The following has been detected by some among the most inquisitive analysts as a breakthrough for the convergence between IT and Audio & Sound specialists. Indeed, these companies are playing in what was seen as different worlds, i.e. Consumer Electronics and IT. The question is henceforth to carefully monitor what happens next because it seems to us that this is only the beginning…
To put it simply, Onkyo , the Japanese Co. sells a convertible bond, the value of which is approximately US$7.4 million to Intel Capital . At Intel 's option, this bond would be converted into Onkyo common stock at the maturity date of 2009.
The statement also says that (Quote) “ The proceeds would be used to extend Onkyo's home theatre technologies by developing and commercializing advanced audio and visual systems that complement Intel's digital home solutions” (Unquote). In addition, (Quote) “ The bond would be purchased using resources from Intel Capital's $200 million Intel Digital Home Fund , which supports Intel's initiatives to enable people to enjoy digital content – including music, photos, games and video – on multiple devices in the home and beyond.” (Unquote).
There's more: both companies agreed “ to work together on the technical development and co-marketing of new networked consumer electronics devices based on industry standards, including Digital Living Alliance Network and Digital Transmission Content Protection over IP ( DTCP-IP , think protection of content against piracy ) specifications, which are intended to enable a new consumer experience in the digital home environment. Under the agreement, Intel would provide Onkyo with software technology and engineering resources for the development of these systems ”. Intel will provide Onkyo with software and engineering resources for the development of these systems.
Ok then, but what does this exactly mean? According to Onkyo's Chairman Naoto Otsuki, these efforts will contribute to bridge the CE and IT industries in order to develop truly integrated products, thus helping Onkyo to develop “a new category of products” …
Bridging and Integrating
Digital Living Alliance Network ( DLNA ) is a body aiming “To enable the cross-industry convergence by establishing a platform of interoperability based on open and established industry standards.”
Digital Transmission Content Protection ( DTCP ) is another industry body whose goal is to ” s top unauthorized, casual copying of commercial entertainment content”. It was first created by the so-called 5C group comprising Hitachi , Intel, Matsushita Sony and Toshiba — as an outgrowth of the Copy Protection Technical Working Group (CPTWG).
Woaah…! These two are serious, and no matter what, something is going to change in the coming years for the end user, whose delicacy will consist in the convergence of so many different worlds into a single, new one, wile at the same time our tragedy will probably be a very close monitoring and surveillance of anything doomed illicit by all these industry born standards.
We'll keep you up to date with any outcome in the near future…