Data on Disc 1997 (1st Edition)/stdatalib.iso/stonline/news/671bd.txt

Text File | 1996-03-28 | 16.4 KB | 324 lines

             MPEG: Enabling A Multimedia Revolution

In 1986 in Grenoble, France, engineers at a forerunner of leading
semiconductor manufacturer SGS-THOMSON Microelectronics worked on
a complex mathematical algorithm to manipulate digital audio  and
video data. Nearly ten years later, that algorithm is the core of
a  new  semiconductor  IC,  the  MPEG  chip,  which  is  bringing
high-quality full-motion video to  the mass  market. Though  most
consumers  don't  yet  understand  their  power, SGS-THOMSON  has
already sold over 3 million MPEG chips, establishing the  company
as the world leader in this emerging technology.

Digital  satellite  television,  CD-ROM,   CD-i  and   Multimedia
personal computers are some of the latest entertainment  products
entering  the  consumer  mind  set   as  information   technology
continues to move forward. What's intriguing about these products
is  that  their video  capabilities all  rely on  MPEG, a  ground
breaking  dedicated  integrated  circuit  that  is  the  enabling
technology for a multimedia revolution.

Over two million U.S. consumers already have MPEG chips in  their
homes  but  do  not realize  it. Digital  satellite TV  broadcast
systems  such  as  Hughes  Electronics'  DirecTV  have  risen  in
popularity by offering consumers up to 150 different channels. It
is MPEG's ability to process high volumes of  digital video  with
limited  bandwidth  consumption  that  makes  DirecTV   possible.
SGS-THOMSON is the  leading manufacturer  of MPEG  chips for  the
set-top boxes that power this new TV format, and is the  provider
of  choice  for  DirecTV,  currently  the  most  popular   direct
satellite system.

MPEG is also just beginning a rise to prominence as the  enabling
technology  in  video-CD players,  already popular  in Asia,  and
multimedia computers, which are poised to take off in the U.S. In
fact, by the end of the century, the industry estimates  consumer
demand for  advanced MPEG  decoder chips  will grow  to over  200
million units, more than ten times today's level.

Compression Technology: A Primer
MPEG stands for Motion Picture Experts Group, a committee of  the
International Standards Organization  formed in  1990 to  develop
standards  for   the  application   of  compression   technology.
Compression  reduces  the considerable  storage and  transmission
requirements of digital  image data  in order  to facilitate  its
playback by computers, televisions and other media hardware. Data
is  compressed  for  transmission  or  storage  by  MPEG  encoder
equipment and then decompressed, or  reconstituted for  playback,
by an MPEG decoder, a highly complex dedicated circuit containing
over    700,000    transistors.    The    result   is    standard
30-frames-per-second video at VHS quality or better.

Although  the  quality  advantages  of  digital  video have  been
understood  for  some  time,  its  potential   in  the   consumer
marketplace   was   previously   constrained   by   a   lack   of
cost-effective,  high-performance  compression  solutions.   MPEG
chips, which currently sell for about $35  - a  figure which  has
rapidly fallen since decreasing - resolve these issues.

The Need For Compression
A standard television picture consists of about 200 million  bits
of data per second. Transmitting  this picture  is equivalent  to
sending the information content of ten bibles  over the  airwaves
--  every second.  Although such  a huge  volume of  data can  be
transmitted in full over  existing satellite  networks, it  would
require far too much bandwidth to do so effectively.  Compressing
data  limits  the  necessary  bandwidth to  transmit TV  signals,
enabling broadcasters to offer hundreds of TV  channels to  every
home.

Likewise, a  standard compact  disc can  only process  data at  a
maximum  of  1.5  million  bits  per  second.  Although  this  is
sufficient for storing  digital audio  data, full-motion  digital
video data would need to be reduced about 100 times to make  this
format useful  as a  video storage  device. Compression  performs
this task, and as a result, it  has recently  become possible  to
store an entire two-hour movie on a compact disc.

How It Works
Compression takes advantage of the fact that a standard frame  of
video incorporates  significantly more  data than  the human  eye
notices. Compression  is a  two-step process,  performed at  high
speed via a complex mathematical algorithm. First, pixels from  a
video frame  that the  eye does  not notice  anyway are  removed.
Sequential  frames  are  then  compared  to eliminate  repetitive
information (such as a constant blue sky background).

The  compression  process  can  be  applied through  a number  of
international  standards, depending  on the  application and  the
level of image quality desired. MPEG is  accepted throughout  the
world as the highest quality format for video compression, and is
also widely used for audio compression.  Other standards  include
Dolby AC-3, which is popular for audio compression  in the  U.S.,
JPEG  for  still  video   images,  and   H.261  for   videophones
(SGS-THOMSON is also a leading force in this fledgling industry).
MPEG itself has two versions, MPEG 1 and MPEG 2, with the  latter
delivering  the highest  quality of  full-motion video  available
today.

Applications Market
Although its ultimate potential is still being  tested, MPEG  has
three basic applications in today's marketplace:

  Direct Digital Broadcast TV (DDB). DDB is currently the most
  widespread application of  MPEG. Its  popularity stems  from
  MPEG's ability to provide a significantly  larger choice  of
  channels and  display a  variety of  viewing angles.  Sports
  enthusiasts are  attracted to  both these  benefits. DDB  is
  also well positioned as the most likely  forerunner to  true
  video-on-demand.

  Video-CD. Via MPEG,  up to  two hours  of video  can now  be
  stored on a standard 5" compact disc, compared to only about
  two minutes without MPEG. This capability  is enhancing  the
  popularity   of  Video-CD   players,  particularly   karaoke
  machines,  in  Asia.  The  format  will  also  be  used   to
  facilitate  full-motion video  in games  and interactive  CD
  applications (CD-I). Current  equipment uses  MPEG 1  chips,
  but new MPEG 2-based standards have been developed,  leading
  to  the  mass  marketing of  an advanced  new generation  of
  digital video disc (DVD) players.

  Multimedia  PCs (MPC).  MPEG 1  chips are  now plentiful  in
  video playback cards retrofitted to existing  CD-ROM-capable
  personal  computers.  Additionally,  Microsoft's Windows  95
  operating  system  contains  an  MPEG  1   software-embedded
  decoding mechanism. The proliferation of Windows 95 will put
  the power of MPEG in front of the U.S.  consumer market  and
  thus  should stimulate  wide demand  for MPEG-quality  video
  titles. Beginning in late 1995, multimedia PCS will  conform
  to a new standard, MPC III, which requires the use of MPEG.



  The Creation Of A Standard
  The standard today called MPEG has its roots in a  Grenoble,
  France, research facility of THOMSON Semiconducteurs,  today
  part of SGS-THOMSON Microelectronics. In 1986, A small group
  of  research engineers  began using  a complex  mathematical
  algorithm  to  break  down  digital  data   into  its   core
  components.  The   algorithm,  known   as  Discrete   Cosine
  Transform, was the basis of the first compression algorithm.
  Today it is still the most powerful one in existence and  it
  is the mathematical formula on  which the  MPEG standard  is
  based.

  Realizing that DCT could have  substantial implications  for
  the   consumer   market,  SGS-THOMSON   created  the   Image
  Processing  Business  Unit to  work with  key customers  and
  strategic  partners  on potential  applications and  product
  designs. A major breakthrough was the  1990 introduction  of
  the Motion Estimator, the processor that compares sequential
  video images to eliminate  repetitive data,  the key  second
  step in compression. The  Motion Estimator  was the  world's
  first integrated processor for compression encoding.

  At this  time, the  MPEG committee  of the  ISO was  working
  fervently  on  developing  a  standard  for  compression  to
  facilitate its delivery to the consumer market. SGS-THOMSON,
  as experts in the application of the DCT algorithm, played a
  prominent role on the committee.

  The Motion Estimator was one of several "firsts" achieved by
  SGS-THOMSON in MPEG. Other milestones include the first MPEG
  2  video decoder  (1993) and  the first  single-chip MPEG  2
  audio/ video decoder (1994). Previously, all MPEG  solutions
  required separate chips to perform audio and video decoding.
  The  importance  of  this  accomplishment   should  not   be
  underestimated: in a consumer market that demands lower-cost
  technology, SGS-THOMSON's single  A/V decoder  has the  dual
  advantages  of requiring  less silicon  (the most  expensive
  integrated circuit raw material) and consuming less power.

  Due to  these innovations,  SGS-THOMSON in  1994 became  the
  first semiconductor manufacturer  to sell  one million  MPEG
  chips and became the first to  ship three  million units  in
  the summer of 1995.

Bringing MPEG To the Consumer
SGS-THOMSON is the only company  producing MPEG  chips in  volume
for all three of these markets. In the two largest segments - DDB
and MPEG 1 video playback cards  - SGS-THOMSON  has a  commanding
market share lead.

The company's leading position was built on a  core strategy:  to
make  MPEG affordable  and accessible  to the  consumer. The  key
elements of this strategy have been  to produce  high volumes  of
chips with superior performance and low cost.

SGS-THOMSON's MPEG architecture  is designed  to provide  maximum
speed  and  performance,  using  as  little  silicon  and   power
consumption  as  possible.  The  company's  top-of-the-line  MPEG
products are the most efficient on the market in  terms of  power
needs, emitting less than one watt from a standard 3.3 volt power
supply. In terms of chip size, SGS-THOMSON is beginning a move to
0.35µm manufacturing technology  which will  further reduce  chip
size  and therefore  cost, increasing  the company's  competitive
advantage in the MPEG market.

As a global semincondutor company with over $1.6 billion in sales
in  the  first  half  of  1995,  SGS-THOMSON  enjoys  significant
corporate strengths  which aid  its MPEG  program. The  company's
worldwide  marketing  and application  support makes  SGS-THOMSON
better  suited  than smaller,  "fabless" competitors  to get  its
products  into  virtually  any  global  market  and  provide  the
customer  service  critical to  establishing comfort  with a  new
technology. SGS-THOMSON has also had the luxury  of full  control
over the  MPEG development  process, from  design to  production.
This advantage  has allowed  SGS-THOMSON to  tailor its  products
more directly for its  leading-edge manufacturing  processes -  a
key  to  achieving  rapid  product  development  and   production
ramp-up.   Additionally,  SGS-THOMSON's   network  of   strategic
alliances and customer partnerships has provided the company with
valuable system knowledge. In the  nascent stages  of MPEG,  this
knowledge gave SGS-THOMSON the  ability to  better visualize  the
potential end-user markets for compression technology and  design
its products accordingly.

MPEG Takes Off
As MPEG sales accelerate,  SGS-THOMSON will  draw on  all of  its
strengths to maintain and enhance  its position  in the  consumer
market. But with  the growth  expected of  MPEG, the  competitive
stakes are high.

Sales of DDB television systems with MPEG  2-based set-top  boxes
will grow rapidly through the end of the decade (see table), with
several European and Asian formats being introduced over the next
two  years.  By  1998,  set-top  box  sales   should  be   evenly
distributed among the three major global regions.

The key to expanding DDB sales is lowering the price. The typical
system   currently   retails   for   between   $700-$800,    with
semiconductors the most expensive input. To make the product more
cost-competitive with traditional cable  TV, SGS-THOMSON  expects
to cut the cost of set-top boxes at  least in  half through  MPEG
innovations that reduce the necessary memory.

           Industry estimate for MPEG market by application
(millions of units)
Product      1995   1996   1997   1998   1999
Set-top box    2      7     20     50     75
DVD           <1      1      5     15     40
MPEG-1 PC      5     10     30     50     70
MPEG-2 PC             1      5     15     35


The growth of Digital Video Disc (DVD) players will be helped  by
the availability of many titles from the major content providers.
It  is  anticipated  that the  DVD format  will replace  existing
CD-ROM  discs and  VHS tapes  for storing  and displaying  filmed
entertainment. Many entertainment  companies are  believed to  be
supporting a move to DVD, due to both higher picture quality  and
lower  cost. The  pressing of  a movie  onto a  12cm (5-inch)  CD
currently costs about 50¢ versus  the $4  cost of  dubbing a  VHS
video cassette.

The MPC market is on the verge of taking off with  the advent  of
Windows  95,   which  offers   software-embedded  MPEG   decoding
capability. While not as powerful as a hardwired  MPEG chip,  the
exposure afforded by Microsoft's new system should  soon lead  to
the increased availability of MPEG titles, which is a vital stage
in  the  growth  of  MPEG  in  the  United  States. Already,  new
multimedia PCS must meet a new standard, MPC III, which  requires
a MPEG decoder on the motherboard.

Where Do We Go From Here?
Although digital television,  video disc  players and  multimedia
PCS are  fundamentally different  products, MPEG-enabled  digital
video display brings them closer together. In fact, many  experts
see  DirecTV  and  video-CD   as  milestones   in  the   ultimate
progression toward home terminals combining television,  computer
and communications technology.

The convergence of media to a home terminal would facilitate  the
widely anticipated  dawning of  interactivity, whereby  consumers
can order movies or concert tickets over the  television or  play
highly advanced interactive games. In  the U.S.,  well-publicized
trial programs by Time Warner and  U.S. West,  among others,  are
experimenting with interactive media  driven by  the set-top  box
format. SGS-THOMSON is active in both  these efforts  as well  as
similar  initiatives   from  several   regional  Bell   operating
companies.

One Terminal, One Chip
As digital video drives the convergence  of media  products to  a
single terminal, MPEG is already driving  a parallel  convergence
in  semiconductor  technology.  SGS-THOMSON  and  others are  now
working   toward   a   "superintegrated"   semiconductor    which
incorporates  key   functional  blocks   on  the   same  chip.
Superintegrated  chips  will  combine  powerful  microprocessors,
digital  signal  processors  and  dedicated  circuits  like  MPEG
decoders.  The  advantages  of  integration   are  enormous.   By
requiring  less  silicon,  these  advanced  chips  will  be  much
cheaper, and thus more accessible to the mass market. Costs  will
be  cut  further  through  memory-sharing  and other  synergistic
technological innovations,

Ironically,  then,  as MPEG  succeeds in  driving the  multimedia
revolution,  it will  likely lose  its singular  identity in  the
general  public,  as  but  one   piece  of   the  most   powerful
semiconductors yet developed. While MPEG will be as vital as ever
to multimedia, it will be a "team player," a crucial component of
a highly advanced integrated hardware solution.

Superintegration  ultimately  plays   into  SGS-THOMSON's   hands
strategically.  As  a  broad-range  semiconductor  supplier  with
leading world market positions  in analog  and mixed-signal  ICs,
power Ics, ASICs, memory products, smart power  and other  areas,
the company has the technology and the products to  be among  the
first to achieve a winning  superintegrated solution.  Supporting
SGS-THOMSON's  competitiveness  are  its  size,  diverse  product
portfolio, advanced manufacturing capability, worldwide marketing
and  application  support,  impressive  complement  of  strategic
partners and cutting-edge technologies.


SGS-THOMSON Product Snapshot
Product:  MPEG 1&2 decoder chips
Division: Image Processing Business Unit
           (Dedicated Products Group)
Director: Guy Lauvergeon
Headquarters:  Grenoble, France
Manufacturing: Crolles, France and Phoenix, USA