French company looks to reshape U.S. set-top market eetimes.com
By Junko Yoshida EE Times (02/23/00, 5:24 p.m. EST)
PARIS ? Canal+, France's leading media company, has spun its technology division into a separate company as it dives into the global digital TV market. The spin-off, two-month-old Canal+ Technologies, is close to signing one of the United States' largest cable set-top vendors ? General Instrument (GI) or Scientific-Atlanta ? to build set-tops based on the French company's technologies, a senior executive of the new company said.
Canal+ Technologies is promising to reshape the U.S. cable industry, whose solutions have been heavily dominated for decades by the proprietary technologies of GI and Scientific-Atlanta. Canal+ is gambling that a movement toward open solutions will gain momentum among U.S. cable operators.
Alternative solutions
"We are making a very important first step [in the United States] to offer alternative solutions to Scientific-Atlanta and GI," said Jean-Francois Jezequel, vice president of sales and marketing at Canal+ Technologies (Paris). The company's top priority for the next 18 months is "to really change the U.S. market and to become an important player there," Jezequel said, adding that a deal with a U.S. cable operator is in the works that could give his company leverage in negotiating with U.S. set-top manufacturers. Jezequel declined to name the cable operator.
Canal+ Technologies itself is not a set-top box vendor; its core business is development of digital interactive middleware and conditional access systems. The company designed a device layer interface to make its own Mediahighway platform both CPU- and operating-system-independent. The Canal+ Technologies division was also the first to develop, embed and demonstrate a clean-room implementation of the Java Virtual Machine on its platform more than a year ago.
Martin Levine, a partner at Digital Technology Consulting (Dallas), gives the French company good odds in its bid to become a global player. "In terms of interactive content solutions, they are way ahead of everyone," Levine said.
Canal+ made its first foray into the U.S. market late last year with a design win from MediaOne. Under the agreement, MediaOne's Jacksonville, Fla., system will use Mediahighway-enabled digital cable boxes built by Philips, Pace and Pioneer.
As the industry goes digital, "U.S. cable operators will not be stuck with technologies from one or two suppliers," Jezequel said.
Web box coming
By year's end, he said, the French company will roll out a set-top architecture designed to marry the most popular aspects of the Internet and TV worlds. The Media Web Box will be a more powerful set-top than the current Canal+ platform. It will pack "a little more memory ? a minimum of 8 Mbytes of DRAM and 8 Mbytes of flash ROM; improved graphics, ready for hard disk drive incorporation; a 56k modem or cable modem; a keyboard; and an interface for USB or 1394," Jezequel said.
The architecture will enable e-mail and Web surfing and will "let viewers go directly to the right site instantaneously, without depending on a search engine or too many clicks," Jezequel said. The advantage of embedding the function into the digital broadcast stream, he said, is that "broadcasters know exactly when to issue specific HTML pages. We believe that HTML pages, truly synchronized with video content, are really going to be the killer" application.
Canal+ may meet up in the marketplace with Microsoft Corp., which has pursued cable-market presence through a series of investment and financial deals. But Jezequel claimed Canal+ has an advantage in that "all our solutions already exist, and they are being deployed. I think Microsoft and we have very different backgrounds and are on different routes."
Having been a division of Canal+, "we come from an operator's point of view," he continued. The company has broad experience with conditional access systems, and its Mediahighway platform was designed from the ground up for compatibility with multiple operating systems and microprocessors.
Canal+ has also been involved in the development of interactive TV applications while working as a prime systems integrator with European satellite, cable and terrestrial service operators. "We adapt to standards very quickly," said Jezequel.
Citing an example, he noted that On Digital, a U.K. terrestrial digital TV operator, had sought to use the Canal+ conditional access system with MHEG-5 middleware rather than Canal+'s Mediahighway. Canal+ helped On Digital integrate those two software components and completed the project on time, said Jezequel.
The French company hopes its willingness to work with standards and its inherently flexible platform will help it succeed in the middleware request-for-proposals procedure initiated by OpenCable, an industry forum among U.S. cable operators and technology suppliers. Canal+ Technologies was one of 16 companies that responded to the solicitation.
Company executives said the Java Virtual Machine is expected to be an integral part of the OpenCable spec. "Java is a good candidate, because it's a well-known language and it's easy to develop applications" based on it, Jezequel said. "Java and browsers based on XML or TVML could also coexist."
Beyond its U.S. market plans, Canal+ Technologies plans to enter the Asian market soon. A deal with a unnamed cable operator in China is expected to close this year, according to Jezequel. |