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David, I didn't listen to the Conf Call, I got the info from one of YOUR posts. (and you don't think we read all that stuff, huh?)
To: John Rieman (22288 )
From: David Nadalin Sep 9 1997 5:23PM EST
Reply #22290 of 22440
Divx was in the London Edition of the Financial Times...
Confusion fear in DVD market
By Christopher Parkes in Los Angeles
09/09/97
Financial Times
London Edition
Page 5
Copyright Financial Times Limited 1997
A new home video system which could disrupt US and international markets
for the fledgling digital video disc ( DVD ) was unveiled yesterday amid
angry protests.
Warren Lieberfarb, president of Warner Home Video and a champion of the
DVD format, denounced the so-called Divx project as obsolete before its
introduction. It would confuse customers and adversely affect retailers,
he claimed.
The row recalls the confusion and controversy which delayed and hampered
the introduction in the 1980s of the now standard home video cassette
player.
However, the system's backers stressed its security features, which
would foil pirates and which had won them the support of Walt Disney,
the world's leading participant in the home video market, Paramount
Studios, DreamWorks and Universal Studios.
Players will be made by Matsushita Electric, Thomson and Zenith.
Although Disney last week announced it would issue films in the standard
DVD format, its prized animated features will only be available in Divx.
For Paramount, owned by Viacom, and DreamWorks, yesterday's announcement
marked their first commitment to the new digital disc technology which
offers picture-perfect resolution and CD-quality hi-fi sound.
Divx, until recently a closely guarded secret, is a joint venture
between electrical retailer Circuit City Stores, which owns two-thirds
of the equity, and a Los Angeles law firm which owns the patents and the
balance of the stock.
Mr Lieberfarb said the introduction of Divx would confuse customers.
"There is enormous downside potential in terms of consumer confusion and
injury to the trade, retailers and Hollywood studios," he said.
The system is based on a CD-sized disc encoded with a full-length
feature film, and expected to sell for about $5 (GBP 3) on its market
launch next spring. Players will cost about $600, compared with $500 for
existing low-end DVD models. The first generation of standard DVD discs,
which have exceeded expectations in test markets, cost up to $25 each.
In the Divx system, the disc purchaser will be able to view the film as
often as desired for up to two days. After that, the owner may throw it
away or reactivate it at will via a phone connection from the player to
the film's maker, distributor or other intermediary.
Opponents of the project, including the video rental industry, are
expected to mount a vigorous protest against a system which could
effectively cut them out of the profits chain.
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