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CAMERA WARS – Thomson Deny Targeting High Def MiniDV Camcorders

 

Not So, Says Sony -  Thomson Camera Definition Too Vague

 

ExplosionThomson Grass Valley has denied reports that they are targeting high definition mini-dv cameras in their price dumping complaint to the European Commission.  Instead their spokesman claims that the company's rivals among non-EU manufacturers are "spreading misinformation and mischief" concerning the TGV complaint.

The Institute of Videography though, says if the TGV complaint is upheld, it "could be a potentially disastrous outcome for our industry and our members in particular."

 

THE STORYSO FAR -

Thomson Grass Valley, sole manufacturer of  HD cameras in Europe, has complained that broadcast-capable cameras are being sold cheaper in EU countries than they can be bought in Japan.  If European Commissioners uphold the TGV complaint, an import tax of up to 200% could be slapped on imported cameras by the EU. It has happened before, when European manufacturers lodged a similat complaint ten years ago - that is why some Japanese imports used as broadcast cameras are still pricey ten years on

 

IOV ENTERS THE DEBATE

 

The Institute of Videography (IOV) has taken up the complaint, which potentially could seriously affect the business of its members in the corporate and wedding video industries for example.

 

Questioning TGV about their complaint on behalf of their members, Kevin Cook, editor of  IOV's Focus magazine has been in dialogue with the principal parties. He  pointed out to Thomson's spokesman;

 

"The Notice of Initiation of Complaint seems to describe the very same HD cameras that our marketplace will be using for predominantly non-broadcast operations."

"The EU investigation is about broadcast cameras...It is nothing to do with the sort of pro-AV camcorders your members rely on for their livelihoods" Tim Felstead TGV

 

THOMSON GRASS VALLEY MAN SAYS

 

Thomson GV spokesman Tim Felstead said, "The EU investigation is about broadcast cameras."

 

"It is nothing to do with the sort of pro-AV camcorders your members rely on for their livelihoods and it most certainly not about consumer products."

 

Felstead pointed out that an EU ruling had already been in place for a decade, because the EU then found clear evidence that manufacturers were dumping cameras at low prices in an effort to buy market share. This is the ruling resulted in an EU import tax on non-European broadcast cameras like digibetas, using triax system to transfer data, which is still in place.

 

"What we are suggesting is that the ruling is updated, because of HD," said Felstead.

 

"Broadcast system cameras can now produce good quality images from smaller sensors and because fibre optics now exist alongside triax. If they (the European Commission) find any evidence of unfair competition they will try to rectify it."

 

The issue was about unfair competition and Felstead warned that camera operators should be wary of falling for scare tactics.

 

"Where there is no European manufacturer in the sector of the market - the sort of camcorders used by readers of Focus (IOV magazine) for example - there cannot be any unfair competition.... So anyone who believes that this action will double or triple -or whatever the current hype is- of camcorders for videographers is simply falling for scare tactics.

 

"If there is no unfair competition, the EU has no reason - or power - to act. It really is that simple."

 

NOT SO SIMPLE

 

The problem for most interpreters of the wording of the complaint is that the descriptions of the cameras allegedly damaging European camera manufacturers interests (and TGV are the ONLY European manufacturer of broadcast cameras) is all rather vague; a point seized upon by Kevin Cook of IOV.

 

"How will the EU differentiate between a broadcaster using a specific camera and a wedding videographer using the same?" Cook asked.

 

Cook went on to name as examples, the Canon XL-H1, Sony Z1E, Panasonic HX200, JVC HD-101 an Sony DSR-450 all  professional cameras used by his members that also just happen to be used in the broadcast production chain.

 

He said it was his educated guess that the videographer market is responsible for the majority percentage of sales of these cameras in the UK and Ireland.

 

POTENTIALLY DISASTROUS CONSEQUENCES

"This ... could be a potentially disastrous outcome for our industry and our members in particular"  - Kevin Cook, Institute of Videography

 

He admitted to Felstead that IOV members had heard comments from manufacturers and suppliers who supply their sector of the industry, but gave this assurance:

 

"This has not affected our judgement on what we believe could be a potentially disastrous outcome for our industry and our members in particular."

 

Felstead of TGV responded that he was referring to the broadcast system camera market;

 

"By this I mean a camera used in a studio or in an outside broadcast, which is plugged into a production switcher and either broadcasts live or is recorded somewhere downstream."

 

"We believe that some non-EU manufacturers have tried to distort this market in the past by dumping products and the EU has rightly used tariffs to stop this happening, just as it has done in thousands of markets from machine tools to T-shirts."

 

"All the models you quote are made in Japan. That means in EU terms there can be no competition because there is no European manufacturer who might be disadvantaged."

 

ENTER JVC

" The response ... simply does not tally with the facts of Grass valley's complaint " Ian Scott, JVC Professional

 

"Nice words from Mr Felstead," said Ian Scott of JVC Professional, "But they don't make me feel much better."

 

"If Thomson Grass Valley did not intend for products such as GY-HD 100 ro be included within the EC's investigation, why does their complaint specifically mention cameras and camcorders with CCDs of 1/3" and over? Part of the basis of their complaint is that broadcasters are using products designed for non-broadcast applications - how do they expect the Ec to differentiate between a GV-HD100 sold by a dealer to a wedding videographer and one sold to the BBC? Pay duty retrospectively?

 

" The response from Mr Felstead simply does not tally with the facts of Grass valley's complaint."

 

SONY RESPONDS

 

Sony, who probably sell more HDV camcorders in the UK than any other Japanese manufacturer, have also condemned TGV's side-stepping on the issue they took to the European Commission.

 

"While the claim was raised by Thomson probably thinking studio camera, it is a clear fact that the investigation is based on the clear definition provided by Thompson," said Olivier Bovis of Sony Broadcast and he quoted from Thomson GV's wording in their claim:

"the definition.. is so vague or open that... the EU Anti-Dumping Commission is investigating all camcorders and cameras, SD and HD, with all sizes of CCDs, and that this is an actual fact" Olivier Bovis, Sony Broadcast

 

"The product concerned is susceptible for use in broadcast, news gathering, digital cinematography, or professional applications. Professional applications include (but are not limited to) the use of these systems for creating educational, entertainment,  promotional and documentary video material, both for internal and external distribution."

 

Referring to this, Bovis went on:

 

"At a practical level the definition in this listing is so vague or open that as a matter of fact the EU Anti-Dumping Commission is investigating all camcorders and cameras, SD and HD, with all sizes of CCDs, and that this is an actual fact."

 

He agreed that TGV's Felstead was right in one instance.

Referring to the IOV list of videographer camera examples, he said:

 

"We can of course expect, as explained by Tim Felstead, the EU to recognise that Thomson is not in a position to offer an alternative solution to some product categories and therefore decide to take it out of the scope of the investigation: but simply at this stage, it is not the case and we will only know the outcome toward maybe the end of the year and at the latest in February. But again, today, there are part of the investigation!"

 

There was one final comment Bovis felt he had to make.

 

"Now if I want to add a personal comment to all of this I would like to remind also that all the Studio System Cameras from Sony are manufactured in Europe, so whatever the outcome on this anti dumping issue is, these products are "not concerned by the enquiry."

The IOV's Kevin Cook says that the only thing that is clear from this dialogue, is that nothing is clear. The IOV is now drawing up its own plan of action to recommend to its members.

 With special thanks to Kevin Cook, editor of Focus, IOV members magazine

More about the IOV

Also, read Camera Wars - The story Netribution broke on 10th July