Camera manufacturers are shifting their product mixes away from point-and-shoot cameras towards interchangeable lens cameras like SLRs due to declining point-and-shoot sales driven by smartphone proliferation. They are emphasizing features like long zooms, WiFi connectivity, and weather-sealing in compact cameras to differentiate from smartphones. Canon announced new full-frame DSLRs including the EOS 6D, its lowest priced full-frame model to date, while Pentax is seeing demand for its recently announced K-5 II and K-5 IIs models. Fujifilm is expanding its X-Series mirrorless line.

1. Smartphones the Big Factor
Compact Camera Market Still Contracting, Manufacturers Say
Camera manufacturers are increasingly shifting their product mixes to reflect the continued shift in
sales away from point-and-shoot models to SLR and other interchangeable lens cameras, several of them
told us at PhotoPlus in New York Friday. The only way for new compact cameras to compete against
low-end rival offerings and smartphone cameras is to offer such features as built-in Wi-Fi, long zooms,
and waterproofing and other capabilities designed for outdoor shooting, we were told. The manufacturers
are also changing their interchangeable lens product assortments to reflect the demand for several features,
they said.
Canon is "realigning our product mix a little bit" in 2012, Chuck Westfall, advisor-technical informa-
tion at Canon U.S.A., told us. An example was the introduction of its EOS 6D SLR camera last month. The
camera is its third full-frame model this year, which represents the most full-frame models it’s offered to
date, said Westfall. It’s "important" to widen the line because SLR is a category that’s continuing to grow,
he said. The camera will ship in December at $2,099 for the body only and $2,899 as part of a kit with a
zoom lens, he said. Canon is widening the price range of its full-frame models with the 6D, which he
pointed out costs much less than the $3,500 5D Mark III and $6,800 EOS-1D X that shipped early this year.
The 6D is Canon’s lowest-priced full-frame camera to date, and is also the first EOS model to fea-
ture built-in Wi-Fi and GPS, said Westfall. Canon will also launch a free EOS Remote app for the camera
in December on iOS and Android mobile devices that he said can be used to control the camera’s shoot-
Today’s News:
CAMERA MAKERS SHIFTING product mixes to re-
flect realities of digital imaging market, they say at
PhotoPlus. (P. 1)
KINDLE FIRE USERS are buying ‘a lot of content’
from Amazon, it says on earnings call. (P. 3)
THE IPHONE AND ACCESSORIES account for nearly
half of Apple's Q4 revenue, company says. (P. X5
'DRIVING CUSTOMER ENGAGEMENT' spurring telcos
to adopt over-the-top video or TV apps. (P. 6)
COMPANIES: LG Display swings to $143.6 million
Q3 profit, partly on shipments of its passive 3D TV
panels. (P. 8)
TRENDS: Q3 spending on physical disc subscriptions
plunged 50 percent, DEG says. (P. 9)
Copyright© 2012 by Warren Communications News, Inc. Reproduction or retransmission in any form, without written permission, is a violation of Federal Statute (17 USC01 et seq.).
MONDAY, OCTOBER 29, 2012 VOL. 12, NO. 209

2. 2—CONSUMER ELECTRONICS DAILY MONDAY, OCTOBER 29, 2012
ing. Images can also be downloaded to a mobile device via the app, he said. It’s the first time that Canon
has offered such an app for an EOS camera. It’s already offered similar apps for its PowerShot cameras
and Vixia HD camcorders, said Technical Specialist Derek Simmons-Tobias.
Canon will ship the EOS M mirrorless interchangeable lens camera this week at $799.99 that Sim-
mons-Tobias said is targeted at "advanced amateur" consumers. It works especially well as a "companion
camera" for a consumer who already owns an SLR camera, he said. There is growing demand for mirror-
less cameras and the EOS M is Canon’s first offering in the category, said Westfall. This is "the first step"
for Canon within the category and "we’re going to see" how it sells and "make decisions" about future
mirrorless models "based on that," said Simmons-Tobias. Mirrorless models account for a much larger
percentage of camera sales in Japan than they do in the U.S., although U.S. sales are growing, he said.
Canon is also seeing more demand for EOS cameras from pro cinematographers in Hollywood,
said Westfall. The company started a Cinema EOS line for that customer segment and is now fielding
four models in it: the EOS C300 that shipped at $16,000 and now costs $15,000, the EOS C100 at about
$6,500, EOS C500 at $25,000-$26,000 and EOS-1D C at about $15,000. The models are being sold by
about 20 specialist dealers, said Westfall. Canon also opened a support center and studio in Hollywood,
Calif., to provide service and educational support for the models, he said. The company is looking to ex-
pand that into a network, with New York the "most likely" next location, he said.
U.S. compact camera sales are down about 20 percent in units and about 30 percent in revenue in-
dustrywide this year from 2011, said John Carlson, Pentax senior manager-sales and marketing. That
market is "contracting quite a bit" due largely to the growth of smartphones, he said. The only growth
that’s being seen in compact cameras is in waterproof models, as well as long-zoom and other high-end
models that offer features that even the best smartphones can’t provide, he said. Interchangeable lens
cameras are "still a growing market," he said. So, Pentax is focusing on those and the higher-end compact
cameras, he said. None of its current models is under $250, and the $250 model it’s fielding is the Optio
WG-2 waterproof camera, he said. The camera is "waterproof to depths of 40 feet," Pentax said when an-
nouncing the model in February.
Pentax is also seeing "pretty good" demand for the K-5 II and K-5 IIs SLR cameras since those
models were announced last month, said Carlson. Pentax was a "little bit concerned" that demand would-
n’t be there because it didn’t make many changes from the K-5 that shipped more than a year ago at
$1,499 and is now being phased out at $899, he said. But consumers have reacted positively to the few
upgrades it’s made with the new models, including a new AF sensor that improves shooting in low-light
conditions, he said. The new models will be available at retail this week, he said. The K-5 II costs $1,199
for the body only and the K-5 IIs is the same camera minus an anti-aliasing filter, he said. Removing the
filter translates into more sharpness and resolution, and Pentax is seeing more demand for the IIs than the
II, he said. The filter is commonly found in many SLRs to "smooth computer generated imagery by de-
creasing high frequencies and distortion, but adversely reduces detail resolution," Pentax said.
Target became a new retail account for Pentax this year, when the retailer started carrying the WG-
1 in March, said Carlson. Target recently picked up the WG-2, he said. Pentax has also been "regrowing
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3. MONDAY, OCTOBER 29, 2012 CONSUMER ELECTRONICS DAILY—3
our business" in the photo specialty channel over the past three years, after shifting its focus to online re-
tailers and national dealers before that, he said. Pentax "kind of lost our focus," but has been picking up
new specialty photo dealers and re-signing old accounts it had lost there since shifting its focus back to the
specialty photo channel, he said. As examples, he said Pentax picked up Unique Photo in New Jersey for
the first time about a year ago and is again doing business with Samy’s Camera in California and Hunt’s
in New England.
Fujifilm is "seeing a lot of consumers stepping up to more advanced" cameras and features includ-
ing long zooms and higher image quality, while photo enthusiasts are increasingly shifting to interchange-
able lens cameras, said spokesman Matthew Schmidt. The company, however, is still holding off on of-
fering an SLR model in the U.S., he said, without giving its reason. Although smartphones are impacting
compact camera sales, he said they are also "introducing a lot more people to photography" and many of
them learn that smartphones can’t be relied on for all events. Those consumers then look for better com-
pact cameras that offer features that smartphones can’t, including auto focus, better low-light performance
and greater zoom functionality, he said.
Fujifilm has been widening its X-Series since introducing the large-sensor X100 compact camera
two years ago that was targeted at pro and enthusiast photographers, said Schmidt. The line now features
six models, he said. The latest models in that line are the $499 XF1 compact camera, shipping within the
next couple of weeks, and X-E1 interchangeable lens camera that’s shipping next month at $999 for the
body only and $1,399 as part of a kit with lens, he said.
Panasonic sees the point-and-shoot camera market "getting much more competitive," said spokes-
man Dan Unger. "We’re trying to offer additional feature sets" to such models that "makes them more
attractive" to customers, he said. Those features include Wi-Fi, which it added to one compact camera,
the Lumix DMC-SZ5 that shipped in July, and will be included in more models in the future, he said. Wi-
Fi is "becoming the standard," he said. The feature is also included in the Lumix DMC-GH3 that Pana-
sonic announced at Photokina in Cologne, Germany, last month, and will ship in the last week of Novem-
ber at $1,299 for the body only, he said. Like the prior GH2 that shipped more than a year ago at the same
price, it’s a mirrorless camera that uses the Micro Four Thirds lens system, Panasonic said. The GH3's
advanced new sensor and higher-end video capabilities make it the company’s first truly "pro camera,"
said Unger. — Jeff Berman
‘Investing Heavily’ in LOVEFiLM
Amazon Mum on Kindle Sales Data, Says It’s Pleased with Content Sales
Amazon again provided no data on sales of its Fire and other Kindle devices during an earnings
call Thursday, but Chief Financial Officer Tom Szkutak said the company was pleased with the digital
content sales to owners of those devices. "We’re seeing customers certainly purchasing a lot of content"
on the Fire tablets, in particular, and Amazon is seeing strong "engagement with the device," he said. But
"there’s not a lot of specifics I can give you on a per device basis from a content standpoint in terms of
what the purchasing patterns have been," he said.
The company continued to be pleased with Kindle hardware sales, it said in a news release. Ama-
zon’s strategy of working "hard to charge less" for its devices "is working," CEO Jeff Bezos said. "Sell

4. 4—CONSUMER ELECTRONICS DAILY MONDAY, OCTOBER 29, 2012
devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point," he
said. The $199 Kindle Fire HD is the No. 1-selling product across Amazon globally, "even as measured
by unit sales," he said. The next two top-selling products globally for Amazon are the Kindle Paperwhite
and entry-level $69 Kindle, he said. The No. 4 best-selling product is book three of the Fifty Shades of
Grey series, he said.
Amazon hasn’t "even started shipping our best tablet," the $299 Kindle Fire HD with an 8.9-inch
screen, Bezos said in the news release. It ships Nov. 20 and offers some superior features to the iPad
mini announced last week by Apple (CED Oct 24 p5), Amazon said. As examples, it said, the Fire HD
offers 193 percent more pixels (2.3 million vs. 786,432), 56 percent more pixels per inch (254 vs. 163),
the ability to watch HD movies and TV on the Fire HD while the iPad mini is just standard definition,
better audio with dual stereo speakers and Dolby Digital Plus, and it costs $30 less than Apple’s device.
Even the 7-inch Kindle Fire HD offers several better features than the iPad mini, including 30 percent
more pixels (1 million on the 7-inch Fire) and 33 percent more pixels per inch (216 pixels on the 7-inch
Fire), Amazon said.
Global electronics and other general merchandise (EGM) revenue grew 36 percent year-over-year
to $8.6 billion in Q3 ended Sept. 30, Szkutak said on the call. Global EGM grew to 62 percent of total
Amazon sales from 58 percent in Q3 last year, it said. North American EGM revenue grew 39 percent to
$5.1 billion and accounted for 64 percent of total sales in the region, up from 61 percent. EGM revenue in
other markets grew 30 percent to $3.5 billion and represented 59 percent of total sales there, up from 54
percent. As always, Amazon didn’t say how much of the EGM sales came from electronics alone. Global
media revenue grew 11 percent to $4.6 billion, with North America growing 15 percent to $2.2 billion and
other markets up 7 percent at $2.4 billion.
Total Amazon revenue grew 27 percent to $13.8 billion, it said. Amazon shares closed 6.9 percent
higher Friday at $238.34 though the company posted a loss of $274 million, or 60 cents a share, after re-
porting a profit of $63 million, or 14 cents a share, in Q3 last year. The results this time included a $169
million loss related to Amazon’s equity-method share of the losses reported by LivingSocial, "primarily
attributable to its impairment charge" of certain assets, including goodwill, it said. Amazon, in late 2010,
invested $175 million in LivingSocial, a website that offers discounted deals to consumers for businesses
in their local markets.
Operating profit in markets outside North America is being affected by the heavy investments that
Amazon is making in capacity and new geographies including China, Italy and Spain, said Szkutak. He
called China "a great long-term opportunity" for Amazon. It’s also "investing heavily in video content"
via its LOVEFiLM subsidiary in Europe, he said.
Szkutak sidestepped a specific analyst question on whether Amazon plans to open brick-and-
mortar pop-up stores for the holiday season as several other companies have done. "The vast majority, or
the highest percentage, of our revenue is certainly coming from our online sales. We do, in the case of
Kindle, [use] physical world retailers as well, which we’re very happy to do," he said in response to the
query. But brick-and-mortar is "not really a driver of our business," he said.
Amazon expects to report revenue of $20.3 billion to $22.8 billion for Q4, it said. The company
expects capital expenditures for ongoing operations to be up to $1 billion in Q4, "driven primarily by our
expectations of continued business growth consisting of investments in technology infrastructure, includ-
ing Amazon Web Services and additional capacity to support our fulfillment operations," said Szkutak. It

5. MONDAY, OCTOBER 29, 2012 CONSUMER ELECTRONICS DAILY—5
expects additional capital expenditures of about $1.4 billion related to the purchase of its now-leased cor-
porate office space in Seattle, he said. — Jeff Berman
'Compromised, Confusing Product'
Pre-Holiday, Apple in 'Significant State of Backlog' on iPhone 5
Of the $36 billion revenue Apple had in fiscal Q4 2012, $17.1 billion came from sales of 26.9
million iPhone handsets or iPhone accessories, a 58 percent jump in the category year over year,
Chief Financial Officer Peter Oppenheimer said on the company’s earnings call Thursday. IDC’s
most-recent estimates for industry-wide smartphone category revenue growth was 45 percent, Op-
penheimer noted.
Overall Apple revenue grew 27 percent for fiscal Q4. Revenue from sales of iPads and related ac-
cessories for the quarter was $7.5 billion versus $6.9 billion in fiscal Q4 2011, Oppenheimer said. Ap-
ple’s net income for the quarter was $8.2 billion, with 60 percent of revenue coming from international
sales, the company said. The iPhone is now selling in 31 countries, Oppenheimer said.
Apple CEO Tim Cook said the company is currently in a “significant state of backlog” for the
iPhone, citing “extremely robust” demand. Production output has improved since earlier in the month, he
said, following what he called “the largest volume ramp in Apple’s history.” He didn’t predict when sup-
ply would catch up to demand, saying only that he feels “very confident in our ability to supply quite a
few iPhones.” The company is headed into the holiday season with its strongest iPhone lineup to date,
Oppenheimer said, saying the iPhone 4 is starting at “free” in the subsidized market.
Apple ended the quarter with about 9.1 million iPhones in channel inventory, a sequential increase
of about 800,000 iPhones, and it ended the quarter below its target range of four to six weeks of iPhone
channel inventory, he said. The 3.4 million iPads in inventory at the end of the quarter was a sequential
increase of about 200,000, leaving the company “just over” its four-week target of iPad channel inventory,
he said.
On iPad’s competition from Microsoft’s Windows 8 Surface tablet, Cook said he hasn’t tried the
Surface yet but based on reports he’s read, it’s “a fairly compromised, confusing product,” compared with
the iPad. He referred to “hard trade-offs” Apple made in developing the iPad, and said, “I suppose you
could design a car that flies and floats, but I don’t think it would do all of those things very well.” When
customers compare tablets, he believes they’ll conclude “they really want an iPad.”
For fiscal 2012, Apple revenue topped $156 billion, a 45 percent bump over fiscal 2011, represent-
ing growth of $48 billion, Oppenheimer said. The company sold more than 200 million iOS devices in the
year, including 125 million iPhones, reflecting 73 percent growth over the prior year, while iPad sales
grew 80 percent to 58 million units, he said.
The iPod Touch continues to represent most iPod business as the music category continues to de-
cline, Oppenheimer said. Apple sold 5.3 million iPods in fiscal Q4, compared with 6.6 million in the
year-ago quarter, the company said, and held more than 70 percent of the U.S. MP3 player market, he
said, citing data from NPD. The iTunes store generated nearly $2.1 billion, a new high mark for the con-

6. 6—CONSUMER ELECTRONICS DAILY MONDAY, OCTOBER 29, 2012
tent site, Oppenheimer said. Customers are “embracing iCloud in growing numbers,” he said, with the
company reporting more than 190 million account sign-ups in the first year of the service.
The “most prolific product period in Apple's history” has come at a cost, with gross margins ex-
pected to fall by about 400 basis points sequentially, Oppenheimer said, due to “transitionary costs” associ-
ated with multiple new product ramps. Sequentially higher revenue and a greater mix of iPhones will pro-
vide “positive leverage” for the overall bottom line, he said, but they’ll be offset by higher costs associated
with introducing “so many new form factors at once,” he said. Those include the iPhone 5, iPad Mini, iMac,
MacBook Pro 13-inch, iPod Touch and iPod Nano, he said. New or re-priced products launched over the
past six weeks will account for more than 80 percent of expected December revenue, he said.
All of the recently launched products have higher costs, and lower gross margins, than their prede-
cessors, he said. In addition, the company dropped the prices on the iPhone 4S and 4 and is bringing out
the $329 iPad Mini at an “aggressive” price, he said. The anticipated high-volume sales of iPhone 5 and
other new products will generate “significantly greater deferred revenue sequentially,” he said.
On the threat of “cannibalizing” iPad sales with the introduction of a new flagship model and the
Mini, Cook said the “far, far greater threat” of the multiple iPad offerings is to the 80-90-million PCs be-
ing sold per quarter. “There’s still over 300 million PCs being bought per year, and I think a great number
of those people would be much better off” buying an iPad or Mac,” he said.
At the end of fiscal Q4 Apple operated 390 stores, including 140 outside of the U.S., Oppen-
heimer said. Average revenue per store was $11.2 million, compared to $10.7 million in the year-ago
quarter, he said. Store traffic rose to 94 million visitors, up 22 percent from 77.5 million year over
year, he said. — Rebecca Day
'Borderless Lifestyle'
Telcos Adopting OTT Video and TV Apps to Keep Pace in Video Market
LAS VEGAS — Three telcos are embracing over-the-top video or TV apps to lure new subscribers
and keep existing video customers from cutting the subscription cord. In three separate keynotes at the
TelcoTV show last week, executives of AT&T, Verizon and Windstream spelled out their strategies to use
streaming video services and on-screen apps to sustain their video subscription growth. They stressed the
need to offer consumers more customized, easy-to-use services to keep them glued to the home TV set
and satisfied. “Driving the customer engagement is what this is all about,” said Maria Dillard, AT&T vice
president of U-verse and video products.
Verizon and Redbox have begun beta testing their joint streaming and DVD rental service, with
plans to start it commercially this year, said Robert Mudge, the telco's vice president-consumer and mass
business markets. "We will be in the market in the fourth quarter,” he said. “Quite frankly, this has been
a heavy lift." Known as Redbox by Verizon, the forthcoming service represents a "prudent step with over-
the-top," Mudge said. He said Verizon will offer it as a standalone subscription service to any U.S. con-
sumer with any kind of broadband connection, making it a direct competitor to Netflix. “It’s a prudent
step,” he said. “We’re giving our customers what they’re asking for at a price they want. They [Redbox]
have 30 million customers and all those kiosks.”

7. MONDAY, OCTOBER 29, 2012 CONSUMER ELECTRONICS DAILY—7
Mudge described the deal with Redbox as part of a broader strategy to respond to the rise of
what Verizon calls the “borderless lifestyle.” The telco is aiming to enable dozens of video apps and
services to all devices, no matter where they are, through a mix of wired and wireless networks.
Mudge shared the results of new consumer research, called the FiOS Innovation Index, which found
that 39 percent of U.S. adults already fall into this "borderless" demographic. He said these consum-
ers are a highly sought-after group for advertisers, with 48 percent of them earning more than $75,000
a year and 51 percent possessing a college degree. The numbers came from a survey of nearly 2,300
adults conducted last month.
Windstream has made initial progress with Roku on the streaming video front. Windstream CEO
Jeff Gardner said the telco’s new OTT video service with Roku, known as Merge, is proceeding so well
that his company is now thinking about developing a new device for it. “The adoption rate has been very
good,” Gardner said, without disclosing any subscriber figures for the service. “We have plans to build on
this platform.”
Under the Merge program, Windstream, which operates in every U.S. state except Alaska and Ha-
waii, installs a Roku streaming video box in its DSL subscribers’ homes. Customers can then subscribe to
customized Web streaming video packages, including such premium services as Netflix and Hulu Plus, on
top of their basic broadband service. Gardner said the service is designed to capture “young techies” not
attracted to Windstream’s more traditional pay-TV product with Dish Network. “We wanted to carve out
own path here,” he said. “We didn’t want to do a me-too approach.”
Merge steers viewers to Internet-based content by posing sets of questions, making the service per-
sonalized. Gardner said future versions of the service could build on that idea. "They're being flooded

8. 8—CONSUMER ELECTRONICS DAILY MONDAY, OCTOBER 29, 2012
with 500 channels and they want à la carte offerings, so we're developing more along those lines," he said.
The telco is considering developing a more Windstream-specific box in conjunction with Roku, Gardner
said. "We are absolutely looking at partnering with companies on products like that that will bring in
some additional content to augment that over-the-top experience, but not in a me-too way, not in a tradi-
tional cable-offering way."
AT&T is seeing similar multi-screen video viewing habits develop among its U-verse TV subscrib-
ers, Dillard said. She cited new consumer research indicating that 65 percent to 70 percent of U-verse
customers with secondary video devices use those devices several times a week while watching TV in
their homes. “We do see OTT content coming in and customers engaging outside the TV,” she said. Dil-
lard said AT&T is focusing on creating more than 30 TV apps for U-verse that use or sync up with tablets,
smartphones and other companion devices. Some sample U-verse apps include a Facebook integration
and personalized "Multiview" mosaics that show the feeds of several live TV shows at once. AT&T has
developed a version of Multiview for Chicago Cubs baseball games that lets viewers watch from multiple
camera angles.
AT&T is encouraging third-party development of TV apps through an application programming
interface program. Among the newer U-verse-enabled apps to emerge from that effort is TwonkyBeam,
which lets users grab Web video from a tablet or smartphone and "beam" it wirelessly to the TV.
"Driving the customer engagement is what this is all about," Dillard said. She noted that service providers
must keep these applications simple and easy to use to spur customer adoption.
Dillard said AT&T’s deployment of wireless TV receivers in U-verse homes is growing rap-
idly. The receivers, based on 802.11n technology, enable customers to tap into the U-verse platform
even in rooms without a traditional TV outlet. AT&T, which introduced the receivers about a year
ago, recently began cranking up its sales efforts by offering free wireless receivers to customers who
sign up for certain U-verse product bundles. The company has now placed more than 1 million wire-
less receivers in customer homes and cut down on installation costs, Dillard said. AT&T ended Q3
with more than 4.3 million U-verse TV subscribers, adding nearly 200,000 customers over the sum-
mer months. — Correspondent reports
Companies
LG Display swung to a $143.6 million Q3 profit from a loss a year earlier as revenue surged 21
percent to $6.9 billion. It was LG’s first quarterly profit in a year, but short of analysts’ forecasts for
$181 million. LG benefited from "the strength of its differentiated specialty products" including film
patterned retarder passive 3D, high resolution monitor and advanced high performance in-plane
switching (AH-IPS) panels, the latter featuring crystal molecules that move parallel to the panel plane
rather than perpendicular to it, reducing light scattering and boosting wider viewing angles and color
reproduction. LG’s inventory grew to $2.4 billion. LG’s panel shipments jumped to 9.1 million
square meters from 8.1 million a year earlier as the average selling price per square meter increased to
$735 from $705. TV panels accounted for 47 percent of LG’s Q3 revenue, flat with a year ago, while
tablet display sales rose to 15 percent from 11 percent. PC LCD monitor panels shrank to 16 percent
of Q3 sales, from 19 percent a year ago. LG is supplying the 7.85-inch LCD with 1024x768 resolu-
tion for iPad Mini and also provided the Retina display for the iPad 3 that features 2048x1,536 resolu-
tion. LG has demonstrated a five-inch AH-IPS panel with 1080p resolution and 440 pixels per inch
density. AH-IPS panels were introduced in 2011 with improved resolution and color reproduction. LG

9. MONDAY, OCTOBER 29, 2012 CONSUMER ELECTRONICS DAILY—9
had production capacity for 12.1 million square meters in Q3, up from 11.2 million square meters a
year earlier. With LG’s focus on "future display products" including its 84-inch 4K LCD and OLED
TV panels, "we will continue to strengthen our leadership in the industry and maximize customer
value," LG Display CEO Sang Beom Han said in a statement.
Trends
Total U.S. home entertainment spending inched ahead 0.24 percent in Q3 to $3.9 billion, but
spending on physical disc subscriptions plummeted 50.4 percent to $301 million, the Digital Enter-
tainment Group said Friday. Total rental spending, excluding video on demand, was down 24 percent
to $1 billion for the quarter, which included the Olympic Games, while total spending on rentals, in-
cluding VOD, was down only 16.5 percent to $1.5 billion, DEG said. Rentals at brick-and-mortar
stores fell 19 percent to $286 million, but kiosk sales rose 9.86 percent to $454.8 million, DEG said.
Total subscription spending, for streaming and discs, advanced 2.1 percent to $880.6 million for the
quarter, according to data. In digital, the largest growth was seen in subscription streaming, up 127
percent to $579 million, followed by electronic sell-through at 38 percent to $187 million and VOD,
up 8.5 percent to $455 million, it said. Sell-through of packaged goods, declined 4 percent to $1.7 bil-
lion for the quarter, DEG said. In 2012 to date, total U.S. home entertainment spending is up a per-
centage point to $12.3 billion, it said.
Consumer Electronics People
Phillip Spencer, Windjammer Cable CEO, resigns from LodgeNet board.
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William R. Benton . . . . . . . .. . . . . Sales Director
Agnes Mannarelli . . . . . . National Accounts Manager
Jim Sharp . . . . . . . . . . . . . . .Account Manager
Brooke Mowry . . . . . . . . . . .Account Manager
Norlie Lin . . . . . . . . . . . . . . .Account Manager
Don Lee. . . . . . . . . . . . . . . . . . . . . . . Account Manager
Business
Brig Easley. . . . . . . . . . . . . . . . . . .Exec. VP-Controller
Deborah Jacobs. . . . . . . .Information Systems Manager
Gregory Jones . . . . . . . . . . Database/Network Manager
Annette Munroe. . . . . . .Dir., Marketing & Circulation
David Osborne.. . . . . . . . . . . . . . . . . Marketing Associate
Susan Seiler . . . . . . . . . .Content Compliance Specialist
Katrina McCray. . .Sr. Sales & Mktg. Support Specialist
Greg Robinson . . .Sales & Marketing Support Assistant
Loraine Taylor. . . Sales & Marketing Support Assistant
EDITORIAL & BUSINESS HEADQUARTERS
2115 Ward Court, N.W., Washington, DC 20037
Albert Warren
Editor & Publisher 1961-2006
Paul Warren . . . . . . . . . . . . Chairman and Publisher
Daniel Warren . . . . . . . . . . .President and Editor
Michael Feazel . . . . . . . . . . . Executive Editor
Paul Gluckman . . . . . . . . . Senior Editor
Mark Seavy . . . . . . . . . . . . . . Senior Editor
Jeff Berman . . . . . . . . . . . . . . . . .. . . . .Senior Editor
Howard Buskirk . . . . . . . . . . . . . Senior Editor
Jonathan Make . . . . . . . . . . . . Senior Editor
Rebecca Day. . . . . . . . . . . . . . . . . . . . .Senior Editor
Tim Warren . . . . . . . . . . . . . . Assistant Editor
Kamala Lane . . . . . . . . . . . . . . Assistant Editor
Bryce Baschuk . . . . . . . . . . . . . . . Assistant Editor
Matthew Schwartz . . . . . . . . . . . . . .Assistant Editor
Brian Feito. . . . . . . . . . . . . . . . . . . . Assistant Editor
John Hendel. . . . . . . . . . . . . . . . . . Assistant Editor
Jimm Phillips. . . . . . . . . . . . . . . . . . Assistant Editor
Kate Tummarello. . . . . . . . . . . . . . . Assistant Editor
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