NeoMedia Technologies, Inc (NEOM)

[ss9173]

OT DD Digital Media Broadcast handsets to be "as widespread as camera phones"

http://www.imodestrategy.com/2005/11/digital_media_b.html

Finance Asia reports from Korea on fascinating trends in two specialised handsets - DMB (Digital Multimedia Broadcast) phones and game phones.

These are observed to be moving in the opposite directions, with the former experiencing robust sales while the latter seems to demonstrate a slowing down.

Samsung Electronics' S-DMB phones are reported to be selling well, with its four models selling over a total of 250,000 units. SK Teletech also sold 150,000 of its IMB1000 model, while LG Electronics registered a growth in its DMP phone sales, with 50,000 units sold. Samsung has decided to have DMB as a standard function in all of its new phones next year.

It is estimated that DMB/DVB will soon be as widespread as the camera function.

LG Electronics and Pantech & Curitel as expected to reflect this market trend by releasing different models of DMB phones.

This is quite a remarkable development, technically because the core mobile TV/DMB platform requires a low-power IC core which can act as the host CPU, audio DSP, and the video decoder, with optional video hardware accelerator available (for example the Vigo Mobile TV IP Platform from Imagination Technologies of the UK). Market-wise it means a revolutionary new content channel and telcos will battle with media content suppliers e.g. radio and TV networks, for control of this channel.

Early movers are already acquiring Korean companies who have advanced technology and experience in digital multimedia to mobile services, such as Vidiator acquiring the "assets and engineering assets" of the Platform Division of Nextreaming.

A thorn in the side of DMB is that it is proprietary to South Korea - derived from the Digital Audio Broadcast (DAB) standard that enjoys wide use in Europe for radio broadcasts. Japan uses DAB for satellite broadcasts, too, but has its own standard for terrestrial broadcasts. Outside Korea the standard being promoted is DVB-H - with Nokia running over 40 trials with carriers and broadcasters.

Both LG and Samsung have major investments in DMB and hope that it will be adopted throughout Europe as a standard.

- Here is a clear and easy to read analysis of the current state of DVB/DMB in The Business Online.

The slowing down of sales of game phones are seen as the reason for the delay in the release of game phones. The weak game phone sales are expected to have a negative impact on telecom operators and game providers, with game phones necessary for the growth of advanced game contents.
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