DirecTv Inc. [GMH] and Thomson Multimedia will cooperate on the development and distribution of advanced direct broadcast satellite (DBS) receivers and digital television services. The joint effort is designed to upgrade DBS receiver technology for emerging services and speed the launch of new products, the companies said. A memorandum of understanding specifically mentions achieving accelerated deployment of digital terrestrial television and related digital services.
The strategic partnership specifically will focus on accelerating and expanding the sale of DBS-related equipment and DirecTv subscription services, broadening the range of Thomson and DirecTv product offerings, developing and introducing new services such as webcasting and accessing the Internet, and sharing new technologies that will enable the delivery of these new services. DirecTv and Thomson Multimedia will concentrate initially on serving the U.S. market, while looking for opportunities to expand into Asia, Europe and Latin America.
The development and deployment of the digital platforms and services may include the participation of DirecTv sister company Hughes Network Systems Inc. [GMH]. Terms of the deal were not released, but DirecTv is expected to take a minority stake in Thomson Multimedia and gain a seat on its board of directors and newly-formed strategic committee.
DirecTv, the largest provider of DBS services in the United States, and Thomson Multimedia, a major U.S. consumer electronics company, have been closely associated in the research, development and deployment of DBS services over the last five years. Officials from both companies believe their areas of complementary expertise will allow them to take advantage of the transition of terrestrial broadcasters from analog to digital signal transmission.