CELEX: 51988PC0659R(01)
Language: en
Date: 1989-01-24
Title: Proposal for a COUNCIL DECISION on High Definition Television (presented by the Commission)

ARCHIVES HISTORIQUES
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COM (88) 659
Vol. 1988/0220
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
• REVISE !) VERSION                  COM(88 ) 659 final
                                     Brussels , 24 January 1989
                             Proposai for a
                            COUNCIL DECISION
                    on High Definition Television
                    ( presented by the Commission )
 ---pagebreak---                                       CONTENTS .
A. Summarv .
B. Introduction .
C. Explanatorv Mémorandum .
   1)       Introduction .
            1.1      What is at Stake ?
            1.2      The Standards Issue .
   2)      The Requirements Now.
   3)      The Aim of the Proposed Decision and the Approach chosen .
   4)      Conclusion .
D. Draft Proposal for a Council Decision on HDTV.
 ---pagebreak--- A.  SUMMARY .
    High Definition Television ( HDTV) is of strategic importance for the European
   professional and consumer electronics industry, for the European television and film
   production industry and for broadcasting. TTiis Decision will make a substantial
   contribution to the establishment of a comprehensive strategy for the Europe-wide
   launch of HDTV services in order to avoid that a situation analogous to the
   PAL/SECAM-case in the past occurs again in Europe and in order to prevent the
   danger of the fragmentation of the new markets .
   The proposed Decision has three aims:
        to declare the main objectives of a comprehensive European HDTV strategy;
        to launch a major promotion campaign in support of the European HDTV
        system ;
        to provide the appropriate framework conditions for European industry (both
        equipment manufacturers and service providers) through the preparation of a
        Services Action Plan, so that they can with confidence make the substantial
        investment that will be required in order to ensure the launch of operational
        HDTV services Europe-wide by 1992 .
   By means of the cooperation initiated at Community level as a result of the proposed
   Decision, European solidarity in the field of New Audiovisual Policy can be
   strengthened .
 ---pagebreak---                                               -2-
 B.   INTRODUCTION
     In May 1986 Europe united and succeeded in obtaining from the CCIR - which was
     poised to adopt a Japanese-American standard - a four year period in which to
     demonstrate the validity of its alternative proposal. This Japanese-American proposal
     would have greatly diminished Europe’s possibilities to develop its audiovisual and
     electronic industries. Having adopted common satellite broadcast standards (the
     MAC packet family) for television in July 1986, Europe, through the achievements of
     its industry cooperating in the framework of Eureka, has now demonstrated its
     capacity to close an important technological gap in just twenty months.
     European industries* 1 >, working together, demonstrated in Brighton on 26th
    September last, their capacity to generate, record, transmit and display images largely
    comparable with those offered by their Japanese competitors, but - contrary to the
    approach of these competitors - capable of being shown in a compatible manner on
    existing equipment . This significant success is all the more notable since it follows
    immediately on the announcement of a shift in United States’ policy in this field .
    The European Community with the driving force of the Commission has ceaselessly
    contributed to this spectacular comeback through its regulatory, diplomatic,
    technological and financial actions.
    There remains, nevertheless, a lot to be done for Europe to secure the advantage it
    has gained and to guarantee its competitiveness in this vital domain of the electronic,
    informatic and audiovisual industries.
    It is a true call for mobilisation that we have to issue to the actors concerned :
    researchers, industrialists, T.V. programme makers, film makers, media etc.
    This mobilisation requires a global strategy in the Community and the whole of
    Europe. That is the aim of the present communication which sets objectives, methods
    and procedures for such a strategy.
    This strategy also provides essential elements of a response to the call made by the
    Heads of State and Ciovernment in the European Council in Hannover in relation to
    an \ a !     . j t«! Em   project, and to that made by President Mitterand to President
    Deiors in a recent letter on this subject .
(D
    A consortium of about thirty companies ted by Philips , Thomson and Bosch .
 ---pagebreak---                                          -3 -
C. EXPLANATORY MEMORANDUM .
   1.   INTRODUCTION.
   1.1  What is at Stake ?
        High Definition Television is a new electronic imaging technology that will
        introduce into the home cinema quality television pictures on large screens,
        and that will in time replace the existing 35 mm . film technology of the
        cinema .
        HDTV is also likely to find major applications in existing and new areas in
        such fields as :
             advertising
             printing and publishing
             education and training
             computing
             medicine, etc...
        It is difficult to assess the economic impact of this new technology, precisely
        because it is new . However it has been estimated that the market for
        equipment in the U.S. alone will reach a figure of between 26 and 52 billion
        US $ in the ten years after the launch of services. Equivalent estimates for
        Europe, Japan and the rest of the world could multiply these figures by a
        factor of about three .
        It should be emphasized that the market for television production and
        reception equipment of a conventional kind is very large and is growing in
        Europe, in the USA and in Japan. The overall position may be summarized
        as follows :
                Consumer TV reception equipment had a world market of 70 billion
                US $ in 1986 and is projected to grow to 103 billion US $ in 1991 .
               The penetration of television receivers in 1995 is projected to be of the
               order of 1 billion sets .
                Profession TV production equipment had a world market of 1.6 . billion
                US $ in 1987 and is projected to grow to 2.2 billion in 1990.
 ---pagebreak---                                                 -4-
                  The economic impact of HDTV will certainly not be limited to equipment
                  sales however. The technology also offers savings in the production costs of
                  cinema films and television programmes as well as increased functionality
                  and flexibility. This increased functionality will allow substantial
                  improvements over current picture quality and also completely new
                 possibilities for dealing with imagery both for current applications and for the
                 creation of completely new applications.
                 The scale and potential impact of this new technology make it of strategic
                 importance to the consumer electronics industry, it cur- be argued that the
                 prospects for future growth in employment and wealth creation in the
                 European consumer electronics industry will be intimately related to its
                 success in HDTV and related product and c<~ 'iponeut a-eas, such as VLSI
                 electronic components and sub-assemblies .
                 This is the reason why the Heads of State and Government in the European
                 Council in Hannover, and the representai.ves of the Governments and of the
                 Commission in the Eureka technology initiative, and the European
                 Community itself, have voiced their strong interest in these issues and why
                 different types of initiatives have already been made at European level.
     1.2        The Standards Issue .
                At the Plenary meeting of the International Radio Consultative Committee
                (CCIR) held in Dubrovnik in May 1986, a proposal by Japan, with US
                support for a world standard for the production of HDTV material was
                opposed by Europe. This European opposition was based on the fact that the
                proposed Japanese standard was incompatible with all existing standards,
                whether for the cinema or TV. An additional Study Period of four years was
                agreed at that meeting in order to continue the search for a production
                standard which would be acceptable on a world basis.
                It is widely recognised that the Community played a significant role in
                creating a European consensus on this issue for the Dubrovnik meeting. This
                coordination role continues as the standardization procedure progresses
                through the CCIR.
                The additional study period has allowed European industry in a Eureka
                Project ( EU 95), to define an alternative HDTV system based on a
                philosophy of compatibility and evolution. This system is based on the
                existing MAC/packet family of standards developed in Europe for use with
                Direct Broadcasting Satellites ( DBS ) and which is the subject of a Council
                Directive. < 2 )
(2)
    OJ N * L 311 , 6.11.86 , P.28
 ---pagebreak---                                  -5 -
    The European HDTV system as now defined consists of an ultimate
    origination standard for production of HDTV material and interchange
    between film and digital video tape ( this is what Europe is offering as the
    single world standard for production ); a broadcast studio standard suitable
    for use in production at local level and an emission standard - HD-MAC -
    suitable for compatible transmission in a European environment and those
   parts of the world which currently use PAL or SECAM 50 Hz television
   systems. The ultimate production standard as defined has furthermore
   sufficient headroom to allow conversion , with acceptable quality, into any
   regional broadcast studio standard and transmission standard .
   The CCIR timetable requires that Europe demonstrates the practical
   realization of the HDTV concepts before the May 1989 Extraordinary
   Meeting of the CCIR Study Group 11 . The technology to be demonstrated is
   the so-called full TV chain which covers the broadcasters studio equipment
   (cameras, recorders, mixers, film to tape transfer, etc..), through the
   transmission path (satellites) to the home environment (satellite reception,
   TV display and video cassette recorders).
   To achieve this goal a dedicated research and development project was
   established within the framework of Eureka . A consortium of more than
   twenty European companies led by the leading consumer electronics
   companies Philips, Thomson and Bosch has been committed to the effort for
   the past two years.
   Progress is such that the required full TV chain and associated equipment
   has already been successfully demonstrated at the International Broadcasting
   Convention in Brighton, U.K., in September 1988. Further major
   demonstrations are planned for Montreux and for the Internationale
   Funkausstellung in Berlin in Summer 1989.
   The CCIR will attempt to adopt a single world standard for high definition
   production at its Plenary Session scheduled for Summer 1990.
2. THE REQUIREMENTS NOW .
   Europe has made strong progress in the two years since the Dubrovnik
   meeting. The present position may be summarized as follows:
          the threat of an HDTV standard of Japanese origin being imposed on
          the world against the interests of Europe, has receded;
          the European conceptual work on systems and research and
          development efforts on hardware are progressing satisfactorily; and
          pan-European solidarity on compatibility       and evolution has been
          consolidated .
 ---pagebreak---                                 -6-
   It should however be emphasized that the success of the research and
  development efforts of industry and of the diplomatic efforts of the
  Community will advance the European cause only so far. The next stage - the
  translation of R & D into commercial products and particularly HDTV
  services will require efforts much greater than those employed to date.
  It is now possible to put a target date of 1992 for the availability of
  commercial equipment and the beginnings of operational HDTV services in
  Europe. Four years is, however, a short time in which to launch such a
  radically new technology on the market. Substantial efforts will have to be
  made in preparation for such a launch, both at the level of the consumer (the
 viewing public) - to prepare for viewer acceptance - and at the level of the
  service providers (terrestrial broadcasters, cable operators, satellite TV
  stations, film makers etc..) - to ensure the adequate familiarity of
 professional programme makers with the new technology on the one hand
 and to ensure the timely availability of the distribution infrastructure on the
 other.
 The broad lines of this European HDTV Strategy should therefore be:
        i)    to consolidate the gains already made; and
        ii)   to concentrate future major Community cfTorts on
              the creation of appropriate framework conditions for the
             coordinated Europe-wide introduction of the new system.
This strategy may be elaborated as four objectives, two of which relate to the
consolidation of gains (dealing w'ith technology and standards) and the other
 two to the creation of appropriate framework conditions for the coordinated
 Europe-wide introduction of the new system (equipment, programmes and
services).
In relation to the consolidation of gains, objectives with respect to technology
and standards are proposed .
In the field of Technology it is proposed :
Objective 1
to ensure that the European industry develops in time all the necessary
technology, components and equipment required for the progressive
launching of HDTV services throughout the 1990s.
In order to ensure that Objective 1 can be achieved, the Commission will
initiate in the immediate future, detailed discussions with the European
Consumer Electronics Industry to ascertain plans and identify bottlenecks. As
a result of these discussions, new initiatives are likely to be identified which
could in certain cases lead to the broadening and reinforcement of relevant
aspects of the ESPRIT and RACE programmes.
 ---pagebreak---                                 -7-
  Elements to he investigated here include :
          dual standard D + D2MAC chip sets and HD.MAC chip sets
          display technologies
          encryption technologies
          technologies for terrestrial broadcasting of HDTV
          etc.
 In the field of Standards it is proposed :
 Objective 2
 i)      to ensure that the European proposal based on the parameters: 1250
         lines, 50 frames per second progressive scanning, is adopted as the
         single world standard for the origination and exchange of HDTV
         programme material;
 ii )    to ensure that broadcast standards (which will be different in 50 Hz
         and 60 Hz countries) obey the rules already laid down in CCIR
         Recommendation 601 and are thus easily convertible into each other.
The achievement of this objective will require the maintenance of a strong
and tightly controlled European position in the CCIR, and reinforced
diplomatic activity by the Member States and by the Community as a whole
( in association with EFTA) in support of the European position in important
(in this connection) regions of the world, such as the USA, Japan, the Soviet
Union and Eastern Europe.
In relation to appropriate framework conditions for equipment and
programmes :
Objective 3
to ensure the widest use of the European HDTV system throughout the
world and the most favourable environment for the sale of European HDTV
equipment and programmes throughout the world .
The introduction of any new technology - particularly one as far reaching as
HDTV - will require that the promotional efforts to prepare for professional
and consumer acceptance are substantial. There is a major need therefore to
prepare a comprehensive programme of actions to promote the European
HDTV system both in Europe and in the rest of the world and to ensure that
adequate resources are made available to carry out such a programme.
The preparation and execution of a programme of this nature is a major task
and could ultimately involve the creation of a dedicated mechanism for that
purpose. This mechanism which could take the form of a "Groupemen ?
d’lnterets Economiques Europeen" involving industry, some Governments
and the Community represented by the Commission, would have the task of
planning and managing such a promotion programme. As the G.I.E. will only
come into effect as of 1 July 1 989 an appropriate interim mechanism will
have to be put in place.
 ---pagebreak---                                                 -8-
                In this respect the proposal from the Eureka 95 Directorate, for the
                Community co-funding of fixed and mobile HDTV studios, will have to be
                considered (see section 4 below).
                In relation to appropriate framework conditions for services :
                Objective 4
                to ensure the development of a Strategy and Action Plan for the progressive
                launch of HDTV Services in Europe throughout the 1990s.
                Such an Action Plan will involve the committment of terrestrial broadcasters,
                satellite TV stations, and cable operators together with the regulatory
                authorities to provide the necessary infrastructure to transmit HDTV
               programmes throughout Europe as well as the committment of the
               programme providers to present their offerings in this new format.
               Satellites will be important for HDTV distribution. The French TDF-1 DBS
               satellite was recently successfully launched . The next three years will see the
               launch of about a dozen satellites capable of delivering of the order of one
               hundred channels of TV direct to the home.
      3.       THE AIM OF THE PROPOSED DECISION AND THE APPROACH
               CHOSEN .
               To date HDTV activity in Europe has concentrated on R + D and standards
               setting. As the focus moves more towards the commercialization phase, there
               is an increasing need to articulate a clear and comprehensive strategy leading
               to the launch of HDTV services. For this reason the Council is first asked to
               approve the four objectives elaborated above as the expression of this
               strategy.
               As was emphasized above, the creation of appropriate framework conditions
               for the introduction of the new system in Europe and the rest of the world
               will be crucial to ultimate success .
               One of the pre-conditions for the success of Europe wide HDTV will be the
               creation of a legal framework aimed at the removal of the barriers to free
               circulation of broadcasts in Europe. In order to do so the Commission has
               proposed a directive concerning broadcasting activities. (3 )
               A major bottleneck on the way to Europe wide HDTV services is the limited
               experience of European film makers and TV programme makers in using this
               new equipment and the limited range of programmes made with European
               HDTV equipment . The introduction of this new medium will as a matter of
               fact offer a remarkable new opportunity to present subjects related to the
               European identity in an attractive form .
(3 )
     OJC 179 of 17.7.1986 , p. 4 as amended OJC 110 of 27.4.1988 p. 3 .
 ---pagebreak---                                  - 9 -
 The MEDIA programme can play an important role in this connection. Its
 aims are wider than the development of HDTV production however, as it
 also covers such sectors as : distribution, production, training and financing of
 the A.V. industry in the Community. The MEDIA programme is
 coordinating, as from autumn 88, some ten pilot-projects in these sectors.
 Nevertheless, this programme has not sufficient resources to fund the
 equipment requirements of fully equiped HDTV studios.
 To redress this situation , European industry has submitted a proposal to the
 Commission for Community part-funding.
 This proposal, in summary, is to provide HDTV production facilities which
would consist mainly of a demonstration studio equipped for post-production
 and fully-equipped Outside Broadcast (OB) vans. These facilities will be
 made available for experimental use by the staff of audio-visual production
companies (broadcasting organizations, cinema production companies, etc..)
 and .to provide compatible TV coverage of major ceremonial and
international sports events. The OB vans will also be used to provide live
demonstrations of the system, from the camera to the home receiver, at
 exhibitions and conferences (the SMPTE and NAB Conventions in the
 United States, the Montreux Symposium etc.)
This experimental use will contribute to the preparation of both the
professional programme maker and the viewing public for the launch of
 operational HDTV services in 1992. The Barcelona Olympic Games and the
Seville World Exhibition could provide an exciting opportunity for such a
 launch .
 The cost of these initiatives would be of the order of 45 MECU. This
 proposal is now under analysis within the RACE programme. The estimated
 amount of Community participation would be of the order of 15 MECUs.
The provision of operational HDTV services in Europe will require the
availability of the necessary broadcasting infrastructure (satellite, cable,
terrestrial) and the necessary programme production facilities. It is now
urgently required to prepare, on a Community wide basis, an Action Plan for
the provision of these facilities.
The Council is therefore invited to request the Commission to take
responsibility for the preparation of such a Plan in consultation with the
European :
          terrestrial broadcasters;
          satellite TV stations;
          cable operators;
          regulatory authorities;
          consumer and professional equipment manufacturers;
          film and TV programme makers;
throughout the Community, and in Europe as a whole, in close association
with the Eureka HDTV Project actors and coordinators.
 ---pagebreak---                                 - 10 -
4. CONCLUSION .
   The attached Decision aims to prepare the way for the coordinated Europe¬
   wide introduction of operational HDTV services by 1992 . The proposals are
   based on extensive dialogue with all the relevant actors in this field . The
   Council is invited to adopt the attached Proposal for a Decision .
 ---pagebreak--- PROPOSAL FOR A COUNCIL DECISION
 ON HIGH DEFINITION TELEVISION
 ---pagebreak---                                            - 1 -
                                        Proposal for a
                                   COUNCIL DECISION
                                on High Definition Television.
 THE COUNCIL OF THE EUROPEAN COMMUNITIES,
 Having regard to the Treaty establishing the European Economic Community, and in
particular Article 235 thereof;
Having regard to the proposal from the Commission;
Having regard to the Opinion of the European Parliament ( 1 ) ;
(D
     ref
 ---pagebreak---                                            -2-
 Whereas High Definition Television ( HDTV ) is of strategic importance for the European
 consumer electronics industry and for the European television and film industries ;
 Whereas a single world standard for the origination and exchange of High Definition
Television programmes and films is urgently required ;
Whereas European industry has developed ^ within the Eureka framework, a suitable
proposal for such a single world production standard;
Whereas prototype equipment built to this standard has been successfully demonstrated at
the September 1988 Brighton International Broadcasting Convention;
Whereas . 1992     rpay  be   set as a target date for the launch of commercial equipment
on the market and the beginnings of operational HDTV services;
Whereas a substantial promotion campaign needs to be launched immediately to prepare
 professional users and the general TV viewing public for such a launch ;
Whereas there is an urgent requirement to prepare a Strategy and Action Plan for the
launch of European-wide HDTV services;
Whereas it is of great importance that all Member States of the Community participate in
these activities;
Whereas these initiatives should lead to closer cooperation at Community level between
industry ( the consumer and professional electronics industry and the TV and film
production industry) and service providers ( terrestrial broadcasters, satellite TV stations,
cable operators, cinema distributors);
Whereas the Treaty has not provided the necessary specific powers
 ---pagebreak---                                                -3-
   HAS DECIDED AS FOLLOWS :
                                               Article 1
  The following objectives are hereby adopted as the basis of a comprehensive Community Strategy
  for the introduction of High Definition Television Services in Europe :
 Objective 1 .
 to ensure that the European industry develops in time all the necessary technology,
 components and equipment required for the progressive launching of HDTV services
 throughout the 1990s;
 Objective 2 .
 i)          to ensure that the European proposal based on the parameters 1250 lines, 50
             frames per second progressive scanning, is adopted as the single world standard
             for the origination and exchange of HDTV programme material ; and
ii)          to ensure that broadcast standards (which will be different in 50Hz and 60Hz
            countries) obey the rules already laid down in CCIR Recommendation 601 and
             are thus easily convertible into each other;
Objective 3 .
to ensure the widest use of the European HDTV system throughout the world and the most
favourable environment for the sale of European HDTV equipment and programmes
throughout the world ;
Objective 4 .
to ensure the development of a Strategy and Action Plan for the progressive launch of
HDTV Services in Europe throughout the 1990s.
 ---pagebreak---                                             Artide 2
 In order to attain the objectives referred to in Article 1 an Action Plan for the introduction
 of HDTV will be prepared, under the responsibility of the Commission in consultation with
 the :
       - Member States' authorities,
       - terrestrial broadcasters,
       - satellite TV stations,
       - cable operators,
       - professional and consumer electronics equipment manufacturers,
       - television and film production industry,
throughout the Community, and throughout Europe as a whole, in close cooperation with
the Eureka HDTV project actors and coordinators.
                                            Article 3
On the basis of the results of the    consultations, and on a proposal from the Commission the
Council shall decide an Action Plan for the introduction of HDTV services . This Action
Plan will also include mechanisms allowing European third countries to participate.
Done at Brussels,                                          for the Council,
                                                           The President