Associated Volume Buyers/Brand Source 100 S. Anaheim Blvd., Suite 250 Anaheim, Calif. 92805 Phone: (714) 502-9620 FAX: (714) 502-9627 Web site: www.brandsource.com e-mail: bob.lawrence@avb.net Bob Lawrence, Executive Director Bill Pleasants, President Kathy Maloney, Comptroller Mike Allen, General Manager Furniture Jim Ristow, General Manager Electronics Members: 1,800 Storefronts: 2,500 Regions: 17 Divisions: 4 Sleep Source-Mike Allen Home Entertainment Source-Jim Ristow Mobile Entertainment Source-Jim Ristow Home Rental Source-Mark Taylor Annual Sales Volume: $5 billion Key Suppliers-Electronics: Thomson, Pioneer, JVC, Mitsubishi, Zenith, EchoStar, DirecTV and Yamaha Key Suppliers-Appliances: General Electric, Frigidaire, Whirlpool, Maytag, Amana, Fisher & Paykel, Holland, Oreck and Bosch Key Suppliers-Furniture:

By Janet PinkertonFree Association: A meditation on the consumer electronics industry. Last month, I wrote "Hey, satellite radio is cool!" It still is. Probably. XM Satellite Radio said STMicroelectronics nailed its much-needed chipsets. Sirius signed Sanyo and Sony as hardware suppliers. Good deal. But I wonder what happens to all of those smart regional retailers who use demographic-specific radio—the jazz stations, the NPR-types, the hipster boomers—for efficient advertising. These demographics for many reasons are likely to buy into satellite radio, Internet radio, satellite video. Globally available, high-quality audio and video media services may create a problem, long term, for the retail marketers, as newspapers lose their

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