Matsushita Electric Industrial said it would start selling
internet-connected televisions in the US that can access Google’s
YouTube, marking the first partnership between a Japanese consumer
electronics manufacturer and the world’s leading search engine.

The move is part of a broader push by Japan’s
consumer goods manufacturers to "add value" to their products, in the
face of stiff price competition from Asian and US rivals.

Sharp
and Sony this week also made similar announcements regarding internet
connectivity and content partnerships to their flat-panel TV, enabling
consumers to download news and other information directly onto their
TVs.

In an interview with the Financial Times,
Yoshi Yamada, the chief executive of Panasonic Corp of North America,
said: "As manufacturers we don’t like a commodity-only business. We
need to add some value for consumers and anything content-related is
adding value."

Matsushita
and Google have jointly developed equipment to show content from
YouTube, an internet video clip website, clearly on large TV screens.
The new Viera plasma TVs, which will debut in the spring in the US,
will also include access to Picasa Web Albums, a free online
photo-sharing service from Google.

Toshihiro
Sakamoto, president of Panasonic AVC Networks, said: "This is the first
time mainstream consumers will be able to easily enjoy YouTube videos
from the living room with the enhanced quality of a fully integrated
widescreen TV experience." Panasonic declined to comment on the fee
structure of the deal.

Matsushita
is hoping the deal will bolster US sales of its plasma TVs, which have
been losing market share to liquid-crystal display (LCD) rivals such as
Sharp and Sony.

In
the past, observers expected plasma TV technology to dominate larger
screen sizes. But improvements and significant cost reductions in the
LCD manufacturing process have given the technology an overwhelming
lead in the US.

According
to Toshiba, LCD TVs account for 84 per cent of the flat panel market.
"Plasma growth is stagnant," said Scott Ramirez, vice president of
Toshiba’s TV market unit. "LCD outsells plasma at higher prices."

Matsushita will consider selling the new plasma TVs in Japan or Europe if there is demand.

Earlier
this week, Sony launched a $499 add-on module dubbed the "Internet
Video Link" for its latest Bravia LCD family of HDTVs and announced a
series of new content partnerships including an agreement with CBS.

This will enable Bravia owners with the internet module to watch internet-based CBS content including prime-time TV shows.

Sharp
also unveiled a new service called "Aquos Net", which provides its
Aquos LCD TV users with customised web-based content through
partnerships with content providers such as traffic.com and NBC.

Via MSNBC