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Technology Stocks : LSI Corporation

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To: shane hartman who wrote (14528)	8/24/1998 2:53:00 PM
From: clark readler	Read Replies (3) of 25814

With regard to Divx, Shane Hartman wrote: "But when you buy DIVX, you are paying the late fee IN ADVANCE (the cost of the disk). Why would you do this? The cost of Divx movie will be about $4.99 about a $1.00 more than the rental, and far less than the late fee. I rarely watch a movie more than once so I am loathe to buy the movie, unless I can get it at $9.99 or so. Hence, a dollar for the convenience of not making two trips to the rental store is well worth the price. Since the Divx system will play DVD disks, for an extra $100, you get the benefit of both DVD and Divx. This is just my own cost function for movie rentals. Movie rental companies will not want anything to do with Divx. But, a lot of supermarkets sell last year's VHS titles at $19.95 and I am sure Best Buys (even though they compete with Circuit City) would love to sell both the players and the disks. Given satelite and other video on demand technologies, I don't see how DVD can win. Back to my question. Is LSI involved in Divx?

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