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<text id=91TT2729>
<title>
Dec. 09, 1991: Clear Picture, Fuzzy Future
</title>
<history>
TIME--The Weekly Newsmagazine--1991
Dec. 09, 1991 One Nation, Under God
</history>
<article>
<source>Time Magazine</source>
<hdr>
BUSINESS, Page 57
Clear Picture, Fuzzy Future
</hdr><body>
<p>Japanese companies are far ahead in the HDTV race, but they may
have taken a wrong turn in their technology
</p>
<p> The pictures on the screen of the two huge high-definition TV
sets in a Tokyo hotel ballroom last week were crystal clear. The
colors were vivid. The resolution was so fine that the image of
the five executives cutting a ceremonial ribbon looked almost
three dimensional. The occasion: the expansion of Japan's HDTV
broadcasting to eight hours a day, up from the one-hour tests
begun in 1989. With its sharpness of picture and CD-like
crispness of sound, Japan's HDTV has all the outward appearances
of another grand success about to wash over the world.
</p>
<p> Yet despite the lifelike clarity achieved after 20 years
of research and at a cost of more than $1 billion, the future
of Japan's HDTV program is far from clear. HDTV sets go for
more than $30,000 each, which explains why fewer than 300 have
been sold. While that price will inevitably come down, HDTV has
generated only a lukewarm response in a country usually unable
to resist new television technology.
</p>
<p> Another problem is that the Japanese system is technically
outdated. Because it was conceived 20 years ago, it is based on
an analog system of transmitting pictures. Researchers in the
U.S. and Europe have been moving toward a digital system that
can be more easily integrated with computers and other advanced
video technology. The unwieldy alliance--business, government
and public-TV broadcasters--that is bankrolling HDTV in Japan
has been slow in reacting to that technological challenge. "It
is too late for us to abandon the old analog system," admits a
Japanese electronics executive. "The future is digital."
</p>
<p> U.S. and European researchers came late into the HDTV
race, but are discovering that sometimes it pays to be among the
tortoises. Says Howard Miller, head of engineering at PBS and
a leading expert on HDTV: "Three years ago, it looked as if the
U.S. would play no role in this major new technology, but now
basic HDTV research work is coming out of American labs."
</p>
<p> Already such U.S. companies as Texas Instruments and LSI
Logic are producing designs in Japan for the complex
semiconductors needed to process the massive amounts of data
necessary to generate lush HDTV pictures. "There is plenty of
room for American companies to take advantage of their strength
in semiconductor design," says Keiske Yawata, chief executive
of LSI Logic's branch in Japan. U.S. firms, including Zenith and
General Instruments, are developing proposals for HDTV standards
in the U.S., which will be chosen by the Federal Communications
Commission by spring 1993. Even a digital system has its
disadvantages. For one, the signal is so rich with information
that it may have to be delivered to homes on fiber-optic cable,
which is expensive to install.
</p>
<p> If the U.S. adopts a non-Japanese system, as expected,
Japanese consumer-electronics companies will end up paying
licensing fees to American companies for the technology used in
building sets for the U.S. market. But the Japanese
manufacturers still have some important advantages as a result
of their head start. Analysts tend to believe that the logos on
most HDTV sets sold in the U.S. will be Japanese, even if
American fingerprints are all over the chips and technologies
inside. U.S. companies have simply dropped out of many facets
of the video-manufacturing business. Still, with researchers
taking such divergent tacks, the HDTV competition no longer
looks like a race that will have just one victor.
</p>
<p>By Barry Hillenbrand/Tokyo. With reporting by Mary Cronin/
New York.
</p>
</body></article>
</text>