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Technology Stocks : C-Cube
CUBE 36.42+1.1%3:59 PM EST

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To: DiViT who wrote (35232)8/17/1998 4:56:00 PM
From: John Rieman   of 50808
 
DVDs for newsletters and software distribution. DVD for publishing......................................

zdnet.com

The idea leverages several important pieces to the puzzle Gateway already has in place. First is its relationship with software publishers. Through software-bundling programs, system manufacturers offer a ton of software in the system channel. In fact, for some applications, such as office suites and productivity tools, the system channel moves more software than the software channel.

Weitzen says, "Our volumes will get us access to software deals that put [Gateway] in a position to offer better prices to our customers than other outlets."

The distribution mediums make up the second and third pieces. Although downloading software from the Net represents a great ESD opportunity for software resellers and users alike, most software is installed from CDs. Software publishers have long bemoaned the CD's limited storage capacity. However, as Weitzen points out, "that was until we had DVD-ROMs."

With greater capacity and improved multimedia capabilities, DVDs are a great medium for marketing and distributing software as part of an ESD initiative. Not only can Gateway extend its build-to-order model into BTO software bundles (unlock just the titles you want), it can periodically distribute bug fixes, upgrades, and unlockable software for after-market purchases using one DVD. Monthly mailings with trial offers, multimedia demos, interactive commercials, and newsletters from Gateway aren't hard to imagine.

So now, every time a Gateway customer eagerly specifies a DVD-ROM drive, Gateway eagerly ships it, knowing that it's laying a stop-gap ESD infrastructure--at least until the Net can offer better bandwidth to everybody.
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