Strategy Analytics, the global research and consulting company, today released a new report titled "Broadcom Challenges STMicroelectronics For Leadership In 100M Advanced Video Codec Opportunity". This report from Strategy Analytics' Connected Home Service noted that while industry leader STMicroelectronics can benefit from established digital television relationships, Broadcom has made rapid advances and should gain significant traction by combining technology leadership with meeting service provider cost objectives.

Advanced video codecs (AVCs), including H.264 and VC1, are critical enabling technologies in the next phase of digital television. They allow service providers such as satellite broadcasters and telcos to offer more channels or higher quality pictures than are possible using today's dominant video codec, known as MPEG2. AVCs will be an important driver in emerging HDTV and IPTV markets.

According to Peter King, Director of the Connected Home service, "In theory ST's pedigree in the MPEG-2 market, which it has traditionally dominated, should stand it in good stead for the next generation of codecs. But by partnering with France Telecom in a demonstration of HDTV over a DSL2+ access network, Broadcom has shown that it is going to give ST a good run for its money."