Mutisystem plays your stereo, TV, DBS/Settop, DVD, PC, and maybe a VCR.(David's year 2000 box) On another note, Divx...................................................
Working Divx Player to Be Shown in Las Vegas
Consumer Electronics
Mon, Dec 22 1997
Circuit City's Digital Video Express (Divx) working player prototype will be demonstrated in Las Vegas Hilton suite during CES, although it won't be on main show floor. "The momentum is on our side," Circuit City Chmn.-CEO Richard Sharp told financial analysts in conference call last week to discuss retailer's 3rd-quarter financial results (see separate report, this issue). "We do remain excited about the prospects for Divx," and discussions are continuing with additional manufacturers and studios, he said. Sharp said impact of Divx expenses on 3rd-quarter results was 5 cents per share, compared with expected 7 cents, and 2 cents in same quarter year earlier. He said lower-than-expected costs shouldn't be construed as sign that "we're not on plan" with Divx, but rather as indication that Divx is being run more efficiently. Responding to analyst questioner, Sharp said it's "premature" to discuss Divx losses beyond first quarter next year, but "we do expect to continue in the loss mode for the entire year next year." Magnitude of losses will depend on financing necessary to fund national launch in summer, he said. Circuit City wants to study sales results in 2 test markets in spring before "we get too aggressive" in making national launch projections, Sharp said. Funding will be needed mainly to pay Divx marketing and R&D costs, but also to support "building the Divx disc inventory," including authoring, replication, warehousing, distribution. Amount of cash raised in stock offering will depend on share pricing, but targeted war chest would be $100-300 million, Sharp said. Although it's "logical" to assume offering will coincide with national launch next summer, Circuit City has some flexibility in timing and isn't bound to that scenario, he said. Sharp conceded there's pessimism about Circuit City's prospects for mounting successful Divx stock offering, but said: "Whether the public market is ready for this or not, I don't know, but certainly, there's private equity investors who can see the benefits of this product and be persuaded that this is an outstanding opportunity." As for Divx sentiment overall, Sharp said: "It's hard to get people excited about this product when they can't see it. When there are others who have products in the market that they're trying to sell today, and one of the ways they're trying to sell it is by disparaging our product, I think CES will be helpful to that in that we will demonstrate a working product." New ad-PR agency, Boston-based Arnold Communications, is "working fast and furiously" on developing ad campaign that will relate Divx benefits to consumer, he said. "The momentum is on our side." Thomson is among Divx hardware supporters planning to show Divx player on CES floor, although it won't demonstrate working prototype, Exec. Vp-COO James Meyer told reporters Dec. 13 at company's annual ProScan line showing in Sanibel, Fla. However, Thomson has working Divx models at its Indianapolis hq and remains on plan to begin selling Divx players nationally next summer, Meyer said: "We're excited about Divx," although "we don't believe it's a format, {but} a feature." Although Thomson officials "don't know how successful Divx will be," sales potential "could be significant," Meyer said, basing conclusion on Circuit City research that retailer has refused to release publicly. Meyer resisted persistent questions from reporters on Circuit City's Divx studies, saying at one point: "I'm not the Divx poster boy of the month. It's up to the people at Circuit City whether they want to share that information."
(Copyright 1997 by Warren Publishing, Inc.) |
