Four-Way Digital TV Alliance Emerges
09/07/98
Electronic News
Page 19
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C - Cube , DiviCom , Pioneer plan U.S. digital TV campaign
milpitas, calif. -- C - Cube Microsystems, a digital video IC supplier, and DiviCom , a supplier of compression systems for digital TV, together have formed a strategic alliance with Pioneer Electronics of Japan and Europe's Canal+ to create an interoperable digital system for the cable TV industry.
The alliance of Canal+ and C - Cube comes as a surprise because Canal+'s long-time partner and predominant set-top box silicon supplier is C - Cube 's biggest rival -- and a company that is much larger -- STMicroelectronics.
ST has a multi-million unit market in the MPEG-2 decoding silicon required in digital set-top boxes, and company executives who requested anonymity told Electronic News in recent interviews that the company's shipments have far surpassed that of C - Cube , despite the latter's strong marketing showing.
In fact, for the similar DBS set-top box IC supply segment, Dataquest shows ST at number one in 1997 with 32 percent market share, and C - Cube at number nine, with 2.5 percent share. The market is so new it shows great viccisitudes; GEC Plessey revenues grew by 50 percent, while Philips revenues dropped by as much from 1996 to 1997.
J.P. Rossome, STMicroelectronics U.S. spokesman, said, "What we know is that there are many, many such collaborations between service and network providers for long term development of such products.
Developments Become Reality
"Some of these developments become reality and some don't," Mr. Rossome added pointedly.
As might be expected, France-based Canal+ watches its own competitive position by avoiding dependence on one supplier. "Canal+' policy is not to use exclusively one semiconductor supplier," Mr. Rossome noted. "Today, ST is the main supplier of MPEG-based ICs to Canal+ (set-top) box manufacturers, but not the only one."
In addition, too much cannot be read into this U.S. deal, ST and Canal+ said through the spokesman, because Pioneer will not have exclusive supply. "There are many -- greater than 10 -- box manufacturers building set-tops for Canal+ services. Pioneer is only one of them."
DiviCom will be working in the infrastructure, head-end side on MPEG-2 encoding silicon, where it competes with IBM, with DiviCom employing C - Cube encoders. ST and IBM have recently partnered on various development programs, but the state of digital video for the two together has not been defined.
As for the alliance, C - Cube and DiviCom believe it strengthens their relative positions in addressing the digital cable opportunity in the U.S. Digital broadcasting is to begin this fall in select areas; digital cable transmission will come later.
Under terms of this alliance, the parties intend to develop an end-to-end digital system complying with the OpenCable standards and will work to form the standards for software and applications interoperability. Based on Canal+ technology, the system will support advanced digital video and interactive television applications, such as interactive program guides, Internet browsing, video-on-demand, home banking, online shopping and data download capabilities, it was said.
Britain First
Canal+ is rolling out these types of services first in Britain though for the satellite TV infrastructure, which is more accepted there than here.
C - Cube is to supply silicon to Pioneer Electronics, which will move the advanced set-top boxes through its Pioneer New Media Technologies subsidiary. C - Cube will provide Pioneer with an evaluation board, which includes an integrated MPEG-2 audio/video decoder and a graphics system for the development of the box.
C - Cube 's set-top technology is already being deployed worldwide today for digital cable, DTH, MMDS and xDSL digital network services, the company said.
Coincidentally, STMicroelectronics' software partner in development for Canal+ in Europe is involved with this alliance. Canal+ will adapt the German-developed MediaHighway software and MediaGuard conditional access systems to the U.S. market to drive set-top application development.
Canal+ is already delivering more than 30 interactive TV applications for European digital services, including tele-shopping, tele-banking, electronic program guides (EPGs) and interactive advertising.
DiviCom will supply the digital head-end equipment necessary for the deployment of OpenCable compliant systems.
DiviCom 's head-end equipment will include MediaView MPEG-2 encoders, MPEG-2 multiplexers and Thesys network management systems.
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