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An Inside Look At Electronics Show

CBS News tech analyst Larry Magid reports from Las Vegas on this year's Consumer Electronics Show.


The giant Consumer Electronics Show doesn't officially get under way until Thursday, but the streets of Las Vegas are already crowded with vendors and press getting an early start for the show. While the public doesn't get in until Thursday, Wednesday is "Press Day" so those of us in the media get a chance to kick some tires before the crowds get really heavy.

Once the show is under way, more than 2,500 exhibitors are expected to occupy more than 1.5 million feet of exhibit space at the Las Vegas Convention Center and – for the first time also at the nearby Sands Exposition Center and the Venetian Hotel. More than 130,000 people are expected to attend.

One can never say sure what will be announced at this show. Most companies keep their products under pretty tight wraps until the final moment. What we do know already, however, is that this will be a year of big and little video and what some call "digital convergence."


CBS News technology consultant Larry Magid talks with Jim Barry, the spokesperson for the Consumer Electronics Association, about the upcoming CES show in Las Vegas.

As far as video is concerned the big theme this year will be "size matters" on both ends of the spectrum. Not that you and I will actually put it on our living room, but Samsung will be showing what it's billing the "world's largest LCD TV." At 82 inches (diagonally), I'm sure they're right. What's interesting about this big boy is that it's said to be LCD (liquid crystal display) as opposed to plasma. Companies typically use plasma for really large form factor while using the more expensive LCD displays for smaller screens, typically 40 inches or below. Of course, Samsung has also developed a 102 plasma display for those of us with really really big living rooms and budgets to match.

While Samsung, LG and other companies love to dazzle CES attendees with amazingly large sets, the sweet spot in the market is clearly sets priced under $4,000 which means plasma in the 51 to 61 inch range and LCDs sized 40 inches or lower.

But big isn't the only story. Small screens are also expected to take center stage. Apple made a big hit when it introduced its "video iPod" a few months ago. Truth is, Apple wasn't the first to issue a digital music player that can also play video but it helped legitimize the category. This will embolden vendors like Zvue and iRiver, who had early handheld "media" players with video to come back a bit stronger. They're getting a shot in the arm from Starz Entertainment Group and Microsoft.

Starz, which has a movie channel for cable and satellite viewers plans to launch its Vongo service to allow users of portable players to watch full length movies using software provided by Microsoft.

You can also expect small video players from some of the larger consumer electronics vendors.

Speaking of small screens, video is finally being taken seriously on cell phones. All of the major cell phone carriers and phone makers will be at CES showing of some type of "cell phone TV" services that allow you to download both video and audio over their high-speed EVDO networks. I'm carrying a Samsung cell phone on the Sprint "Power Vision" high-speed network that lets me listen to Sirius radio, watch music videos, news and sports clips and even cartoons from my cell phone. Of course, there is an extra fee associated with all of this and, when I bother to use the service; I'm looking at a tiny screen. I suppose there is a market for everything but, so far, I remain a bit underwhelmed by it all.

Intel, Microsoft and the major PC makers will also show off video products at CES. The baggage claim area of the Las Vegas airport is peppered with Intel banners showing off its new logo with captions such as "what makes your digital entertainment come alive." Intel is introducing new microprocessor "platforms" including its Viiv PCs designed to become the hub of your digital entertainment center.

As usual, Microsoft founder Bill Gates will be the kickoff keynote speaker on Wednesday night but, for the first time, Yahoo CEO Terry Semel and Google co-founder Larry Page will also keynote. All three are expected to talk about entertainment devices and services. Yahoo and Google have already ventured into video and are expected to announce new initiatives. Google says it will have a big announcement later this week, but hasn't yet tipped its hand.

Both video and audio podcasting will certainly be a sub-theme at this year's show as more and more companies find ways to capitalize on user supplied content. So-called "citizen journalists" are joining the ranks of big networks to produce their own content and there are plenty of companies seeking ways to make money by providing a forum for people to tap into.

Digital cameras have long been a CES mainstay but there are always new twists. Last year, Kodak dazzled press and attendees when it announced the first digital camera with built-in WiFi. But by the time it was released this fall, it got got tepid notices from a number of reviewers, myself included.

This year Kodak will show off its EasyShare V570 camera that which it's calling the first dual-lens camera. It has both a wide angle and 5x optical zoom lens in a camera that's less than an inch thick. This, again, is a must-see but not necessarily a must-buy.

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