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Technology Stocks : C-Cube
CUBE 36.31-0.9%Dec 8 3:59 PM EST

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To: DiViT who wrote (39021)2/22/1999 5:21:00 PM
From: John Rieman  Read Replies (1) of 50808
 
Shinco went all SVCD. They are ESS's largest customer, with a mid teens market share...................................

shinco-group.com

The VCD giant retired after tremendous success, SVCD wins its initial success in Shanghai market

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( reported on Sept. 4th < News Papers > by Chu Youpeng, Zhang zhisheng )


DannyJiangsu Shinco Co. Group, the largest VCD machine producer in China, announced in Shanghai recently that they will not provide Shanghai market with VCD player from Oct this year . Instead, from Sept this year, they will provide thirty thousand SVCD players for domestic market and the number will increase to one hundred thousand sets in Oct. Then, step by step, reaches the aim of providing three hundred thousand SVCD to the market monthly. At the same time, the newly-organized Shanghai Broadcast & Television Co. will offer twenty thousand SVCD from this month on and tomorrow will be the first day for its SVCD on Shanghai market together with Shinco SVCD.

DannyThe reason for Shinco¡¯s close down VCD production is:

Danny1.VCD overproduction throughout the whole country results in a serious surplus of the products. At present, there are nearly six hundred VCD producers of large or small scale in the country with an estimated capacity of thirty million sets this year. But the market demand is only twelve million sets per year. The surplus is expected to be reduced when Shinco, the largest VCD producer whose sales is up to 37 % of the total domestic sales stops the production of VCD.

Danny2.SVCD standard has been approved. During two days of Aug. 4 and 5, a meeting was held in Beijing to examine ¡°SVCD system technical specification¡± standard. The nation¡¯s Recording Equipment Standardization Technical Committee approved the standard draft with an absolutely majority vote for it . Even the two said they will subordinate to the majority to support SVCD standard in spite that they are against it. This means the dispute between SVCD and CVD started from June 9th is over.

Danny3.SVCD, as a transitional product from VCD to DVD, has a broad prospect. According to statistics, there are 170 million color TV sets nationwide and the ratio of color TV to laser player is 4:1 based on our country¡¯s usual calculation. That means : the total requirement for laser player will be no less than 40 million sets in the country. Since these TV¡¯s horizontal definition are all below 400 lines and not compatible with DVD which has a horizontal definition of more than 400 lines, so one would prefer SVCD with 350 lines than VCD with 250 lines. Moreover, Shinco two disk SVCD which is compatible with VCD disk is only priced at 1500 yuan with five sets of SVCD feature film disk of 200-300 yuan value sent free with the machine.

DannyIn order to ensure the supply of disk, the newly- established Shinco Audio & Video Co. will put into market 85 domestic and foreign feature film disks in Sept, 100 in Oct and up to 500 in Nov.

DannyShanghai broadcast & Television industry, which always follows the trend of Jiangsu and Guangdong, is deciding to act in the end. It is said that 12 enterprises in the country ( including Wyan, Skyworth ) will introduce their SVCD laser player to the market from this month on.

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