Doug,
<Whether they can keep that area sweat is another matter, right?>
Right.
Re: DVD
Don't get me wrong, I don't think CREAF is going to be dominant in DVD like they are with sound. Nothing close to that. My assumption is that the overall opportunity is going to be huge and if they can get a fair piece (which I think the can) this represents significant incremental potential. Hopefully, being ahead of the pack, having a good brand awareness among PC users, getting great reviews on their current second generation drives, and having good distribution well help insure that they will continue to get their fair share of a rapidly growing market. In addition, if they can offer a complete multimedia solution they have the chance of winning some OEM deals. Not many people can go to a DELL, for example, and say "hey look at this multi-media package I can offer you; it includes sound, a DVD drive, speakers, and video which all work together very nicely". I am hoping they are making this pitch and I am hoping they can sell it. So far no major OEM deals, but the game has just begun.
You are absolutely correct, however, DVD is not going to be a cake walk and everyone is going to want a piece of the pie.
BTW, I was in Best Buy the other day and I was shocked to see how many movies are already available on DVD. Rows and rows of them and most of them at a very reasonable price of $19.95. Microsoft also has a reference DVD that includes what use to be 5 CD's on one disk! No doubt, the DVD market is going to be very interesting over the next couple years.
FF |
