That's right. We need second generation stuff. Onkyo might do AC3 in its second generation, but Kenwood is a Zombie, (Duh!)...............
ijumpstart.com
EARLY REPORTS FROM ONKYO INDICATE BIG DVD-VIDEO SALES: KENWOOD WILL ENTER THE FRAY IN JANUARY WITH ALL-IN-ONE SYSTEM
Onkyo USA Corp.'s first DVD-Video player hit retail earlier this month, and initial sales are almost 100 percent more than executives expected.
Ted Green, vice president of sales and marketing for Onkyo, said the company opted for a national launch because of demand for the product from retailers.
"There was a feeling from retailers that now was the time," Green said. "The response has been spectacular."
Despite the momentum, not all consumer electronics companies with heritage in the audio business are diving into the new platform just yet. Kenwood USA Corp. won't ship a DVD player until January because the company wants to hold off on the hardware until it can deliver a second-generation product.
In the DVD market share battle, both Onkyo and Kenwood have to compete against the broad distribution strength of DVD heavyweights Thomson Consumer Electronics Inc. and Toshiba America Consumer Products Inc.
Toshiba executives claim the top spot in DVD-video players thus far, according to company officials. Steve Nickerson, vice president of video marketing, said the company has 35 percent share of the market in both unit sales and dollars.
The two audio companies can't compete with Toshiba's wide reach so they are trying to position their products for distinct market segments.
Onkyo's Green said his company has about half as much distribution as Thomson and Toshiba, but he believes the company will realize significant long-term sales in the category by maintaining a niche between the mass market and high end players. Green described the DVD-7 as "affordable high end" and said the player is selling at mass market retailers as well as specialty audio-video dealers.
"At Circuit City I can be the Cadillac line, but I can go in as the meat and potatoes line for high-end dealers," he said.
Eric Kreis, Kenwood's national marketing manager, described the Kenwood player as part of a complete audio and video system, saying Kenwood will offer "one-stop shopping" for DVD.
The Kenwood system will include speakers, a CD player and receiver but no TV. Kreis said it was unclear if the Kenwood model would have an AC-3 decoder built into the player. Kreis said Kenwood can establish itself in the market by selling an all-in-one DVD system that doesn't require novice buyers to mix and match components.
Th manufacturer expects to ship the system in January in the United States, Europe and China. The company has not determined when it will launch DVD in Japan.
Onkyo DVD Specs
Specifications of Onkyo's DVD-7 include features not found in mass market players. Selling for just under $900, the hardware includes gold-plated analog and composite outputs, as well as a gold-plated AC-3 jack. The unit does not include a built-in decoder, but the company is considering building such a feature into a second-generation model.
Other features are a fluorescent display, which is easier to read than an LED, a brushed aluminum front panel, and a fast forward and reverse option that allows playback of media at two times or eight times normal speed. The player includes support for multiple-camera angle viewing, 32 subtitle languages and an 8-language soundtrack.
Executives from Onkyo and Kenwood said they are awaiting final specifications for DVD-Audio and that their companies are considering building DVD players as an alternative to audio CD players in the future. (Kenwood USA, 310/639-9000; Onkyo USA, 201/825-7950; Toshiba, 201/628-8000.)
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