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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?


To: BillyG who wrote (29781)2/21/1998 2:21:00 PM
From: Don Dorsey  Read Replies (1) | Respond to of 50808
 
"All indications point to a consumer base which is ready and waiting for digital TV." There has been a lot of discussion about how x rated material will drive the industry in its early years, but I think the big breakthrough will come when the first football game is broadcast in HDTV. Calling up stats, selecting camera angles, choosing your own replays, selecting freeze frame, viewing the game in wide screen format ..... every fan will have to have one of these overnight.

Focus Group Results

The focus groups were conducted during August, 1997. Two groups were held in Orange County, CA, Atlanta, GA, and Dallas, TX. The sessions were moderated by the Verity Group, Inc., Fullerton, CA. Approximately 70 participated in the groups viewing demonstrations of a 35" 4x3 analog TV, a 34" 16x9 digital TV capable of 700 lines of resolution, and a 38" 16 x 9 HDTV capable of 1080 interlaced resolution. Roughly half of all group participants were pre-selected to represent early adopters while the other half were selected to represent mainstream adopters. Media Contact: Cynthia Upson (703) 907-7665 or Jonathan Thompson (703) 907-7664. For further information contact the CEMA Consumer Research Service at (703) 907-7970.

Initial Observations:

Consumers overwhelmingly prefer High-Definition TV to standard analog and standard definition digital TV (700 lines of resolution) in isolation and side-by-side comparisons. Consumers are aware of the costs broadcasters must incur to make the changeover to digital TV and they realize they will also have to purchase new TV equipment. No backlash against 2006 mandate. Quality sound is very important to the digital TV experience. The changeover to digital TV will lead to an increased emphasis on home theater and home stereo. One of the primary sources of information, especially for more mainstream adopters (those likely to buy after early adopters) to purchase, are home shows and technology reports on TV news programs. Consumers have high expecatations for digital TV as a portal to the larger digital domain including using the digital TV as a videophone, interactive videogame machine, or internet access device. In general, mainstream adopters don't want broadcasters to "multi-cast." Improving the quality of existing programming is of much more vital importance to the mainstream adopter.

More Observations from the Focus Groups:

Consumers feel digital TV has the ability to bring the family together by making TV an information and entertainment device that could stimulate education. Overall consumer interest, especially among more mainstream adopters, increased markedly when they considered the potential information/interactive aspects of digital TY including internet access. Modularity of components, especially among consumers familar with home computers, is of primary importance. Consumers want the opportunity to upgrade to higher performance components as desired.

More than 18 million U.S. households already own a color TV for which they paid at least $2,000 at retail.
When color TVs were introduced in the 1950s they cost the equivalent of $2,800 in today's dollars.
The prices of consumer electronics typically drop 50% within the first 10 years on market.

Observations on Early Adopters and Digital TV:

Early adopters are highly aware of digital TV, HDTV and some even understand the differences between the U.S. digital system and the Japanese analog standard. Early adopters like the increased pace of technological advance because they understand the benefits which will accrue to them. Some worry HDTV will be watered down to make it more affordable. As for mainstream adopters, early adopters expect their digital TV to be more than a TV. They want it to have internet access and potentially videophone capabilities. Early adopters keenly articulate the desire for improved sound quality to accompany greatly improved picture quality. They also recognize the need to make additional purchases to optimize sound performance. Early adopters welcome converter box technology because it allows them to utilize some form of digital TV on all the sets in their houses right away, while buying an HDTV for their primary TV. Early adoptors are very interested in buying an HDTV which contains a fully-functional high powered personal computer which can work with digital camera, scanners, etc.

Conclusions from Focus Groups:

Consumers can differentiate and understand the vast improvements HDTV provides and they want to purchase the best quality picture they can buy. In side-by-side comparisons, consumers could plainly and clearly differentiate HDTV from lower resolution pictures. They described the picture as lifelike and crystal clear and immediately understood the benefits. Consumers want digital TV to be modular in the same way a computer is so they can add and upgrade components as they see fit. Sound quality is equally as important as picture quality in the digital TV experience. In fact, they expect better sound to accompany a better picture. Early adopters want the highest definition picture they can get and will not settle for anything less. They want and expect their cable TY provider to upgrade and provide HDTY. Content including educational programming, sports, and movies will drive the early mainstream adoption of diigital TV. Later, interactive services including videophone may be vitally important.

All indications point to a consumer base which is ready and waiting for digital TV.



To: BillyG who wrote (29781)2/22/1998 12:18:00 AM
From: Peter E. Thorpe  Read Replies (1) | Respond to of 50808
 
Herb gave his fond farewell from SF Gate today

he referred to his CUBE columns as soap opera ...
I guess that is no surprise to any one on this thread.

I am long CUBE, BOST, and who knows what else he may have
lambasted ...

But just like with Rarebird, I appreciate a contrary opinion if
it makes one ask a question to himself ... hopefully I have the right
answer! (hello to rarebird, I would be interested to hear what the
charts might say about my other holdings - email me)

BillyG, thanks for your humor on the thread (also FredE). I follow
many stocks at SI and I can always rely on CUBE for timely and
informative information. I still don't have a DVD of Blazing Saddles, but I still eat beans.

Pete



To: BillyG who wrote (29781)2/22/1998 10:24:00 AM
From: John Rieman  Respond to of 50808
 
Tiernan..................................................

freshnews.com

News for the week of: February 16, 1998

Tiernan Communications Inc., one of the world's foremost producers of MPEG-2 digital television compression equipment and systems, has recently been awarded five major contracts for digital television systems.

Making the announcement of these awards valued at over $4-million, Tiernan Vice President Keith Dunford said, ''Tiernan is considered by many to be the leader in MPEG-2 digital compression, based upon our high level of research and development, and patented technology. Receiving contracts from so many major companies is proof-positive that we are delivering the state-of-the-art in MPEG-2 digital television equipment for broadcasters, common carriers, and business television users.''

Teleglobe International Corporation selected Tiernan's TE6 4:2:2 Studio Profile Encoder and TDR600 IRD -- the latest in high-performance 4:2:2 MPEG-2 compression equipment for their new transcontinental and intercontinental MPEG-2 digital television services. This equipment, combined with Teleglobe's efficient ATM (Asynchronous Transfer Mode) network, allowed Teleglobe to make history as the first major international common carrier to offer the MPEG-2 4:2:2 studio profile and ATM networking. Tiernan completed the first installation on schedule, enabling Teleglobe to meet the need of NHK (Japan Broadcasting Corporation) for digital television transmissions from British Columbia to Montreal and NY.

RTR-Signal, one of Russia's leading television broadcast networks, awarded a contract to Tiernan which included a six-channel (MCPC) MPEG-2 DVB digital television system for the distribution of RTR programs throughout Russia. When fully equipped, this new MPEG-2 digital satellite network will serve over 2,000 affiliate sites. Eletronica Industriale Telecommunications Technology selected Tiernan equipment for a multichannel MPEG-2 digital television system to feed head-end distribution of Italy's premier cable TV operator. In addition to Tiernan's field-proven TE30 Encoders, the equipment package chosen by Eletronica included Tiernan's TDR7 Integrated Receiver/Decoder (IRD), which has become a standard in worldwide DTV distribution.

Wellbe Company Ltd. chose Tiernan to supply MPEG-2 DVB Digital Satellite News Gathering (DSNG) equipment to meet expanding television broadcast news requirements in China. Tiernan provided several DSNG systems, each comprised of Tiernan TE30 Encoders and TDR777 Broadcast Grade IRDs.

IGP awarded Tiernan a contract for the supply of the low-cost, lightweight TE300 Encoder/Modulators to facilitate the international exchange of digital television programs between China and the USA. Tiernan Communications Inc. provides a full line of digital television compression and transmission equipment. Tiernan equipment is used worldwide by broadcasters, cable operators, and common carriers to achieve the highest levels of quality, performance and economy in the distribution of digital television programming. The company's products are essential in digital television operations, satellite news gathering, and in the distribution of television programming via satellite and terrestrial networks. Tiernan products meet or exceed international standards of quality. More than 500 Tiernan digital television systems are presently operating in some 25 countries.