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To: Ed's Head who wrote (28773)	1/26/1998 5:31:00 PM
From: John Rieman	Read Replies (2) \| Respond to of 50808

Divx. A buyers boycott??????????????????????????????? twice.virtualmarketing.com JVC To Offer DVD Decks With Divx - -January 26, 1998 By Greg Tarr Controversy over the forthcoming Digital Video Express (Divx) pay-per-viewing-period system escalated after CES, with word that JVC plans to introduce DVD players using the system. Meanwhile, certain retailers in the NATM buying group were said to be considering dropping DVD players offered under brands that support the Divx feature. JVC America announced that it plans to offer DVD players that will include the new Divx feature, an enhancement that enables consumers to unlock and play a new class of DVD discs with programming that has been encrypted to enable a pay-per-viewing-period system. Open DVD discs will play on Divx-enabled players, but Divx-encrypted discs will not play on straight open DVD equipment. In announcing the plan, Harry Elias, JVC executive VP/COO said, "We believe that manufacturing DVD players with the Divx feature gives our customers more versatility while broadening the choices available in DVD technology." JVC joins Panasonic, Thomson and Zenith in making a commitment to deliver products using the Divx feature. Matsushita, the parent of Panasonic, also has an ownership stake in JVC. JVC executives offered few details on what their proposed Divx DVD players will cost, how many they plan to offer, or what other features may be included in players. A company statement simply said that "JVC anticipates that its Divx-enhanced DVD players will be available to consumers through authorized JVC dealers within a year." Meanwhile, the Divx system was condemned for introducing more confusion into the DVD video market by some members of the NATM retail buying group. Several members of the group were said to have strongly stated their opposition to Divx equipment at NATM meetings held during CES. Contrary to some reports, Warren Mann, NATM assistant executive director, said his buying group does not support Divx but said it is not calling for a "boycott" of any vendor's DVD players. Such a practice, he said, is against NATM policy and possibly illegal. "We don't advocate boycotts of anything," Mann told TWICE. "All I can say is that we don't support [Divx], and we don't really understand why anybody else would. We also can't control what any one of our members may say or do on their own, but NATM's statement with regard to RCA, Panasonic, Zenith and JVC is, 'We like you. We do a lot of business with you, but when it comes to DVD, if another vendor offers a player with the same features and price as your players, and that vendor does not support Circuit City's system, then we will go with the other brand's product over yours. Divx will be the tie breaker.' " An unnamed executive from a vendor that does not support Divx affirmed that he has recently had inquiries about his "open" DVD players from NATM members looking for alternative sources. Representatives from Thomson and JVC declined to comment on NATM's position. Mann said he hopes the policy will send a message to other manufacturers and movie studios that may be considering Divx products. However, he said he doubted NATM's policy will convince manufacturers that have already made commitments to Divx products to suddenly drop their plans. "We're not that powerful," Mann said. "We just do not want to burden our customers with any more complications."

To: Ed's Head who wrote (28773)	1/26/1998 5:45:00 PM
From: John Rieman	Respond to of 50808

December PC sales in Japan..................................... nikkeibp.asiabiztech.com PC Sales at Volume Retailers Up 6.9 Pct in Dec. January 26, 1998 (TOKYO) -- Sales of personal computers by about 2,000 volume-sales stores specializing in home electric appliances in the week of Dec. 29 through Jan. 4 rose 9.2 percent in units and 6.5 percent in value compared with the same week a year earlier. These calculations were made by GfK Japan Ltd., an information service company handling point of sales (POS) data for 54 volume- sales companies specializing in home electric appliances. According to GfK Japan, PC sales during that week increased 6.9 percent in units and rose 1.2 percent in value compared with the previous week. (See chart.) But the average sales price dropped by 12,614 yen (US$99.40) from the previous week's level of 237,358 yen (US$1,869) to 224,744 yen (US$1,770). Despite the cooling trend for PCs bought by general consumers, winter sales by volume retailers surged from mid December. But because of the drastic drop in the average sales price, the growth in sales amount was relatively small. Sales in December 1997 increased 51.5 percent in units and rose 54 percent in value compared with the previous month. And sales increased 4.1 percent in units and fell 0.4 percent in value on a year-on-year basis. GfK Japan collected POS data for 54 Japanese IT-related retail companies and 2,600 stores centering on volume-sales stores of electric home appliances as of October 1997. In cooperation with GfK Japan, "Nikkei Market Access" makes its weekly report for PC sales in units and value. For accuracy, data from the same 41 companies and about 2,000 stores have been collected since 1996. It is estimated that the number of PC units sold by the stores covered by GfK amounts to about 10 percent of gross domestic shipment, and in terms of retail sales channels, the share amounts to about 25 percent. Chart : Personal computer sales of about 2,000 volume sales stores On a weekly basis, sales results for December 1997 as compared with the average for the previous year and the same week a year ago. <Picture> (return to news) Related story : December PC Retail Prices Hit Low Since '96 (Nikkei Market Access)