Mitsubishi Digital Electronics America Inc. (MDEA) privied the press in early May with a sneak preview of a new lineup of projection televisions a day prior to the companyís national dealer show. Claiming the top market share position in digital television sales, Mitsubishi will ship its two millionth projection television in 2000, a milestone in the consumer electronics industry and an achievement no other manufacturer can claim. This industry high point occurs during the companyís 25th anniversary in the U.S. Mitsubishi Digital Electric American President Yoji Otani announced that his company had exceeded its planned production of digtial television products last year, but still could not meet all the demands of its dealers. This year the company is investing in additional plant capacity to handle more than 300,000 projection TV sets. MDEA unveiled its 2000/2001 product line of seven analog televisions and nine 16:9 (1.78:1) high-definition (HD)-Upgradable televisions, including a DLPô Technology-based HD-Upgradable multimedia-capable model. Mitsubishiís total shift to 16:9 (1.78:1) aspect ratio widescreen digital-capable sets is to be applauded. The company also introduced its HD and standard (SD) satellite receivers, line-up of VCRs (two four-head HiFi models and three S-VHS models) and two DVD-Video players, as well as audio components and speakers. ""The switch to all 16:9 HD-Upgradable TV is another leading-edge move by Mitsubishi to meet consumer expectations for a 16:9 display,"" noted Robert Perry, Director of Marketing. ""Our first two generations included 4:3 (1.33:1) HD-Upgradable displays to get people comfortable with the digital television transitions. Now that about 200,000 consumers have purchased sets, we are ready to take the next step to 16:9-only,"" he added. Max Wasinger, Mitsubishiís Sales and Marketing Vice President, said that ""4:3 transitional products are less important to the consuming public today. Itís Mitsubishiís strategy to drive the trend to the proliferation of widescreen DTV displays."" The companyís widescreen RPTV line-up features Mitsubishiís DPM3 (3rd generation Diamond Digital Pixel Multiplier), Film Mode (3/2 Pulldown Compensation), MicroFineô Phosphor CRTs and Motion-Adaptive 3D-Y/C Comb Filter. Unfortunately for videophiles, all also feature non-defeatable high-speed velocity scan modulation (HVSM). This will not become defeatable until the 2001-2002 product line. Prices range from $3,499 for a 46-inch diagonal 1.78:1 screen to $9,999 for a 73-inch diagonal 1.78:1 screen that uses 9-inch CRTs. Perry noted that Mitsubishiís line-up is network and Internet-ready supported and said that delays in the companyís launch of its next-generation set-top decoder with DirecTV capability (SR-HD400) was due primarily to finalizing the features of the new Advanced Program Guide, which will eventually integrate off-air analog and digital TV broadcast listings along with DirecTV-delivered programming. Perry predicted that within two years analog sets would be phased out as the industry generally transitions to HD-Upgradable, stating that DTV/HDTV is here to stay. ""The standard is unchanged,"" stressed Perry. ""Cable issues have been resolved except for labeling of the POD/1394 interface."" (EIA 775 is the Electronics Industry Association standard for IEEE 1394 connections of digital cable boxes and digital televisions.) Perry said that HDTV broadcasts will slowly grow and that economics and politics will continue to drive the issue. He said that the shift to video production will accelerate HDTV broadcasting, but such wonít become significant for another 18 months. In other news, the company announced its DLP Technology-based projection television strategy, its HAVi strategy and the unique Upgradability Promise. Mitsubishi is partnering with Texas Instruments to introduce its first model to incorporate TIís Digital Light Processingô (DLP) technology that creates a high-definition image using almost one million micro-mirrors on a chip to switch red, green and blue light to form an image. The WD-65000, a 65-inch diagonal 16:9 widescreen rear-projection HD-Upgradable television, is slated for late fall delivery with an anticipated retail price of $10,000. The company also announced details of its second-generation DLP technology-based rear-projection television with an early 2001 delivery. ""This product marks the beginning of a new era in big screen televisions,"" noted Wasinger. ""Finally, we have upgradable high-definition big screen televisions that truly handle multimedia content with ease. Both high-resolution PC graphics and high-definition television programming can be displayed, allowing consumers to enjoy Internet and other PC-based content in the living room, along with digital television sources."" ""DLP technology offers the advantages of solid-state digital electronics as a fundamental display technology in the world of television, enabling performance and capability previously unavailable,"" said Perry. ""DLP imaging delivers advantages in resolution, reliability and form factor that is unavailable in CRT-based projection television. In addition, consumers associate digital television with digital features, including computer display. This new product category delivers on the promise of digital television, when combined with a separate digital television receiver."" Perry did acknowledge that while DLP technology is exciting, he didnít think DLP would replace CRT-based rear-projection sets for some time, if ever. CRTs still deliver superior black level performance. The WD-65000 features a new 1280 x 720 DLP chip with VGA, SVGA and XGA PC input. The picture quality is notable for its improved contrast ratio, brightness and resolution. As a single chip DLP implementation, Mitsubishi has tripled the rotation speed of the color wheel from 60 cycles to 180 cycles, resulting in dramatically reduced artifacts. The set, which will have a limited rollout, will receive specialty distribution. Only those dealers that can prove their ability to properly demonstrate and sell the system will get to participate. Mitsubishi is introducing two HDTV Satellite Receiver packages in June which incorporate all of the features of the companyís Standard Definition Receivers plus over-the-air HDTV/DTV operation (no dish or programming required). The package pricing is $899 for the SR-HD400 receiver-only and $1,199 for the SR-HD500 receiver with oval dish (required to receive DirecTVís HDTV programming). Mitsubishiís DD-4401 DVD-Video player is priced at $299 and features component and S-video output, 10-bit digital video processor, 24-bit/96kHz digital-to-analog processor, and DolbyÆ Digital and DTSÆ Digital Surroundô bitstream output. The top-of-the-line DD-6600 DVD-Video player is priced at $999 and features additionally progressive scan component video output, HDCDÆ digital audio processor and built-in Dolby Digital processor/decoder with 6-channel output. The company also showed two 5.1-channel audio receivers featuring Dolby Digital and DTS Digital Surround. The M-VR700 is $599 and delivers 70 watts x 5 channels. The M-VR900 is $799 and features 100 watts x 5 channels. Accompanying the receivers were two six-piece speaker systems, the M-S100 at $899 and the M-S200 at $999. The company emphasized its overall strategy for the implementation of Home Audio Video Interoperability (HAVi) technology in its digital products. Perry said that MDEA would integrate HAVi into a complete line of digital televisions in the summer of 2001. It will also integrate HAVi capability for IEEE 1394 connected devices into its upgrade module as part of the industryís first-ever Upgrade Promise. In addition, Perry noted that HAVi would be integrated into other digital products that communicate via IEEE 1394 connections. ""IEEE 1394 networks will become the common digital interconnection network for home audio-video as well as automation and data networks in the coming years,"" said Perry. ""This tremendous power needs to be harnessed in a way that allows people to be very comfortable, and part of that is eliminating the clutter of remote controls on the coffee table. Control systems based only on the rudimentary AV/C control system really donít deliver the ease of use that people want and expect. Consumers need to understand this new environment and make educated decisions to ensure their continued satisfaction,"" Perry pointed out. Perry noted that the companyís HAVi implementation would embrace both IEEE 1394A and 1394B standards for a high bit rate self-configuring, plug-n-play digital network. The data rate for both compressed digital bitstream standards is 100, 200, 300 and 400 megabits per second (HDTV requires 19.4 mb/s), but 1394A is limited to 15-foot network lengths, while 1394B supports up to about 150 feet. IEEE 1394 can be configured as either 4 or 6 wires: 2 data, 2 control and optionally 2 power. Perry said that MDEAís HAVi will be a powerful, multi-level intelligent software control system capable of communicating and controlling all connected devices, including RS-232 and IR. The system will be fully upgradable and expandable. Perry noted that Mitsubishi supports the ""5C"" data security de facto standard. Finally, the company announced eight specific retailer support programs. 1) A mailing list program to specifically target potential consumers of analog and digital projection televisions, DVDs and VCRs. 2) A Web site development program that gives smaller retailers their own online presence to market their businesses. 3) A new version of the Three Diamond Credit Card Program tailored to retailersí individual requirements, enabling them to create and execute their own extended-period finance promotions. 4) A new Web site that allows dealers to check on the status of their orders at any time. 5) A new circuit board exchange program that supports the needs of servicing retailers to have board kits on hand (eliminating th need in most cases for second in-home visits). 6) A total sales package of pre-built, national television spots and digital creative materials that allow a retailer to partner with local media (includes television, billboard, radio and print advertising). 7) A national retailer road show specifically designed to train retail sales staff on new technology and products to better educate consumers. This national road show will visit fourteen cities. 8) Televisions spots with home theatre and digital television themes to be used by local dealers (using their integrated tag), to drive retail traffic. ""At Mitsubishi, we have always developed innovative marketing materials and programs for our network of specialty retailers. We believe that, in the digital transition period, these retailers are uniquely positioned as experts to consult with and educate the purchaser"" explained Perry. ""Key to their success is access to these world-class materials and programs that allow them to take advantage of this transition and market opportunity."" During a Q&A session, it was announced that Mitsubishi will not continue its formal arrangement for support of CBS HDTV prime-time programming, except on a show-by-show basis of HDTV telecasts by CBS and other networks of special events. Bill Casamo of DirecTV said that his company was working with studios and the Showtime and Discovery networks to bring their HDTV programming to DirecTV. He also noted that HBO has committed to improving its HDTV broadcast quality. But he said that up to this point, DirecTVís HDTV content was primarily directed to support retailersí efforts to get people into their stores. Perry pointed out that Mitsubishiís first generation DTV product supported only HDRGB, but that its second generation set-top box receiver supports both HDRGB and component YPbPr. The company is producing a $299 converter box for use with first generation DTVs. Lastly, Wesinger declared that Mitsubishi would not sell its products on the Internet; that all of the companyís Web-based promotional activity is aimed at driving customers into shores and not at enabling e-commerce. He said that MDEA has vowed to maintain its dealer agreements that maintain ""no Mitsubishi products are to be sold on the Internet."" He added that ""Our products need to be explained to customers.. To sell a HDTV set, the product must be demonstrated. Brick and mortar retailers play an important role in providing the HDTV experience. We believe e-commerce creates the impression that these are replaceable commodities. It devalues the product.""Mitsubishiís Upgrade Promise Perry said that Mitsubishiís Upgrade Promise involves a plan to eventually provide an add-on module that will equip all Mitsubishi digital-capable sets (including first-generation models) with the latest jacks, software and communication protocols to enable todayís sets to be compatible with systems and standards in the near future, including interactive datacasting and home automation A/V networks. The module is equipped with an IEEE 1394 digital interface, copy protection and HAVi protocol. Perry said the unit will sell for less than $1,000. The following Upgradability Promise is reproduced from Mitsubishiís Product Catalog Year 2001, page 60. As an owner of a Mitsubishi HD-Upgradable television, you will have purchased a product with a future from a company who has a commitment to its customers. Our HD-Upgradable televisions are designed to support the vast majority of audio/video devices popular today. But we also live in an era where technology evolves rapidly, particularly with regard to digital advances. With a history of being on the leading edge of big screen digital technology, Mitsubishi makes a serious commitment to provide a truly upgradable TV. In fact, we are making this promise to our customers: We will engineer and manufacture the upgrades necessary so the television you purchase today can be made compatible with near-future advances in digital television and digital interconnectivity. Specifically, we promise that you will be able to have your television upgraded, at a reasonable cost, to include an off-air HDTV tuner, a cable TV tuner (for unscrambled programming), a IEEE 1394 (FireWireÆ) connection, HAVi system control and 5C copy protection. Overall, there is no doubt that Mitsubishiís commitment to its customers is very impressive as is its level of product sophistication and performance.