Pioneer Premium Products Press Release

[Ben]

As a followup to Josh's news post, I thought some of you might be interested in Pioneer's press release:

PREMIUM PRODUCTS REIGN THIS HOLIDAY SEASON

Pioneer® Seeks Input from Luxury Industry Expert Brent Butterworth on
Premium Consumer Electronics Trends for the Holidays

LONG BEACH, Calif. – (November 15, 2007) – The holidays are when luxury consumers splurge on premium products. In a time when fear of inflation is prominent, experts still agree that premium products, defined by the quality they deliver, will continue to maintain a share of the market. Between 2001 and 2006, growth indices within the luxury goods market have posted an average increase of at least 13 percent compared to the less than five percent increase for the Dow Jones Industrial average during the same period. An important segment of luxury goods is technology.

Pioneer Electronics (USA) Inc. is appealing to these consumers and undergoing a rebranding effort seeking to reposition the company alongside other premium brands. Pioneer’s KURO television line epitomizes the quality and fulfillment consumers seek for an emotional experience with entertainment. In this repositioning effort, the company interviewed Brent Butterworth, editor-in-chief of luxury publication Robb Report Home Entertainment, on premium technology trends for the 2007 holiday season. Butterworth identified five things to look for relating to the quality home entertainment experience:

·WITH FLAT PANEL TELEVISIONS…SIZE MATTERS: In 2007, a holiday splurge will be large-screen flat panel televisions. According to Butterworth, “more people are going to be buying flat-panel TVs, and in larger sizes. It used to be that 42-inch was a huge part of the market but 50-, 55-, and 60-inch models will grow dramatically in sales this holiday season, while 42-inch will play a much smaller role.” The technology of choice for large screen displays will be plasma. When forecasting 2007 Black Friday sales, Sang Tang, HDTV research analyst with Current Analysis West, an NPD Group company, stated that “plasma will be very aggressive at 50-inches and will maintain a foothold on the high-end market.” Leading the premium market in picture performance, Pioneer’s KURO televisions, which are available both in 720 and 1080p models, and in sizes ranging from 42- to 60-inches, are premium plasma displays that offer industry-leading black levels, resulting in richer colors and sharper details.

·HIGH-END HOME THEATER FURNITURE: A variety of furniture has been developed specifically for use with flat panel televisions, said Butterworth. He adds that “this furniture has actually started to drive home theater sales. For the first time, it’s now easy to put in a great-looking, high-performance home theater.” Companies that produce premium home theater furniture include Lovan USA, which offers the Lovan Harmony plasma / LCD lift cabinet and BDI, offering a collection of home theater furniture with integrated features such as hidden wheels, adjustable shelves, flow-through ventilation and wire management.

·PREMIUM SPEAKERS ARE NOT WHITE AND PLASTIC: iPod® speaker systems are beginning to rise above the original plastic versions that previously dominated the category, Butterworth notes. There are now a variety of iPod speakers that cost more than $500 and “for many people, these will become their idea of what a high-end audio system is.” These speakers include Bowers & Wilkin’ Zeppelin, an integrated iPod speaker system with a stainless steel iPod dock. Stereo systems that are iPod-ready are another option for consumers seeking high-end sound. For example, Pioneer’s Elite® X-Z9 delivers professional quality sound in a premium desktop system. In addition to having a source for iPods, the X-Z9 offers USB connection, satellite radio and networked audio. It also plays SACDs and conventional CDs.

·VIDEO GAME SYSTEMS WILL BE CENTRAL TO THE HOME THEATER: Video game systems are no longer just for the kids. Instead, Butterworth discusses how they are becoming the primary source device and high-end home theater system for the whole family. “The explosive sales of Halo 3 show how important this category is to consumers of all ages and incomes. Even the most extravagant custom home theater systems now often, if not usually, feature video games,” Butterworth adds. In addition to video games, these systems play both traditional DVDs and the high-definition optical disc formats. For example, Playstation 3 includes a Blu-ray Disc drive in the actual system. There are also a variety of stand-alone Blu-ray Disc players available this holiday season including Pioneer’s Elite BDP-95FD, which delivers high definition picture quality utilizing True24FPS so films are viewed exactly as the director intended. The BDP-95FD Blu-ray Disc player also incorporates HDMI 1.3 for high-resolution audio output.

·OUTDOOR HOME THEATER: Consumers are beginning to bring their home theater outdoors. Butterworth remarks that “outdoor audio/video will be the next growth area in high-end consumer electronics, thanks in part to the introduction of some interesting new products in the last two years.” This will likely first take place in the warmer climates such as Southern California where “enclosures are now being built to protect [flat panel televisions] from the elements when there’s no porch cover around to shelter them.” Audio and video developments are adding to this new outdoor lifestyle as, for example, “new form factors in speakers are making it possible to get much better outdoor sound.”

“In our rebranding effort, we are looking to position Pioneer with other great premium brands,” said Russ Johnston, executive vice president of marketing and product planning for the Home Entertainment and Business Solutions Group at Pioneer Electronics (USA) Inc. “Our products – from the KURO televisions to our premium X-Z9 system and unrivaled Blu-ray Disc player – deliver an emotional connection to entertainment for those individuals who seek a premium experience. These consumers contribute significantly to luxury purchases during the holidays.”

About Pioneer Electronics ( USA ) Inc.
Pioneer’s Home Entertainment and Business Solutions Group develops high definition home theater equipment for sports and entertainment junkies. Its flat panel televisions, Blu-ray Disc players, A/V receivers and speakers heighten the emotions created by great HD content. The company brands include Pioneer® and Elite®. When purchased from an authorized retailer, consumers receive a limited warranty for one year with Pioneer products and two years with Elite products. More details can be located at www.pioneerelectronics.com.