Profit Margins

SAN FRANCISCO–(EMWNews)–Thomson’s Premier Retail Networks, Inc. (PRN),

the world’s most experienced provider of

digital media solutions at retail, today released a white paper entitled “Home

Entertainment Merchandising” which is

available online at http://www.prn.com/hdsell.

Through its experience reaching 578 million shoppers a month with the

world’s largest Home Electronics Network,

PRN authored this white paper to share important insights to consumer

electronics retailers and suppliers.

“The FCC mandate to convert analog television

broadcasts to digital by February 2009 is one factor accelerating the

need for better shopper education,” said Scott

Francis, Chief Technology Officer at PRN. “This

white paper highlights the trends, technologies and solutions that are

driving the need for retailers and suppliers to take a more

shopper-centric view of home entertainment merchandising.”

Included in PRN’s findings:

• The average consumer is baffled by much of the new terminology

  associated with flat panel TVs (FPTV), as well as the amount of

  information required to set up a home theater. As a result, many

  consumers turn to their trusted electronics retailer to educate them

  about these significant purchase decisions.

• While the majority of consumers may have heard of HDTV, less than half

  know anything substantial about it. PRN learned that nearly a third of

  consumers didn’t know to arrange for

  high-definition service prior to their HDTV purchase. As a result, the

  picture at home didn’t look as good as it

  did in the store, causing frustrated consumers to contribute to higher

  return rates.

• More educated consumers return fewer products, and fewer returns

  translate into higher profits for retailers. Finding an economical way

  to educate consumers will significantly increase the bottom line.

• Despite rising Home Entertainment category sales and rapidly

  increasing FPTV sales, retailers are struggling with declining profit

  margins per unit sold. On the upside, as consumers cause sales of

  FPTVs to soar, retailers have the opportunity to convert FPTV shoppers

  into home theater shoppers.

PRN addresses these retailer challenges with a suite of end-to-end

solutions designed to educate, engage and entertain shoppers while

increasing FPTV, home theater and accessory sales.

PRN enables retailers and manufacturers to reach consumers in over 6,500

leading retail stores worldwide. PRN works with retailers, content

partners and advertisers to create in-store programming that engages,

informs and motivates consumers where they shop. PRN’s

retailer customers include ACME, Albertsons, Best Buy, Carrefour,

Circuit City, Costco, Jewel-Osco, Pathmark, Sam’s

Club, Shaw’s, ShopRite, Star Market, and

Walmart Stores.

About Thomson: the worldwide leader in video solutions

Thomson (Paris:18453); (NYSE:TMS) is the world leading provider of

solutions for the creation, management, delivery and access of video,

for the Communication, Media & Entertainment (CME) industries. Our

clients are studios, broadcasters, network operators (telcos, broadband,

satellite and cable operators) and an increasing range of professional

users of videos. We deliver superior value to our customers through a

unique combination of industry leading technologies, systems and

services, enabling us to offer differentiated and innovative end-to-end

solutions based on a broad portfolio of Intellectual Property. At the

cross-roads of the CME industries, leveraging our core competencies in

video but also audio, data and voice, we enable our customers to take

advantage of the growth opportunities brought on by the digital

convergence revolution. For more information: http://www.thomson.net

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