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Week-end Edition - Day 2 & Day 3 - IFA International

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SPECIAL FEATURE - Tv TEChnoLogIES - LEd PhILIPS BRIngS ThE CInEMA InTo ThE hoME John oLSEn TELLS hoW 50 CEnT dId PhILIPS A hUgE FAvoUR John Olsen, Vice President of Global Marketing BU Television, Philips Consumer Lifestyle Philips TVs have a global reputation for innovation that goes beyond picture quality thanks to the company’s successful integration of a true lifestyle experience around the sets. IFA International talks to John Olsen, Vice President of Global Marketing BU Television, Philips Consumer Lifestyle, about the company's next wave of innovation. Having already seen your wide screen TVs, tell us about Philips' intentions for the next generation of TVs. Philips' Television Division is committed to offering consumers the best possible picture quality but in our research we look into all aspects of TVs including design and sound quality and as a result of that, we have been widely appreciated. Our research surprised us in the number of people who really love movies, so we were wondering how we could bring the cinematic experience into the home. And not just in terms of Ambilight and picture quality, but we also wanted to remove a problem for consumers by delivering an unconstrained cinema experience at home. And we achieved that because the Cinema 21:9 takes away the black bars at the top and bottom of the screen. That way viewers are seeing the film as it was originally made, in the 21:9 format. Who thought of the idea of the Cinema 21:9 TV? Initially the concept came out of consumer research but really we had been thinking about a wider widescreen concept for a number of years because we knew even when we introduced widescreen in the late 90s that it was, well I wouldn't say a compromise format, but it was clearly an average widescreen format. 16:9 is the standard accepted broadcast format but then you have cinemascope in 21:9. The decision was taken to go with 16:9 as a general rule but of course to really have the full enjoyment of the cinema experience you have to go with 21:9 but that is only useful when you are watching movies. Another important factor is the current shift from analogue to digital broadcasts which means that all programmes will soon in 16:9. Thanks to the auto-formatting that is included in the Cinemascope set, viewers can enjoy 16:9 broadcasts as they're meant to be seen as well as getting much more from your movies. There's a bit of stretching using the same format that we've used for some time when you from 4:3 to 16/9. So we offer 16:9 to 21:9 but not 4:3 to 21:9, that, I’m afraid is a stretch too far. But since, the main markets are digital it's more or less the same situation as we had a few years back with different formats being made to work on one TV. The system also works for other content such as games which can be played in the 21:9 format. Even though it's very early, has there been much feedback from the market? No, it really is too early for that. We are tracking how sales are going and we have had tremendous feedback from consumers who are interested in buying the set and also happily those who have bought it. So, although it's too early for any definitive consumer feedback, when you look at product blogs and also sources like Google analytics, and then you take into account the general interest there has been in and around the launch, we are pretty happy. The film Carousel, which won a Lion in Cannes, was intended to show what we really mean by great, creative content. It also started a great buzz. The whole Carousel concept was used in the latest video by 50 Cent for "OK You're Right". The video was seen by 1.4 million people in the four days following its launch on YouTube and by a similar number on his website and that is really great advertising for our product. Ambilight continues to evolve so what else can we expect to see at IFA this year? Compared to when we launched it five years ago Ambilight has progressed a lot. It's now LED-based and the system is included in some very slim sets. This means that now we have Ambilight with all backlight technology options. On the high-end we're also introducing the Nine Seven range which features the perfect pixelation engine and a 46" model which was named best LCD of the year by EISA. We have some striking products in other series including a new 8 models serie with the third generation of Aurea's edgelit technology. From a design perspective there will some interesting refinements. Also we're introducing a new remote control called the Pebble which is both innovative, simple and beautiful. Hall 22 / Stand 101 18 IFA International • Saturday, 5 th & Sunday, 6 th September 2009

Meet the visionaries LG's resiLienCe reaPs reWarDs hoW LG is WeatherinG the eConoMiC sLuMP MovinG into the nuMber tWo Position By Neil Crossley According to DisplaySearch, LG has been the most resilient TV manufacturer from Q1 2008 to Q1 2009, recording a slight increase in sales volumes and turnover, and moving into the number two position. Simon Kang, President and CEO, Home Entertainment Company, outlines the company's vision. In the current economic climate this increase in sales volumes is an amazing performance. To what do you attribute this success? LG has clearly differentiated the product benefits that are driving the future growth of its premium LCD TVs, namely its expertise in Full LED (direct-type) backlight, wireless, broadband and TruMotion 240Hz (200Hz) technologies. The company's success comes from its devotion to exploring and understanding consumer insights, divided by target segments, beginning in the product planning stage. At the same time, we have undertaken bold marketing initiatives, such as the Scarlet campaign in 2008, to raise LG’s brand value. Running the company responsible for this success must be a huge 'weight' but must also come with great satisfaction. What is the hardest part of the job? A leader’s toughest decision comes with the inevitable reduction in human resources. Even during the current recession, LG refrained from restructuring. Rather, we are interested in securing the best talent to develop synergy between the TV and A/V businesses, which merged at the end of last year to create even greater value for our customers. What gives you the most satisfaction? The biggest reward comes from the positive feedback we receive from customers, when LG’s products, services or marketing activities perfectly meet consumer needs. To better meet these needs, LG will invest more funding into understanding consumer insights, despite the global recession. How do you believe sales will perform in the period leading up to Christmas? LG anticipates that we will continue to excel during the end-of-the-year holiday season, Thanksgiving and Christmas, and achieve unprecedented sales performance this year. LG expects its sales in the second half to be up by 10 percent year-on-year. What are the main trends in demand for LCD and plasma TVs at the moment? Currently, the biggest trend in the TV industry is the LED backlight. Compared to the CCFL backlit TVs, LED backlit LCD TVs offer a more natural and clearer picture, slimmer design and eco-friendly power saving technology. By 2010, LED backlit TVs will make up to 20% of the entire LCD TV market in line with consumer demand and preference. LG will introduce a new line of flat panel TVs that can provide consumers with the benefits of LGexclusive LED backlight technology. In this sense, what should retailers be highlighting when they sell LG TVs? Clear and natural picture quality, user convenience and the fact that LG accommodates consumer needs by launching a wide variety of LED LCD TVs, from Full LED Slim (Direct-type) and Full LED (Direct-type) LCD TVs in the first half of the year to LED (Edge-type) LCD TVs in the second half of the year.LG’s flat panel TVs also blend well with all styles of home decor, resembling an object d’art. What will TVs be like in 2014? TVs will become the focal point in the home, with uniquely sophisticated and stylish designs. Additionally, TVs will become the hub of the home network to improve consumer lifestyles. Seamless connectivity and limitless content will be important factors. With the emphasis on connectivity with the surrounding home entertainment devices such as home theatre systems, wireless technology will become more significant. Consumers will also be able to download a wider variety of internet content to their TVs with enhanced broadband technology, achieved through the continued, proactive collaboration with wellknown online service providers. Hall 11.2 / Stand 101 IFA International • Saturday, 5 th & Sunday, 6 th September 2009 19

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