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Technology Stocks : C-Cube
CUBE 37.08+0.4%Dec 2 3:59 PM EST

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To: Don Dorsey who wrote (33469)5/27/1998 1:39:00 PM
From: DiViT  Read Replies (2) of 50808
 
Divix delayed (again)....

Movie-Disk Format Delayed Again On Quality-Control Issues
By Anthony Palazzo, Staff Reporter

05/26/98
Dow Jones Online News
(Copyright (c) 1998, Dow Jones & Company, Inc.)


BUENA PARK, Calif. -(Dow Jones)- Test marketing of Divx, the movie-disk alternate to DVD , will be delayed for at least one more week.

The launch was delayed once earlier this month.

Persons close to Digital Video Express LP said the test launch set for San Francisco and Richmond, Va., has been delayed again until the June 8-10 timeframe, while Digital Video Express attempts to increase the number of titles available.

These persons said some of the titles weren't passing quality-control standards because of technical issues related to authoring, mastering and coding. The sources said there will be "north of 25 titles" available in the initial launch.

The test launch was already delayed once earlier this month, and just last Friday Digital Video Express officials said a new target for roll-out in late May was on track.

A spokeswoman for Good Guys Inc. (GGUY), which will test market Divx in the San Francisco Bay area, told Dow Jones that the retailer doesn't know when Divx will be available. Previously, Good Guys was expecting to have Divx on its shelves by the end of this week.

Digital Video Express spokesman Josh Dare confirmed the new June 8-10 target date. He said Digital Video Express is shipping Divx players to retailers this week. The players are manufactured by LG Electronics Inc. of South Korea and sold under the name of its U.S. unit, Zenith Electronics Corp. (ZE).

Dare said Divx players won't be sold without Divx disks, even though the players can play DVD titles. DVD currently has more than 1,000 titles available.

Circuit City Stores Inc. (CC), Richmond, owns 66% of the Digital Video Express partnership, along with a Los Angeles law firm.

- By Anthony Palazzo; 714-739-5538; tony.palazzo@cor.dowjones.com
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