Race to Develop High-Definition TV Intensifies

The competition to develop high-definition television revved up on Thursday with the announcement that the U.S. divisions of two European electronics giants have joined NBC-TV to research advanced TV systems.

Philips Consumer Electronics Co. said it will join an existing research venture of Thomson Consumer Electronics Inc. and NBC. Philips is part of NV Philips of the Netherlands, while Thomson is the U.S. division of Thomson SA of France.

The venture faces stiff competition from research efforts under way in Japan and Europe into high-definition television, which promises picture quality as crisp as photographs and crystal-clear sound.

In addition, Zenith Electronics Corp., the last major TV manufacturer in the United States, has joined American Telephone & Telegraph Co. to develop an HDTV system.

The new three-way alliance of Philips, Thomson and NBC drew praise from several industry observers.

“I think it’s a fairly wise, competitive decision,” said Pat Hill Hubbard, a vice president of the American Electronics Assn. “Research is very costly in this field.”

Laura J. Lederman, an analyst with the Chicago investment firm Duff & Phelps Inc., said the combination of manufacturers and broadcasters was critical. “If you have companies that build a set but you don’t have broadcasters, you’re missing some of the pieces,” she said.

Together, Philips and Thomson control almost 40% of the U.S. television-set market. Philips makes the Magnavox, Sylvania, Philco and Philips brands, while Thomson owns the former General Electric and RCA lines.

NBC, which is owned by General Electric Co., has been cooperating with Thomson for several years at the David Sarnoff Research Center in Princeton, N.J., to develop advanced television systems.

NBC and Thomson are working on a system called Advanced Compatible TV, which would provide an improved picture on new wide-screen TV sets while allowing continued use of conventional sets.

Advanced Compatible TV would require only minor, low-cost adjustments to equipment at local TV stations, Thomson and NBC said.