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Strategies & Market Trends : The American Money Tree !

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To: Steve Lee who wrote (250)	10/2/1997 2:50:00 AM
From: Mike Winn	of 275

Re: Can you give a summary of what DVD products CUBE will have on sale. Steve, CUBE makes the MPEG-2 encoder and decoder chips, especially encoders which are computationally 10 times more complex than decoders. MPEG-1 compression is used in CD-ROMs, but full screen, faster-moving video requires MPEG-2. MPEG-based digital video is driving many emerging consumer products such as satellite TV systems, set-top boxes, digital cameras and DVDs. DVD players offer at least 4.7 Gig of data and can store feature-length films and other multimedia content. In PCs, DVD drives may replace CD-ROM drives. Build-in encoder chips would enable DVD drives to record also. Dataquest expects unit shipment to reach 757000 in 1998, 1.48 million in '99 and 3.82 million in 2000. If the price of recordable DVD players is right, the biggest market will be the replacement of existing analog VCRs. 85% of US homes have a VCR. Competitors for CUBE for MPEG chips are LSI and most notably IBM.

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