purpose of snagging, and revamping,
the webOS platform, confirmed
Jennifer Safruk, Vice President of the
webOS platform at HP during a panel discussion
at the Canadian Telecom Summit
in Toronto this past June. There, Safruk,
who joined HP from the Palm team, also
indicated that HP was “actively searching
partners” to “put webOS on devices,”
including everything from Internet-connected
TVs to in-car devices.
The first webOS device launched
under HP’s leadership was the Palm Pre
2 in October 2010. Despite’s HP building
on its own expertise to enhance the
webOS platform, adding features like
Synergy that allows information from
popular Web accounts, like Facebook,
Google, Microsoft Exchange, LinkedIn,
music system. Younger customers who
have grown up with the iPod are looking
for good audio, he noted. “This year,
we’re talking about sound, instead of
slam-bam 14 channels.”
To address these customers, Yamaha
is offering several new music systems
with iPod/iPhone connectivity. In
September, Yamaha will introduce a
package for $699 consisting of the R-
S300 stereo receiver, NS-BP300 twoway
speakers and YIT-W10 wireless iPod
dock. The wireless dock uses Yamaha’s
Y-AIRED technology to transmit audio
wirelessly from an iPod (Classics and
Nanos as well as the Touch) or iPhone.
While Yamaha does not specify iPad support
for the YIT-W10 dock, the dock does
indeed allow wireless transmission of
audio from an iPad.
Priced at $449, the TSX-140 entertainment
system has built-in iPhone/iPod
dock, slot-loading CD, syncing USB connector
and auxiliary input. It employs twin
8cm drivers powered by a 2x15-watt digital
amplifier, in an MDF (as opposed to
plastic) enclosure. The TSX-140 is available
in black, grey and brick red.
Also shown was the elegant one-piece
Restio lifestyle music system announced
earlier by Yamaha. It arrives in September
for $799.
In December, Yamaha will introduce a
lower-priced compact one-piece system,
the TSX-112; tentative retail is $369.
Along with these two-channel products,
Yamaha was also showing its new
Aventage-series A/V receivers. All five
models are Control 4-certified, and covered
by a four-year warranty.
Currently available for $699, the RX-
A710 has an iPod-compatible USB input
and six HDMI inputs. Like all of this year’s
RX-A series, the RX-A710 allows users to
reassign video for the USB input. That
way, they can watch video output from
another source, like a cable or satellite settop
box, while listening to iPod music.
They can switch to the video input if they
want audio from the video source, then
switch back to USB source for TV video
plus iPod audio. “Background video is
something people want,” noted Yamaha
Canada Sales Consultant Paul Bawcutt.
Arriving in late August for $899, the RX-
A810 is rated at 7x100 watts and has
eight HDMI inputs and dual HDMI outputs.
The RX-A1010 (September,
$1,299) has a symmetrical design and
more robust power supply. The threezone
RX-A2010, which ships in late
September for $1,599 retail, is a ninechannel
design rated at 140wpc, and
incorporates HQV video processing. The
top-of-the-line RX-A3010 arrives in
October at $1,999. The four-zone receiver
is rated at 9x150 watts, and can be
upgraded to 11.2-channel operation by
adding a stereo power amplifier.
All five Aventage receivers can be controlled
by a Web browser running on a
PC or Mac, or by Yamaha’s free AV
Controller app for iPad/iPhone or iPod
touch. During its Canadian dealer shows,
Yamaha also showed a beta version of
an Android app that will provide similar
functionality. The Android app will be formally
announced at CEDIA in September.
The iOS and Android apps can also provide
Blu-ray player control. In addition to
new Aventage-series receivers, and the
current RX-V671 network receiver, the
apps work with some legacy Yamaha network
receivers, going back to RX-V3900.
When the app finds compatible products
on the network, it configures itself
accordingly, displaying the options that
are available to the user. For example, if
the user has a two-zone receiver, the app
will not show functions for Zones 3 and 4.
In Bawcutt’s demo, the app seemed very
stable, with performance that seemed
every bit as responsive as you’d get with
a dedicate IR remote.
www.marketnews.ca, Search News:
rx-a810
Yamaha’s top-line RX-A3010 Aventage series AV receiver is scheduled for arrival this
October.
HP to discontinue webOS mobile platform
and Yahoo!, to automatically populate to
the phone, the device failed to resonate
with consumers.
HP followed that up with a handful of
smartphones early this year, including the
Veer and the Palm Pre 3. But neither was
able to make a dent in the market dominated
by the likes of Apple’s iPhone,
Android and its supporters, and even
BlackBerry.
Most recently, HP launched its
TouchPad tablet, which clearly also
found it tough to break into an area for
which the iPad continues to hold the
majority of share.
According to a prepared announcement,
HP says that while it will discontinue oper-
ations for webOS devices like the
TouchPad and webOS phones, it will “continue
to explore options to optimize the
value of webOS software going forward.”
In its Q3 earnings report, HP also confirmed
that it is in talks with Autonomy
Corp. to potentially spin-off its Personal
Systems Group (PSG). The decision,
says the firm, was mad as part of the
exploration of “strategic alternatives.”
Immediately following the announcement,
HP TouchPads were being blown
out at retailers for $99 for the 16 GB version
and $199 for the 32 GB. Many
stores were sold out within hours.
www.marketnews.ca, Search News:
hp discontinue webos
Over the next few years, the number of products
shipped with integrated Bluetooth wireless
technology will exceed 2 billion
In-Stat

Tom Evans Associate Vice President,
Elite Brand Product & Marketing, Sharp
Home Entertainment Group (left) with
Chris Matto, Director, Brand & Corporate
Communications, Sharp Canada at the
launch of the Elite brand of LCD TVs in
New York City.
John Harrington, President, Sharp
Electronics Marketing Company of
America, opened a media event on
Thursday, August 4 in New York City by
referencing the Elite brand as “best in
class,” exceeding all benchmarks in
panel technology. He emphasized Elite
as the flagship panel in the market.
The new premium Elite LED LCD TVs will
be available in 60” and 70” sizes for
MSRPs ranging from $7,000-$9,000.
Koss Corp. has renewed its relationship
with iconic singer Tony Bennett through
the launch of a new pair of Tony Bennett
Signature Edition headphones. Each pair
will come with a free digital download for
Bennett’s new Duets II album.
The headphones, which help celebrate
both the new album and Bennett’s 85th
birthday, feature pivoting ear cups, a
padded headband, deep bass response,
and noise isolation. They ship with a carrying
case. They will sell for an MSRP of
$149.99.
The Duets II album combines two distinct
generations as Bennett pairs up with
some of today’s biggest names, including
Andrea Bocelli, Michael Buble, Lady
Gaga, John Mayer, Carrie Underwood,
and the late Amy Winehouse. Bennett is
thought to be the last person to have
recorded with Winehouse.
Bennett’s relationship with Koss actually
dates back to the 1960s.
“I can still remember the first time Bobby
Hackett showed me a pair of Koss
Stereophones,” he reminisces. “I couldn’t
believe my ears. When I tried the Signature
Edition, I had the exact same response.
Sharp intros Elite LED LCD TVs
Elite LED LCD TVs will be available in
60” and 70” screen sizes in late August
with the 60” 60X5FD having an MSRP of
$5,999 and the 70” 70X5FD offered at
$8,999. Both will ship with two sets of
active shutter 3D glasses. The televisions
are wireless and network capable, and
are THX-certified for both 2D and 3D.
“We have announced a unique and
exciting marketing collaboration between
Sharp and Pioneer, two of the world’s
leading audio/video manufacturers,” says
Carmine Cinerari, President, Sharp
Canada.” By pairing Sharp’s industry
leading panels with the renowned Elite
brand, we’ve created the best home theatre
panel on the market.”
Tony Favia, Senior Product Manager,
LCD TV Sharp USA, states that the build
of these panels, housed in a brushed aluminum
finish with a precision cut mitered
bezel and slim cabinet depth of less than
2”, did not result in any compromising of
technology. When pushed to elaborate
on the greater than 240 Hz frame rate
that allows for such a smooth picture,
Favia said the number was proprietary,
but to think in a range closer to 720 Hz.
Borrowing from Sharp’s Quattron
series, Elite LCD TVs incorporate proprietary
RGB Y technology, which adds a
yellow sub-pixel to the standard
red/green/blue colour palette. The addition
of the yellow sub-pixel, claims Sharp,
enables the reproduction of a much
broader range of colours.
Both the 60” and 70” panel employ full
Anthony Favia, Senior Product Manager,
LCD TV, Sharp USA, says that the ultraslim
build of the new Elite panels came
without compromise to technology.
Koss teams up with Tony Bennett
for new headphones
These Stereophones are unbelievable.”
“When my father John C. Koss created
the SP3 Stereophone in 1958, one of the
first people that he was anxious to
demonstrate the product to was his idol,
trumpet genius Bobby Hackett,” recalls
Michael J. Koss, President and CEO of
Koss. “Bobby Hackett introduced the
SP3 to Tony Bennett, and the relationship
between Koss and the music legend
continued for decades.”
The Tony Bennett Signature Edition
Stereophone will be available for purchase
on September 20, 2011. For more
information, visit www.koss.com/duets.
www.marketnews.ca, Search News:
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array LED backlighting, evenly dispersed
behind a diffuser for a more uniform and
brighter light versus traditional edge-lit
LEDs. There’s also local dimming capability,
allowing specific groups of LEDs to
be dimmed for greater control of brightness
and darkness in different areas of
the screen for outstanding black levels.
There is also an emphasis being placed
on connectivity; in fact, Netflix is even
branded on the Elite remote. And customers
will have technical support via
Internet connectivity, whereby a personal
advisor can remotely connect to the TV
and provide a variety of services such as
setup, picture adjustment, or basic calibration.
Full specs are available at
EliteLCDTV.ca
Sharp has licensed the Elite brand and
Elite LCD LED TVs will be sold through
the Pioneer authorized Elite dealer network.
Pioneer’s Elite AV receivers and
Blu-ray disc players are designed to
interact with the new panels.
www.marketnews.ca, Search News:
sharp elite
Personnel Appointments
Hitachi America Ltd. has named Kensuke Oka President
and CEO, effective October 1. He will be succeeding Chiaki
Fujiwara who will be taking on the role of Deputy General
Manager of the Sales & Marketing Division and Marketing
Integration & Strategy Division, Industrial & Social Infrastructure
Systems Company for Hitachi on the same date.
Oka has served as the company’s General Manager,
Intellectual Property Group since April 2009, while Fujiwara has
been Hitachi America’s President and CEO since April 2010.
Microsoft’s Charlie Kindel will be leaving his post as General
Manager of the Windows Phone Partner Program to form his
own company. The announcement was made through his personal
blog. Kindle started at Microsoft back in 1990.
In his most recent role with Microsoft, Kindel oversaw the
process of bringing in third-party apps to the Windows Phone
7 platform, which now boasts more than 25,000 apps.
Following his September 1 departure date, Kindel will prepare
to launch a new business venture. He hasn’t been specific about
what this will entail, only saying that it will have “to do with sports, advertising, mobile,
social networking, and, of course, the cloud.” He plans on remaining in Seattle, WA.
Optimum, a Toronto, ON-based public relations firm, has
hired Kevin Groh as its Vice President. He was formerly the
director of special projects and director of corporate affairs at
Walmart Canada.
This isn’t Groh’s first move into the dedicated PR world.
Prior to the eight years he spent at Walmart, Groh held roles
with a Toronto, ON-based public relations agency in the
financial services and corporate practice. He has also previously
worked with PricewaterhouseCoopers’ national media
relations team.
Primacoustic, a manufacturer of acoustic materials based in Coquitlam, BC (and
a division of Radial Engineering Ltd.) has appointed three new rep firms to sell its hifi
products throughout Canada.
Representing the product in Western Canada is Len Gerling of Gerling Ventures of
Abbotsford, BC. Meanwhile, Sound Advice North (led by Jeffrey Armstrong) will
service AV dealers in Saskatchewan, Manitoba and Northern Ontario, and Steven
Rice of SR
Marketing will
take care of the
metropolitan
Toronto, ON
region.
Len Gerling Jeffrey Armstrong Steven Rice
Samsung has hired Ryan Bidan, formerly senior product
manager for Research in Motion (RIM) and an integral player
in the development and launch of the BlackBerry PlayBook.
Bidan now serves a Director of Product Marketing for
Samsung Telecommunications America. He’ll be working
from the Korean manufacturer’s Dallas, TX office.
Bidan had worked with RIM since October 2008. Prior to
that, he was product manager for games at Microsoft.
SF Marketing has appointed a new sales representative in
Quebec. Effective August 1, 2011, Denis Veilleux of
Distribution Audio Video Denis will join the SF Marketing
Consumer Audio Video Division’s sales team in the province.
Veilleux will take over territory management for Eastern
Quebec, where he will be responsible for supporting each of
SF Marketing’s consumer brands, including AnchorMOUNT,
Current Audio, Furman Sound, Genelec, IC Realtime, Shure,
Touchstone Home Products, UpLift Cabinets and Universal
Remote Control; along with the Canare, Digiflex, Littlite,
Neutrik and Raxxess accessories lines.
Veilleux can be reached at (819) 535-6661, via mobile at (819) 699-6665 or via email
at denis.veilleux@sfm.ca.
Telus will be welcoming 250 new employees to its Toronto employee roster this year.
The 250 new hires will join the 7,800 Greater Toronto Area based employees that Telus
already has. Which roles these individuals will be taking over haven’t been specified. MN
59

60
TV makers announce plans to standardize active 3D glasses
Panasonic Corporation, Samsung
Electronics Co., Ltd., Sony Corporation
and X6D Limited (XpanD 3D) have
announced their intent to collaborate on
the development of a new technology
standard for consumer 3D active glasses,
under the name, “Full HD 3D Glasses
Initiative.”
With this new agreement, the companies
intend to work together on the devel-
D&H Canada has added a number of new lines to its portfolio, all falling under the
housewares, outdoor living, and small appliances categories.
Close to 20 new partners have been added to the roster, including Black & Decker,
Haier, Proctor Silex and Amana. Products span everything from kitchen appliances, to
cutlery, air conditioning and refrigeration products, home cleaning products, cookware,
hunting and fishing knives, night vision devices, lighting products, pressure washers
and more.
Focal and Naim have confirmed a merger whereby Focal & Co. will own and manage
both brands, independent from one another, with each retaining its “unique philosophies
and product ranges.”
Focal & Co. will employ 325 people at its facilities in Saint-Etienne, France and
Salisbury, U.K. They will have a combined turnover in excess of £48 million.
Focal-JMlab designs and manufactures drivers dedicated to hifi speakers and car
audio hifi systems and professional monitors. The company’s products range in price
from £170 up to £117,000 a pair. Naim creates audio equipment with systems ranging
from £2,000 to £150,000. In 2008, Naim announced an exclusive partnership with
Bentley Motors with the launch of the Naim for Bentley Premium Audio System.
Both the Focal-JMlab and Naim brands will continue to be distributed in Canada
through Plurison.
Garmin has completed its acquisition of Navigon AG, a privately-held navigation
provider headquartered in Hamburg, Germany. Financial terms of the transaction were
not released, but Garmin says that it will confirm further details about the acquisition at
an IFA press conference in Berlin on September 1.
Google Inc. has agreed to acquire Motorola Mobility for $US12.5 billion.
Motorola was a founding member of the Open Handset Alliance, and in 2008, the
company adopted Android as the operating system for all its smartphones.
Google CEO Larry Page emphasized that Android will remain an open platform, and
that Motorola will be run as a separate company. The acquisition will not affect agreements
with other Android licensees and Android device makers were contacted before
the announcement, he noted.
The deal has been approved by the boards of both companies, and is expected to
close by year-end.
HTC Corp. has purchased a majority share in audio kit manufacturer
Beats Electronics LLC. for US$309 million. The latter is best
known for its Beats by Dr. Dre products.
The two companies have been working together lately in order
to create “superior mobile audio experiences for consumers,”
which will result in a full line of HTC devices with integrated Beats
opment and licensing of radio-frequency
(RF) system 3D active glasses technology,
including RF system protocols between
consumer 3D active glasses and 3D displays
such as televisions, personal computers,
projectors and 3D theaters with
XpanD active shutter glasses.
The standardization will also include
multiple types of infrared (IR) system protocols
between 3D active glasses and
3D displays, ranging from the protocols
jointly developed by Panasonic and
XpanD 3D, to the proprietary protocols of
Samsung and Sony, respectively.
The license of the Full HD 3D Glasses
Initiative is targeted to be released in
Distribution Appointments
September 2011, at which time the
development of new standardized active
3D glasses will begin. Universal glasses
with the new IR/RF protocols will be
made available in 2012, and are to be
backward-compatible with 2011 3D
active TVs.
In the announcement, the participating
companies noted the fact that activeshutter
technology delivers a full HD
image to each eye, and that Bluetooth
technology, which manages communications
between the display and glasses,
allows freedom of movement.
www.marketnews.ca, Search News:
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Paradigm announces New Monitor series speaker lineup
Paradigm Electronics Inc. has completely
redesigned its Monitor Series speaker
lineup. The seventh-generation (v.7) lineup
preserves the acoustic signature of
previous Monitor Series speakers, while
providing new technical and aesthetic
refinements, Paradigm says.
The new speakers have a self-aligning
magnetic grille design, and a honeycomb
interior corner architecture. The new interior
prevents sound capture in grille corners,
Paradigm notes, resulting in more
spacious and transparent sound. The
speakers can be played with grilles on or
off. The magnetic grille means the front
baffle has no visible fasteners, for a cleaner
aesthetic when the grille is not used.
The baffle itself has been redesigned. It
employs .75” MDF for further increased
rigidity and lower cabinet resonance. The
baffle has been FEA-optimized to remove
resonances and vibrations and critically
tuned to the rest of the cabinet. The magnetic
baffle design makes it easier to
remove should servicing ever be necessary.
The footprints of the centre-channel
and floor-standing models have been
reduced by 20%. The three floor-standing
models (Monitor 7, 9 and 11) feature
an elegant plinth (base) that provides stability
for the footprints and a stylistically
cleaner, less intrusive alternative to outrigger
feet.
The Monitor 7 is a new size and a
three-driver model (previous iterations
had four drivers) covering the spectrum
through a tweeter, mid/bass and bass
driver with audible improvements in sensitivity
and extension. A four-driver 2.5way
design, the Monitor 9 v.7 is 10cm
taller than the new Monitor 7.
The Monitor 11 is now the size of the
Monitor 9 v.6, but is now a five-driver
model (vs. four in previous iterations)
covering the spectrum through a tweeter,
dedicated midrange driver and three
bass drivers with audible improvements
in sensitivity and extension.
Two new centre channels have been
introduced to replace the previous CC-
190, CC-290 and CC-390. The new
Center 1 and Center 3 and incorporate
acoustic refinements over earlier centre
channels, and have decreased footprints
to better fit today’s A/V furniture.
The Monitor Surround 1 replaces ADP
surrounds of previous Monitor Series. The
Surround 3 features revised design and
technology in keeping with the way sound
is being mastered and mixed in today’s
recording studios, Paradigm says.
The new Monitor Series incorporates
technology originally developed for
Paradigm’s step-up Reference Studio
Series.
All models employ 1˝ S-PAL satinanodized
pure-aluminum dome tweeters
(vs. titanium in earlier versions) with a
Waveguide design for improved high-frequency
dispersion and Mesh guard offers
added protection for of the tweeter.
Midrange and mid/bass drivers employ
S-PAL satin-anodized pure-aluminum
cones (vs. injection-molded co-polymer
in earlier versions); new lightweight foamrubber
surround geometry (from Studio
Series) with exceptional damping properties
and higher excursion capability; and
new high-temperature voice coils (aluminum
or copper) wound on Kapton formers.
The Monitor 11’s midrange driver
employs a super neodymium magnet;
mid/bass drivers on all models have large
ferrite magnets.
The bass drivers employ carbon-infused
co-polymer polypropylene bass cones.
Their motor structures incorporate the
same refinements as the mid/bass drivers,
described above. The result,
Paradigm says, is greater sensitivity and
deeper bass extension on floor standing
models and centre channels.
Monitor Series 7 is available in Black
Ash and a new Heritage Cherry finish.
Surrounds are in Black. Model lineup
and Canadian retail pricing for the
series is as follows: Atom Monitor:
$219; Mini Monitor: $319; Monitor 7:
$479; Monitor 9: $649; Monitor 11:
$849; Center 1: $399; Center 3: $629;
Surround 1: $299; Surround 3: $429
www.marketnews.ca, Search News:
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sound innovations to be available in the fall.
Beats will continue to operate autonomously with Jimmy Iovine as Chairman and
Luke Wood as President and CEO, along with current business partners Monster
Cable Products Inc., HP and ChryslerGroup LLC.
Skype has entered into an agreement to acquire mobile group messaging provider
GroupMe.
GroupMe’s free messaging service app works across Apple, BlackBerry, Android,
and Windows 7 platforms. It gives users the ability to create messaging groups from
their contact lists, have private one-on-one text conversations with anyone from said
group, and to take part in conference calls.
Skype hasn’t specified what its exact plans are for GroupMe, and whether or not it
will be integrated with Skype services. Terms of the agreement will not be revealed.
Sony Computer Entertainment has acquired video game development company
and longtime partner Sucker Punch Productions. The latter is responsible for creating
the Sly Cooper and inFamous game franchises that have sold more than seven million
units worldwide.
Sucker Punch has been exclusively developing games for Sony’s PlayStation console
for more than 12 years. The company will continue to work in its Bellevue, WA studio.
Its current management team and co-founders will run the company’s day-to-day
operations in conjunction with Sony’s Foster City Studio.
Financial terms of this acquisition were not disclosed.
TEAC Canada has been appointed the exclusive Canadian distributor for M2Tech, a
designer, manufacturer, and marketer of home entertainment accessory products,
including the hiFace S/PDIF output interface for PCs and Macs.
Using the hiFace, which is shaped like a standard USB drive and connects to the
computer using the USB input, customers can get high quality digital audio signals
from the computer for a HiFi system DAC (Digital to Analog Converter). hiFace provides
low jitter playback of files up to 24-bit and 192 kHz. It is designed to stream high-resolution
audio files while still conserving the CPU load.
Contact TEAC at sales@teac-ca.com or visit http://www.m2tech.biz/.
Webbsight Imaging Peripherals Inc. has been appointed Canadian distributor for
Giottos tripods and accessories. Giottos’ range of camera-support products includes
tripods, monopods, heads and accessories. It offers products for both studio and location
work, for all formats of still and video cameras. The company employs materials
such as carbon-fibre tubing, cast magnesium and lightweight aluminum alloys, to deliver
an optimum combination of lightweight and high strength and rigidity.
Giottos products were formerly distributed by DayMen Canada.

Sennheiser debuts noise-canceling
headphones with three modes
Sennheiser has added a new in-ear,
noise-canceling headphones model to its
line. The CXC 700, originally shown at
this year’s CES in January, boasts three
noise-canceling modes through
Sennheiser’s NoiseGard digital system
for reducing low, medium, and high frequency
noise.
Mode 1 is effective on low-frequency
noise (100 to 400 Hz), like engine noise
from trains, buses or small passenger
planes. Mode 2 focuses on cancelling
noise in the medium frequency range
(400 to 3,000 Hz), which is caused mostly
by air-conditioning systems in large
passenger aircraft or office buildings.
Mode 3 has a
particularly wide
frequency range
(100 to 3,000 Hz),
and combines the
noise-cancelling
effect in the medium
and low-frequency
ranges.
The headphones
offer fre-
quency response of 20-21,000 Hz,
whether noise canceling is turned on or
off. They can also operate as traditional
headphones when the battery has
depleted. They function using the control
unit integrated into the cable, which is
used to select among the noise-canceling
modes, as well as to regulate volume
levels, and to activate the TalkThrough
function for conducting a conversation
without having to remove the ‘phones.
The wearer receives confirmation that
NoiseGard or TalkThrough has been activated
via an audible and visual signal.
It ships with a set of ear adapters in
three sizes, an in-flight adapter, and a
6.35 mm jack plug adapter, plus a small
carrying case, diaphragm protector,
cleaning tool, and AAA battery. The cable
is 4.5-feet long. Sennheiser says the
headphones are comfortable enough to
wear even when sleeping.
Sennheiser’s CXC 700 headphones are
now available for an MSRP of
US$319.95.
www.marketnews.ca, Search News:
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APPOINTMENT NOTICE
Ian Vatcher, President of Panasonic Canada Inc., is
pleased to announce the appointment of Michael
Moskowitz to Vice President of the Consumer Products
Division. Leading the division, Michael is responsible
for strategic planning, sales, marketing, supply chain,
finance and customer experience.
Mr. Moskowitz has extensive experience leading
growth companies in the consumer electronics, communications
and technology industries. Michael is the
former President and Chief Executive Officer of XM
Canada (TSX:XSR).
Prior to XM Canada he was President, Americas International of Palm where he
managed Canada, Latin America and the Caribbean and also worked for several
leading global consumer electronics companies. In 2004, he was named a Top 40
Under 40 recipient and holds an honours degree from York University and an MBA
from Dalhousie University. Michael currently serves on the board of wireless operator
Mobilicity.
Mr. Moskowitz brings to Panasonic Canada a broad understanding of the consumer
electronics, communication and technology industries and a strong record of successful
growth. His highly disciplined approach and clear vision will contribute significantly
to Panasonic’s leadership team.
Panasonic products are marketed in Canada by Panasonic Canada Inc (PCI). PCI is
a subsidiary of Panasonic North America, one of the world’s largest producers of
electronic and electric products for consumer, business, and industrial use.
MarketnewsGadgetTalk Blog: In August, the PC celebrated its 30th birthday. “…. Everything
was so simple back then. The keyboard was bulky with what seemed like thumb-sized keys and
mice couldn’t be overthought. Plus, both just plugged in. No one back in the day had to deal with
trying to figure out how to wirelessly sync accessory X with computer Y…” Read more at
http://www.marketnews.ca//blog/ThePCTurns30Today–Wow,ThatsOld!.html
Panasonic welcomes full HD 3D
home theatre projector
Panasonic has introduced its first full HD
3D home theatre projector, the PT-
AE7000, which also marks the company’s
first home theatre projector to be released
in two years. The product was shown off
at the Panasonic Hollywood Laboratory in
Hollywood, CA, and Marketnews was on
hand to check it out.
The PT-AE7000 boasts 1,080p resolution,
and uses 480Hz transparent LCD
panels that, combined with the company’s
Overdrive technology, helps users
experience much lower crosstalk. The
projector also possesses a new 200watt
red-rich lamp that, when combined
with the panels, increases red luminance
and brightness output.
The projector also features a freshly
developed optical engine that produces
a 300,000:1 contrast ratio and 2,000
lumens of brightness, helping lead to
dynamic on-screen colouring and deeper
blacks.
Additionally, the projector has an integrated
IR transmitter that allows the
viewer to watch big screen 3D images
with optional eyewear, 2D-3D conversion
that can convert 2D content into 3D
images for 3D projection. The Intelligent
Lens Memory feature lets the user program
up to six different zoom and focus
positions.
“There’s a lot of thinking that goes into
the production of the projector,” explains
Rena L. Yotsu, Senior Coordinator,
Product Management Team, Marketing
Group, for Panasonic. “We have been
working together with the directors of
photography and cinematographers on
how to fine tune the image so that we
can really deliver (the picture) that was
originally intended by the actual film creators
and what they wanted to re-create
in the theatres. That can now be recreated
in homes.”
Brian Lang, Senior Product Manager,
AV Entertainment for Panasonic, also
weighed in on the new projector.
“I was impressed with the improved
contrast that the projector provided versus
the AE-4000,” says Lang. “For it to be
able to achieve a 3D image and be able to
improve the brightness and improve the
contrast ratio, adding into that 3D effect, I
thought that was just tremendous.” The
AE7000 will be released in Canada this
September for $3,999.
www.marketnews.ca, Search News:
pt-ae7000
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Can a video game encourage
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A George Brown
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VIDEOS REVIEWS
Panasonic introduced its
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and Marketnews was on
hand to get the lowdown.
If your back-to-school shopping
isn’t done yet, those at
the Best Buy “Connected
Home” Summit have some
product ideas for you.
Find out why our reviewer
thinks that the Motorola
XT860 4G Android smartphone
is one of the best
the platform has to offer.
The Samsung Galaxy Tab
10.1 4G could eventually
rival the iPad. Check out
which features really make
this device stand out.
Coming up… breaking news, blogging, and video
footage from CEDIA EXPO 2011. Please send your
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Website to us at letterstotheeditor@marketnews.ca
61

62
Jim Kovacs
Q&A
How did you get into this industry?
I started very young with a friend, DJ’ing at parties through our own “drive-in” show. You
could basically rent our services for the night. We would come in (or rather drive in!) with
all of the audio equipment, lights, and everything needed to get the party started! We
did this for a few years, and had quite the successful little business going. I got my first
job selling cameras and camcorders at a local store in town, then worked at a big box
store part-time selling TVs, audio equipment, cameras, and lots of other fun stuff. Then,
I decided to go on my biggest adventure yet, and move to Canada! I was taking flying
lessons at the Flight Academy at the local airport, and started working at a local retailer
in the town in Hanover as a sales consultant. I had been working there for about two
years when Randy Saunders, a former reps for Sony, asked me if I was interested in
working for a store he was about to open, and I said yes. I then became store manager
of HDTV and Electronics in Walkerton, the town next to Hanover. After a while, a secondary
location was opened up in Hanover, ON and I managed it for just under a year.
By that time, I had been in Hanover for almost five years, and it was time to spread my
wings and try out the big city. After meeting a lot of great people at CES 2011, I heard
about a position at Bang & Olufsen in Yorkville, an area of Toronto. I had my first interview
the morning after I flew in from ‘Vegas, and got the job. Not long after that, I found
out through Marketnews.ca that LG Electronics Canada was looking for a Regional
Sales Manager in the GTA. This was what I was waiting for! I am extremely excited to
be part of the LG team today. I am working with some of the best people in the industry,
and I am sure I will continue to learn a lot.
If you were not in this industry, what would you be doing?
Probably something with aviation, although I could not see myself working in any other
industry.
What’s the most unusual/fun product you’ve represented during your career
in the CE industry and why?
There have been so many cool products. We had some unusual, unconventional, but
very cool, products at B&O. But the most fun products are the ones that are “firsts.” Like
the first flat screen TV, or the first navigation device. They were always jaw dropping, and
to see people’s reactions was always very cool.
What was the most interesting
sales encounter you’ve had at a
retail store?
I was managing a store on Christmas
Day. Towards the end of the day, when
everyone wanted to go home, a truck
pulled up with a farmer in it. He left at
about 9 p.m. (the store was supposed
to close at 5 p.m.) with about $30,000
worth of merchandise. Everything was
top-of-the-line, and purchased in twos
for his brother and son. By this time, it
was only the owner and I in the store. In
the end, it was worth it every minute of
our time because it made both our
Christmas’ that much better after having
Jim relaxes in the clear, blue water during a
landed this $30,000 sale. And this cus-
recent vacation in Curacao.
tomer turned out to be a very good repeat customer.
What’s your favourite part of representing a Canadian company?
It is very interesting to see how important the Canadian market is to a company that
originates in Korea. Looking at how much work and effort goes in to what we do, and
seeing how many people are working extremely hard on a daily basis to make sure we
get the best products and service to our customers, is nothing short of amazing.
Do you find trade shows worthwhile, and if so, why? Which one is your
favourite to attend and why?
Absolutely. It is a great place to network with people in the industry, and you always get
fresh new ideas. This year was my first year at CES, and I would have to say that it is
by far my favourite trade show. The people that were there, and just the experience of
being in Las Vegas, can’t be beat.
What would you deem the most influential product introduction of your time?
I would say high definition TVs. Without those, none of these other very cool technologies
would have come about. The industry changed after CRTs were gone. Even if you
look at how far TVs have come just over the last few years: WiFi- enabled TVs that can
stream Netflix; I bought a Webcam and I can Skype with my mom in Holland directly
through my TV. Amazing! Who would have ever thought this all would have been possible?
And think of where HD has come and how it has changed other technologies or
industries; gaming, Blu-ray, et cetera.
Family is important to Jim, seen here in Macau, China with his uncle, brother, and father.
Stats:
Name: Jim Kovacs
Company Name: LG Electronics Canada
Location: Greater Toronto Area (GTA)
Product Lines Represented: LG
Years in the Industry: Almost 6 years in Canada, and prior to that, about
8 years in the Netherlands
Hobbies: Travelling, Sports, Cars, et cetera
If we asked your clients and/or colleagues, what would they say are your
strengths? Weaknesses?
I am a very open person, and always carry myself with a very positive attitude. I think
this is partly why, in my relative short time in Canada, I have gotten to know so many
great, successful people in the industry. As for weaknesses, maybe some people find
that I can have a bit of a temper sometimes, and can be impatient! I don’t like wasting
my time or standing around doing nothing. And if I find this is the case, I usually will voice
my opinion.
Have you had a mentor? If so, what skills did he/she teach you that helped
you in your current and/or past positions, and that you’ve passed on to others?
Yes, Randy Saunders. His guidance helped me get to where I am today. I worked for
him for almost three years, and being able to learn from him during that time has been
one of the best things that has ever happened to me.
What’s your happiest memory from working in this industry?
I’m a people person, and being able to transfer the joy and excitement of the product
you represent to your customer/client is very memorable. We are in a position to sell
clients/customers what they need that they might not even know they need or want. We
are guides through this wonderful world of electronics, and for people to even care
about your opinion in today’s age is already a big deal. Then, for them to come back
overjoyed, thanking you for the product you influenced them to buy, is very rewarding.
What technology product can you not live without?
It’s a pretty common one, but I would have to say my smartphone. Being able to conduct
business, send e-mails, and do whatever is needed while you’re on the road, out of the
country, or simply not at the office, is a huge help. It allows you to work more efficiently and
provide your customers with that much better service and quicker responses.
If you were to give one piece of advice to someone planning on entering the
consumer technology industry, what would it be?
Work hard, treat people as you like to be treated yourself, carry yourself with a positive
professional attitude, and good things will come to you.
Which has been the best year of your life in the industry so far, and why?
One of the best years in this industry so far would be 2008, when I had the opportunity
to work with Randy, and help him build his business into what it is today. It gave me
so much experience and knowledge, which I continue to benefit from on a daily basis.
Looking at the future, 2011 is an extremely exciting year, as I’m now in a position I had
been wanting for years. I would say 2011 is going to be my best year yet!
Tell us something that most people don’t know about you.
I had originally only planned to come to Canada for a year while I was flying at the Flight
Academy in Hanover. Almost six years later, I’m still here, and look at me now!
You have just won $10 million dollars in Lotto 649. Naturally, your loyalty is to
your customers (☺) But what else would you do with such a winfall?
First of all, I’d buy a brand new Porsche 911 Turbo. Then, I’d buy a nice house or condo.
I would take some nice trips, and I would do some good with the money. Maybe donate
some to charity, maybe something with underprivileged children or teens. I’m sure I
would find a few good places for the money besides the ridiculous amounts of fun I
would have with it. MN
Among the many wonderful places Jim has traveled is Kuala Lampur, Malaysia,
where he’s pictured here at Petronas twin towers.

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