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Technology Stocks : LSI Corporation

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To: E. Graphs who wrote (14635)8/30/1998 2:27:00 PM
From: thomas hayden  Read Replies (3) of 25814
 
I have some bad news for LSI & DVD.

I had dinner last night with someone who works in Blockbuster's corporate office. Blockbuster WAS planning a major promotional this fall with lots of advertising for DVD. She said that has been drastically reduced. They are now going to only Promote DVD in 1000 of their 4000 stores and the big TV campaigned has been canceled or postponed. The reason is they think Divx (or whatever, the movie disk that deletes after a couple days) has a reasonable shot of catching on. So Blockbuster is going to wait and see which one makes it. She said Blockbuster is still behind DVD but the major studios are picking sides. I think she said Warner backs DIVX, while Paramont & FOX back DVD, while Disney is against both. I remember reading earlier that someone said DVD only had a few years of a window of opportunity, well while the studios fight over this time is slipping away. I wonder though if DIVX catches on who makes the chips for those systems?

Either way we could have used a big TV campaign this fall to help spur on sales of DVD.
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