Until now, Panasonic had two relatively independent divisions for video products. "Professional Broadcast Pro-AV" (Connect) and "Consumer" (Entertainment & Communication) had only rudimentary dealings with each other and developed many products independently of each other.
Ultimately, however, this strategy is no longer tenable, as the technical overlap in the video sector - as well as the cost pressure - is too great to allow potential synergy effects within the Group to lie fallow.
According to its own announcement, Panasonic now also assumes that "further integration of private and professional video production and live video streaming is expected in the future, which will lead to further growth in the imaging market".
Both divisions therefore see it as necessary to "bridge the gap between professional and consumer use to provide timely and consistent support throughout the entire process from video capture to editing and streaming, while developing products and services that exceed video creators' expectations."
To achieve this, the imaging businesses of both divisions will now be integrated into a single organization within the Panasonic Group.
Resources will be consolidated within Panasonic Entertainment & Communication, meaning that the pro/broadcast business will move to the LUMIX division, making "the imaging business a pillar of its growth strategy and strengthening its ability to adapt to market changes and respond quickly to the needs of a wide range of video artists."
On April 1, 2024, the professional AV business of Panasonic Connect will be formally transferred to Panasonic Entertainment & Communication.
Panasonic Entertainment & Communication Co., Ltd (PEAC) employs around 10,000 people worldwide and is active in the AV market for AVC products such as OLED televisions, headphones, telephones, intercoms and other products in addition to video technology.
Ultimately, it was the large sensors that Panasonic cited as the reason for the merger: "In recent years, the imaging market has seen increased demand, especially for mirrorless digital cameras, due to the expansion of video production for solo creatives. On the other hand, the market for professional video productions, such as cinema and broadcast productions, is also growing, and due to the increasing size of sensors in mirrorless digital cameras and tighter production budgets, the boundaries between the consumer and professional video production markets are rapidly blurring."
The convergence of the video and photo markets, which we have always predicted, has long since led competitors such as Canon and Sony to develop devices based on similar hardware DNA. Artificially separating or maintaining both device classes simply no longer makes sense in the medium term.
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