Posts Tagged ‘UHDTV’

HDMI 2.1 Update – Pretty Much Status Quo

Last Thursday, a joint press conference was held in New York City by the HDMI Licensing Administrator to update attendees on the latest version of HDMI – version 2.1.

V2.1, which was officially announced at CES in 2017, represents a quantum leap over earlier versions. It’s the first HDMI architecture to use a packet-based signaling structure, unlike earlier versions that employed transition-minimized differential signaling (TMDS). By moving to a packet transport (an architecture which V 2.1 apparently borrowed a lot from DisplayPort, according to my sources), the maximum data rate could be expanded several-fold from the previous cap of 18 gigabits per second (Gb/s) to a stratospheric 48 Gb/s.

What’s more, the clock reference can now travel embedded in one of the four lanes. Previously, HDMI versions up to 2.0 were limited to three signal lanes and one clock lane. And of course, a digital packet-based signal stream lends itself well to compression, accomplished with VESA’s Display Stream Compression (DSC) system that is also the basis for Aptovision’s Blue River NT technology.

The HDMI Forum simply had to kick up the performance of the interface. Version 2.0, announced five years ago, was perceived by many (including me) to be too slow right out of the gate, especially when compared to DisplayPort 1.2 (18 Gb/s vs. 21.6 Gb/s). That perception was prescient: Just half a decade later, Ultra HDTVs are rapidly approaching the unit shipment numbers of Full HD models, and the bandwidth demands of high dynamic range (HDR) imaging with wide color gamuts (WCG) need much faster highways, especially with RGB (4:4:4) color encoding and 10-bit and 12-bit color rendering.

And if we needed any more proof that a faster interface was overdue, along comes 8K. Samsung is already shipping an 8K TV in the U.S. as of this writing, and Sharp has introduced a model in Japan. LG’s bringing out an 8K OLED TV in early 2019, and Dell has a 32-inch 8K LCD monitor for your desktop.

To drive this point home, IHS analyst Paul Gagnon showed numbers that call for 430,000 shipments of 8K TVs in 2019, growing to 1.9 million in 2020 and to 5.4 million in 2022. 70% of that capacity is expected to go to China, with North America making up 15% market share and western Europe 7%. Presumably, at least one of the signal inputs on these TVs will support HDMI 2.1, as even a basic 8K video signal (60p, 10-bit 4:2:0) will require a data rate of about 36 Gb/s, while a 4:2:2 version demands 48 Gb/s – right at the red line. (DSC would cut both of those rates in half).

Aside from stating that over 900 million HDMI-equipped devices are expected to ship in 2019 (including everything from medical cameras to karaoke machines,) HDMI Licensing CEO Rob Tobias didn’t offer much in the way of real news. But I had a few deeper questions, the first of which was “Is there now native support for optical interfaces in the HDMI 2.1 standard?” (Answer – no, not yet.)

My next question was about manufacturers of V2.1 transmitter/receiver chipsets. Had any been announced that could actually support 48 Gb/s? According to Tobias, HDMI Forum member Socionext, a chip manufacturer in Japan, has begun production on said chipsets. I followed that reply up with a question about manufacturer support for DSC in televisions and other CE devices, but couldn’t get a specific answer.

Much of the discussion among these panel members and David Meyer (director of technical content for CEDIA), Brad Bramy, VP of marketing for HDMI LA, and Scott Kleinle, director of product management for Legrand (a supplier to the CEDIA industry) was focusing on future-proofing residential installations that used HDMI interconnects.

But why not just go optical for all HDMI 2.1 connections and guarantee future-proofing? The responses I got to my last question were mostly along the line of “The installer just wants it to work the first time.” Yes, there are faster (Ultra High Speed) HDMI cables available now to work with V2.1 connections. But an HDMI cable that has to run 20, 30, or 40 feet at over a GHz clock rate is a pretty fat cable!

Multimode fiber cable is inexpensive compared to Cat 6 cable and the terminations are not difficult to install. Running strands of fiber through conduit, stone, and behind walls seems to be the most logical solution at the required speeds and is certainly what I’d recommend to installers in the commercial AV market. Properly terminated, optical fiber works the first time and very time and can run over a mile without significant signal degradation.

Once again, the HDMI Forum will have a booth at CES in the lower South Hall. With a new display wrinkle lurking in the shadows – high frame rate (HDR) video – there will be more upward pressure than ever on data rates for display connections. HDMI 2.1 may be up to the task (most likely aided by DSC), so I will be curious to see if there are any 8K/120 demos in Las Vegas. – PP

NAB 2018 In The Rear View Mirror

I just returned from my annual visit to the NAB Show in Las Vegas and the overall impression was of an industry (or industries) marching in place. Many booths were smaller; there were plenty of empty spaces filled with tables and chairs for eating and lounging, and at times you could hear crickets chirping in the North and Central Halls.  (Not so the South Hall, which was a madhouse all three days I visited.)

There are a number of possible reasons for this lack of energy. The broadcast and film industries are taking the first steps to move to IP backbones for everything from production to post and distribution, and it’s moving slowly. Even so, there was no shortage of vendors trying to convince booth visitors that AV-over-IT is the way to go, chop-chop!

Some NAB exhibitors that were formerly powerhouses in traditional media production infrastructures have staked their entire business model on IT, with flashy exhibits featuring powerful codecs, cloud media storage and retrieval, high dynamic range (HDR) imaging, and production workflows (editing, color correction, and visual effects) all interconnected via an IT infrastructure.

And, of course, there is now a SMPTE standard for transporting professional media over managed AV networks (note the word “managed”), and that’s ST 2110. The pertinent documents that define the standards are (to date) SMPTE ST 2110-10/-20/-30 for addressing system concerns and uncompressed video and audio streams, and SMPTE ST 2110-21 for specifying traffic shaping and delivery timing of uncompressed video.

No doubt about it – the Central Hall booths were definitely smaller and quieter this year.

 

Canon’s Larry Thorpe and Ivo Norenberg talked about the company’s new 50-1000mm zoom lens for Full HD cameras.

 

BlackMagic Design’s Pocket Cinema 4K Camera is quite popular – and affordable.

Others at NAB weren’t so sure about this rush to IT and extolled the virtues of next-generation SDI (6G, 12G, and even 24G). Their argument is that deterministic video doesn’t always travel well with the non-real-time traffic you find on networks. And the “pro” SDI crowd may have an argument, based on all of the 12G connectivity demos we saw. 3G video, to be more specific, runs at about 2.97 Gb/s, so a 12G connection would be good for 11.88 Gb/s – fast enough to transport an uncompressed 4K/60 video signal with 8-bit 4:2:2 color or 10-bit 4:2:0 color.

I’ve talked about 8K video and displays in previous columns, but mostly from a science experiment perspective. Well, we were quite surprised – perhaps pleasantly – to see Sharp exhibiting at NAB, showing an entire acquisition, editing, production, storage, and display system for 8K video. (Yes, that Sharp, the same guys that make those huge LCD displays. Now owned by Hon Hai precision industries.)

Sharp’s 8K broadcast camera, more accurately the 8C-B60A, uses a single Super 35mm sensor with effective resolution of 7680×4320 pixels arrayed in a Bayer format. That’s 16 times the resolution of a Full HD camera, which means data rates that are 16x that of 3G SDI. In case you are math challenged, we’re talking in the range of 48 Gb/s of data for a 4320p/60 video signal with 8-bit 4:2:2 color, which requires four 12G connections.

Sharp is building 8K cameras for live coverage of the 2020 Tokyo Olympics.

 

NHK demonstrated an 8K 240Hz slow motion video playback system, along with other 8K goodies.

 

Soliton demonstrated H.265 encoding across multiple platforms, including Android devices.

And this isn’t a science experiment at all. Sharp is building cameras for the live 8K broadcasts to take place at the 2020 Tokyo Olympics, originating from Japanese broadcast network NHK. By now, this should be old hat, as NHK has been covering the Olympics in 8K since 2012 and showed different approaches to home viewing in Las Vegas. They also impressed with demos of 8K “slo-mo” video at a frame rate of 240 Hz, and yes, it is practical and ready to roll.

In the NHK booth, you could also watch a demonstration of 8K/60 video traveling through a 10 Gb/s switch using so-called mezzanine compression based on the TiCo system. In this case, NHK was using 5:1 TiCo compression to slow down a 40 Gb/s 8K/60 video stream to 8 Gb/s. (Four 12G video connections would result in a bit rate of nearly 48 Gb/s in case you’re wondering.)

Not far from NHK’s booth last year was a virtual city of companies showing virtual reality (VR) and augmented reality (AR) hardware and software. That was about twice the size of the VR/AR exhibits in 2016, so I expected to find a sprawling metropolis of VR goodies. Instead, I came across a very large food court and lots of partitioned-off space. Turns out, what was left of the VR companies occupied a small pavilion known as “Immersive Storytelling.” Is VR the next 3D? (Probably not, but you couldn’t be blamed for thinking that.)

Panasonic’s got a 55-inch 4K OLED monitor for client viewing.

 

Epson showed an ultra short-throw laser projection system with excellent edge-to-edge sharpness.

 

The gadgeteers at NTT built a drone with a spinning LED sign shaped like a globe. Why? Because they could, I suppose.

Upstairs in the South Hall, there were dozens of companies hawking video compression tools, streaming and cloud services, targeted ad insertion, audience analytics, and a bunch of other buzzwords I’m probably getting too old to completely understand. (It will be interesting to see how many of these enterprises are still around a year from now.)

But my primary goal in that hall was to talk to folks from the Alliance for Open Media coalition. In case you haven’t heard of this group, they’ve been promoting an open-source, royalty-free codec labeled AV-1 for “next-generation 4K video.” There are at least 18 prominent members of the group and you may recognize a few of them, such as Google, Apple, Mozilla, YouTube, Netflix, Facebook, and VideoLAN.

And that they’re promoting is a codec that is very similar to HEVC H.265, which is made up of lots of intellectual property that requires licensing from an organization known as MPEG-LA (Licensing Authority, not Los Angeles). The AOM contingent thinks it is taking WAY too long to get H.265 off the ground and would rather just make a suitable codec free to anyone who wants to use it to speed up the transition to 4K video.

In addition to giving out red, yellow, green, and blue lollipops, Google had its jump 360-degree camera out for inspection.

 

Technicolor claims to have solved the problem of rapid switching between different HDR formats streaming in the same program.

 

Keep an eye on the AV-1 codec. It could really upset the apple cart.

Of course, they didn’t have a ready answer when I questioned the future viability of any company that had sunk millions of dollars into H.265 development, only to see their hard work given away for free. The stock answers included “there will be winners and losers” and “some companies will probably be bought out.” Note that the primary goal of the members I listed is content delivery, not living off patent royalties, so that gives you some insights to their thinking.

The last puzzle piece was the new ATSC 3.0 standard for digital TV broadcasting, and it’s being tried out in several markets as I write this; most notably, Phoenix. ATSC 3.0 is not compatible with the current version 1.0 as it uses a different modulation process (ODM vs. VSB) and is very much intertwined with IP to make delivery to mobile devices practical. WRAL in Raleigh, North Carolina has been broadcasting in this format for almost a year now.

ATSC 3.0 is already being tested in several TV markets. Will it take off? And how will consumers choose to watch it?

 

CreateLED had this cool LED “waterfall” in their booth.

ATSC 3.0 is designed to be more bandwidth-efficient and can carry 1080p and 4K broadcasts along with high dynamic range video. At the show, I saw demos of ATSC 3.0 receivers married to 802.11ac WiFi routers, ATSC 3.0 set-top boxes, and even an autonomous shuttle vehicle between the Central and South Halls that was supposedly carrying live ATSC 3.0 mobile broadcasts. (It wasn’t working at the time, though. More crickets…)

All in all; a very subdued show, but reflective of an industry in transition from a world of deterministic video traveling uncompressed over coaxial cable to compressed audio and video packets streaming through wired and wireless networks with varying degrees of latency. Where do we go from here?

 

 

Ultra HDTV, HDMI 2.0, and HDCP 2.2 – Oh, What A Tangled Web We Weave…

A few days ago, I received an email from the president of an AV products manufacturer. He had purchased a Samsung UN65HU8550 65-inch Ultra HDTV back in 2014 and decided to take the plunge into Ultra HD Blu-ray.

Previously, he had been using an upscaling Blu-ray player to achieve 3840×2160 resolution, but now he wanted the real thing. So, he visited his local Best Buy and picked up Samsung’s UBD-K8550 UHD Blu-ray player, took it home, and connected it to one of the HDMI inputs on his UHDTV.

Sounds simple, right? Except that it didn’t work. The UHD disc spun up, started to play, and then a message was displayed that the player would down-convert to 1080p resolution because it didn’t detect support for HDCP 2.2 (the newest and most aggressive form of copy protection for optical disc media).

To him, this made no sense whatsoever. (Me, too!) Here he was, playing an Ultra HD Blu-ray disc, from a Samsung Ultra HD BD player, into a Samsung Ultra HDTV – and it wouldn’t work. I advised him to make sure he was truly using an HDMI 2.0 input (sometimes labeled as such, or color-coded).

He tried all of the inputs, including the MHL input that is supposed to be compliant with HDCP 2.2, but no luck. Again, the disc would spin up, and then display the same error message. (By the way, HDMI 1.3/1.4 inputs can also support HDCP 2.2.)

Another trip to Best Buy resulted in the purchase of Philips’ BDP7501 Ultra HD Blu-ray model, which was then connected to the Samsung TV and – voila! It worked, playing back in true 2160p resolution.  That is; only when connected directly to the Samsung TV, and NOT through his existing Denon AVR (which likely doesn’t support HDCP 2.2 key exchanges on any of its HDMI ports).

Some quick checks on the Internet showed this wasn’t an isolated problem – others had purchased the same TV, or different screen size variations of it, and were unable to watch 4K movies from the Samsung player. One comment I read talked about going so far as to buy an HDCP 2.2 to HDCP 1.4 converter, a product I wasn’t even aware existed. And apparently, it worked! (Warning: This product may be illegal to purchase as it alters a copy-protection process. I’m only providing the URL as a reference.) (http://www.hdtvsupply.com/hdcp-2-2-to-hdcp-1-4-converter.html)

The next step was to check in with my friends at Samsung, who responded that an upgrade kit would fix the problem. It’s called the SEK3500U One Connect Evolution Kit, and attaches to your Samsung 4K TV through a separate connector on the side panel.  This $400 box – which resembles a thin Blu-ray player – provides four HDMI 2.0 inputs, all up to speed with HDCP 2.2 support, HDMI 2.0a compatibility for high dynamic range playback, and improved color rendering, according to several Amazon reviews I read. (https://www.amazon.com/Samsung-SEK-3500U-ZA-Evolution-Kit) Samsung also commented that frame rates may play a part in the problem, as the Blu-ray Disc Association HDR specification for HDMI 2.0a calls for 2160p60 playback with 4:4:4 color, and that using a lower frame rate might fool the UHDTV into down-converting to 1080p resolution.

All of this just confirms my continued advice to my friends and colleagues: “Wait just a little bit longer before you buy a 4K TV.” Too many things are still in a state of flux on the manufacturing side, not the least of which is support for multiple high dynamic range formats. And the issues with HDCP 2.2 support are frankly, just ridiculous at this point: The standard’s been out for a few years, and it will be used exclusively with all HDMI inputs on Ultra HDTVs.

Another takeaway from this is the slow and steady move away from optical disc delivery of 4K movies and TV shows to streaming connections. The protocols for copy protection are a bit different for streaming, but at least the underlying architecture is standard across all platforms (some sort of common streaming protocol like RTSP, carrying MPEG4 H.264 or HEVC H.265 / VP9 with IP headers) and can be easily updated with software.

Given the continual increase in home broadband speeds – especially in metro areas – 4K streaming is fast becoming a realistic option. Granted, the image quality at 15 – 20 Mb/s won’t be as good as a file coming off an optical disc at 100 – 110 Mb/s, but as we’ve seen repeatedly, the vast majority of home viewers continue to choose convenience and price over quality. That may be one reason there are only three Ultra HD Blu-ray players on the market today: How many people are going to spend $300 – $400 – $500 for one?

As I write this, the SEK3500U is on its way, and my colleague will soon be enjoying true Ultra HD movies like he should have been from the start. I suppose the $400 cost is a small price to pay if you’ve already shelled out a few thousand dollars for an Ultra HDTV, but it would irk me to no end to be in that situation. (You know what they say about the “leading” edge often being the “bleeding” edge.)

To summarize; my advice to readers remains the same as it has been. If you are thinking of buying a new Ultra HDTV – like me – WAIT until next spring, or at least until Super Bowl time. Not only will you see lower prices, but you’re more likely to have all of the bugs out of the system – and you’ll be able to score a good deal on a set that can show high dynamic range content, too; certainly supporting two or more of the new HDR formats.

And if you just gotta have an Ultra HD Blu-ray player? Those prices will have come down, too. A quick check on Amazon shows the UBD-K8500 currently available for $317.99, while the Philips BDP7501 will cost you $279.99.  (Panasonic’s DMP-UB900 player wasn’t shipping at the time this article was written.)

Caveat emptor….

 

Samsung Moves Front & Center With HDR

Last Wednesday, I was one of a group of journalists, engineers, and other technical types sitting in on a presentation about high dynamic range (HDR) TV. The location was Samsung’s sparkling-new product showcase in lower Manhattan at 837 Washington Street, and the presenters ranged from Samsung execs to well-known industry consultants, including Florian Friedrich of AVTOP, Steve Panosian of Samsung, Kevin Miller from ISF, Gerard Catapano from Samsung QA Labs, and Jason Hartlove of Nanosys.

THE NEXT BIG THING

You’d have to be living under a rock not to have heard about high dynamic range television by now. Along with Ultra HD resolution, HDR is the next big thing in TV displays, along with a new, wider color gamut, and eventually high frame rate video.

The transition away from mature Full HD (1920×1080) display technology to Ultra HD is happening much faster than most people expected. The costs of manufacturing LCD panels for televisions have absolutely plummeted in the past couple of years; so much that there is at best a $50 to $100 price delta between same-size 1080p and 2160p TV models.

In fact, we will start to see major TV brands dropping 1080p models altogether in larger screen sizes; possibly as soon as December. Sales experience is showing that customers take the upgrade to 4K more often than not when buying sets measuring 55 inches or larger, which is good news for retailers.

And that’s “qualified” good news, as worldwide sales of televisions have been in decline the past four years. The double-digit annual growth of Ultra HDTV sales are keeping things from getting worse and leading everyone in Japan, Korea, and China to focus on 4K and leave increasing numbers of sales of 1080p sets to the bargain brands.

But quadrupling the picture resolution by itself isn’t enough to turn the tide. Hence, we now have HDR, which can produce images containing peak brightness levels that are 10x higher than what we used to see on our old tube HDTVs. (Remember those?) And the colors represented on these displays are also much more saturated and intense, thanks to advancements in illumination technology.

Back in the early days of high definition television, we were largely in unknown territory. The first HDTV broadcasts used terrestrial television, and everyone needed to learn more about antennas and set-top boxes. Yet, seven years after the first HDTV broadcasts, every major network had produced some quantity of HDTV content.

There were missteps. Remember the surge in interest in 3D about a decade ago? It peaked in 2009 and featured competing 3D encoding and viewing standards, expensive glasses that often broke, complaints of headaches and nausea after extended, and even a campaign by the American Academy of Ophthalmologists to test for eye disorders; one based on the inability of certain people to see stereoscopic images correctly.

TIME TO CHANGE THINGS UP

Gerard Catapano from Samsung and Chris Chinnock of Insight Media talk about UHDTV market trends.

Gerard Catapano from Samsung and Chris Chinnock of Insight Media talk about UHDTV market trends.

HDR is different. You don’t need anything other than the naked eye to see it, and the premise of HDR is that you are watching images with peak whites and contrast ratios that follow closely what you see in real life (about 14 stops of light at any instant, from deep shadows to peak brightness).

What’s more, the colors you see rendered in HDR are much more vivid than what our current televisions can display as they’re working with a restricted color gamut. If you’ve seen bright neon or LED signs at night, marveled at a brilliant sunset, or gotten up close to tropical flowers in bloom, you know how hard it is to reproduce those intense colors on a television or computer monitor.

That’s all changed. We’re now standing at the threshold of an entirely different class of displays that are advanced by several orders of magnitude from the color TVs your parents or grandparents watched 50 years ago. It isn’t just about having more pixels – it’s about adding in all of the visual elements that replicate what you see every day.

Samsung's KS98900 HDR TV, as seen last April at Samsung's 837 Washington Street showroom. It uses quantum dots manufactured by Nanosys.

Samsung’s KS9800 HDR TV, as seen last April at Samsung’s 837 Washington Street showroom. It uses quantum dots manufactured by Nanosys.

Samsung is one of the first companies to get out of the gate with HDR televisions, and they’re using a new technology to light up the screen. Instead of conventional white light-emitting diodes (LEDs) and arrays of color filters, the light source is made up of arrays of blue LEDs and matrices of green and red quantum dots (QDs). It’s not difficult to get intensely-saturated and bright blues from LEDs, but green and red provide more of a challenge. Hence; the QD backlight.

And they are bright. Samsung claims that their HDR TVs can achieve 1000 candelas per square meter (cd/m2) in a small area, which is quite the jump from the 300 cd/m2 or so that conventional white LED backlights can generate. Plus, the intense greens and reds generated by QDs have expanded the gamut of displayable colors considerably; closer to that of digital cinema projectors.

Now, the catch: How can we measure the performance of an HDR TV equipped with quantum dots? We can’t use the older test pattern generators and set-up Blu-ray discs as they’re limited to the current ITU Recommendation BT.709 color space and only use 8-bit color encoding. (HDR is based on a 10-bit color system.)

For that matter, we can’t even use the older display interfaces to connect a test pattern generator. For HDMI, the standard must be version 2.0a, and if we want to use DisplayPort, it must be version 1.4. It goes without saying that we must use an Ultra HD Blu-ray player if we want to source HDR test patterns from optical disc – and there is exactly one of those (Samsung) on the market, with another one coming from Panasonic this fall.

Florian Friedrich and Kevin Miller discuss the challenges of evaluating and calibrating HDR TVs.

Florian Friedrich and Kevin Miller discuss the challenges of evaluating and calibrating HDR TVs.

At the Samsung event, Friedrich and Miller explained how a new suite of test patterns has been prepared for Ultra HD Blu-ray to both evaluate and calibrate an HDR display. This test pattern UHD BD will be available from Samsung and can be used with any HDR TV, even the line-up of LG organic light-emitting diode (OLED) UHD sets that have come to market.

Steve Panosian talked about the lack of standards in TV performance and how there has to be a better way for consumers to compare the performance of one brand of HDR TVs against another. Although at this point in time, there are so few models available that it’s basically Samsung vs. LG, with companies like TCL and Hisense looking to get into the game this year.

Jason Hartlove from Nanosys made an appearance to talk about what’s happening with quantum dot science and what the next generation of HDR TVs might look like as the QD arrays in Ultra HDTVs start to resemble something like an OLED emitter array. And Chris Chinnock of Insight Media served as moderator for the day’s events, which culminated in hands-on sessions showing how to use the test pattern UHD Blu-ray to evaluate a set’s performance and calibrate it for optimal results.

The panel weighs in on the current state of HDR in consumer displays.

The panel weighs in on the current state of HDR in consumer displays.

The interesting thing about HDR TVs is that we really don’t need to provide much in the way of user adjustments anymore. HDR TVs use CEA 861.3 metadata, flowing through an HDMI or DisplayPort connection, to determine brightness levels, gamma, and color values.  And with peak brightness values in the range of 800 – 1000 cd/m2, why would we need to have a “Dynamic” picture mode setting? (It’s already dynamic!)

Although I had seen this demonstration on two previous occasions, Insight Media and Samsung did an excellent job of explaining the challenges in both designing a set of test patterns to evaluate HDR TV performance and putting those patterns to actual use. I was reminded of those early days of HDTV: What signal format and connector do I need? What kind of antenna will pick up the broadcasts, and where do I aim it? What’s the difference between 720p, 1080i, and 1080p?

THE NEXT STEPS

My advice to everyone remains unchanged, however. If you are in the market for a new Ultra HDTV with HDR, I would hold off on purchasing it until at least January, if not next spring. By then, there should be several models supporting more than one HDR format (the baseline being HDR 10, but there are at least four others developed by Dolby, Technicolor, Samsung, and the BBC).

More importantly, your UHD set should support not only HDR content flowing through a display connection, but over an Internet connection. More and more content delivery is switching to video streaming as we move away from physical media. Plus, you’ll certainly spend less money on an HDR set if you can sit on your hands for a while, and there may even be a few more UHD Blu-ray player models to choose from six months from now, along with a lot more movies mastered in HDR.

As The World Turns: Vizio Is Acquired by LeEco

A press release crossed my desk yesterday, detailing how the TV brand Vizio had just been acquired by the Chinese firm LeEco for $2B. LeEco, while largely unknown on this side of the Pacific, is the 7th largest TV brand in China and also operates an online video content delivery business.

It’s expected that the combined operations of both companies will push them past Skyworth as the #6 worldwide TV brand, according to analysis from IHS Technology I just received this morning. (Never heard of Skyworth? Give it time.)

Vizio, which started operations over a decade ago, has become a powerhouse brand in the U.S. Although they don’t release their revenue and market share results, the company has given Samsung a run for their money over the years with a full line of televisions, most recently taking steps into HDR and UHDTV with Dolby Vision-equipped sets.

Yet, not everything the company has touched has turned to gold. There have been brief forays into smartphones (gone), tablets (gone), and computers (also gone.) In contrast, the company has done very well with sound bars, which all flat-screen TVs benefit from.

This news didn’t surprise me at all. The TV marketplace has become a very cutthroat business as prices and profits went into free fall, aided and abetted by competition from China where the nexus of LCD panel manufacturing is moving.

Numerous prominent nameplates have been victims of this downward trend, starting with Hitachi several years ago and continuing through Mitsubishi, Toshiba, and Sharp; all of whom have withdrawn from the North American TV market. (Hisense continues to sell televisions with the Sharp brand name in the U.S. and Canada.)

Panasonic, once a major player in TVs, is in the unusual position of offering an Ultra HD Blu-ray player (DMP-UBD900, $699) this fall, but no UHD televisions to bundle it with. For now, the company is not selling TVs at retail in the U.S. even though it demonstrated a 65-inch OLED UHDTV at CES that used an LG RGBW OLED panel.

Only Sony remains as a Japanese TV brand, and they’ve paid a dear price to stay in the game, losing hundreds of millions of dollars for a decade.  Samsung and LG, meanwhile, have maintained their positions in the Top 5 even as worldwide TV shipments have gone into decline by an average of 3-4% per year, offset somewhat by double-digit growth in UHDTV shipments.

What’s interesting about LeEco is that, according to the HIS analysis, they’re willing to sell TVs at or below manufacturing costs – or even give them away free as a promotion – to secure paid subscriptions to their online content in China. That’s not a model that is likely to work here, but it does indicate how aggressive the new LeEco / Vizio marketing approach could be here and overseas.

Checking this weekend’s sales fliers, I spotted a Vizio 50-inch “smart” Ultra HDTV with HDR for $800 and a 70-inch model for about $2,000; both at Best Buy. Connect the dots and you can see why TV prices continue to fall, and why the bulk of TV sales are transitioning from 1080p to Ultra HD in a hurry.

Sharp (again, now made and marketed by Hisense) did Vizio one better this week, offering a 55-inch Ultra HD set for $650 (no HDR). We’re not far off from seeing $500 55-inch Ultra HDTVs, which will probably be on store shelves in time for the fall football season and certainly by Christmas.

Vizio’s conversion to a publicly-held company a year ago set the stage for this sale and is more proof of the shift in power to China for manufacturing and sales of televisions – at least worldwide. Will TCL and Hisense make further inroads to the U.S. market? What impact will they have (if any) on Vizio’s market share?

Stay tuned…