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100
/ November 19, 2003
Television
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112 - World:
GM Taps China to Push
Hydrogen Fuel China Is Challenging DVD Format With
EVD
The new disk may allow Chinese companies to
avoid paying licensing fees to patent holders.From
Associated Press
Seeking to compete on its own terms in the
lucrative entertainment industry, China announced a
government-funded project Tuesday to promote an
alternative to DVDs and "attack the market share"
of the global video format.
----- The rollout of
the long-planned project, known as EVD, or enhanced
versatile disk, was timed to coincide with the
beginning of what China calls the "golden sales"
period known elsewhere as the Christmas shopping
season.
----- EVD would give
Chinese manufacturers and technology consortiums a
home-grown platform to sell and build on. It also
is aimed at relieving Chinese DVD producers from
paying licensing fees to the companies that hold
patents to the DVD format.
----- It was not
immediately clear if any elements of EVD would help
China battle the intellectual-property theft it has
been promising to eradicate since joining the World
Trade Organization in 2001. Pirated Hollywood
movies on DVD are still everyday sights on the
streets of Chinese cities.
----- Nor did the
Chinese government say whether it had contacted
major film producers about eventually releasing
their films and other productions on EVD. That
would be a pivotal factor in any new format's
success.
----- A spokesman for
the Motion Picture Assn. of America did not
immediately return a message seeking comment.
----- Development of
the new, high-definition compression format has
been sponsored by China's State Trade and Economic
Commission and its Ministry of Information
Industry, two powerhouses in the country's efforts
toward high-speed economic and technological
growth.
----- Research on EVD
began in 1999. It was developed by Beijing
E-World Technology Co. using
video-compression technologies licensed by Clifton
Park, N.J.-based On2 Technologies
Inc.
----- Shares of On2
slipped 1 cent to $1.84 Tuesday on the American
Stock Exchange.
----- Because large
parts of China's economy are still controlled by
the state, it is in a better position than most
countries to ensure such new technology will take
hold in the domestic market.
----- More uncertain
is the international market, which has moved toward
DVDs as the standard.
----- On the surface,
it would seem that EVD's international effect could
be huge, because China makes about 60% of the
world's DVD players, said Vamsi Sistla, senior
analyst with Allied Business Intelligence, an
Oyster Bay, N.Y.-based research firm.
----- But there is no
guarantee that standards bodies and Hollywood will
endorse EVD, meaning that EVD machines also will
need to play DVDs thereby forcing Chinese
manufacturers to keep paying DVD royalties, Sistla
said.
----- Also, while EVD
is designed to be better than DVD at recording and
showing finer-quality images for high-definition
TVs, the HDTV market remains small and already is
the focus of competing standards, such as Blu-Ray
and HD DVD-9, developed by leading electronics
companies in Japan, South Korea and Europe.
----- In China, though
DVD is the upper-end standard, many people still
use VCDs, or video compact discs, a differently
coded format. VCDs never caught on in the U.S.,
where a shift from VHS videocassettes to DVDs has
been underway for several years.
///
GM Taps China to Push
Hydrogen Fuel
November 19, 2003
IN BRIEF / AUTOS
From Associated Press
General Motors Corp. is trying
to enlist the Chinese government in promoting cars
that run on hydrogen fuel cells instead of
gasoline, in hopes that the nation's potentially
huge market might generate enough sales to make the
new technology profitable.
----- GM officials in
Beijing said China could jump straight into
alternative-fuel cars if it begins setting up
special hydrogen filling stations now perhaps
alongside new gas stations as they are built.
----- Mainland Chinese
have only just started buying regular gas-powered
cars in large numbers.
----- GM hopes its
hydrogen-fuel-cell cars will be commercially viable
by 2010.
//
China
Approves 3Com's Huawei Joint Venture
November 18, 2003 - SAN FRANCISCO Network
equipment maker 3Com Corp. said
Monday that it had received approval from the
Chinese government for a joint venture with
Huawei Technologies Co. that
analysts expect to challenge No. 1 network gear
maker Cisco Systems Inc.
especially in China.
Huawei-3Com Co. would be based in
Hong Kong, have its principal operations in
Hangzhou, China, and have sales offices throughout
China and Japan for marketing networking gear such
as routers and local-area-network switches,
according to Marlborough, Mass.-based 3Com.
Analysts said the joint venture's goal was to grab
some of San Jose-based Cisco's large share of the
network equipment market by offering resellers
better margins.
"The whole idea behind the 3Com-Huawei partnership
is to develop a product line attractive to
resellers," said William Becklean of Oppenheimer
& Co.
"Cisco owns the market," Becklean said. "They have
a 70% share."
The joint venture, announced in March, would sell
its own and 3Com products in China and Japan; 3Com
has rights to market and support the joint
venture's products under its brand in other
countries.
Shares of 3Com fell 12 cents to $7.11 on
Nasdaq.
///
Respectfully
Submitted
Josie
Cory
Publisher/Editor
TVI Magazine
TVI
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