Thomson Lauds HDTV Over Cable Plug-And-Play Agreement As Boon For Content Security And Consumer Choice

Agreement Clears Path For Expanded Functionality, Insures Secure Interfaces, Increases Sales Potential For High-Definition TV Sets And Broadcast Production Gear

20-Dec-02

An agreement between two key industries in the digital television transition is expected to spark demand for high-definition television (HDTV) sets and digital TV production equipment as TV manufacturers and major cable operators in the U.S. announced an agreement to support basic ""plug-and-play"" HDTV over cable functionality. Thomson (Euronext Paris 18453, NYSE: TMS), which markets RCA and RCA Scenium high-definition TV products, played a key role in negotiating the agreement between 14 major television manufacturers and the nation's largest cable operators. In order for consumers to enjoy the full benefits of HDTV ""plug-and-play"" functionality, the key elements of the agreement must still be implemented by the Federal Communications Commission. As negotiated, the ""plug-and-play"" agreement insures that all future HDTV sets marketed as ""digital cable ready"" meet new security specifications and that cable operators comply with the technical requirements of the package announced today by the Consumer Electronics Association and the National Cable & Telecommunications Association. In addition to widespread availability over cable of off-air HDTV programming, the agreement will provide the consumer with the ability to easily subscribe to other core cable TV programming without the need for a separate set-top box. ""One of the biggest roadblocks in the digital TV transition has been that no clear national cable standard existed for the one thing that consumers expect--the simple ability to plug a new HDTV into the cable outlet at home and get a pristine, high-definition signal. By late 2004, we expect that cable operators will begin to support the new standard and consumers will be able to purchase equipment that works with the digital cable systems nationwide,"" said Carl Bruhn, General Manager of Broadband Cable Set-Tops and Services. ""We also anticipate that there will be a sizable market for consumers who are ready to upgrade their HDTV displays for high-definition cable service with the addition of a set-top box. The agreement calls for secure connections between set-top devices and high-definition displays, and it insures that digital high-definition cable programming will be widely available on digital cable systems.""""After months of negotiations,"" Bruhn added, ""we believe that this agreement is profoundly good news for the consumer and for the content industry. It insures that high-definition television sets that respond to the new specifications are equipped with secure digital interfaces to prevent widespread Internet piracy of digital content."" The agreement announced today insures that secure digital interfaces will be supported on future high-definition set-top receivers and HDTV monitors and sets, insuring both secure display and recording capability for a variety of future products that will connect with cable networks. Thomson is already offering secure digital interfaces on high-definition TV products. Earlier this year, Thomson added secure digital interfaces to its line of RCA and RCA Scenium high-definition TV products, a move that recognizes the need to provide secure connections for HDTV content. Thomson supports both the DVI/HDCP and IEEE 1394/DTCP methods of secure content connectivity, and believes that both are necessary to insure high-definition display, networking, and recording functionality for consumers. With its line of RCA and RCA Scenium HDTV monitors and HDTV sets, Thomson today offers consumers one of the industry's widest selections of digital high-definition television products, including direct-view, projection, plasma, and microdisplay-based display technologies that offer outstanding picture and sound performance.The issue of ""plug-and-play"" cable functionality is considered the last major hurdle in the U.S. digital TV transition, and an important consideration for nearly 70 million households that depend on a cable network operator for their TV services. Until the agreement can be fully implemented, many cable operators are using proprietary methods to pass high-definition content. But the patchwork methods in use today make it impossible for a manufacturer to build and sell a ""cable-ready"" digital TV that will work throughout the country on virtually every system.The agreement for high-definition audio and video specifications sets the stage for future negotiations between the parties about digital interactive TV products and services.Today's agreement also stands to accelerate the demand for high-definition acquisition and production equipment, especially in the United States. Under its Grass Valley brand, Thomson manufactures a broad range of multi-format products for the professional broadcast television industry, including cameras, digital video servers and storage systems, video and audio routers, and production switchers. ""Over the past several months, we've seen an increase in demand for high-definition equipment by networks and leading mobile production companies,"" said Marc Valentin, Vice President of Thomson Broadcast Solutions. ""However, today's agreement has the potential to catalyze an even greater demand for high-definition programming that will inspire mid- and smaller-market broadcasters to invest with similar confidence.""