With Formats to Please, Matsushita Embraces Digital Networks
In Japan alone, there are over 60.9 million cell phone subscribers. In the 20- to 39-year-old demographic, cell phones have an 80 percent penetration. Over 60 percent of total cell phone demand is for replacement products, rather than first-time subscribers. Nakamura noted that cell phone demand has increased more than 100 percent this year over 1999, which results in a lot of part shortages. He also said that he expects the shortages to continue for the near future and will affect products like DVD-RAM recorders.
On DVD-RAM, Nakamura also added that the format's compatibility with PC DVD-ROM drives will be key to the product's value. "In this digital age, it is essential to have compatibility with the PC."
On the subject of digital TV, Nakamura admitted that DTV rollout of programming in the U.S. has been slow, but he said that HDTV over cable will be critical to the category's success.