If there has ever been a single product category that exemplifies the custom channel, it has to be front projection technology. Think of a high-end residential project, and the first thing that springs to mind for most of us is a lavishly appointed dark room with recliners and a really, really big screen.

But is that still the case? In a turbulent economy and a CE industry that's often characterized by the "race to the bottom" on price points, what are projection vendors doing to stay relevant, push the envelope of performance, deliver attractive margins for their dealers, and help dealers to dazzle their clients? As it happens, quite a lot.

Whither Projos?

Internet A/V forums host a variety of debates on a remarkable number of subjects. One of them is the pros and cons of flat panel versus projectors. Regardless of what the do-it-yourself (DIY) types who inhabit A/V forums might think, custom channel professionals, including both vendors and integrators, seem to agree on the topic.

Igor Kivritsky, General Manager of Vancouver, BC's HiFi Centre, puts it bluntly: "Bigger is better when it comes to video. In public cinema, those screens are big for a reason: it gets you into the action more easily, and you're not going to get that level of involvement on a 50-inch screen."

For Kivritsky, the thing that's really made front projection a big deal over the past few years, and that has improved upon the technology, is anamorphic widescreen, which employs the 2.35:1 aspect ratio. "The most annoying thing I can imagine is the black bars at the top and bottom of a large screen," he opines, "[2:35:1] gives you the biggest improvement in both performance and experience."

Like Kivritsky, Des Young, General Manager of BravoComm, is on board with anamorphic. "We love it," he enthuses, but admits, puzzled, that "it's too complicated a concept for many, for some reason." Young feels that the industry needs to work harder to promote the benefits of anamorphic.

Anamorphic widescreen, which displays films in the full 2:35:1 aspect ratio that the director intended, have helped to breathe new life into the projector category. The Stewart Filmscreen VistaScope anamorphic screen shown here actually boasts a 2:40:1 aspect ratio, and variable masking technology with sides that can glide left and right to create the perfect picture based on resolution without having to see those pesky black bars.

John Caldwell, Director of Sales/Co-Founder of distribution company StJohn Group, Inc. (distributed in Canada by D2MK Solutions) is all about delivering the ultimate experience. "In the world that St John group lives in, our dealers define their segment of the market not by price point, but by approach: delivering the best possible experience for the money." For Caldwell, that really sums up the biggest issue that's going on today. "Our dealers are telling us that the customer today wants the biggest wall-to-wall image that they can get. They want the same experience they get in the movie theatre."

Young asserts that it's not just about size; projection systems provide a better viewing experience, period, regardless of the size. "What we all want is that sense of being there, whether it's watching TV, a movie, gaming or a sporting event. Additionally, if you use an acoustically transparent screen, which allows the front and centre channel speakers to be mounted behind the screen, as in a commercial cinema, then the audio and video are fused together, and you provide a very realistic experience."

Young does point out that the disadvantage to projection is that the room is the ultimate determining factor for the success of the system. "Here is where it breaks down for most consumers, salespeople, and installers, unfortunately. FPTV is way easier to do in any environment. But you just end up watching TV."

As far as Saxe Brickenden, President of Evolution Home Entertainment, which distributes Sim2 in Canada, is concerned, projection for large screen installations is a no-brainer. "This is a clear victory for modern projector technology," he asserts. And he has plenty of points to back it up, the first being ease of installation. "Look at one of the current leaders in the giant FPTV category from a great company: the Panasonic TH-103PF12U. You have to run 220V dedicated A/C. Then you have to move the 485 lb. monster into the home, and hang it. It will consume well over 1,500 watts, and heat the room for no extra charge." Needless to say, as great as it is, $70,000 doesn't give that model the edge in dollars-per-inch of screen size. Strictly speaking, that's not an entirely fair comparison, as the 103-inch Panasonic is primarily focused on the digital signage and commercial display markets; it's only the most ostentatious residential clients who would consider one. Still, we'll humour Brickenden in making his point. "The alternative," he adds, "is a retractable screen that is entirely invisible, and a compact projector, like the Sim2 C3XLumis, which consumes 280 Watts, puts out a sunglass-melting 3,000 ANSI lumens, and sells for $45k." (Screen not included, of course.) It's easier for the dealer to install, and easier on the client's wallet.

Marge Ang, Senior Product Manager at Epson, reinforces Brickenden's point about the advantages of projectors over flat panel TVs when it comes to large-screen installations. The most significant point, she feels, is the cost per inch when looking at screen size, especially those over 100 inches in size. As amazingly cool as products like Panasonic's 103-inch plasma are, she opines, they remain prohibitively expensive for a large number of clients. Ang also points out that in ambient light environments, the glossy finish on many flat panels is a negative. "You're not going to see glare on a projo installation," she asserts.

Steve Brothman, President of Lab Acoustic Marketing, a representative firm in Mississauga, ON, and long-time Canadian representative for Runco, explains that the premise of watching TV or movies is one where, at best, we attempt to transport the viewer into whatever materials he's watching. And in order to do that, the dealer has to create an immersive experience, "When working with my dealers or conducting a consumer seminar," Brothman explains, "I say that flat panels are for watching TV. But for the immersive movie experience, that requires a large screen." It's his observation that that conversation is now being driven in the 3D domain, which is where he feels projectors aren't just a solution; they're the only solution. "And I would underscore," he adds bluntly, "that 3D on a 50" screen is a complete and utter joke." When asked to elaborate on such a provocative statement, he was unrepentant. "For the third time in 60 years, our industry is going to promote its own failure." (The previous times he's referring to are the brief periods when 3D was in vogue, first in the 1950s for cinema only, and then in the early ‘80s, this time for both cinema and television, with decidedly unimpressive results.)

"3D on a small screen," he adds, "is something that consumers will be disappointed by."

On the upside, Brothman strongly suggests that this is a huge opportunity for integrators to take charge of the 3D experience. "Everybody is enthralled with theatre, everybody wants it. Do they have a space for it? Maybe not, but they still want it."

Brothman builds on that point about desire by adding: "One of my dealers just finished a project up in the Muskokas," he reveals. "It was a lakeside home with floor to ceiling glass." Regardless of the ambient conditions, the client wanted to watch movies during the day time. "He didn't care what it cost, that's just what he wanted." So Lab Acoustic worked with the integrator to install a Runco VX-55 projector and Draper Access Series V 120" 1:78 screen. "No other technologies were needed as the ‘horsepower' of the projector is enormous, so it was able to produce a very watchable picture in full daylight!" Brothman enthuses.

"When a client is requesting a massive image," adds Michael Bridwell, Marketing Communications Manager at Digital Projection, which makes high-end residential and commercial projectors, "they're essentially asking to be blown away by the imagery they'll be viewing. So delivering image uniformity to a large-scale surface is a critical consideration."

Michael Bridwell, Marketing Communications Manager, Digital Projection: "With more research comes more time between interest and purchase. But conversely, it also produces more savvy buyers."

Brickenden points out that we are seeing projectors in applications where just two or three years ago, nobody would have considered projection. Screen technology has progressed.

"We used a Screen Innovations Black Diamond at last CES with our MiCO50 LED in a day lit room with the curtains open, and we saw nice pop on the screen and real blacks, shadow detail, et cetera. It was a little freaky. But it made our point." Reinforcing his point, Brickenden mentions that the DarkChip4 has made a visible difference, but projectors are putting out more light, and some of them have found the way to do that while sorting out colour, detail, contrast, and with inaudible fan noise.

Of course, integrators will need to address issues pertaining to reliability and serviceability. And there are advantages with projectors, Bridwell points out. In situations where the projector needs to be serviced or updated, it can simply be taken from its installation point and either shipped to the manufacturer or serviced on the spot. In the case of a large, mounted flat panel TV, he adds, there's a lot more work in dismounting and remounting one.

State of the Biz

Unsurprisingly, the laggard economy has had an impact on the projector market. What Runco has seen, says Brothman, is a polarization. "We saw an increase in our entry level, although admittedly our entry level is not cheap, and sales of our highest end projectors remained strong. Where we saw the dip was in the middle." What happened was a migration of the middle to the downside, as cost-conscious clients still wanted a nice system, but were concerned about splashing out more than they would have been doing so three years ago. Those concerns were also shared by the higher end segment, but were expressed differently. Says Brothman: "Wealthy customers were still willing to engage with the high end and get involved with dealers, but they were less flippant." By which he means they were no longer handing integrators a blank cheque and saying: "make it happen. Instead, "they did more research, investigated their decision, and wanted to cement that they were getting good value for the dollar." When asked if there was much less one-upsmanship, what I like to call the "Bigger Boat Syndrome," when clients call integrators and ask: "You just did my friend's theatre for a million dollars. What do you have that's better?" Brothman agrees that the highest end clients have been more conservative than in the past.

Bridwell agrees that buyers are making more pragmatic decisions in the current economy.

"This equates to more research and a stronger knowledge of how they'll use the projector and in what area of the home. With more research comes more time between interest and purchase. But conversely, it also produces more savvy buyers." He says buyers that purchase DP's projectors find them primarily through asking trusted CE integrators for high performance, high value home projectors. As a result of that referral network, Digital Projection has steadily gained market share year by year.

But everyone agrees that while the market has suffered in tune with the economy, it hasn't fallen, but has rather emerged in a changed state.

"A couple of years ago," Brickenden relates, "I began to hear that the dedicated home theatre was dead. As it has turned out, this is not true." Instead he's seen an evolution (no pun intended) towards new businesses and design concepts. "We still see our dealers designing dedicated home cinemas," he says, "but the growth for us had been in what I'm calling ‘The Convertible.' This is a welcoming living space with comfortable sofas, overstuffed chairs, and designer details that, at the touch of a button, converts itself into a theatre." The lights dim, leaving ambient light on the paths on the floor, the screen drops down, the window coverings close, the projector turns on, and the occupants are transported into the magic of cinema.

"When you sell this concept to the client," Brickenden adds, "you also sell home automation, and you sell yourself as the solution. With the growth of this concept, and with the consumer's desire for integration with the décor rather then big, ugly, grey panels, we're experiencing a resurgence of growth. In our category of high-performance home theatre, we expect to be up 25% next year." (Of course Brickenden appears to be embellishing in his comments: the latest flat panel TVs would be described as everything but ugly and ‘grey' by the consumer.)

"I think what's interesting," adds Epson's Ang, "is that despite the economy, while we thought that the market was going to be down, it isn't. As prices for 1080p projectors have dropped, demand has gone up." Ang points out that owning a projection installation is no longer out of reach for many consumers.

Contrary to expectations, Kivritsky says that HiFi Centre's projector business has gotten better. "For a while, it took a bit of a backseat when large flat panels became affordable. And back then, projectors were behind in terms of what they cost to get a decent image." But now with projectors being more accessible, and with better features, they are a compelling selling story. "For 10K or less," he explains, "you can get a really good projector. And with 2.35:1 anamorphic widescreen, you're showing a clear improvement over what any flat panel can deliver."

Caldwell, however, observes that dealers, in wake of the economic downturn, have been going downmarket and resorting to the plethora of LCD projectors at $799 price points; something that he thinks is bad news.

"Cineversum, the brand of projectors distributed by St John group, doesn't play in that market because the company feels that it can't differentiate itself. No one can. 3D can't play in that market either." And 3D will be the main element of the high end market in the near future.

Cineversum's BlackWing Four MK LCos projector employs a sealed 3-chip system, and incorporates features like quiet operation; a motorized lens; 70,000:1 contrast; nine customizable picture profiles; and multiple connectivity options.

Scott Varner of ProjectionDesign agrees, and draws a parallel between the catfight in the price point projector space and the HTiB market in audio. "Some dealers took the low road," he explains. "It's great that clients have those choices, but there's still a market for premium performance and reliability." He points out that his brand's projectors are often specified in ultra critical commercial applications. "We do business with military, museums, simulation systems and studio post production. All of those lead to tangible benefits in performance, and reliability. If there's a better way to do something and it costs more money, that's the approach we're going to take."

Scott Varner, ProjectionDesign: "Some dealers took the low road. It's great that clients have those choices, but there's still a market for premium performance and reliability...if there's a better way to do something and it costs more money, that's the approach we're going to take."

Ultimately, if dealers want to sell high end products, they need to install them in their showrooms and demonstrate exactly what the client is going to get when they write a big cheque. "At Evolution, we demo a lot." Brickenden explains, "Seeing is believing. Even on our road shows, we have set up three or four of our projectors on a wire rack, focused on the same screen, and run all four simultaneously using a simple lens cover which we can flip up to instantaneously compare using the same source." Brickenden and his team start with the entry level product, and keep building. The viewer watches as the detail, the colour palette, the natural three dimensionality, and the textures of fabrics keep getting better.

Caldwell asserts that most dealers, if they look at their P&L, will know that sound is still where they make the best margins. Consequently, he thinks that dealers still need to concern themselves with how to sell video as a way to sell audio, and that projection can help do that if it's sold properly. As an example, he says "an acoustically transparent screen allows you to sell a better speaker and a better audio architecture."

Caldwell and St John group have been working with pioneers of acoustically transparent screens for more than eight years now. They've recently become the official North American distributors of a German brand called Image. "These are the best mechanical guys we've ever seen: masking screens, art work, a 1.0 white screen that will roll up to a grey screen, that will roll up to acoustically transparent artwork." All of which are calculated to get clients excited.

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