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Technology Stocks : C-Cube
CUBE 36.29+1.9%Nov 21 3:59 PM EST

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To: Ian@SI who wrote (34831)8/2/1998 3:08:00 PM
From: John Rieman  Read Replies (1) of 50808
 
Some of this MPEG-2 stuff starts to deploy.....................

mediacentral.com

By Jim Barthold
In a deal certain to impact General Instrument Corp. and Tele-Communications Inc., Microsoft Corp. and Sony Corp. will work together to merge the personal computer and consumer audio-video platforms.

Under terms of the agreement, Microsoft's Windows CE operating system is being used in the GI digital boxes being built for TCI. Sony owns 5% of the set-top box maker. Also, Sony will license Microsoft's Windows CE software and Microsoft will license Sony's Home Networking module for use with certain versions of CE.

The two companies also said they'll endorse various digital TV formats, jointly addressing such issues as production, transmission and reception. Both support the use of 1080i (interlaced) for HDTV production. In addition, Sony will develop 480p (progressive) production equipment in the near future and 1080p equipment as the ultimate goal in the longer term.

Microsoft has been an ardent supporter of progressive scan and has argued that for digital television to take off, it must be affordable. It has reasoned that a lower line count and progressive scanning will speed that along.

"Microsoft is really interested in trying to help make digital television a reality in two to three years vs. 30," said Steve Guggenheimer, Microsoft's group product manager for digital TV strategy, at last week's NAB98 conference in Las Vegas. "We think that in order to make digital television happen quickly you need two things: You need high-volume low-cost receivers and you need new business opportunities for the television industry."

Guggenheimer emphasized that the format a broadcaster chooses for digital programming "affects both the cost of the receiver, as well as what bandwidth is left in there for the business opportunities."

Both Fox and ABC have said they'll broadcast in various levels of progressive scan. NBC has selected 480p as its base level and 1080i for top-of-the-line high-definition. CBS will use 1080i in prime time and a form of progressive scanning the rest of the day.

Microsoft has developed its own high-definition format called HD-Zero, which starts at a relatively basic 480 line level and grows as the technology improves and compression algorithms improve.

"It gives us the ability to have low-cost receivers in the next year or two that can scale over time," Guggenheimer said. "Basically what we said was, as opposed to having a standard that lasts for over 40 years, let's try to pick an architecture that lasts for 40 years that we can grow."

He added: "Last year was somewhat of a year of education where we kind of questioned some of the thinking and we created an environment for open discussion. Next year is not only a year of education, but it's also a year of execution when we start to implement some of this stuff."
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