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JVC 1999 11
considering tie-ups with other companies for products it
does not handle.
Newly introduced product lines have also been well
received on the market. At the world’s largest broad-
casting equipment exhibition promoted by the National
Association of Broadcasters (NAB), our high-definition
encoders, small monitors and two other products were
once again voted the best in their categories by industry
journalists.
JVC’s encoders and decoders are based on technol-
ogy accumulated while the Company fulfilled a promi-
nent role in the technological innovation of MPEG
international standards for compressing and decom-
pressing digital data. Praised for their world-class high
image quality, small size and energy conservation quali-
ties ideal for mobility, our encoders and decoders were
delivered to four of the seven experimental terrestrial
digital broadcasting stations in Japan and to DIRECTV
Japan Management, Inc. for communications satellite
(CS) broadcasts. With the digitization of BS transmis-
sions to begin in December 2000, eight BS stations are
earnestly setting up equipment to be ready by next
spring. With the digitization of terrestrial broadcasting
expected to follow soon after, JVC is increasing the
number of marketing personnel with the aim of securing
a dominant share of the market.
DVD archives provide a solution to videotape storage
and maintenance problems at broadcasting stations.
Utilizing karaoke disc-changing technology, a forte of the
Professional Electronics business, our archives hold up
to 600 DVDs, resolving such problems as space and
searching.
In broadcasting-related fields, JVC is making efforts
that include system engineering in satellite video-on-
demand systems. These systems send image, music
and text data to large-scale displays installed at restau-
rants and other places using excess bandwidth of satel-
lite digital radio stations. McDonalds Japan has already
commenced trial services and plans to fully deploy the
system in the future. An effective advertising medium
that accurately targets customers, demand is high for
commercials and commercial frames that are shown in a
portion of a display during regular programming. As rev-
enues from advertising will cover most of the facility
expenses, family restaurants and record store chains are
enthusiastic about introducing the system. Expertly com-
bining hardware and software into packaged proposals
for this field, JVC is dedicated to developing this busi-
ness into a field of solid growth.
Digital technology also contributes substantially to the
field of security. Our digital network systems make
possible the storage of surveillance images on DVD,
eliminating the enormous cost associated with switching
videotapes in conventional systems. A major security
company that changes more than 10,000 videotapes
every two days throughout Japan has decided to employ
our system. The Company’s proposal for a system that
precisely matches customer needs was the deciding
factor in winning the order. Extraordinary growth is highly
anticipated for digital technology in the field of security.