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Technology Stocks : Ampex Corporation (AEXCA)
AMPX 10.61-6.2%Dec 1 3:59 PM EST
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To: Ed Perry who wrote (8903)5/29/1999 9:16:00 PM
From: HPilot  Read Replies (1) of 17679
 
After reading the Cummings - Cuban posts I think I know why Cummings and Grady made the deals with Ampex. They know that they must get ahead of the big Broadcasting firms CBS, NBC, ABC, and Fox. But the progress of bandwidth was progressing too slow allowing the slower big companies to operate at thier pace. Ampex has stated before that they have no technology to improve bandwidth. But they also have never said that they were not working on something. And we now know Ampex is working on something and compression is at least part of it. Also Ampex needed some experiance to provide content. They cannot rely on the market to be savy enough to buy thier equipment. I expect Cummings and Grady to be a big part of the new sites that Ampex is developing. They are the content guys to get the contracts and personnel to do the video programming and old Ampex is the hardware guys providing the equipment to give them the edge. This also increases the odds of success. If the hardware only gives them an incremental edge or someone comes out with something better then they could make it on the content of their sites. If the big broadcasting companies win the content war then maybe they will buy Ampex hardware.
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