Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Rutgers who wrote (5373)	11/5/1997 3:16:00 PM
From: baney	Read Replies (2) \| Respond to of 13925

rt 27 1/2 X 27 9/16

To: Rutgers who wrote (5373)	11/5/1997 10:30:00 PM
From: Rutgers	Respond to of 13925

More Good News for PCDVD DVD Will Shift The Entertainment Balance Of Power To The PC CAMBRIDGE, Mass.--(BUSINESS WIRE)--Nov. 5, 1997--Digital versatile disk (DVD) -- the well-publicized successor to VHS tapes, compact discs (CD), and CD-ROMs -- will struggle in the video and music industries but be a major success for the personal computer industry, according to a recent report from Forrester Research (NASDAQ:FORR). The report concludes that PC manufacturers will rapidly embrace DVD, resulting in an installed base of 53 million DVD-equipped PCs by 2002. The next five years will prove less favorable for the video and music industries' DVD efforts, however. In 2002, only 5.2% of households in the United States will own a DVD-Video player, while only 2% will have a DVD-Audio player. As a result, Forrester believes that the PC will be transformed into a more viable consumer entertainment device. "DVD will replace VHS tape, the CD, and CD-ROM. The question is when," contends Mark E. Hardie, senior analyst with Forrester's Entertainment & Technology Strategies and author of the report. "For the video industry, the first three to five years of DVD availability will be a low-volume disappointment. Lack of available titles, a high price tag, and the need to add expensive home theater components will discourage consumers from purchasing a DVD-Video player that can't even record their favorite shows. In 2002, 5 million players will be installed in the United States, a household penetration rate of only 5.2% (see Figure). In comparison, 89% of U.S. households currently own a VCR." In the music industry, explains Hardie, plans to convert from CD to DVD have been slowed by lack of agreement over DVD-Audio standards. Furthermore, Hardie points out, it will be difficult to convince consumers that DVD offers any considerable advantages over CDs: "DVD-Audio will be a tough sell because music on CD is already in digital format and already sounds great. DVD-Audio sales won't take off until recordable DVD technology (known as DVD-RAM) becomes widely available in 1999 or 2000." DVD-ROM's Success Means More Entertainment Clout For The PC Forrester predicts that DVD will be most successful in the PC industry. "DVD-ROM is the logical next step," asserts Hardie. "Game, edutainment, and reference titles will benefit from DVD's expanded audio and video capabilities, while immense storage capacity will reduce today's cumbersome 4-disk titles to one DVD." Hardie also notes that DVD drives can play existing CD-ROMs, so there's little reason for PC makers not to support the technology. "As DVD-ROM drives continue to drop in price, they'll rapidly replace existing CD-ROM drives in new PCs." What will the rapid adoption of DVD-ROM mean? In short, that DVD's entertainment capabilities will be inextricably linked to computers for the next two to four years. "As business travelers enjoy full-length movies on their laptops and college students cue up DVD concert videos during study breaks, consumers will increasingly accept the PC as a viable and unique entertainment alternative." The report, "DVD's New Content Model," is part of Entertainment & Technology Strategies, a Forrester research service that analyzes the impact of technology on consumer entertainment. Additional information may be obtained from Diane Reeves, Forrester Research, 1033 Massachusetts Avenue, Cambridge, MA 02138, 617/497-7090. CONTACT: Forrester Research Diane Reeves, 617/497-7090 press@forrester.com www.forrester.com