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Industrial Prospects

Digital audio and video industry is predicted to replace communications industry as the first backbone industry in Chinese national economy by 2010. As a basic standard with much impact on digital audio and video industry, AVS presents a rare opportunity for China to establish an industrial chain: Technology ¡úPatents ¡úStandards ¡úChips and Software ¡úMachine and System manufacturing ¡úDigital media operating and Cultural industries.
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For DTV receiver manufacturers, it is not difficult to adopt AVS. For a standard, what matters most in physical implementation is by a decoder chip. A DTV receiver can support verified source code standards just by changing decoder chips. Therefore, the cost of AVS replacement is not as high as imagined.

AVS means much for digital TV operators. Digital television operating system is made up of three main parts: program producing, broadcast and transmission. Of the three, program producing (executed in TV studio) and transmission (by digital television transmission network) account for most majority of the total input, but have nothing to do with broadcast format, so the replacement with AVS does not affect those already inputted efforts in the two links. Using AVS requires fix AVS coders, but the effort will certainly be rewarding. It can save at least half of the transmission bandwidth resources and provide HD business to transmission system deployed for SDTV, and as a result for television network, transmitted program capacity will be doubled. It benefits the state-owned resources as well, because half of the wireless spectrum resources can be saved in terrestrial broadcasting.

China is developing native CD-ROM and CD-ROM technology & standards. The red optical disc servo system is practicable, but it needs three or even more discs to store an MPEG-2 encoded high-definition movie. AVS coding efficiency is three times that of MPEG-2 in compressing high-definition programs, so one AVS-based disc will be large enough. When it comes to film sources, program producers hope discs issued in different regions in different formats. To publish AVS format CD-ROM in Chinese market will facilitate the healthy development of Chinese audio and video distribution industry and high-definition optical disk driver industry as well.

AVS industrialization work has commenced since standards drafting. It is now in start-up period for large-scale industrialization.

The main applications for AVS include but not limited to the following sectors:
1) Chips, HD /SD encoding and decoding chips, Chinese annual demand in the next 10 years will reach an average of over 4000.
2) Software, program production and management systems, AVS-based stream media broadcast, on demand, playback software on Linux and Window platforms.
3) Machines, set-top boxes, hard broadcast servers, encoders, AVS HD DVD, high-definition DTV set-top boxes and receivers, Mobile, AVS portable digital devices and etc.

In short, the direct result of AVS industrialization are China¡¯s demand for 300-500 million decoder chips in the next 10 years, to save more than 1 billion US dollars of patent fees, directly provide high-definition operations by making use of SDTV transmission system and create a new generation of HD DVD on the basis of the current optical disc technology. Therefore, it presents a rare opportunity for China¡¯s digital AV industry to develop by leaps and bounds. AVS is to usher in a bright future in cooperation with powerful manufacturers of chips, software, machine and media operation in the field of home appliances, IT, broadcasting, telecommunications, audio, and etc.
Hereprovides more AVS press release and news report on AVS latest application.
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