Just when you thought it was safe to buy a TV again, the television industry goes and pulls another fast one.
4K television has been ramping up lately, with about 30 million units sold last year, a number that is expected to skyrocket to 330 million worldwide by 2020.
But many consumers who have already picked up 4K sets, which promise four times the resolution of regular high-definition televisions, will soon have buyer’s remorse thanks to yet another supposedly ground-breaking invention that makes their purchases obsolete.
High-dynamic range – a technology that allows screens to display a greater gamut of shades and hues and therefore better colours – was the talk of the town at the Consumer Electronics Show in Las Vegas earlier this month. Everyone involved, from TV manufacturers to Hollywood studios to Netflix, was pumping it up as the newest, greatest thing that no one will be able to live without.
“We’ve had many increments in pixel resolution over the years and that’s great, but the marginal returns in moving up to 4K aren’t as great as the earlier steps,” said Neil Hunt, Netflix’s chief product officer. “[HDR] is going to be more important and more relevant to more people than moving to a higher resolution.”
That’s great – except we’ve heard similar song-and-dance numbers before.
It all started in earnest about five years ago, after everyone had upgraded their old cathode ray televisions to shiny new HD flat panels. Manufacturers, looking for new ways to lift flattening sales, starting pushing internet-connected "smart" TVs. These devices, they said, would transform the home viewing experience by delivering apps to the living room in much the same way that we get them on smartphones.
For the most part, smart TVs turned out to be anything but smart, and the revolutionary app wave never came. Years later, few viewers use the internet functions of their TVs for anything more than watching Netflix or YouTube.
Then came 3D. Avatar, the 2009 James Cameron film with the blue aliens, kicked off a three-dimensional gold rush. Film studios added 3D to seemingly every film and TV manufacturers, looking to cash in on the expectation that consumers would want the same experiences at home, built it into their products.
But it turned out that people hated wearing 3D glasses – and they disliked paying the premiums for the supposed privilege of doing so. Not surprisingly, the technology has fizzled into irrelevancy.
Next up were curves, perhaps television manufacturers' most dubious gimmick. Claiming that the slightly concave screens provided better immersion, Sony, Samsung, LG and others tried to convince consumers to bite on yet another gimmick.
Analysts and experts begged to differ on the viewing benefits and the market worked its magic again – curved screens have failed to become popular. The fact that the things look terrible hanging on a wall didn’t help.
Along came 4K, also known as ultra-high definition, so called because it delivers about 4,000 horizontal pixels, amounting to quadruple the resolution of regular 1080p HD. 4K flat panels have been around for a few years, but sales were initially slow thanks to high prices and a dearth of content.
Those premiums all but evaporated last year, with average prices falling by 86 per cent since 2012. The promise of more content has also spurred sales, with Netflix ramping up its 4K catalogue and broadcasters such as BT Sport in Britain and Rogers in Canada promising higher-resolution sports.
In the UAE, Etisalat has said that it would roll out a 4K offering in the first quarter of this year.
At CES, TV manufacturers talked about how they’re now adding HDR to the mix – and in case you’ve missed the pattern, there will be premium prices to go along with it.
For all those who have already bought a 4K TV, well, that’s too bad. As Netflix’s Mr Hunt says, those suckers – er, consumers – are going to miss out on the real picture improvements unless they buy yet another TV, this one with HDR. All that previous hyperbole about how 4K was a big step up from regular HD? Well, let’s just pretend that didn’t happen.
“Buyer beware” applies to all early technology, but perhaps nowhere more so than in televisions. There isn’t ever a good time to buy a TV because there’s always a new technology-cum-gimmick just around the corner, which means there’s really only one rule to go by: don’t do it until you absolutely have to.
Peter Nowak is a veteran technology writer and the author of Humans 3.0: The Upgrading of the Species.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
China and the UAE agree comprehensive strategic partnership
China and the UAE forged even closer links between the two countries during the landmark state visit after finalising a ten-point agreement on a range of issues, from international affairs to the economy and trade and renewable energy.
1. Politics: The two countries agreed to support each other on issues of security and to work together on regional and international challenges. The nations also confirmed that the number of high-level state visits between China and the UAE will increase.
2. Economy: The UAE offers its full support to China's Belt and Road Initiative, which will combine a land 'economic belt" and a "maritime silk road" that will link China with the Arabian Gulf as well as Southeast, South and Central China, North Africa and, eventually, Europe.
3. Business and innovation: The two nations are committed to exploring new partnerships in sectors such as Artificial Intelligence, energy, the aviation and transport industries and have vowed to build economic co-operation through the UAE-China Business Committee.
4. Education, science and technology: The Partnership Programme between Arab countries in Science and Technology will encourage young Emirati scientists to conduct research in China, while the nations will work together on the peaceful use of nuclear energy, renewable energy and space projects.
5. Renewable energy and water: The two countries will partner to develop renewable energy schemes and work to reduce climate change. The nations have also reiterated their support for the Abu Dhabi-based International Renewable Energy Agency.
6. Oil and gas: The UAE and China will work in partnership in the crude oil trade and the exploration and development of oil and natural gas resources.
7. Military and law enforcement and security fields: Joint training will take place between the Chinese and UAE armed forces, while the two nations will step up efforts to combat terrorism and organised crime.
8. Culture and humanitarian issues: Joint cultural projects will be developed and partnerships will be cultivated on the preservation of heritage, contemporary art and tourism.
9. Movement between countries: China and the UAE made clear their intent to encourage travel between the countries through a wide-ranging visa waiver agreement.
10. Implementing the strategic partnership: The Intergovernmental Co-operation Committee, established last year, will be used to ensure the objectives of the partnership are implemented.
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What: 11th edition of the Mubadala World Tennis Championship
When: December 27-29, 2018
Confirmed: men: Novak Djokovic, Rafael Nadal, Kevin Anderson, Dominic Thiem, Hyeon Chung, Karen Khachanov; women: Venus Williams
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Manchester City 6 Huddersfield Town 1
Man City: Agüero (25', 35', 75'), Jesus (31'), Silva (48'), Kongolo (84' og)
Huddersfield: Stankovic (43')
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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