16 th of July 1999 Creation of New

16 th of July, 1999 Creation of New Industry by Digital Convergence By Takashi Kubota, Hitachi, Ltd.

Table 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

From Past to Present PRESENT PAST Calculator Audio Cassette Recorder LD Player TV PC Telephone Analog/Digital Technology Facsimile Radio OHP Stereo Set VCR Consumer Electronics Information Technology Communications Transceiver Analog Technology Analog/Digital Technology

From Present to Future PRESENT Consumer Electronics Information Technology FUTURE Digital Convergence Consumer Electronics Information Technology Communications Analog/Digital Technology Communications Digital and Related Technology

-Typical Example of Digital Technology- DVD （Digital Versatile Disc）(1) Size 12 cm / 8 cm (0. 6 mm two discs bonded) Capacity 4. 7 GB/side/layer (7 times bigger than CD) Max. 17 GB/2 sides, 2 layers Movie/studio quality 135 min. Data/10 years of a daily newspaper e. g. Financial Times

DVD （Digital Versatile Disc）(2) Objectives ・ Full product compatibility ・IT & CE application Read only, recordable, rewritable, random access Format Created by 17 Companies including IT & CE industries and motion picture industry USA, Europe, Asia and Japan Promotion DVD Forum, 204 companies

DVD Creates New Business DVD player Disc camera ＤＶＤ－ＲＡＭ dｒｉｖｅ ＲＯＭ ＤＶＤ－ＲＯＭ dｒｉｖｅ ＶＩＤＥＯ ＲＡＭ ＤＶＤ rｅｃｏｒｄｅｒ Ｒ ＲＷ Ｃａｒ nａｖｉｇａｔｉｏｎ Ｍｕｌｔｉｍｅｄｉａ ＰＣ Ｗｅｂ dｅｖｉｃｅ ＤＶＤ liｂｒａｒｙ (300 MB)

Emerging DVD Market World DVD Market Forecast DVD-RAM DVD-ROM DVD-Video (Unit: Millions of U. S. dollars, Data: EIAJ)

Core Technology Entertainment Electronic program guide Embedded CPU/Real time OS Digital recording Display devices Interoperability HAVi Copy protection Digital AV I/F Image/audio compression & expansion MPEG, JPEG, MP 3 Coding & decoding Digital modulation & demodulation Error correction Graphical user I/F Core Technology Encryption & decryption Cryptography & authentication Water mark, data hiding Computers & Peripheral Contents distribution Electronic commerce World Wide Web Internet protocol TCP/IP HTML CDMA IMT-2000 Communications

Technologies & Applications Entertainment DVD-Video PDP Disc camera D-VHS Digital STB Home theater Digital camera Ｍｕｌｔｉｍｅｄｉａ ＰＣ Electronic money Image comp. & exp. (MPEG) DVD-ROM/RAM Digital mod. & dem. User I/F Color printer Digital AV I/F Software Ｄｉｇｉｔａｌ rｅｃｏｒｄｉｎｇ Core Technology Display LSI Encryption Contents distribution Internet/Intranet Embedded CPU Data projector PC Computers & Peripheral Web device LCD monitor PDA & H/PC Digital cellular phone Communications

World Electronic Equipment Market (123%) 1. 6 (129%) (110%) 0. 9 1. 3 Consumer Electronics 1. 0 Computers Communications Others Unit: Trillions of U. S. dollars (Source: EIAJ)

Acceleration of Industry Development - High speed expansion of the industry through digital 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) The new IT industry resulting from the integration of information technology, consumer electronics and communications will benefit users all over the world in the 21 st century and continue to develop extremely quickly and at a global level.

Conclusion(2) The key phrase is: “Integration of three industries through Digital Convergence”.

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 Technology to the utmost.

3 E=MC

3 E=MC Economic growth = Merger of C 3 Consumer electronics Computer Communications