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Technology Stocks : C-Cube
CUBE 36.54+0.1%3:59 PM EST

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To: Manuel Vizcaya who wrote (41766)6/5/1999 6:57:00 AM
From: Maya  Read Replies (1) of 50808
 
Let's analyze the following lines a bit more:

At the same time, the costs of producing MPEG-2 (the encoding technology used in Digital TV and DVD video) is dropping dramatically. For example, ATI is shipping several graphics cards that can produce MPEG-2 video in real time, but they require a Pentium III-based PC. Later this year will see the introduction of real-time, IEEE 1394 (FireWire)-enabled MPEG-2 encoding cards costing well under $500 and dropping to the $200 to $300 price range by the year 2000. MPEG-2 is the first "no apologies" video that looks as good as broadcast video (because it is broadcast video, serving as the video compression technology for today's satellite-based video delivery systems), Digital TV, and DVD.

1. Right now the cards require Pentium III implies you don't require a Pentium III with the later models implies ATI will use hardware encoding in the future. Looks like this will eliminate Zoran.

2. The price is cheaper (less than $500) and will come down next year - this is not the case with IBM's, right? As we have seen with Sigma's card, it costs in the $900 range.

3. Video looks as good as broadcast - this is not the case with Sony's, right? As we have noticed with TiVo and ReplayTV, there are quality issues with Sony's chips.

This leaves either Cube or Panasonic as the one providing the chip. We know the cost of Cube's chip which is in the range of $75 and Cube already has a relationship with ATI. This simple analysis seems to indicate that it could be a Cube chip.

With the price of the card in the $200-$300 range, it should really take off.
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