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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: flickerful who wrote (4185)	1/24/1998 2:38:00 PM
From: Robert Utne	Read Replies (1) \| Respond to of 6570

With few exceptions, TV/PC convergence has been a bomb. Watching TV, usually, is a collective activity and PCs are best for exploring individual interests and engaging in personal communications. Certainly, there is some overlap, but very little demand beyound the 5% of the population who wants it delivered in one box, 'both ways'. Sam Runco, ceo of the highest quality home theater products, mentioned at the CES that he bought a WebTV to see what all the hoopla was about in bringing the web to the living room. So, he and his family tried to find something on the web which they all could enjoy together. After several evenings of fruitless surfing, they couldn't find a thing. Nevertheless, the cable companies, led by TCI, are pursuing a convergence, digital model. They believe it's their only weapon to combat the digital implementation plans of the broadcasters (as previously discussed) and to stop the erosion of marketshare to DBS companies. TCI wants to deliver hundreds of channels, with 450 lines of progressive scan (SDTV but no HDTV), and become an ISP. It's Malone's very risky, multi-billon dollar bet, that won't play out nor pay out, for at least a decade. Zenith, with very limited financial and human resources, shouldn't play it both ways (meeting the hardware requirments of both the cable and broadcasting industries). Zenith should focus on supporting the broadcasting industry (broad distribution of HDTV/SDTV sets and STBs) which directly benefit Zenith- VSB licensing royalties and maximum hardware sales. For Intel and Microsoft to license VSB from Zenith, that's a clear indication that 'Mitel' will be in the broadcasters' camp, too.