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Technology Stocks : Innovacom (MPEG), [announced single chip MPEG-2 encoder]
MPEG 0.0001000-50.0%Aug 29 1:17 PM EST

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To: DiViT who wrote (88)10/14/1996 11:32:00 PM
From: Richard Ogier   of 6297
 
Here is a post about CUBE encoders from AOL.
Apparently, CUBE does have a 2-chip MPEG-2 encoder,
but it is not for real-time video transmission -- it does
not do what DVImpact does!
Don't be a sucker -- buy MPEG before it doubles.

Subj: Competition
Date: 96-10-14 19:52:44 EDT
From: Maxamiga

I got some info about C-Cube's MPEG-2 products in the encoder "arena." They
are as follows:

CLM4720 Storage Encoding Chip Set:
-intended for formating video for storage on file servers,
-use in Video-on-demand & broadcast automation
-supports of NTSC and PAL format (video format for North Amer. & Europe,
respectively).
I think they got a wider screen over there (confirmation??? Anyone??)
-Has 5 chips.
-Priced at $1,950 per set.
-Does come with software (better be! At that price.)

CLM4740 Broadcast Video encoder Chip Set
-for direct satellite broadcast, digital cable, wireless cable,
and wide-screen enhanced-definition TV (EDTV).
-Supports NTSC and PAL.
-Has 7 chips.
-Comes with software.
-Priced at $6,000 per chip set (no, coffee does not come with them chips).

CLM4440 Multimedia Authoring Encoder Chip Set
-use with CD-ROM, Video CD.
-Has 2 chips.
-Comes with software.
-Priced at $780 per set.

The above information was in C-Cube press release on Apr-8th, 1996.

I think I know how we get to refer to CUBE as having ONE 13-chip solution.
The total above gives you 14 chips. I am not sure but I would bet that one
of those chips is redundant. InnovaCom `s news release states competition as
having "13-chip systems" (plural). Others and I incorrectly referred to it
as a 13-chip system (singular), and misleading as well. The correct way to
state it is `CUBE has multiple encoding solutions ranging from 2 to 7 chips.'

Why are we talking about the number of chips? To get an estimation of
price/cost!

It appears to me that CUBE has segmented the market into different
applications and then price the chip solutions accordingly. Higher volume
application gets the lower solution price ($780) for a two chip set.

MPEG, on the other hand, makes a one-chip solution for all applications. It
is to be priced some in the range ($50-$200). They are really undercutting
CUBE!

Here, we see two separate product strategies. Customers' concerns for new
technologies are (usually):
1. Performance.
2. Price.
3. Support (like software and things).
This order will change depending on market segment.

As a marketeer, I've been beaten over the head many times with pricing. Such
pricing differential (almost 4x, is really a "no-brainer") to decide given
approximate performance level. However, I have no way to tell how these
chips will stackup in terms of performance....

Max
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