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MITSUBISHI AIMS TO MAINTAIN HD MARKET LEADERSHIP WITH 9-MODEL, ALL 16:9 LINE, AND UPGRADE PROMISE

On May 6, on the eve of its 25th dealer show, Mitsubishi introduced its new line to the press at an event once again held at Caesars Palace in Las Vegas. Officially known as Mitsubishi Digital Electronics America (MDEA), the company showcased its new analog and digital PTVs, including its first DLP-based model. The DLP is a widescreen model like all of the other new HD- upgradeable sets. Sharing the spotlight with products was Mitsubishi's "Upgradeable Promise" for its HD models, related to its HAVi and 1394 strategy. On the other hand, missing this year were any specific promises that Mitsubishi would be sponsoring HDTV-related programming.

Reviewing the past year, MDEA president and CEO Yoji Otani reported that the restructuring was complete. Though the company had "exceeded plan" during the past year, Otani acknowledged that the company could not meet "every dealer need." As a result Mitsubishi will be adding capacity so "300,000 PTVs or more can be made." Though not specifying how many HD models the company plans to manufacture in 2000, Otani stated that Mitsubishi plans to maintain its number one market share in HDTV. While promising "Internet-ready TVs that can connect to a computer" this summer, Mitsubishi officials were adamant about not allowing their products to be sold on the Web.

VP of sales and marketing Max Wasinger also admitted that Mitsubishi could not deliver enough product to meet dealer needs, noting that it "was the same for the industry" and reiterating plans to add capacity. Wasinger said that the company's overdue HDTV set-up -- which supports ATSC and DirecTV/HD -- would be available "in the next two months in quantity to dealers," with the delay attributed to the advanced program guide. However, a few days later, we were provided with a shipping schedule for the line that now has the ATSC/DirecTV set-top arriving in August. For consumers who purchased Mitsubishi's first generation HD sets with an RGB interface, the company will offer the $299 RGB-CV10 adapter/converter.

NO WEB SALES ALLOWED

Overall, Mitsubishi will offer 15 PTVs, including 9 HD- upgradeable models, which will all be 16:9. According to Wasinger, "4:3 product is less important because consumers associate HD with 16:9." Mitsubishi's screen shape strategy is in contrast to most other major brand, which are hedging their bets by offering both 16:9 and 4:3 HD-level sets. And while other brands are also in HD with direct-view sets (some with both screen shapes), Mitsubishi abandoned the category several years ago.

The company will hit a major milestone later this year, when it ships its two-millionth PTV this fall, according to Wasinger. But the official declared, "No sales of Mitsubishi on the Internet," in compliance with unchanged dealer agreements that still make brick-and-mortar the only authorized source. But Mitsubishi sees the net as playing a role to "create consumer awareness," explained Wasinger.

SHRINKING PRICE GAP BETWEEN HD AND ANALOG PTVs

In his presentation focusing on HDTV and related DTV issues, director of marketing Bob Perry predicted that "in a couple of years, the cost difference between analog and HD-upgradeable will shrink." And, according to Perry, "SDTV is not a reality in PTV" because when it comes to costs, "480P and 1080I have no difference," with the official stating, "PTV is HDTV." Perry also proclaimed that "HDTV is here to stay," with the "standard unchanged," and he noted that in about 45 days, the FCC will be auctioning 60-plus [NTSC] channels.

Cable-DTV compatibility issues have been resolved, according to Perry, with the exception of the labeling of IEEE-1394. Perry has been very active in that area as chairman of CEA's 1394 home networking and DTV definitions working groups. He also said there were no significant business models for multichannel DTV and datacasting, and "HDTV will be the main pull" with more price reductions and more digital content.

ENTERING THE PROMISE LAND

Mitsubishi continues its focus on HD-upgradeable models, believing "consumers do not want integrated sets," said Perry, and introduced the "Upgradeability Promise." The program, explained Perry, allows consumers "to buy the product they want today without fear" of obsolescence. The promise, or pledge, involves Mitsubishi's implementation of Home Audio Video Interoperability (HAVi) technology in its digital products and its support for IEEE-1394-based home networks.

Within the next 18 to 24 months, consumers will be able to buy an upgrade module that will include an IEEE-1394 interface, 5C copy protection, and HAVi software for control of IEEE-1394 digital devices. According to Mitsubishi, the upgrade module will let any Mitsubishi HD-upgradeable TV, when connected to a separate DTV set-top, receive over-the-air DTV broadcasts, including HDTV, as well as unscrambled cable TV. The module will be installed by an authorized Mitsubishi servicer, and final cost to consumers is expected to be $1,000.

Without mentioning Sony by name, Perry stated, "Some will offer 1394 and 5C and say it is upgradeable," but that is "not the fact." Perry explained that IEEE-1394 in its basic AVC form -- for audio/video control -- "is rudimentary, basic, and not upgradeable." By implementing HAVi and including support for a POD module, the system is "fully upgradeable and expandable." According to Perry, Mitsubishi's implementation "will use the highest level of HAVi," delivering a "powerful, multi-level intelligent software control system," including Java scripts, and it can also control IR blasters.

WILL HAVi MAKE PRO INSTALLERS HAVE NOTS?

In addition, Mitsubishi will integrate HAVi into a complete line of DTVs in summer 2001, and HAVi will be included in other digital products that communicate via IEEE 1394 connections. Though Mitsubishi did not announce any of these other products at the line show, Perry did say the company was pursuing an "aggressive D-VHS and hard-disk-drive strategy."

Perry acknowledged that HAVi/1394-based digital networks could cause "problems for dealers" since consumers would "need less input from custom installers." And the products supporting the new digital networks would cost less and carry lower margins than the proprietary control systems, popular in the CEDIA market. However, he also predicted that IEEE-1394 would permit installers and dealers "to make money in other ways," such as integrating 1394 into home automation and home security system.

Perry predicted that porting 1394/HAVi to IR devices "will be a growth area." And Wasinger -- reiterating Mitsubishi's commitment to its brick-and-mortar dealers -- observed that many consumers would still want to turn to an outside professional to install a 1394-based network.

9 HD-UPGRADEABLE SETS, ALL WIDESCREEN

Mitsubishi's HD-upgradeable line consists of nine rear PTVs, including the DLP, and as previously mentioned, they are all widescreen. The nine consist of one 46" tabletop, three 55" sets, four in 65", including the DLP, and one 73" model. With the exception of the DLP, slated for December, and the 73" scheduled for October, the rest arrive in either August or September. Starting with the CRT-based models, the company will offer three in its Platinum Series, starting with the 46" tabletop ($3,499), and including a 55" ($3,999) and a 65" ($4,499).

HOST OF NEW FEATURES

The company has also added a number of new features that we will summarize: MicroFine phosphor CRTs (20% smaller spot size for sharper images), third generation DiamondDigital Pixel Multiplier (for display of standard TV with finer detail), high-speed velocity scan modulation (crisper edge detail), DiamondBrite screen (brighter picture), motion-adaptive 3D-Y/C comb filter (brighter colors with fast-action content), film mode (reduces jitter in video transferred from movie film), two component video inputs, and five picture format modes (that can fill the TV's entire 16:9 screen with 4:3 and ultra widescreen 2.35:1 anamorphic images -- eliminating letterbox bars).

The next step up, Platinum Plus, comes in 55" ($4,499) and 65" ($4,999), and includes the previously mentioned Platinum features, and adds a few of its own. They are: EDF (enhanced, depth-of-field lenses for more accurate focus in corners and edges), high-resolution bitmapped graphics processor (gives on- screen display 3D-like depth and image detail), 3D graphical ViewPoint menu (uses processor to display attractive and easy-to- understand icons and text), a VGA input (for connecting a PC or digital set-top), and System 4 Home Theater Control (simplifies the TV and AV receiver's selection of the desired input).

At the top of the CRT-based PTV line is the Diamond Series, which is in more limited distribution than the Platinum family. The trio will come in 55" ($4,999), 65" ($5,499) and 73" ($9,999), with the 73" the only new model with 9" CRTs. The three models all feature Tru-Focus lenses (new lens contours for more depth and detail) and high-gloss cabinets (easier to install into custom furniture, with the 65" and 73" two-piece units), among other features.

DEBUTS DLP

MDEA's first DLP-based PTV, heralded by Perry as "the wave of the future," displays in 720P and will carry a $10,000 suggested list when it arrives in December. Developed through Mitsubishi's alliance with Texas Instruments, the model will be followed by a second generation DLP in early 2001. Housed in a silver cabinet that is only 24" deep, the unit -- model number WD-65000 -- will be in very controlled distribution.

The WD-65000 includes the Diamond Series features and VGA, SVGA and XGA PC input. The unit's bulb has an estimated life of 4,000 hours. MDEA's model uses TI's new 16:9, 1280x720 engine, which will also be incorporated in upcoming models from Hitachi and Panasonic. However, Mitsubishi pointed out that the rest is Mitsubishi technology. MDEA's version runs its color wheel faster, explained Marty Zanfino, product development manager, and the model features Mitsubishi's optics, promoted as offering "the best PTV images." As we reported from NAB, Panasonic Consumer will offer a 52"W DLP this fall in the $10,000 to $12,000 price range, and Hitachi's DLP plans are covered later in this edition.

Mitsubishi sees DLP as better suited for larger screens than plasma, which it is no longer selling into the consumer market, though it still has a PDP factory. According to Bob Perry, plasma is "too expensive," but Max Wasinger added that, "We are still looking at plasma and we could re-introduce plasma," if the situation is "right and makes sense." Though enthusiastic about DLP, Mitsubishi also said that CRT-based PTVs still have a future and will coexist with DLP.

ENDING CBS HDTV SPONSORSHIP, OTHER MIXED HDTV PROGRAMMING SIGNALS

Since there was no mention of HDTV programming sponsorship during the presentations, CEON asked about the subject during the Q&A. Max Wasinger said that Mitsubishi was "not continuing its relationship with CBS," announced at MDEA's 1999 line show. However, Mitsubishi may become involved on an event-by-event basis with CBS as well as with other networks, said Wasinger. We were also told that, "CBS was not cutting back on HDTV," and other unnamed manufacturers would be involved. Curiously, Mitsubishi's news came as a surprise to CBS when we contacted the network following the line show, and we are waiting for a clarification.

When the subject of 720P-based HDTV came up during the Q&A, Bob Perry said that the 720P truck -- provided by Panasonic to ABC so the network could produce "Monday Night Football" in HDTV -- "was being dismantled." But when we contacted Panasonic Broadcast, we were told the information "was absolutely untrue" by Jim Wickizer, manager for marketing services. He acknowledged that sale of the truck was imminent, but was not ready to name the buyer (or how the truck would be used).

With the HDTV situation now murky on the network level, the press looked to DirecTV's representative at the event to perhaps add some satellite-delivered hope. Bill Casamo -- recently promoted to president of DirecTV Merchandising -- participated in the Q&A, but he was not able to deliver. Instead, he said that DirecTV's current HDTV support was "mainly for dealers" so they could offer demonstrations. As for the future, DirecTV was in discussions with Showtime, Discovery, Disney and ESPN to carry their channels in HDTV. DirecTV is also talking to the studios to expand its limited selection of pay-per-view movies -- but again, nothing new was promised in this area of HDTV.

HDTV-DIRECTV SET-TOP, ANALOG PTVS

Moving back to products, Mitsubishi will offer two HDTV set-top packages that support ATSC and DirecTV/HD, one with a receiver ($899) and the other adding the oval DirecTV Plus dish ($1,199). Both packages are now scheduled for August. The company's standard definition DirecTV comes in three packages that are now available: a receiver ($349), receiver and 18" dish ($399), and set-top plus oval dish ($549).

The HD PTVs are joined by seven analog PTVs, which are part of Mitsubishi's new Gold and Silver Series, all 4:3. Screen sizes and prices range from: 45" ($1,899) and 50" ($2,199, $2,499), to 55" ($2,799), 60" ($2,399, $3,199) and 70" ($3,899). Component video input, three S-Video inputs, two-tuner PIP with split screen, and 3D Y/C comb filters are standard on all of these models. The Gold Series also features the DiamondBrite screen and ColorTuned Diamond Shield (adds contrast through selective filters while also protecting the screen) found in the HD- upgradeable models. The analog sets will be arriving in May.

DVD, VCR, AUDIO

Other products in Mitsubishi's line includes DVD players, VCRs, AV receivers, and speaker packages. The DD-4001 is a $299 (June) DVD players with component video, and Dolby Digital and DTS output. The $999 DD-6000 -- a carry-over that began shipping a few months ago -- adds a progressive scan output, built-in Dolby Digital decoding and HDCD audio decoder. The company will offer five VCRs and three are S-VHS, starting at $299, and the other two are four-head Hi-Fi models that begin at $149.

Mitsubishi's two AV receivers include built-in Dolby Digital and DTS decoding, ($599, 70 watts and $799, 100 watts). In speakers, Mitsubishi has two, six-piece packages: a mini system with five satellites and a 8" powered sub at $899, and the other with larger speakers, including a pair of towers and a 10" powered sub at $999.

Consumer Electronics Online News (c): May 6/9, 2000 By Marjorie Castle, Editor & Publisher

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