Creation of New Industry by Creation of New Industry by Digital ConvergenceDigital Convergence

By Takashi Kubota, Hitachi, Ltd.

16th of July, 1999

Table of ContentsTable of Contents

1. Transition of Industries From “Past” to “Future”

2. Typical Example of Digital Technology

3. Core Technology and Applications

4. World Electronic equipment Market

5. Acceleration of Industry Development & Conclusions

PAST

From Past to PresentFrom Past to Present

PRESENT

PC

Calculator

OHPTelephone

Facsimile

Transceiver

TV

VCR

Radio

LD Player

Stereo Set

Audio Cassette Recorder

<Chaos>

Analog Technology

Information Technology Communications

ConsumerElectronics

<Partial Overlapping>

Analog/Digital Technology

Analog/Digital Technology

From Present to FutureFrom Present to Future

Information Technology Communications

ConsumerElectronics

<Partial Overlapping>

Analog/Digital Technology

PRESENT FUTURE

Consumer Electronics

Information Technology

Communications

<Completely Integrated>

Digital and Related Technology

Digital Convergence

--Typical Example of Digital Technology-Typical Example of Digital Technology-

DVD DVD （（ Digital Versatile DiscDigital Versatile Disc ））(1)(1)

Size 12cm / 8cm (0.6mm two discs bonded)

Capacity 4.7GB/side/layer (7 times bigger than CD)

Max. 17GB/2 sides, 2 layers Movie/studio quality 135min.

Data/10 years of a daily newspaper e.g. Financial Times

DVD DVD （（ Digital Versatile DiscDigital Versatile Disc ）） (2)(2)

Objectives ・ Full product compatibility・ IT & CE application Read only, recordable, rewritable, random access

Format Created by 17 Companiesincluding IT & CE industries

and motion picture industry USA, Europe, Asia and Japan

Promotion DVD Forum, 204 companies

DVD Creates New BusinessDVD Creates New Business

ＲＷ

Ｒ

ＶＩＤＥＯＲＯＭ

ＲＡＭ

DVD playerDVD player

ＤＶＤ li ｂｒａｒｙ (300MB)

Ｃａｒ n ａｖｉｇａｔｉｏｎ

ＤＶＤ r ｅｃｏｒｄｅｒ

Ｍｕｌｔｉｍｅｄｉａ ＰＣＭｕｌｔｉｍｅｄｉａ ＰＣ

ＤＶＤ－ＲＯＭ d ｒｉｖｅ

ＤＶＤ－ＲＡＭ d ｒｉｖｅ

Ｗｅｂ Ｗｅｂ dd ｅｖｉｃｅｅｖｉｃｅ

Disc camera

0

2,000

4,000

6,000

8,000

10,000

12,000

FY1997 1998 1999 2000 2001 2002

Emerging DVD Market

World DVD Market Forecast

(Unit: Millions of U.S. dollars, Data: EIAJ)

DVD-RAM

DVD-Video

DVD-ROM

Core TechnologyCore Technology

EntertainmentEntertainment

Computers & Computers & PeripheralPeripheral

Core TechnologyCore Technology

CommunicationsCommunications

Electronic program guide

Graphical user I/F

World Wide WebInternet protocol TCP/IP

HTML

Electronic commerce

Encryption & decryptionCryptography & authentication

Water mark, data hiding

Interoperability HAVi

Image/audio compression & expansionMPEG, JPEG, MP3

Digital modulation & demodulationCoding & decoding

Error correction

Embedded CPU/Real time OS

Digital recording

Contents distribution

Display devices

Copy protection Digital AV I/F

IMT-2000

CDMA

Technologies & ApplicationsTechnologies & Applications

Electronic moneyElectronic money

Contents distributionContents distribution

EntertainmentEntertainment

Computers & Computers & PeripheralPeripheral

DVD-VideoDVD-Video

D-VHSD-VHS

Ｍｕｌｔｉｍｅｄｉａ ＰＣＭｕｌｔｉｍｅｄｉａ ＰＣ

DVD-ROM/RAMDVD-ROM/RAM

Digital Digital cellularcellularphonephone

PDA &H/PC

Web deviceWeb device

CommunicationsCommunications

Digital STBDigital STB

Data projectorData projector

LCDLCDmonitormonitor

PCPC

ColorColor printerprinter

PDPPDP

Core TechnologyCore TechnologyLSILSI

SoftwareSoftware

Embedded CPUEmbedded CPU

EncryptionEncryption

DisplayDisplay

User I/FUser I/F

Internet/IntranetInternet/Intranet

Image comp.& exp. (MPEG)

Ｄｉｇｉｔａｌ r ｅｃｏｒｄｉｎｇ

Digital AV I/F

Digital mod.& dem.

Disccamera

DigitalDigitalcameracamera

Home Home theatertheater

World Electronic Equipment Market World Electronic Equipment Market

0.0

0.5

1.0

1.5

FY1997 1998 2001 2004

Unit: Trillions of U.S.dollars (Source: EIAJ)

0.9

(110%)

1.0

(129%)

1.3

(123%)

1.6Consumer Electronics

Computers

Communications

Others

Acceleration of Acceleration of Industry DevelopmentIndustry Development

- High speed expansion of the industry through digital convergencedigital convergence

- New products derived from integration of industries

- Creation of new market

- Participation of different countries in various related industries

- Rapid development in every country in the world

Conclusion (1)Conclusion (1)

The new IT industry resulting from the integration

of information technology, consumer electronics

and communications will benefit users all over the

world in the 21st century and continue to develop

extremely quickly and at a global level.

Conclusion(2)Conclusion(2)

The key phrase is:

““Integration of three Integration of three industries through Digital industries through Digital

Convergence”Convergence”..

Conclusion(3)Conclusion(3)

Japan has contributed to the world in the manufacturing field (mainly in production efficiency and product quality.)

Hereafter, we will try to provide a truly rich life for people all over the world at home, in the community and on business by utilizing Digital Digital TechnologyTechnology to the utmost.

E=MCE=MC 3

E=MCE=MC 3

Economic growth = Merger of CEconomic growth = Merger of C 33

Consumer electronics

Computer

Communications