Japanese CE Firms to Benefit from Brazil's Adoption of Japanese Digital TV Format (MC, NIPNY, SHCAY, SNE)

Brazil eliminated Japan from the World Cup Soccer tournament but the former has chosen to adopt the latter's terrestrial digital television format known as ISDB. The Brazilian government is said to have decided on the Japanese format -- the first foreign country to do so -- because of its technological superiority to European and US formats. The Mainichi Daily News reports that related equipment sales could reach $20 billion over the next 10 years.

Reuters reported that the head of a Brazilian electronics firm expects the first equipment to hit the market in 12-15 months.

Brazil has a population of 180 million and this year 11 million TVs are expected to be purchased, up from 10 million last year. Over 92 million Brazilians are cell phone subscribers. Total market impact in terms of related goods and products is estimated at $46 billion over the next 15-20 years. (Source: Reuters)