DIRECTV and Thomson Multimedia to Form Strategic Partnership in
Digital Television and Services
EL SEGUNDO, Calif.--(BUSINESS WIRE)--Aug. 4, 1998--
Combined Efforts Target Joint Leadership of New Media Markets,
Advanced Direct Broadcast Satellite Receivers and Acceleration
of Digital Terrestrial Television
DIRECTV Inc., a unit of Hughes Electronics Corp., and Thomson Multimedia Tuesday announced that the two companies
have signed a wide-ranging and long-term cooperation agreement.
The memorandum of understanding commits DIRECTV and Thomson Multimedia to the joint development and distribution of
advanced direct broadcast satellite (DBS) receivers and integration of DIRECTV reception capability in Thomson digital
televisions. The advanced devices will be released under the respective brands of Thomson and DIRECTV.
The two partners further agree to work together to accelerate the deployment of digital terrestrial television and related digital
services.
Over the last five years, DIRECTV, the U.S. leader in direct-to-home (DTH) digital entertainment services, and Thomson
Multimedia, the U.S. market leader in consumer electronics, have been closely associated in the research, development and
deployment of DTH satellite services, resulting in a strong and commercially successful operational relationship. DIRECTV
and Thomson intend to strengthen this relationship and develop a long-term strategic relationship.
Strategic Relationship Focus
The DIRECTV and Thomson strategic partnership will focus on the following areas:
-- acceleration and expansion of the sales of DBS-related equipment
and DIRECTV subscription services;
-- acceleration and expansion of the range of Thomson and DIRECTV
product offerings;
-- development and introduction of new service offerings; and
-- specification, development and sharing of new technologies that
will enable such new service offerings.
The partnership will initially concentrate on the U.S. domestic market; however, the parties will promptly explore opportunities
and growth strategies in Latin America, Europe and Asia.
As a result of this strategic relationship, and subject to approval by the respective boards of Thomson and Hughes Electronics
and domestic regulatory authorities, it is anticipated that Hughes, through DIRECTV, will take a minority interest in Thomson
Multimedia, have one seat on its board of directors, and also sit on a newly formed Strategic Committee of Thomson
Multimedia.
Co-Development of Next-Generation Receivers and Advanced Multimedia Products and Co-Development of Services
The DIRECTV-Thomson joint development and distribution program aims to enhance the capabilities of DBS receiver
technology to enable new services and accelerate the launch of new products.
The two companies have agreed to jointly design and develop a new cost-competitive, entry-level DBS receiver platform.
These devices will take advantage of the decreased cost of core technology and will include new interactive services such as
data enhanced video and electronic commerce.
DIRECTV and Thomson will also co-develop higher-end advanced products and delivery systems that will support advanced
service offerings. Potential services to be supported by these devices include Webcasting, software downloads and Internet
access. The parties will also explore the participation of DIRECTV's sister subsidiary, Hughes Network Systems Inc., in the
development and deployment of such advanced platforms and services. [Note: Divi competitor?]
Accelerated Transition to Digital Terrestrial Television
DIRECTV and Thomson also plan to develop products and services to accelerate the introduction and consumer acceptance
of digital terrestrial television. The two companies will work with the television networks and local channel broadcasters during
their transition to digital television.
Thomson's strong consumer brand and capabilities in broadcast equipment and consumer electronics manufacturing, combined
with DIRECTV's leadership position in digital entertainment services, uniquely position the two companies to take advantage
of the transition of terrestrial broadcasters from analog to digital format.
"This agreement is a natural extension of DIRECTV's long-standing and successful relationship with Thomson in the
deployment of a wholly new form of digital home entertainment. The strengthened partnership will allow for the rapid
introduction into the market of new and innovative interactive services and platforms," said DIRECTV President Eddy
Hartenstein.
"Thomson and DIRECTV pioneered digital television service and secured a leadership position by providing U.S. consumers
the ultimate in programming choice, picture and sound quality. Through this agreement, we have strengthened our relationship
and will extend our leadership to new media services," said Thierry Breton, chairman and CEO of Thomson Multimedia.
Worldwide No. 4 in consumer electronics, Thomson Multimedia develops, manufactures and sells TV sets, VCRs,
camcorders, audio and communications products, digital decoders and DVD players, as well as tubes and other components
for color TVs and professional video equipment. The group is No. 1 in the United States and No. 3 in Europe.
From its leaderships position in its core consumer electronics business, the group has taken advantage of the convergence of
the TV, information technology and telecommunications businesses to seize the leadership in the emerging markets for digital
and multimedia products. Thomson Multimedia is particularly active in the development of new services linked to the TV set,
such as electronics program guides, Internet access and interactivity features.
More...........
newsalert.com |
