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In Japan, digital television was introduced in 2000 for satellite broadcasting
and in December 2003 for terrestrial broadcasting. Because of historical, political,
and other reasons, this change is taking place in the form of merely replacing
analogue content for digital one; it has accompanied few change in business
practices or in the industry structure. Accordingly, the benefits of the digitization
are considered to be limited to technical improvements such as spectrum saving,
noise prevention, finer images (HDTV), and multi-channel capability.
It is understood, however, that the impacts of the digitization of television
in the long run will reach far beyond those technical improvements, since it
has now become possible to increase the value of the content to viewers by processing
it with computer and storage technologies. For instance, "TV Anytime,"
a TV-receiving device to let viewers watch programs at a time and in an order
chosen by them, might decrease the effectiveness of TV commercials; a consequence
would be gradual replacement of traditional free TV with subscribed one. TV
programs may become to occupy only a portion of the content markets, although
nobody can forecast exactly the future state of copyright issues as we learned
from what took place in the past with music content.
This paper attempts to deal with the impacts of digital television broadcast
in conjunction with the power of computer and storage technologies. It will
focus on the need for, and the implications of, forming "platforms"
for digital business, a way to establish "efficient division of labor"
in the digital world, in relation to digital television. One aspect is to consider
platforms useful for competition and coordination of digital television and
the Internet. The paper attempts to identify political and regulatory impediments
of smooth formation of such platforms and to offer policy recommendations for
overcoming them.
digital television, IP-TV, content, Internet, competition platform, copyright, copy-once restriction, cut-and-paste-once restriction, TiVo, B-CAS card, server-type television, vertical integration, vertical separation, internal cross subsidization, infrastructure, monopoly, monopoly front, price-taker requirement, convergence in telecommunications
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Hajime Oniki