John, David, Fred, etc. your comments please
Subject: Re: HDTV doesn't matter
Date: Thu, Jan 8, 1998 15:35 EST
From: GeoStks
Message-id:
Don't waste anymore posts on HDTV as it relates to CUBE. It doesn't. Cube is in the business of encoding and decoding compressed digital video signals. The advent of HDTV has no direct effect on their prospect for success. All digital signals need to be decompressed (decoded) when used in analog, digital or HD television. A set top box decoding a digital signal from cable, satellite or ASDL will provide most mid/high end analog TV's with 3x the
resolution available from VHS or standard signal. Here are the developments to watch that have a direct effect on CUBE's propects:
1) VCD deployment in Asia. This is DVD's older, less powerful brother that is a hot seller in China. CUBE is da man in this business. It's cheap and contains a lot of titles. Based on MPEG 1 it's easy to dump a nice VHS movie onto disk and sell pirated copies until the cows come home. Perfect for this culture. Sales are now bleeding into Korea and other PACRIM markets. Attempts are being made to upgrade thinking to DVD but it appears the tight
control on titles and security are not appealing.
2) Set top box deployment anywhere. This is right in CUBE sweetspot. Decode digital cable, satellite or phone company digital stream. When you see Next Level buddying up with Divicom or Zenith announcing a gazillion unit order that untilized CUBE parts - that's the time for woody alert
3) DVD technology in PC. Not so much for the ability to play DVD titles but to utilize the encodong/coding technology to store data.
4) Consumer DVD players. Not as big a factor as you may think but could be. Samsung has jumped on the CUBE bandwagon but most of the 1st and second generation players we have seen in stores incorporate a proprietary chipset made by the manufacturer (Sony Toshiba, etc.). However, to get cost in line with consumer needs all will have to utilize a cost efficient single chip solution al la CUBE and others. Big numbers down the road.
5) CUBE also has good markets in professional video, teleconfrencing and security/survillance but these will not provide the massive jump start like any of the above,
Hope this helps |
