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www.wifihifi.ca | December/January 2017 PM42710013
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CONTENTS | December/January 2017
04 PUBLISHER’S NOTE
06 SHORT BITS
Great holiday gift ideas for everyone on your list.
16
By Christine Persaud
16 HOME ENTERTAINMENT | Year-in-Review: Is it Time to Party?
Audio/video retailers are facing major challenges: market saturation in key categories,
market distress in key regions, and an aging customer base. But there are lots of reasons
to be optimistic about 2017.
By Gordon Brockhouse
26 MOBILE WORLD | The Mobile Industry Year-in-Review
A Year of Ups, Downs, and Changes: From new devices like the iPhone 7 and Google Pixel, 26
to issues with devices like the Samsung Galaxy Note7, carrier reinventions, and emerging
accessory categories, it’s been an eventful year in the wireless space.
By Christine Persaud
36 HANDS-ON REVIEW | HifiMan SuperMini Digital Audio Player
Portable audio players are making a resurgence, but some can cost into the thousands. How does
this $550 player compare, and is it worth the upgrade for on-the-go personal listening?
By David Susilo
38 HANDS-ON REVIEW | Bryston BDP-π Digital Music Player
Specialty audio manufacturers say a dedicated music player like Bryston’s new BDP-π can produce
38
better sound than a general-purpose computer. But the real advantage is simplicity and stability.
By Gordon Brockhouse
44 ARTIFICIAL INTELLIGENCE: The Promise and the Reality
What we often refer to as “artificial intelligence” is not really AI, but actually closer to machine
learning data analysis and data mining. Nonetheless, there have been some incredible advances in
the field of late, across many industries.
By Frank Lenk
50 TALKING SHOP 44
Canadian Sound celebrates 30 years in business, Google opens store-in-stores in Best Buy,
Samsung surprises with its Harman acquisition, and more in this month’s edition.
60 TOP 10 TECH GIFT PICKS
After 12 months of reviewing audio and video equipment, mobile gear and gadgets,
and several entertainment services through 2016, here are our writers’ picks for top-10
tech items for the holidays.
By Gordon Brockhouse, Christine Persaud, and David Susilo
70 CES 2017
Don’t miss this year’s Canada Night celebration during the 2017 CES!
60
December/January 2017 3
PUBLISHER’S NOTE
TIME TRAVEL
“PARTY LIKE IT’S 2007,” says Gordon Brockhouse at the end of his PUBLISHER / EDITORIAL DIRECTOR
Year-In-Review feature on the home entertainment industry. Back in John Thomson
2007, I worked for another magazine. I have all the old issues in the Cell: 416-726-3667
basement, so I thought it would be fun to flip some pages and see jthomson@wifihifi.ca
how much things have changed in 10 years. @wifihifimag
Let’s start by mentioning that the issue that you are holding is the EDITOR-IN-CHIEF
largest one we have published in three years of producing WiFi HiFi, Christine Persaud
coming in at a whopping 72 pages. Ten years ago, that December cpersaud@wifihifi.ca
issue had 132 pages, of which exactly 72 pages were ads! I bet the revenue from that one issue @ChristineTechCA
in 2007 is close to what we make in five issues of WiFi HiFi today. When you were the only game
in town you could charge what you wanted. Besides, it was 2007 so people had loose ideas of EDITOR-AT-LARGE
budgets. Then came 2008… Gordon Brockhouse
gbrockhouse@wifihifi.ca
Scanning through that 2007 issue, I see ads from Hitachi, Sanyo, Toshiba, VisionQuest, In Tandem,
Dumoulin, Vantage Point, and many other brands that have disappeared from the Canadian CE CREATIVE DIRECTOR
landscape. But many brands are still going strong, and the majority have a page in this issue David Topping
10 years later. So a pat on the back to all of the companies that have successfully reinvented
CONTRIBUTORS
themselves in the last decade.
Vawn Himmelsbach, Ted Kritsonis, Frank Lenk,
The biting irony of publishing in 2017 is that while what the market will bear for advertising is Steve Makris, David Susilo
dramatically lower, audience reach is dramatically higher. Newsletters, social media, mobile,
online, print editions, digital editions and tablet editions guarantee there are more ways than DIRECTOR OF DIGITAL CONTENT
ever to connect to readers. I’m crossing my fingers that Gordon is right about 2017 being the new James Campbell
2007 – at least when it comes to ad pages! It’s amazing how quickly we can adapt to adversity. jcampbell@wifihifi.ca
That brings to mind a favourite Oscar Wilde quote: “Anyone who lives within their means suffers
DIRECTOR OF SPECIAL EVENTS
from a lack of imagination.”
Cathy Thomson
Alas, chances are 2017 will be 2017, with its crazily shifting technological landscape, as you can cthomson@wifihifi.ca
read in Frank Lenk’s feature on Artificial Intelligence. Frank busts a few myths on precisely what
Melsa Media Inc.
AI is. The good news is that we can go to sleep confident that our fridges and sound systems are
194 Robinson Street
not conspiring about ways to kill us. Oakville, Ontario
Today, no one would question how central smartphones have become to our lives. Our phones L6J 1G3
are our information hub, our communication tool, and the epicentre of our entertainment. There
Advertising Inquiries:
are very few products that you can plug in that don’t have an accompanying app at the centre John Thomson
of the user experience. Christine Persaud covers the year that was in mobile communication and jthomson@wifihifi.ca
accessories; and her report confirms that the smarphone’s contribution to the global economy
continues to grow. You could almost say that the smartphone industry is, ah, um…on fire.
LET’S STAY IN TOUCH!
This issue brings our print schedule for 2016 to a close. From our family to yours, we wish you a
Website: www.wifihifi.ca / www.wifihifi.com
happy holiday and a terrific new year. We look forward to convening in Las Vegas for CES and at Drai’s
Twitter: twitter.com/wifihifimag
Nightclub for Canada Night on Friday, January 6. Here’s to a great 2017, where we party like it’s 2007.
Facebook: facebook.com/wifihifimag
As always, many thanks for reading. Instagram: instagram.com/wifihifi
John Thomson
jthomson@wifihifi.ca Check out our Vintage Airstream
www.wifihifiairstream.com
Copyright 2017. WiFi HiFi is a registered brand of Melsa Media Inc.
and is published ten times each year. All rights reserved. The contents
of this publication may not be reproduced in whole or in part
without the written consent of the publisher. The views expressed
by advertisers are not necessarily those held by the publisher.
Publications Mail Agreement Number: PM42710013
Business Number: 81171 8709
4 www.wifihifi.ca
LIMITLESS. BOUNDLESS. TIMELESS.
The New TOTEM SKY
In an age where true valueLVSXWRQDOLPLWOHVVDQGKRQHVWPXVLFDOUHQGLWLRQWKH7RWHP6.
SHORT BITS Great holiday gift ideas for everyone on your list.
BY CHRISTINE PERSAUD
TURNTABLE, FROM A-TO-D
With a built-in phono preamp and A-to-D converter, the TN-400S
turntable from TEAC (Erikson Consumer) can both play back records
BIG TURTLE SOUND and archive them in digital format. Available in matte red and walnut
Shaped like the slow and steady reptile, it’s no surprise that this veneer finishes, it comes with an Audio Technica moving-magnet
portable wireless Bluetooth speaker from Outdoor Tech (Atlantia) cartridge, and can play 331⁄3, 45 and 78rpm records. It features an
is called the Big Turtle Shell. Water-resistant, dust- and shock-proof, aluminum die-cast platter, attrition resistance stainless steel spindle
it doubles as a portable power bank in addition to playing back tunes and brass spindle holder, and static-balanced aluminum S-shaped
using its 7,800mAmp battery. And it can act as a speakerphone, tonearm. Connect it directly to amplifiers that lack a phono stage
or be used to launch Siri via external controls, which can also be via an RCA analog cable. It can also output 48kHz/16-bit PCM digital
used to adjust volume, change tracks, and play/pause. audio via its USB connector, for archiving records onto a PC or Mac.
Outdoortechnology.com MSRP $600 Teac.com
LISTEN TO YOUR HEART
Expectant moms don’t need to wait
for the next doctor’s visit to hear
the beating of their baby’s heart;
just use the Bellabeat Shell (Dream
Team Americas) which attaches to a
smartphone and works with an app
to help filter out background
noise and amplify the sound of the
heartbeat – much like an actual
seashell. The app, which can be used
on its own as well without the Shell,
uses an algorithm to capture the
sound of the heart from within the
womb and present it in a “natural
way.” Record the comforting sound
to share with friends and family
on social media, view tutorials on
fetal heart positions and enjoy
multiple pregnancy tracking.
This isn’t by any means a medical
device, but it’s a fun way to interact
with your upcoming little one.
The Shell currently only works
with select model iPhones. US$70
Bellabeat.com
6 www.wifihifi.ca
Sound Tools for Creative Minds M W 50 Wir e le ss O n E ar H e a d p h o n e s w w w. m a s t e r d y n am i c . c o m
SHORT BITS
HAVE A PRESENCE
MOVIES IN YOUR POCKET
The Netatmo Presence (Dream Team Americas) smart outdoor
security camera can recognize people, animals, and vehicles within a Vivitek’s Qumi Q3 portable HD pocket projector can project a 720p
100-degree field-of-view. It connects to Wi-Fi, then view in real-time, HD resolution image up to 100” in size from a mobile device, via Wi-Fi
or receive a notification if it detects any of the above. Manually select or Bluetooth pairing, HDMI, AV-in, DC-in, USB, or its 5.1GB of on-board
zones for the camera to focus on, like the driveway or front lawn, and memory. Running on Android OS, images are delivered at up to 500
determine what the camera does when it sees certain things, like lumens and 5,000:1 contrast, and audio via two-watt speaker. It runs
record and notify you when it sees people, but ignore animals and for up to two hours per charge – enough to get you through a full
cars. Store footage to the included 16GB microSD card; it accepts up to feature-length film. At just a pound, it’s the perfect device to bring
32GB. Since everything is stored locally, there are no subscription fees, along for movies, business presentations, or meetings. An integrated
though the camera does tie-in with DropBox if you wish to save footage media and document viewer can display documents, photos, video
to an account there. IFTTT integration lets you include the camera in and audio files. See our review at Wifihifi.ca $500 Vivitekusa.com
different smart home “recipes,” like setting the outdoor lights to come
on whenever a car pulls into the driveway. MSRP $349 Netatmo.com
TIMEPIECE, SMARTWATCH, WRIST REMOTE
Misfit’s new Phase Hybrid Smartwatch combines a traditional GET MORE IPHONE STORAGE
analog timepiece with modern smartwatch and wristworn remote. If you feel stuck with your 16, 32, or even 64GB of built-in iPhone space,
It tracks steps, distance, and sleep duration and quality using a or feel forced to sign up for an iCloud account to backup an endless
three-axis accelerometer and Misfit’s algorithms. The watch face can amount of photos, videos, or non-DRM protected music files, consider
also discreetly display incoming notifications and other feedback, the Leef iBridge3, which you can plug into the device and use as an
like activity and alarm, using an interplay of the watch hands, a small external memory drive. Transfer everything from photos to videos and
colour window, and vibration alerts. But it also functions as a remote documents to the iBridge to free up space, or simply use it as a backup.
for controlling music or snapping photos from a wirelessly connected Plus, shoot and store content directly to the iBridge; and transfer files
smartphone; and can control smart home devices. It runs for up between the device and a DropBox, Google Drive, or iCloud account.
to six months using a coin-cell battery, and is water-resistant Once transferred, create a passcode or use Touch ID with LeefLock
up to 50 metres. It comes in six colour options; wear it with any to prevent others from accessing the content. Available in sizes from
20mm band. US$175 Misfit.com 16-256GB for MSRPs of $80-$230. Leefco.com
8 www.wifihifi.ca
T H E P E R F E C T B A L A N C E O F
Form & Function
DSLR performance with the mobility
of mirrorless. The Lumix G85 delivers
flawless photography and exceptional
video. Thanks in part to 5-axis Dual Image
Stabilization in both photo and 4k video
modes, and a 16MP sensor that does
away with the low pass filter, the G85
produces noise-free images of remarkable
clarity and realism. Plus, a weather-sealed
body and lens allow you to capture those
images virtually anywhere. Little wonder
that the Lumix G85 is being recognized as
a powerful hybrid creative tool for both
amateurs and pros – the perfect balance
of form and function.
shop.panasonic.ca/lumix
Photography © Johan Sorensen acrobuddhas.com
SHORT BITS
SWITCH IT UP
The Nintendo Switch gaming system includes both a console and a
handheld device that can be used for gaming on the go. At home, it
rests in the Nintendo Switch Dock that connects the system to the TV. MOUNTING MAGIC
Lift it from the dock, and the system will automatically transition to Scosche is extending its MagicMount line of mobile mounts and
portable mode for continued play outside. One player can use a chargers (Atlantia) into the home with the Wall Charger, which allow
Joy-Con controller in each hand, two players can each take one, or you to dock a mobile device to a wall outlet without the need for
multiple Joy-Cons can be used by numerous people for a variety of cords, in the same way you already do in a car. The 12W (2.4A) Perfect
gameplay options. The controllers easily click back into place at the Charge USB port automatically detects and charges phones and
sides of the console, or can be slipped into a Joy-Con Grip accessory, tablets at the correct rate. At the heart of the charger are powerful rare-
mirroring a more traditional controller. If preferred, select an optional earth Neodymium magnets, which will not damage the smartphone
Nintendo Switch Pro Controller. Further, numerous people can bring or tablet, but ensure a tight grip on a device. The sleek, cradle-free
their Nintendo Switch systems together to enjoy local multiplayer design also allows users to position the screen for optimal viewing. The
face-to-face competition. March 2017; pricing TBA. Nintendo.com MagicMount Wall Charger’s surface is covered by a non-scratch silicon
pad to prevent marring of the device’s surface. It ships with a large and
small MagicPlate mounting metal plate. MSRP $35 Scosche.com
SUPER SMART MUZIK
Not only are they wireless, but the Muzik One headphones (Dream
Team Americas) have hot buttons on the right earcup that you can
program to do certain things once you press or swipe them, like
upload what you’re listening to directly to social media via integration SOUNDCAST GOES SMALL
with services like Spotify and Twitter. With IFTTT, you can also use Speaker manufacturer Soundcast is going small with its latest model,
the hot keys to do things like control the lighting in your home. The the VG1 (Erikson Consumer), a portable Bluetooth speaker that is
ear cushions pop on and off easily so you can go from on-ear to fully waterproof, and boasts a shock-absorbing design. Weighing just
over-ear depending on the setting, and the headphones have dual a single pound, the speaker works with Siri for hands-free control,
mics for making calls as well as using voice control with a connected features a built-in microphone for conference calls, and volume can be
smartphone. Use the Muzik Connect app to adjust settings and hot keys easily adjusted or a track can be paused via on-board controls. Pair two
to your liking. The headphones can run for up to 30 hours per charge, via Auto Bluetooth to fill a room or backyard BBQ party. They run for
and can be used wirelessly or with a wire. US$300 Muzikconnect.com up to 15 hours per charge. MAP $199.95 Gosoundcast.com
10 www.wifihifi.caYour brain might need a second to catch up.
Jan. 5-8, 2017 Ι Las Vegas, NV
Register now at CES.tech
#CES2017SHORT BITS
TRACKER FOR NEW MOMS
Project Nursery, a VOXX Accessories Corporation, has designed the
KEEP AN EYE ON MY PHONE, MATE Parent + Baby SmartBand, a wearable device for parents. Moms
The latest version of the Tile Bluetooth tracker, the Tile Mate, can log important events like nursing and bottle feedings, pumping,
(Dream Team Americas) is 25% smaller than the original, and now pre- and post-natal vitamins, medications, diaper changes, fetal
comes with a key ring hole. Attach it to your car keys or camera, movements, the child’s weight, and naps. Mom can also track her
and it will communicate with your smartphone app via Bluetooth to own habits, including hydration, weight, diet, exercise, and sleep.
help you locate the item if it’s lost. The best part: your smartphone A customizable reminder and alarm function helps parents stay on
doesn’t have to be in range in order for you to find the lost device. schedule, and “messages of encouragement” throughout the day help
The system uses a network of Tile users from around the world to keep mom happy and motivated. It can also display notifications for
identify where your item is, and report its location back to you via the caller ID, text messages, and apps. Historical data is saved in the iOS or
app. $30, or $90 for a four-pack. Existing Tile owners can upgrade for Android app for sharing with a doctor, for example. Splash and sweat-
US$15 as part of the retile program that offers a new Tile annually for resistant, it can run for up to 30 days per charge. It will come in blush
up to half off the original price once the battery dies. Thetileapp.com pink, white, or black in February 2017; US$150. Projectnursery.com
POWERED BY YOUR BODY HEAT
Matrix Industries is trying to solve
one of the biggest annoyances with
wearables these days, battery life,
with its PowerWatch smartwatch
that recharges from you body heat.
The PowerWatch uses thermoelectric
technology, nano-meterials, advanced
thermal engineering, and low-power
electronics to run exclusively off heat
generated from the body. It also uses
this technology to measure calories
burned and show power generated
from the body. The water-resistant
smartwatch tracks activity, sleep, calories
and power, and can store up to a year’s
worth of data. When you take it off,
it automatically goes into sleep mode,
keeping all the data in memory, then
turns on after a few seconds when
you put it back on. US$170; July 2017.
Matrixindustries.com
12 www.wifihifi.caA LEGACY OF AMAZING SOUND MEETS
THE POWER OF HEOS.
Meet the new lineup of Denon® and Marantz® audio video receivers,
now with HEOS wireless music capability built right in.
legacyofamazingsound.comSHORT BITS
TURN WASTE INTO FERTILIZER
Add Whirlpool’s Zera Food Recycler to your kitchen to turn food waste
into homemade fertilizer. The unit uses oxygen, moisture, heat, a plant-
based additive, and agitator to speed up the decomposition process
INSTANT PICS and reduce the average family’s weekly food waste by two-thirds within
24 hours. A HEPA/Carbon air filter, which should be changed every two
It’s no surprise that in an age of instant gratification, the concept
months, continuously filters the air to control the smell. Then, throw
of immediate photo printing is taking off. Pyle’s Portable Instant
the result on the lawn. You can even control it remotely from the Zero
Photo Printer lets you make quick and easy prints from a compatible
mobile app. Launching in U.S. test markets in April 2017; MSRP US$1,199,
Android or iOS device. It measures just 6 x 3” and weighs a single
US$19 for the filter and US$12 for a four-pack of additives. Indiegogo.com
pound, and features both Wi-Fi and Near-Field Communication (NFC)
(campaign will launch coinciding with CES 2017)
for wirelessly communicating with your mobile device and Pyle’s free
PicKit app. JPEGs and PNG images can be printed at 2.1 x 3.4”, and
you can edit and add custom borders to a picture before printing it.
Make about 25 prints per charge. US$100 Pyleusa.com
APP OF THE MONTH: meMatic
A NEW FRONTIER If you spend any time on social media, you know about the world of
The Samsung Gear S3 smartwatch comes in two flavours: the Frontier, funny, clever, witty, inspiring, or downright silly memes. The concept
which employs a rugged, outdoor look; and the Classic, which is inspired is simple: take a photo or image, add some text to put it into a different
by traditional timepieces. Both are dust-, dirt-, and water-resistant, context, distribute, and watch it go viral. We love to share these morsels
able to withstand up to 1.5 metres of water for up to 30 minutes. of hilarity, but what about creating them? This app makes it super-
They come with built-in GPS and speakers for taking and making calls, simple. Select a photo from your album, snap one live, or choose from
plus Bluetooth for pairing with a smartphone or wireless headphones. a selection of popular pics, from stunned cats to funny expressions,
Internal 4GB memory can be used to store tunes. They can also to movie stills, or popular characters like the Most Interesting Man in
monitor your daily fitness activities, while the altimeter, barometer and the World. Choose a layout, input some text, save and share. Free or
speedometer lets you track altitude, speed, and plan for the weather. upgrade to Pro ($3.99) to choose text colours and fonts, remove ads,
$469 Samsung.ca and create meme templates from your own photos. Mematic.net
14 www.wifihifi.caWE’RE SERIOUS ABOUT YOUR SUCCESS
SHERPA GROUP is a national distributor and exclusive marketing agency for some of the
most prestigious brands in consumer technology. We specialize in premium audio, video
and communication products.
Sherpa Group offers an exceptionally high level of customer service driven by our team with
the best product knowledge in the business. The success of your business is our highest priority
and we will do whatever it takes to ensure that success.
Contact us today and learn about our free educational seminars, our interactive Q&A sessions
with industry leaders, and many other dealer initiatives to ensure our partners are at the forefront
of technological developments with the products they sell.
CELEBRATING 15 YEARS • 2001-2016
For more information on becoming a Sherpa Group partner, contact info@sherpa-group.net
80 Lindsay Avenue, Dorval, Quebec H9P 2T8 • 514-366-9822 / 1-866-767-6584 • Fax: 514-366-4265
445 Admiral Blvd, #2, Mississauga, ON L5T 2N1 • 905-565-9028 / 1-866-767-6584 • Fax: 866-670-5052IS IT TIME TO PARTY? A leading contender for
the world’s best television
CE retailing faces challenges in 2017, is LG’s 77” Signature
Series OLED, which started
but there are some great opportunities too shipping in the U.S. in the
fall for a cool 20 grand.
The 77-incher hasn’t made
it to Canada, but LG’s 65”
BY GORDON BROCKHOUSE Signature Series OLED has.
I think it’s safe to say that most entrepreneurs are glass-half-full
types: even in the midst of a crisis, they’ll find reasons for optimism. THE STORY
Total CE sales declined in 2016.
As another challenging year draws to a close, CE vendors believe Factors include market saturation and
that there are lots of reasons to be hopeful about the new year. price erosion in key categories, along
with distress in resource-dependent
Some of 2016’s challenge arose from condi- years that could impact the close of 2016. “In Western provinces.
tions of our industry, including price erosion and 2014 and 2015, growth through November and TV makers are hopeful that continuing
market saturation in key categories; and some December was weaker than the three months lead- technological improvements and
arose from the overall economy, notably continu- ing into it. If that trend holds this year, we’ll have availability of more UHD content could
ing weakness in the Canadian dollar and distress negative growth of 4 to 5% over the holidays.” revive growth in flat-panel sales in 2017.
in resource-dependent Western provinces. As in previous years, there are some hopeful
There are some real bright spots in
You can see the effects in industry sales data. signs beneath the data. First of all, NPD’s CE totals
audio, notably wireless multi-room
According to NPD, combined Canadian retail include imaging, a category that is under severe
sound. New brands and new technology
sales of audio, video and imaging products fell distress because of the collapse of point-and-shoot
(especially voice control) could
4% in dollar terms and 8% in unit terms during camera sales and near-saturation in enthusiast
accelerate growth in 2017.
the first 10 months of 2016 compared to the cameras. Subtract imaging from the total CE fig-
same period a year earlier. If this sounds like a ure, and the picture starts looking rosier. The end of the flat-panel boom and the
broken record, that’s understandable. CE sales “I’d call this year steady,” says Moto Shimizu, Vice need to attract younger customers makes
slipped last year too, and in the year before that. President of the AV Division at Yamaha Canada it vital for CE retailers to adapt their
Mark Haar, Director of Consumer Electronics for Music Ltd. “When you’re steady with the whole product assortment and messaging.
NPD Canada, notes a worrisome trend from earlier Alberta thing happening, steady is very acceptable.”
16 www.wifihifi.caFun > Smart
A-S1100, A-S2100 and A-S3000 Integrated Amplifiers.
¥
www.yamaha.comYEAR-IN-REVIEW: HOME ENTERTAINMENT
A BRIGHTER PICTURE sales. With TVs 55” and larger, 4K models repre-
The other drag on CE sales is the continuing sented 58% of unit sales and 71% of dollar volume
decline in flat-panel sales. According to NPD, in the first 10 months of this year.
Canadian retail sales of TVs fell 6% in unit terms Haar notes an interesting difference between
and 2% in dollar terms during the first 10 months the Canadian and American TV markets. “In
of 2016 compared to the same period in 2015. Canada, we’re more than covering the exchange
But the TV sales picture is brighter than it first rate,” he says. “There’s a 40 to 45% premium
appears. As Haar notes, the average sale price over the same models in the U.S. on TV. Our unit
increased by 4.5%, to $541, partly driven by surg- growth is far lower than in the U.S. where ASPs
ing sales of 4K models and big screen sizes. are going down much more dramatically.”
According to NPD, the 55” and 65” segments The major TV vendors express satisfaction with
collectively accounted for almost half of dollar the year just past, and optimism for the coming
sales during the 10 months ending October 31, year. “Our sales in TV are up by double digits,” says
2016. Unit sales of 65” TVs were up 44% in the Bruce Schepers, Vice President of Sales, Home
first 10 months of 2016 compared to the same Electronics, at LG Electronics Canada Inc. “We
This year, Black Friday craziness wasn’t just about commodity
period in 2015; dollar volume was up 45%. While have developed a separate channel for OLED, and products. Premium products like HDR-capable UHD televisions
that segment accounted for only 4% of unit vol- it is growing substantially. We made substantial were offered at incredibly attractive price points.
ume, it represented 24% of dollar sales. The 55” gains in TVs 65” and up. We started out under last
segment is growing too: by 22% in unit terms year for the first six months, but the trend now is
and 19% in dollar terms; and now accounts for toward level sales with last year.”
13% of unit sales and 25% of dollar sales. Comments Pat Bugos, Vice President Sales Friday. As expected, there were loads of sub-
Sales of TVs sized 40 to 44” also grew, by 8% and Marketing for the CE division of Samsung $500 bargains for HDTVs ranging from 32” to
in unit terms and 6% in dollar terms. They now Electronics Canada Inc.: “Overall, we’re very 50”. But what really jumped out at me were the
represent 22% of units and 17% of dollars. Where happy with 2016. The industry is down slightly deals on premium UHD TVs. A couple of exam-
the declines are coming is in smaller screen sizes: this year to date, but we’re starting to grow again. ples: LG B-series 55” and 65” OLED TVs with full
the 32” segment is down 13% in units. Consumers are starting to be very aware of 4K.” HDR support (both HDR 10 and Dolby Vision) for
Dollar sales of 4K televisions have doubled this It’s worth noting that NPD’s figures for 4K $2,298 and $3,998; Samsung 6000-series 55” and
year; and this segment is now approaching 50% marketshare do not take the holiday season 65” UHD TVs for $975 and $1,498.
of the overall market. According to NPD, sales of into account. Factor in Black Friday, holiday and
4K TVs were up 144% in units and 99% in dollars Boxing Week sales, and it’s not hard to imagine GOING ULTRA
in the first 10 months of 2016. They accounted for 4K representing a full 50% of TV dollar volume The other thing that struck me in 2016 was the
41% of total dollar volume, up from 21% in the first for calendar 2016. fabulous picture performance of the latest crop of
10 months of 2015. HDR-capable sets accounted That’s an easier prediction to make when you UHD televisions. When I look at LG’s 2016 OLED
for 39% of total 4K unit sales, and 50% of 4K dollar see some of the advertised specials for Black TVs, Samsung’s Quantum Dot S’UHD TVs, or
Sony’s Z-series TVs with Master Backlight Drive,
I pinch myself and ask, “Can TV pictures get any
One highlight of 2016 was the introduction better than this? Have we hit a plateau?”
of stunning HDR-capable televisions, such as
TV manufacturers’ reply to these rhetorical
Samsung’s S’UHD models with quantum dot
technology. Major TV brands are promising questions is predictable but telling: Yes, they can;
further performance improvements for 2017. and no, we haven’t. “In both our OLED and Super
UHD lines, you’ll see demonstrable improve-
ments in picture quality [in 2017],” LG’s Schepers
promises. Not to be outdone, Samsung’s Bugos
states, “We definitely have not hit a plateau. At
CES, you will see what’s coming next for TV.”
That’ll be something to see, and it’s one more
reason to look forward to CES. A related motivation
is seeing what’s happening with Ultra HD content,
not just 4K, but content with high dynamic range
(HDR) and wide colour gamut (WCG).
In 2016, we saw steady development in 4K
programming in Canada. Major service provid-
ers began rolling out UHD set-top boxes. Rogers
Sportsnet and TSN introduced 4K channels, with
an attractive slate of programming that included
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baseball, hockey and basketball. Bell Media
announced that scripted programming for all its Yamaha’s latest receivers and soundbars have
built-in MusicCast multi-room capability. This year,
networks would henceforth be commissioned in the company introduced several new MusicCast
4K, and began airing some 4K series on its TV net- products, such as the ultra-slim ISX-18 powered
works and streaming services. Two major awards network speaker.
shows – the Junos and the iHeart MuchMusic
Video Awards – were offered in 4K.
Netflix has several series in 4K, including new
titles like The Crown and The Get Down. During
2016, Netflix added a few UHD series with 4K video
and HDR, including four Marvel franchise titles.
There was one big disappointment on the
UHD front last year. In late 2015, Rogers Sportsnet
announced plans to offer all 81 Blue Jays home
games in 4K and HDR, but by early 2016, had pulled
back on the HDR component, citing lack of standards. With the right content, it’s easy to show the As great as today’s TVs are (and many are really
For the UHD full-meal deal, the best source to benefits of HDR. That content is growing steadily, great), there’s not the same gulf between what
emerge in 2016 was Ultra HD Blu-ray. Samsung though not as quickly as TV vendors would like. people own and what they want.
and Panasonic both shipped players this year; In the meantime, premium UHD televisions do
and Sony will launch a premium ES-series model a very good job upconverting HD. “The content SPILLOVER EFFECT
in 2017. As Bugos observes, “For home theatre will come,” Bugos says. “It’s definitely slower The flat-panel boom wasn’t just about TVs. It
enthusiasts who want the best experience. pack- than the U.S, but it’s coming.” also created demand for home-theatre systems,
aged media is still the way to go.” By year-end The prospect of improved TVs and more UHD soundbars, AV receivers and Blu-ray players.
there were about 100 Ultra HD Blu-ray titles. The content has TV vendors hoping that 2017 could When the flat-panel market stalled, so did
roster keeps growing. An Ultra HD version of this be a bounce-back year. “Consumers who bought home theatre. “There’s definitely been attrition
fall’s Arrival is already available for pre-order. I’m a TV in 2007 or 2008 are now ready to replace in the home theatre market,” observes Enzo
hopeful that we’ll see it demoed at CES. their set,” Bugos states. “When you think about Morelli, Vice President, Home Audio for Erikson
As we’ve noted repeatedly in this space, HDR design, screen size, 4K and HDR, we have a lot of Consumer. “Brands like Harman Kardon have
and WCG are potentially bigger deals than 4K res- exciting technology to motivate the consumer.” decided to take the exit ramp.”
olution. But it’s easier for consumers to wrap their That’s certainly true, and it’s reasonable to We’re now in a period where there isn’t a dom-
heads around 4K, because the benefits can be expect growth in dollar sales next year. But it inant AV source to drive the industry forward. “In
summed up in a simple number: more pixels mean doesn’t mean we’ll be back to the glory days of the the past, there’s always been some disruptive
a better picture, right? “I don’t think consumers are flat-panel boom. Back then, people were replacing technology or format that makes us change what
getting the HDR message,” Schepers comments. old direct-view TVs or big rear-projection coffins. we do,” Shimizu comments. “But there hasn’t
“All retailers are doing is talking about 4K. We have Most of these viewers would experience serious been a lightning-rod product for a while.”
our work cut out for us in explaining HDR.” TV envy every time they turned on their old set. Adds Agata Mossop, Vice President, Canadian
Division at Lenbrook International: “The flat-
panel boom brought an influx of consumers into
Last spring, Bell Media announced that it is commissioning all new scripted programming stores that the industry hadn’t seen since the late
in 4K video. New titles include CraveTV’s Letterkenny.
1980s; and that led to spillover into other cate-
gories, including audio. When that cycle ended,
stores were left with reduced foot traffic. A lot of
dealers didn’t reduce their overhead accordingly.
Now traffic is lower, and everybody is trying to
figure out the magic pill.”
Home theatre sales have always tracked TV
sales pretty closely, Yamaha’s Shimizu says. “The
attach rate has always been around 20 per cent,”
he elaborates, “and that’s holding.” But the mix
is shifting. “Soundbars are flat,” Shimizu says,
“home-theatre systems are down, and AV receiv-
ers are up, so there are more dollars.”
According to NPD, Canadian unit sales of AV
receivers fell by 7% in the first 10 months of 2016
compared to the same period in 2015, but dollar
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it if they spent under $1,000 on the receiver. They Lenbrook offers a BluOS module for some NAD
may have the feature, but they’re not using it.” amplifiers that allows them to be integrated into
An interesting sub-segment is Atmos-capable a Bluesound multi-room system. New high-end
soundbars like Yamaha’s YSP-5600. “We’ve seen AVRs from Denon and Marantz can function as
a lot of interest in the YSP-5600,” Shimizu says. part of a Denon HEOS multi-room system. “The
Samsung also launched an Atmos soundbar in 2016, multi-room category is in almost every other cat-
and Bugos says the product has sold well. Onkyo egory,” Shimizi observes. “It’s the whole store.”
announced an Atmos soundbar very recently. The expanded choice is important for retailers,
Overall though, the soundbar market is seeing notes Sheldon Ginn, Vice President Sales and
declines. According to NPD, unit sales of sound- Marketing for Kevro International, because it lets
bars were 10% lower than the same period in them offer options for consumers that deliver
2015, and dollar volume was down 1%. But the better performance and produce more profit.
average selling price climbed by 10%, to $274. “If you’re just selling on convenience, you’re
“What’s driving overall growth is the number of missing an opportunity to sell better gear,” he
multi-room soundbars,” Haar says. “They account comments. “Set your showroom up to show
for 9% of units, but 25% of dollars.” other opportunities.”
Another driver for multi-room sound is the
WORDS AND MUSIC integration of voice control. In late summer,
The growth in multi-room soundbars points to one Sonos announced plans to adopt Amazon’s Alexa
of the industry’s sweet spots: wireless multi-room voice-recognition technology. Starting early next
audio. Unit growth of Wi-Fi-based multi-room year, users will be able to control Sonos multi-
powered speakers was 34% in the first 10 months room products using voice commands detected
of 2016 compared to the same period in 2015; by one of Amazon’s wireless speakers. Quickly,
The Ultra HD Blu-ray catalog continues to grow, with
dollar growth was 55%. The average selling price other vendors followed suit. D+M will support
appealing titles like this fall’s sci-fi hit Arrival, which is
now available for pre-order. increased 15%, to $361. Alexa on its HEOS products; and DTS will support
Growth in wireless multi-room audio can be Alexa on its Play-Fi platform. In all cases, this capa-
expected to accelerate in 2017, for several reasons. bility will be pushed out via a firmware update.
First, there are more brands beyond category pio- Voice capability has the potential to draw new
sales were up 3%. The average selling price neer Sonos, giving retailers more options. Several consumers into the market. People who have been
climbed 11%, to $435. Haar attributes this to vendors, including Klipsch, Onkyo, and Pioneer seduced by the Amazon Echo’s massive cool fac-
a shift in the mix, with consumers opting for are now rolling out multi-room products based tor will discover that controlling music playback
higher-priced models. on DTS’s Play-Fi platform, joining brands like by voice is one of the Echo’s many possibilities,
That’s a typical pattern, says Dick Tuerlings, Paradigm, Definitive Technology and Polk. Other and then start investigating. “Everybody knows
Managing Director of the Audio Division at brands, including Paradigm and Bluesound, have voice is a big part of the future,” Shimizu says.
Gentec International. “As the market matures, strengthened their multi-room lineups, adding ”It’s not just about control. It’s about checking the
the entry level fades out faster, but the high end soundbars which are a popular entry point to weather, ordering a pizza or Uber. Everybody has
remains buoyant.” multi-room sound. to wrap their heads around this.”
Morelli sees the same trend. With the mass As Shimizu notes, all AV makers are including
market adopting small-footprint options like multi-room capability in some core products. REINVENTING RETAIL
soundbars, enthusiasts who are choosing full Yamaha integrates its MusicCast technology into Embracing this new technology plays into one
surround systems are moving upmarket. “Luxury receivers and soundbars, and now offers acces- of the industry’s most pressing issues: attract-
audio is still a vibrant business,” he says, “and it’s sory MusicCast products like wireless speakers. ing younger customers. Millennials are already
become more interesting for small dealers.”
That trend is noticeable when you look at
Atmos-capable receivers. According to NPD,
Canadian unit sales of Dolby Atmos AVRs grew by Full-blown UHD content
104% in the 10 months ending October 31, 2016, with high dynamic range
admittedly on a very small base. In 2015, Atmos- and wide colour gamut
capable models accounted for 6% of AVR unit sales is building slowly. A key
source is Netflix, whose
and 12% of dollar volume. This year, they repre- 4K/HDR slate includes
sent 13% of AVR unit sales and 19% of dollars. several series in the Marvel
“In Atmos, we’re over the early adopter phase,” Comics franchise, such as
Shimizu says. “The people using Atmos in the Marvel’s Jessica Jones.
home have primarily got it through the custom
channel. There are not many people who are using
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big music consumers, in all its forms. They’re a Morelli believes the end of the flat-panel
key part of the vinyl revival, notes Kurt Martens, boom plunged CE retail into an existential crisis.
President of Essential Audio Corp. “For years, I’ve “Traditional CE dealers who had been focusing on
been seeing a big audience of kids in their late TV, are asking themselves, ‘What am I going to
teens browsing through used record stores, not be?’ This year, many of them have gone through a
just in big cities, but in small towns as well.” metamorphosis, retrenching and looking at their
Noting how mainstream brands like Yamaha brands. It’s like putting together a hockey team. Audio manufacturers are adding multi-room capability to
are embracing two-channel, Martens sees good You build around core brands, then accessories core products like amplifiers and AV receivers. NAD’s new
C 388 integrated amp accepts an optional BluOS module that
times for enthusiast audio. “Good quality stereo at the periphery for variety. Then you have to find lets it function as part of a Bluesound multi-room system.
is making a resurgence,” he says. “I think this is out how to get that message to the consumer.”
going to continue in 2017. It’s not slowing down; In all industries, and certainly in CE retail, mes-
quite the contrary.” saging is what separates the sheep from the goats.
But Mossop believes the industry could be “Dealers who are promotional are doing well,” ship have degraded compared to other industries.
doing better. “I don’t think there’s ever been a Shimizu says. “They’re using social media, offsite Competing industries have elevated their game.”
time when so many people are listening to so events, in-store VIP events, flyers, turntable clinics.” The positive takeaway from all of this is that
much music,” she says. “People need an avenue The other component is delivering a good expe- bricks-and-mortar retail is still relevant. As Shimizu
to enjoy that. There’s a disconnect between our rience when the customer comes into the store. notes, “There’s still a big impetus to go to a store
industry and the consumer. People love music; Mossop points to retailers like the Sonos store in to see product, negotiate a price and talk with
the technology is there.” New York, the Apple Store and William Sonoma salespeople. For Yamaha, the proportion of bricks-
She’s concerned about the industry’s slowness as useful examples. “Those stores never look the and-mortar is unchanged over the past few years.”
at cultivating new customers whose expecta- same month after month,” she says. “Staff are
tions differ significantly from past generations. trained to show the whole package.” THE BIG PICTURE
“Our retailers are good at speaking to boomers,” Similarly, Tuerlings thinks CE retailers could When you think of it, CE retailing has been dealing
Mossop states, “but they don’t speak very well learn from kitchen-reno specialists and car deal- with a lot for most of the past decade: a pro-
to the new population of consumers: millennials erships that provide coffee, informational videos, longed recession followed by an anemic recovery,
and Gen-Xers. These consumers buy online, and comfortable seating. He notes with admiration a resource bust that brought Canada’s economic
from lifestyle stores. that some Canadian CE retailers are upping their engine to a screeching halt, crazy back-and-forth
“The successful retailers are those who have in-store experience, with displays such as a muse- movement in exchange rates (playing havoc with
embraced online, who have made it a significant um-like montages that shows the evolution of consumer expectations), price erosion and mar-
part of their strategy,” she continues. “Dealers the technology they’re selling. ket saturation in key categories, the greying of the
need to put the same amount of resources into Tuerlings is concerned about the staffing com- industry’s primary consumers, the growth of the
online that they put into creating advertising ponent. “When people my age went into retail, online channel, the emergence of social media as
five years ago. It’s not just having a Website; it’s they built up product knowledge before going on a key method of engaging the next generation of
about search engine optimizaiton, placement the floor,” he says. “There was a fair bit of money to customers, the disappearance of major brands,
through third-party media, social media.” be made. Both product knowledge and salesman- continuing downsizing and retrenchment in the
industry, headcount reductions – the list goes on
and on. Change is a constant, we’re constantly
told; but that’s a hell of a lot of change to digest.
Thankfully, we’re seeing some positive eco-
nomic headlines as 2016 draws to a close.
OPEC’s decision to cut oil production and the
federal government’s approval of two new oil
pipelines are great news for the western prov-
inces. Canada’s gross domestic product grew at
an annualized rate of 3.5% in the third quarter,
the highest in two years. U.S. and Canadian stock
indexes have set record highs. The Canadian dol-
lar is holding steady. Markets have digested the
Brexit and Trump phenomena.
The next slate of headlines could pop any or all
of these balloons. Even so, we’ve got lots to cele-
brate. It’s the holidays. CES and Vegas are around
Soundbar ASPs are being boosted by multi-room models like Klipsch’s new retro-styled RBS-14, which features the corner. We work in a really fun industry. So
DTS’s Play-Fi technology. Along with Sonos and Denon, Play-Fi will add compatibility with Amazon’s Alexa
let’s fill our glasses (more than halfway please),
voice control technology in 2017.
and party like it’s 2007.
24 www.wifihifi.caSEE YOU AT CES Venetian #29-140
THE MOBILE
INDUSTRY
YEAR-IN-REVIEW
A Year of Ups, Downs,
and Changes
BY CHRISTINE PERSAUD
“Roller coaster.” “Fickle.” “Monopolistic.” These are the words that, when polled, those involved
in the wireless industry used to describe this year in mobile in Canada.
Grumblings about pricing and services aside, more important question is not “what phone
2016 has had its share of ups and downs in the do you have?” but rather “what can, and do you
mobile space. We saw smartphones sell like hot- do, with your phone?” THE STORY
cakes, and others literally catch fire. The removal But before we look too far ahead (we’ll do It has been a year of ups and down
of the headphone port in devices like the iPhone 7, more of that in our special edition CES 2017 in wireless, with Samsung and Apple
and magnetic attachment capabilities for acces- February/March issue), let’s take a glimpse in the continuing their domination of the
sories with phones like the Moto Z Play. Chinese rear-view mirror at some of the biggest stories smartphone vendor market, both
companies like Alcatel and ZTE are gaining 2016 brought us in wireless. worldwide and in Canada.
ground in Canada, while home-grown brands like
The carrier space remains a three-horse
BlackBerry are outsourcing device manufacturing. IT’S A TWO-HORSE HARDWARE RACE,
one, though WIND Mobile, now Freedom
“It’s not just about the phone,” said BlackBerry OR IS IT?
Mobile, hopes to shake things up with
CEO John Chen when the decision was made offi- In September, Apple launched its iPhone 7 and
a new rebranding strategy and
cial, “but the smart in the phone.” 7 Plus, marking a shift in product design by
operational LTE network.
Perhaps that comment is more wide-reaching removing the 3.5mm headphone port. Apple is
than Chen realizes. The smarts are getting more banking on customers going wireless for private Several trends are emerging, sparking
Photo courtesy of OtterBox
attention than the phones, thanks to voice listening, or opting for wired headphones that potential for growth in the mobile space,
assistants, home control “recipes” through plat- come with a proprietary Lightning connector. namely the smart connected home and
forms like If This Then That (IFTTT), and a bevy of The impact of this move hasn’t been felt just yet, mobile payments; plus emerging areas
apps and accessories that reduce the hardware and some anticipate it won’t make that big of a like virtual reality, portable projectors,
to a mere high-resolution-screened processor/ dent in the wired headphones space, since wire- and instant photo printers.
remote window into our daily activities. The less was on the rise long before Apple released
26 www.wifihifi.caMOBILE WORLD
these devices. Still, the decision marked a sort firms that Apple is actually the number-one brand Sadly, the gap may continue to close between
of “end of an era” for a connector that has long north of the border. Its market share in the third Samsung and others due to some major chal-
been a staple in audio devices. quarter of 2016 was up from the previous quarter, lenges the company faced this year with the
Interestingly, this isn’t the first time Apple made sitting comfortably at 44.2% (from 41% in Q2), and launch of its Note7 smartphone.
such a move: the company influenced entirely new up 12.7% year-over-year. In fact, Apple’s share in Hitting the market in the summer, the Note7
categories of product like Apple “docks” when it Canada in Q3 marked its highest quarter in a year. could stream HDR 4K content, had a gorgeous
launched proprietary connectors like FireWire, The iPhone 7 is also the first Apple smart- 5.7” dual-curved QHD screen, and came with a
Thunderbolt, and 30-pin. Others have begun to phone to be water- and dust-resistant. And it is much thinner, more accurate Pen stylus. But
follow suit with a proprietary and licensing strat- the latest in a sea of premium devices that place shortly after the phone was released, reports
egy, like the LG G5 and the Friends accessories, greater emphasis on camera improvements, started flooding in about the device catching
and the Motorola Moto Z Play and Moto Mods including a new shallow depth-of-field feature fire or the battery exploding. There were about
from brands like Hasselblad and JBL that magneti- that let users snap portrait photos with blurred 35 initial reports – not a massive number, but
cally attach to the device instead of plugging into backgrounds, previewing the final product in enough to recognize there was a serious prob-
the microUSB port. real-time before actually taking the shot. lem. Samsung took swift action, issued a recall,
Despite consumer anger at Apple’s “closed” The second horse in the smartphone hardware reported to have determined the source of
ecosystem, it seems to be working: Apple has race is Samsung, which is technically the first the issue, and began sending out replacement
sold more than one-billion iPhones to date. And when you look at the numbers. According to IDC, devices. But some of those replacement devices
the company remains the number-two smart- Samsung remains the number-one smartphone had the same problem, leading Samsung to issue
phone provider worldwide, having shipped brand worldwide with an impressive 45.5 million a second recall, and finally, deciding to halt pro-
45.5 million iPhones in the third quarter of 2016, handsets shipped and 20% share. However, that duction of the phone altogether.
accounting for 12.5% market share, according to represents a not-so-impressive 13.5% dip year- Samsung handled the situation with grace, issu-
IDC’s Worldwide Quarterly Mobile Phone Tracker. over-year. In Canada, Samsung’s share as the ing full refunds or device swaps to customers for
(That’s down 5.3% from the same quarter the number-two vendor dropped dramatically by both the phones and device-specific accessories.
year prior.) However, in Canada, IDC’s Canadian 35.4% from Q2 to 26.3% share in Q3, with units But the company will be feeling the effects of this
Quarterly Mobile Device Tracker Q3 2016 con- shipped down 7% year-over-year. blunder for some time to come. Reuters had pre-
In Canada, LG remains a steady number-three smartphone
vendor, and will gain greater attention in 2017 with
devices like its V20, which comes equipped with a 32-bit
Hi-Fi Quad DAC for stellar audio playback.
December/January 2017 27You can also read
