Pioneer Electronic Forms International Alliance [with CUBE/Divi]to Offer End-to-End Digital Cable TV System; Alliance Conforms to OpenCable Standards
LONG BEACH, Calif.--(BUSINESS WIRE)--Aug. 24, 1998--Pioneer Electronic Corp. (NYSE:PIO) has formed a worldwide strategic alliance with CANAL+, the French pay-TV giant; C-Cube Microsystems, a leading provider of digital video silicon solutions; and DiviCom, a leading developer of compression systems for digital televisions; to produce an end-to-end, interoperable, digital system solution for the cable-TV industry.
Under terms of the alliance, the companies will develop an end-to-end digital system solution that will interface with cable companies' legacy billing systems while providing user interfaces on subscribers' set digital set top terminals. The system will support open standards such as MPEG-2, DAVIC, DVB, ATSC, HTML, JavaScript and Java in order to maintain interoperability.
At the heart of this new system is the client/server applications platform environment that will provide digital video and interactive television applications such as an interactive program guide, Web browsing, video-on-demand, network games, home banking, online shopping, and data and digital download capabilities.
The arrangement includes adapting CANAL+'s MEDIAHIGHWAY middleware and MEDIAGUARD conditional access systems to the U.S. market. The system will employ C-Cube's silicon-based technology for advanced set-top applications and head-end equipment supplied by DiviCom. Pioneer will market this end-to-end system solution in the United States through Pioneer's industrial sales and marketing company, Pioneer New Media Technologies Inc.
Additionally, the system will comply with the OpenCable standard and will help form the standards for software and applications interoperability. OpenCable is an effort under Cable Labs, the consortium of cable companies that defines the standards that will support digital cable systems with an open design and well-defined specifications to allow interoperability and promote competition among system suppliers.
Pioneer, CANAL+ and DiviCom will be system integrators, while Pioneer and CANAL+ will develop software applications for the system. Pioneer and CANAL+ software development efforts complement one another by combining interactive software developed by each company. CANAL+ will also participate with Pioneer and C-Cube in the development of the set-top box and will provide middle layer software from its MEDIAHIGHWAY/MEDIAGUARD technologies.
CANAL+ has more than 30 different interactive and multimedia applications in the marketplace, has developed different head-end software solutions for both the MEDIAGUARD and MEDIAHIGHWAY technologies and has extensive experience as a system integrator for digital broadcasters.
C-Cube will supply Pioneer with an evaluation board that includes an integrated MPEG-2 audio/video decoder; a high-performance graphics co-processor and a host-CPU for the development of an OpenCable-compliant set-top box.
DiviCom will provide Pioneer with equipment for integration into the OpenCable-compliant, digital video head-end system that will include DiviCom's MediaView MPEG-2 encoders, MPEG-2 multiplexers, interactive data systems and THESYS network management system.
According to Tom Haga, president of Pioneer New Media Technologies, this worldwide alliance represents a continuation of the development work the company has been doing for Time Warner Cable's "Pegasus Project."
"Pioneer is committed to supporting the Pegasus Phase I platform and the OpenCable platform as it evolves over time," Haga said. "The only way to ensure interoperability and an open platform is to give the industry a choice and this alliance and the solution it offers does just that."
Pioneer, in conjunction with Warner Communications in the late 1970s, developed QUBE, the world's first large-scale, operationally successful, interactive cable-TV system. Since then, Pioneer has developed a complete line of one-way and two-way addressable converters and control systems.
For the Time Warner Pegasus Project, Pioneer developed VOYAGER, a digital set-top terminal, while its software development company, Pioneer Digital Technologies, created PASSPORT, a client/server applications platform, navigator and interactive program guide. The company is also developing a digital head-end control system to launch next year. The Pegasus digital system has been adopted by several Canadian and U.S. cable system operators during 1998.
"The agreement between Pioneer, CANAL+, C-Cube and DiviCom represents a significant step forward for OpenCable and its goal to achieve competitive end-to-end system solutions," said Jim Chiddix, senior vice president and CTO of Time Warner Cable.
"This alliance represents a strong consortium of technology leaders with significant years of combined experience in implementing digital video solutions," said Laurie Schwartz, director, Advanced Platforms and Services and OpenCable's project lead. "Their support of the OpenCable process and their willingness to contribute their expertise is a great benefit to the OpenCable effort."
"We are excited to see this international group clearly committed to the OpenCable vision. Our goal is to contribute the OpenCable specification to the international standards process and see their support as an important step to achieving that goal," added Dr. Richard Green, CEO and president of Cable Labs.
About Pioneer
Pioneer Electronic Corp. is a world leader in consumer and industrial electronics. Pioneer recently created a company to move product development closer to the customer. This company, Pioneer Digital Technologies Inc. (PDT), was established in San Diego in 1996, and is a joint venture between Pioneer New Media Technologies and Pioneer Electronic Corp.
The company is an engineering-based advanced products development division and is responsible for hardware and software design, as well as development for the next generation of cable TV set-top boxes. Based in Long Beach, Pioneer New Media Technologies delivers innovative solutions to the cable television marketplace and is a subsidiary of Pioneer Electronic Corp.
For more information, visit the company's Web sites at www.pioneerdigital.com or www.pioneercatv.com.
About CANAL+
CANAL+ is Europe's leading pay-television company, with world-class expertise in programming for premium and theme channels and in distribution, with marketing capabilities and subscriber management systems, scrambling and conditional access technology. CANAL+ pioneered the introduction of the first digital platforms in Europe (France, Spain and Italy).
The first supplier of digital broadcast technology in Europe, with 65 percent of the marketplace, CANAL+ currently has more than 1.8 million boxes installed. Its product line includes MEDIAGUARD, a conditional access system designed by Societe Europeenne de Controle d'Acces (SECA), a CANAL+/Bertelsmann joint venture and the interactive system MEDIAHIGHWAY.
CANAL+ can be reached at 011-33-1-44-25-75-81 (media inquiries) or by e-mail at sales@canal-plus.fr.
About C-Cube Microsystems
C-Cube Microsystems Inc. is an industry leader in the development and delivery of highly integrated, digital video, silicon solutions that address the consumer electronics, communications and convergence markets. C-Cube has headquarters in Milpitas, Calif., with offices in North America, Europe and Asia. Its stock is traded on the Nasdaq National Market under the symbol CUBE.
C-Cube can be reached at 408/490-8000 or on the Web at c-cube.com.
About DiviCom
DiviCom develops and integrates products that make digital video networking possible. Products include audio/video encoding, interactive and broadcast data solutions, network management systems, and consulting and integration services. Based on international standards, DiviCom's products enable digital video broadcasting over a variety of networks including satellite, wireless, fiber and cable.
DiviCom is a wholly owned subsidiary of C-Cube Microsystems. DiviCom can be reached at 408/944-6700 or on the Web at divi.com.
NOTE TO EDITORS: PASSPORT is a trademark of Pioneer Digital Technologies Inc. MEDIAHIGHWAY and MEDIAGUARD are trademarks of CANAL+. The C-Cube logo is a registered trademark of C-Cube Microsystems Inc. C-Cube is a trademark of C-Cube Microsystems. MediaView and THESYS are trademarks of DiviCom Inc. OpenCable is a trademark of Cable Labs.
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CONTACT:
Pioneer New Media Technologies
George Applegate, 310/952-2468
or
Pioneer Digital Technologies
Neil Jones, 818/295-6686
or
Shandwick Convergence
310/201-8845
Frank Pollare, fpollare@shandwick.com
Joey Sue Lee, jlee@shandwick.com
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