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Technology Stocks : Concurrent Computer (CCUR)

CCUR 2,255

0.0%

Jan 9 9:30 AM EST

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To: Don Hand who wrote (2655)	2/16/1998 11:40:00 AM
From: Nimbus	Read Replies (2) of 21143

DIVA/SARNOFF has a 2000+ stream MPEG2 machine ........ I have worked with this group. They have a high end machine derived from the Princeton Engine that can scale to over 6000 streams. SARNOFf also has designed a cheap ($200) set-top-box for this system (vs $1000 for SAs). DIVA has bundled the server, movies, menus and STB into a package. They do not "sell" the package, rather they work a deal to install it at cable head-ends, sell movies and collect the $3.95 (online), and then pay the cable operator $1 or so for access to his customers ... a win-win. This system is proprietary (no open systems anything) allowing the absolute lowest cost per stream solution out there. The machine is made exclusively for VoD, and it is impressive as a MPEG pusher. DIVA secretly claims to have almost half of the small-med cable companies signed up for systems, with DIVA having to get financing to buy/install systems. Again, the cable owner pays nothing. Rather clever I say, but it takes deep pockets. Onsite has invested over $60M thus far to put this system together and has kept it quiet in order to end-run the big name players like SGI and HP. It seems to be working, and as you say ... the more VoD becomes commonplace, the more demand there will be for VoD .... and all suppliers will benefit. This effort by DIVA is good for CCUR ultimately.

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