LG, Thomson to develop set-top converter boxes for analog TVs
October 7th, 2005Time was, the typical TV in the typical U.S. household was a Zenith, if it wasn’t an RCA. Now LG and Thompson, today the foreign parents of those once quintessentially American brands, have been selected to develop prototype set-top converter boxes that will allow analog TVs to continue receiving over-the-air broadcasts.
Broadcasting trade groups selected the companies and will help fund the development effort. (Will the Consumer Electronics Assn. hold its tongue now, or will it continue to criticize broadcasters’ involvement in set-top box design? [UPDATE: The feud continues. More here.]) Clearly, broadcasters are worried about losing over-the-air viewers following the transition to digital TV. Some consumers may not buy the necessary equipment. Others may find it too difficult to obtain decent digital TV reception. Inexpensive and robust set-top boxes will help ease the transition.
Several other manufacturers will develop their own digital-to-analog converters, no doubt.
Zenith played a key role in developing the digital TV standard chosen for the U.S., investing millions in the technology in hopes of regaining the preeminent position in the domestic market that it lost long ago to mostly Asian competitors. The role of Zenith and other U.S. players may have even tipped the balance for the U.S. to stick with ATSC’s much-criticized 8-VSB demodulation standard instead of COFDM, which delivers better reception under some conditions and is used in much of the rest of the world.
Things didn’t work out quite as planned, as Zenith today is a subsidiary of South Korea’s LG. (Thomson, based in France, has licensed rights to the RCA brand to a Chinese company.) But Zenith/LG reportedly stands to make “up to $100 million per year” in patent royalties for its digital TV technology. Some give their technology an edge when it comes to ATSC reception capabilities. That makes the company’s involvement in the converter box development effort most welcome.
• Links: press release, JoongAng Daily, International Herald Tribune