Contents:

Methodology 1 Research Objectives 2 Key Findings 3 Detailed Findings 4 I. Overall CE Industry Growth 4 II. CE Industry Growth by Category 17 a. Video Products 17 b. Audio Products 19 c. Automobile CE Products 21 d. Computer and IT Products 23 e. Gaming and Portable Entertainment Products 25 f. Communications and Security Products 27 III. Ownership Profiles 29 Appendix A: Listing of products included in the study 39 Appendix B: 2007 Wallet Share Analysis 42 Appendix C: Household CE spending estimates trend: 1975-2008 43 Topics Discussed in Study 44-2232 Video Ownership: Television. Video Ownership: Dvd Player Or Recorder. Video Ownership: Digital Camera. Video Ownership: Digital Video Recorder. Video Ownership: Camcorder. Tv Ownership: Rear Projection Tv. Tv Ownership: High-Definition Tv. Tv Ownership: Lcd Flat Panel Tv. Tv Ownership: Plasma Flat Panel Tv. Tv Ownership: Tv With A Screen 40 Inches Or Bigger. Tv Ownership: Front Projection Tv. Dvd Ownership: Home Dvd Player. Dvd Ownership: Dvd Recorder. Dvd Ownership: Portable Dvd Player. Dvd Ownership: Hd Dvd Player. Dvd Ownership: Blu-Ray Disc Player. Expectation To Buy: Television? Expectation To Buy: Dvd Player Or Recorder? Expectation To Buy: Digital Camera? Expectation To Buy: Digital Video Recorder? Expectation To Buy: Camcorder? Expectation To Buy: Rear Projection Tv? Expectation To Buy: High-Definition Tv? Expectation To Buy: Lcd Flat Panel Tv? Expectation To Buy: Plasma Flat Panel Tv? Expectation To Buy: Tv With A Screen 40 Inches Or Bigger? Expectation To Buy: Front Projection Tv? Expectation To Buy: Home Dvd Player? Expectation To Buy: Dvd Recorder? Expectation To Buy: Portable Dvd Player? Expectation To Buy: Hd Dvd Player? Expectation To Buy: Blu-Ray Disc Player? Audio Ownership: Audio/Video Receiver With Surround Sound Processor. Audio Ownership: Portable Mp3/Digital Audio Player Audio Ownership: Subwoofer. Audio Ownership: Center Channel Speaker. Audio Ownership: Pair Of Front Channel Speakers. Audio Ownership: Pair Of Rear Or Side Mounted Surround Speakers. Audio Ownership: Home Theater In A Box. Audio Ownership: Docking Station For An Mp3 Player Expectation To Buy: Audio/Video Receiver With Surround Sound Processor? Expectation To Buy: Portable Mp3/Digital Audio Player? Expectation To Buy: Subwoofer? Expectation To Buy: Center Channel Speaker? Expectation To Buy: Pair Of Front Channel Speakers? Expectation To Buy: Pair Of Rear Or Side Mounted Surround Speakers? Expectation To Buy: Home Theater In A Box? Expectation To Buy: Docking Station For An Mp3 Player That Includes Powered Speakers? Computer Ownership: Desktop Computer. Computer Ownership: Notebook Or Laptop Computer. Computer Ownership: Broadband Modem, Such As A Cable Or Dsl Modem. Computer Ownership: Any Type Of Network Router Or Hub. Computer Ownership: Dedicated Photo Printer. Computer Ownership: Web Camera, Either Built-Into A Computer Or Separate. Computer Ownership: External Storage Device, Such As An External Hard Drive. Computer Ownership: Multi-Function Printer . Expectation To Buy: Desktop Computer? Expectation To Buy: Notebook Or Laptop Computer? Expectation To Buy: Broadband Modem? Expectation To Buy: Any Type Of Network Router Or Hub? Expectation To Buy: Dedicated Photo Printer? Expectation To Buy: Web Camera? Expectation To Buy: External Storage Device? Expectation To Buy: Multi-Function Printer? Entertainment Ownership: Video Game Console. Entertainment Ownership: Portable Game Device. Entertainment Ownership: Portable Digital Media Player. Expectation To Buy: Video Game Console? Expectation To Buy: Portable Game Device? Expectation To Buy: Portable Digital Media Player? Automobile Ownership: In-Dash Cd Player. Automobile Ownership: Xm Or Sirius Satellite Radio. Automobile Ownership: In-Dash Navigation/Gps System. Automobile Ownership: Car Video Entertainment System Automobile Ownership: Portable Or Hand-Held Gps Device. Automobile Ownership: Vehicle Security. Automobile Ownership: In-Vehicle Safety And Information Services System. Automobile Ownership: Kit To Connect An Ipod To A Car Stereo. Expectation To Buy: In-Dash Cd Player? Expectation To Buy: Xm Or Sirius Satellite Radio? Expectation To Buy: In-Dash Navigation/Gps System? Expectation To Buy: Car Video Entertainment System? Expectation To Buy: Portable Or Hand-Held Gps Device? Expectation To Buy: Vehicle Security? Expectation To Buy: In-Vehicle Safety And Information Services System? Expectation To Buy: Kit To Connect An Ipod To A Car Stereo? Communication/Security Ownership: Cellular Phone. Communication/Security Ownership: Smart Phone. Communication/Security Ownership: Personal Digital Assistant Or Pda. Communication/Security Ownership: Cordless Phone. Communication/Security Ownership: Home Security System. Voip Expectation To Buy: Cellular Phone? Expectation To Buy: Smart Phone? Expectation To Buy: Personal Digital Assistant Or Pda? Expectation To Buy: Cordless Phone? Expectation To Buy: Home Security System? Expectation To Buy: Internet Phone Service? Amount Spent On Ce In Past 12 Months Amount Self Spent On Ce In Past 12 Months Adoption Head Of Household Employment Occupation Marital Status Dual Income Household Own Or Rent Number Of People In Household Kids Under 6 Kids Age 6 To 11 Kids Under 12 Kids Age 12 To 17 Kids Age 6 To 17 Kids Under 18 Education Age Ethnicity Race Income Internet Usage Cable Or Satellite Sex Metro/Non-Metro Region Telephone Numbers

Methodology

The report described herein was designed and formulated by the Consumer Electronics Association (CEA). The quantitative study was administered via telephone interview to a random national sample of 2,014 U.S. adults between January 31 and February 4, 2008. The margin of sampling error at 95% confidence for aggregate results is +/- 2.2%. Sampling error is larger for subgroups of the data. As with any survey, sampling error is only one source of possible error. While non-sampling error cannot be accurately calculated, precautionary steps were taken in all phases of the survey design, collection and processing of the data to minimize its influence. As is common practice in survey research, the data was weighted to reflect the known demographics of the population under study. In this survey, weights were applied to cases based on gender, age, race and geographic region. As a result, this data can be generalized to the entire U.S. adult population. The bases shown on all charts and tables are weighted bases. All percentages in the text, charts and tables included in this report are also based on weighted data. CEA designed this study in its entirety and is responsible for all content contained in this report. During the fielding of this study, CEA employed the services of Opinion Research Corporation to conduct telephone interviewing. The telephone interviewing employed industry standard random-digit dialing and computer assisted telephone interviewing (CATI). The Consumer Electronics Association is a member of the Marketing Research Association (MRA) and adheres to the MRA’s Code of Marketing Research Standards. Note: In the analysis and presentation of some data, the following figures were used in calculations. Total U.S. Population: 305 million Total U S. Adult Population: 231 million Total U.S. Households: 114 million Percentage of U.S. Adults with Internet Access: 75% The above data are 2007 projections made by CEA, based on the U.S. Census Bureau’s 2006 American Community Survey. Research Note Please note the penetration rates presented in this report might vary from the penetration rates as tracked by CEA. CEA publishes penetration rates representative of consumers self-reported product ownership and unit sales of these products. There are situations when consumers are confused by product categories (e.g., HD DVD and Blu-Ray), leading penetration rates in this study to vary from CEA’s published penetration rates. Most penetration rates in this study are, however, within the margin of error.