China Forms Industrial Alliance to Promote Home-Grown Audio-Video Coding Standard

Strategic Insights -

A coalition of 14 leading Chinese electronics manufacturers, content providers, and developers will form an alliance to promote the home-grown audio-video coding standard (AVS), which competes with the international MPEG4 (Moving Picture Experts Group) standard. The AVS working group has already drafted the standard and unveiled the first decoding chip, AVS 101, and several Chinese firms have expressed interest in adopting the standard. The alliance aims to speed up the standardization process and lobby the Chinese government for financial incentives and support.

Key Takeaways:

  • The AVS working group has drafted the audio-video coding standard and unveiled the first decoding chip, AVS 101.
  • The alliance will be composed of 14 leading Chinese electronics manufacturers, content providers, and developers.
  • The Chinese government is expected to provide financial incentives, including research and development funds, to encourage companies to adopt the AVS standard.
  • The AVS standard aims to provide an open and economically affordable alternative to the international MPEG4 standard.
  • The working group estimates that China needs 40 million coding and decoding chips a year and that the use of AVS will save the country at least US$1 billion in royalties in 10 years.
  • The effects on electronics terminals will be significant, as China has over 400 million TV sets, 300 million mobile phones, and 300 million fixed-line phones.
  • The organization has over 130 members, including foreign companies like US semiconductor company LSI Logic, Intel China, LG China, Dolby Laboratories Beijing office, and Nokia China.

Statistics:

  • 40 million: The number of coding and decoding chips China needs per year.
  • US$1 billion: The estimated savings in royalties that China will make in 10 years by adopting the AVS standard.
  • 400 million: The number of TV sets in China that will be affected by the adoption of the AVS standard.
  • 300 million: The number of mobile phones and fixed-line phones in China that will be affected by the adoption of the AVS standard.
  • 14: The number of leading Chinese electronics manufacturers, content providers, and developers that will form the alliance.

Sources:

  • China Daily (March 25, 2004)
  • Beijing Evening News (April 15, 2004)
  • Xinhua News Agency (April 17, 2004)