Few things change the way we see everything. TV Is making history again.

We continue to support your sales efforts in bringing awareness to the QLED 8K TV platform. Consumer awareness is growing rapidly! With retail distribution mostly set, the third and largest phase of the QLED 8K launch kicked off with the first airing of the “Making History” TV commercial ad campaign.

“Making History” revolves around the 50^th anniversary of the moon landing in 1969, when television enabled people around the world to witness one of the most monumental feats of humankind. In 2019, Samsung is making TV history again by pushing the boundaries of technology with QLED 8K, now allowing consumers to watch video content in the highest resolution this category has ever seen.

Samsung QLED 8K is also a sponsor of CNN’s broadcast of Apollo 11 on June 23^rd, a groundbreaking film that took never-before-seen 70mm footage and remastered it into a stunning 8K documentary that was shown in IMAX theaters earlier this year. The 93-minute film held its world premiere at the 2019 Sundance Film Festival with large-format film footage of mission commander Neil Armstrong and pilots Buzz Aldrin and Michael Collins. The CNN broadcast will be presented with limited commercial interruptions and will feature a special 60-second version of the commercial.

Please take just a moment to familiarize yourselves with this exciting campaign by visiting YouTube to watch the 30 and 60-second commercial ads.

To see the TV commercials, please visit:

• 60 second: https://youtu.be/8yM5oazks1s
• 30 second: https://youtu.be/T58fuCP4GO4

The “Making History” campaign will be a full 360° activation, including:

• TV Commercial
• Online Video
• Hard-hitting social media videos
• Digital banners on tech endemic sites
• Targeted programmatic digital banners
• Retail merchandising, video and demos
• Special retail events

We will be supporting the 8K launch with a massive national advertising campaign – nearly 1 billion impressions planned!

• The TV commercial campaign will be on air through mid-July
• Digital will run through the end of the year

Samsung continues to promote the advent of QLED 8K TV technology. We hope you take advantage of the groundswell that continues to build and help educate and entertain consumers with in-store displays and showroom experience demonstrations. Contact your Samsung representative to learn more.

It was just a few years ago that TV dealers and their customers were beginning to talk about pixels and whether 4K resolution was worth the investment versus HD TVs. Of course, the screen sizes were not as big as today’s big screen TVs. For a while, 55-inch TVs were all the rage and recently, the average best-selling screen size has gone up to 65 inches. In a year or two that is likely to go up even further to 75 inches.

In other words, TVs continue to get bigger.

Since we introduced our first 85” 8K TV last year, more consumers are considering Samsung 8K big screen TVs for their home entertainment systems. We’ve expanded the Q900R line-up to include more options for your customers who want to join the evolution. Because no matter what you watch, 8K is the right choice.

Let’s talk about the design-forward attributes of the 2019 Samsung QLED 8K TVs. First of all, we’ve expanded the line-up with six available screen sizes – from the newly announced 55-inch model up to the amazing 98-inch TV debuting later this year.

Which naturally leads to the first question you should be asking your customers when they shop for a super big screen size. “Will you be moving your furniture further away from where your TV is currently?” If the answer is “No”, then here is a great way to talk about picture resolution. “Since pixels get bigger with larger screen sizes, I suggest increasing the resolution to 8K to make sure all of the images are sharp and detailed.” It’s all about pixel density. The exact same discussion we had when the industry moved from HD to 4K.

Think of it another way – smaller pixels provide sharper detailed images on bigger screens. The main thing you want customers to realize when TVs get bigger is that the individual pixels that make up the image get bigger as well. So more pixels on a bigger screen will provide the sharp, detailed images they’ve come to expect with today’s advanced TVs, even if they’re sitting close to it.

On smaller screen sizes, your customers typically don’t see pixels as easily because they are smaller and more difficult to distinguish. However, from the same seating position, when a screen at the same resolution gets bigger, the pixels per inch are reduced and appear larger (in fact, they are!). And this makes it easier to see the pixels, making for a less clear image. 8K resolution remedies this since more pixels are packed into the same space, making them virtually indistinguishable for a crystal-clear big screen viewing experience.

While it is not difficult to explain why more pixels is the way to go for larger TV screen sizes, especially when the majority of your customers are not going to be moving their furniture back from where they currently sit – after all, they want a big screen! – it is important to also be comfortable talking about content and upscaling when it comes to 8K.

Our suggestion is to keep the conversation simple and explain how the content your customers already own is intelligently converted to 8K level resolution by using machine learning technology to create new pixels based on millions of learned patterns.

Watch all your content in stunning 8K resolution!

Our 8K TVs AI brain, the Quantum Processor 8K is a combination of Samsung’s 30 years’ experience in semiconductor and unique hardware technology. Our new QLED 8K TVs offer the best picture we’ve ever had and Quantum Processor 8K handles all of the heavy lifting that provides a truly holistic AI experience for both true-to-life images and sound.

8K AI Upscaling is the reason your customers can take advantage of the benefits of QLED 8K today. All non-8K content viewed on the screen is intelligently converted to 8K level resolution by using Machine Learning technology to create new pixels based on millions of learned patterns. The Quantum Processor 8K analyzes the source images and selects the optimal formulas to reproduce the most detailed picture possible on the QLED TV.

Join the Evolution!

Consumers replace their main living room TVs about every seven years. Seven years ago was the age of HD. There’s no telling what we’ll be broadcasting and streaming in another seven years. Investing in 8K technology today ensures that your customers will be on the cutting edge of TV viewing for years to come. And with screen sizes getter bigger and bigger, pixel density is the name of the game. Demo the new Samsung QLED 8K TVs and amaze your customers. Encourage them to join the evolution.

Jim Mayo

Recently, Samsung commissioned an outside consulting firm to analyze the CI channel market as it pertains to TV sales. Once completed, we matched up our statistics with those of market analysis by CEDIA and CE Pro. The information presented in this article takes these three reports into consideration and are presented here for your consideration.

Let’s begin at 35,000 feet and present an overview of our aggregated findings. Then let’s consider actions you should be taking to capitalize on these findings.

• Average mark-up for video is 27% overall; higher on premium series and big screen TV sizes
• Average Labor portion of revenue is 31%
• Average TVs installed per project: 2.8
• An alarming number of TVs sold by CI Dealers are purchased at retail
• Direct-view panels provide a brighter experience than FPJ, allowing the home theater to come out of the dark
• Flat panel TVs are used in approximately 45% of all home theaters, and the number is projected to grow
• Flat panel TVs are used in roughly 85% of media rooms, and that figure is projected to grow
• The overall CI channel total available market in the United States is approaching $1B, the second largest segment in the channel
• There are strong trends suggesting the CI Channel will continue to grow double digits per year for the foreseeable future.
• Top three key growth segments in the TV market will be:
  • $2,500 and above TV products
  • 75” and larger TVs
  • Design-forward TVs
• Designers continue to drive new opportunities in large format TVs
• The four largest segments (in order) relating to sales volume in the CI channel – Audio, Video, Control, Networking

Let me first say that there are three key take-aways I want each of our dealers to focus on:

1. Source your TV buys where you can realize the best gross margin
2. Make sure you are charging enough for your labor
3. Sell with an eye on market trends

Profit Margin

For many of our dealers, and I’ve heard from you on this subject, you are buying your Samsung TVs at retail. Buying at retail forgoes as much as 30% margin on the 2^nd largest portion of sales in the CI channel.

Samsung has made tremendous strides in just the past few years to deliver significant margin opportunities across the board on our TV products. Whether you are buying direct or from distribution, there is money to be made on the sale of our TV products. Or, I guess you could look at it from another angle – there is tons of money to leave on the table.

And as you focus your efforts on market trends, especially the $2,500 and above sales and 75-inch and above TVs, the profit margin increases substantially.

Consider the $2,500 and above TV category. Samsung has far and away #1 share in the United States. The same can be said for the 75” and larger segment where again Samsung has #1 share. Many dealers supporting Samsung TV are driving this performance and are realizing strong profit dollars as a result.

Labor

I mentioned that in our aggregated CI channel market analysis that average labor revenue was 31%. I hope every one of our dealers will look at what you are realizing for labor in your installations and try to match, if not exceed, that figure. Again, let’s not leave money on the table. This figure is an industry average and you certainly are not going to lose jobs by specifying industry averages.

Design-Forward Thinking

Samsung hits on all cylinders when it comes to design-forward thinking. The key influencers in the new build and remodel world of residential are the architects and the interior designers. And as TVs continue to get larger, there is more awareness of the aesthetics when the TV is in the off position. I mean, everyone loves the 82” QLED for Super Bowl Sunday! But what about when it’s off. And that’s where Samsung shines and leads the industry when it comes to appealing to the design world.

Trends towards more designer-focused video products are key differentiators for the CI channel. When you appeal to the design world and demonstrate your design-forward products, you increase your value and your reputation as an expert in technology design.

Final Thoughts

The facts are in your favor if you will take another look at how you source your Samsung TVs and how much you are charging for labor to ensure you remain profitable and competitive in your marketplace.

And the market trends that are evident point directly to Samsung’s design-forward approach with features like Frame, Ambient Mode, Anti-glare and Wide-Angle viewing.

I want to ask every Samsung dealer to take a serious look at how you are positioning yourself in video and to re-evaluate how to increase your bottom line. Let’s not leave any money on the table!

Cloud9 Smart is one of the premium technology design firms in New York City, with a long history in both the commercial and residential sectors. Their prolific team is dedicated to perfection and incorporate unique processes for fulfilling client expectations.

We sat down with Chris Smith, Chief Operating Officer for Cloud9 Smart to discuss the company’s philosophy and vision as it relates to their design ethos. We discussed the value proposition for specifying Samsung products and zeroed in on how they position the Frame TV as it relates to the design community.

Samsung Connections: Chris, thanks for talking with us and sharing some of your experiences partnering with Samsung. Before we dive into our discussion, can you give our readers some background on Cloud9 Smart and how your team has built such a powerhouse technology design firm.

Chris Smith: Thanks for including Cloud9 Smart in your initiative and taking the time to interview me! Our history dates back to 2001 when we began as a cable company for small to medium size businesses doing cabling infrastructure. We specialized in analogue telecom for voice, and then data. Our natural progression led us into the digital world, with the advent of voice-over-IP and the general move away from analogue infrastructure. With advances in telecom we migrated to conference room technologies and computer networking, including remote system management services.

After 10 years in telecom we then progressed into the residential market because of requests we received from C-level executives we had worked with on their commercial projects. They asked if we could put together audio/video systems for their homes. We started with single rooms, such as home theaters, and then naturally expanded into full-spectrum systems. Currently our design offerings also include environmental aspects such as lighting and shading.

Today, we split our business evenly between the commercial and residential sectors. We have 34 employees and they are grouped into various teams that range from three to six people. The teams consist of operations, sales, marketing, engineering, project management, installation, service, and accounting. As an example, our engineering team is comprised of three individuals and we charge for all of our design services.

Finally, because of the nature of working in such a dense metropolitan area and the difficulty of travelling efficiently across the city – as large as we are, we only have one service truck! We have service contracts with all of our customers to allow us to remotely monitor systems. In any service scenario, we are able to access the network and individual IoT devices to see if a remote fix is possible.

SC: When it comes to your mix of vendors and the SKUs you support, how are those decisions made?

CM: Beyond the obvious of wanting to partner with reliable vendors who offer acceptable margin and outstanding service, we spend a lot of time evaluating products. Our philosophy is to carry as few vendors as possible, and the minimum of SKUs as well. Here’s why. We are only interested in best-in-class products that have a design-forward aesthetics look and feel. We want brands that stand head and shoulders above the competition.

The reasoning for this is quite simple. Our various team members can be educated on fewer products and our design team can repeatedly specify those same products with confidence. And when we find those products, especially if they are cool and unique, we add them to our design portfolio.

SC: Which brings us to the Frame TV. Share some of your thoughts about what that product represents and how you have integrated that into your product mix.

CM: Let me start by saying that rather than salespeople, we are educators. Our residential clients are not typical retail consumers. Their time is so valuable, they don’t surf the net price shopping or wandering over to your local mass retailer to compare models. We explain what the Frame is and they say, “Yeah, I want that, it’s cool.” In fact, we don’t even mention the brand, we just refer to it as the Frame. At the end of the day, it really sells itself.

But beyond our clients, the Frame allows for an easy conversation with the design community. The conversation turns into what else we can do to build around the Frame experience to enhance the lifestyle attributes in any given space. And that’s when we can introduce invisible speakers and elevate the experience well beyond a sound bar scenario. The Frame is a great launching point for us when we have designers come by our offices to meet with us to discuss project work. The Frame predicates conversation where we can suggest design-forward solutions for better performance, which of course includes performance audio.

SC: Give us your thoughts as it relates to your position as COO on what it’s like doing business with Samsung.

CM: From where I sit, no news is good news! Meaning, I don’t see Samsung service issues pop up on my radar screen. And I think that speaks volumes about how our teams feel in general towards working on a daily basis with Samsung.

As far as margin goes, that discussion when it comes to TVs is typically complex. Samsung has simplified the margin structure to make it easy for us to do business with one another. This is not the Samsung of old, so I would encourage integrators to take another look at your program if they haven’t for the past few years.

Perhaps the biggest transition I’ve personally experienced with Samsung has to do with my role with the buying group Azione Unlimited. I sit on the Advisory Board and we have twice a year face-to-face key leader meetings with Samsung. The level of our conversations go way above just a product discussion. And I think that those vendors that understand that we’re not just talking about a box, but the need for engaging the design community and helping dealers move that conversation is the holistic approach to working within the CI channel. Samsung gets that which is why we’re proud to partner with you folks.

Dealer Portal Assets Updated

New assets are up and live on the dealer web portal for the 2019 TV category. Our technical support team have been busy updating the portal so we can keep you informed about Samsung TVs as the new TVs hit the market.

2D Drawings. We have posted approximately 30 2D drawings of the 2019 TV line-up. All of the larger TV sizes across the best-in-class series are completed and have been posted. By the end of May, the smaller size TV models and the additional new larger screen sizes will be added to the portal. And please remember that Samsung will also provide custom 2D drawings for any model upon request.

Spec Sheets. The entire 2019 TV line-up have complete specification sheets posted to the portal.

Comparison Charts. The entire 2019 TV line-up are included in the comparison charts that are live on the portal. We’ve included black-and-white and all white background versions for those who need to print any of the charts.

User Manuals. For our dealer partners who wish to assist their clients with the “e-version” of the printed user manual found in the TV’s carton, we have included these for the entire 2019 TV line-up.

TV Accessories. The 2019 No Gap Wall Mount specification sheets and their 2D drawings have been added to the CI Portal.  Another posted useful resource is the 2019 Accessories Compatibility chart.

All of these new assets are available on the Samsung dealer portal for the 2019 TV line-up. Please discuss with your staff which of your team members should be signed up and registered on the Samsung dealer portal so they can take advantage of these timely assets.

If you have any questions or comments, please reach out to your Samsung representative. We continue to improve the dealer portal to keep all of our partners up to date on the latest technical information for the complete line of TVs from Samsung.