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

To: J Fieb who wrote (34244)	7/9/1998 7:18:00 PM
From: DiViT	Respond to of 50808

"Do you still think that CUBE could have a SONY win?" I do think Cube could have a Sony win. I do not think LSI has a lock on them. We have seen over and over that no decoder company has a lock on any OEM. Things change all the time. Look at Toshiba. They had their own DVD chips but use Cube instead on the Tecra's (and I suspect other solutions as well). Does Cube have a win with the DVD-ROM Discman PBD-D50? This is currently my unconfirmed suspicion. As soon as I can find one I'll let you know.

To: J Fieb who wrote (34244)	7/10/1998 2:08:00 AM
From: BillyG	Read Replies (1) \| Respond to of 50808

Video rentals seen as key to success of DVD medium By Bob Tourtellotte LAS VEGAS, July 9 (Reuters) - As the digital videodisc (DVD) approaches its first anniversary on the U.S. market, proponents of the new medium for playing movies at home say the key to building consumer interest is putting DVD on the shelves of video rental outlets. "The key to growth of DVD is likely to be directly related to the product being available at the video rental store," said Jeffrey Eves, president of the Video Software Dealers Association (VSDA). For the most part retailers are willing to invest in DVD, but their enthusiasm is tempered by the number of DVD players people are buying, the cost of DVD and by two other technologies -- DIVX and digital pay-per-view -- clouding the horizon. Launched nationwide last summer, DVD is a new digital technology that puts movies on a five-and-a-half-inch disc much like an audio CD or computer CD-ROM. Because DVD provides a clearer picture and crisper sound than videotape, some industry experts believe it may replace home video in coming years. And in its first year in the market, early adopters seem to be taking to DVD. Eves presented consumer survey figures showing that DVD awareness has doubled to 37 percent of the U.S. population this year from 18 percent in 1997. About 600,000 players were sold in the United States through June, below first-year forecasts of 800,000. But proponents note that figure exceeds the first-year sales of audio CD players, 320,000, and for VCRs, 515,000. At a luncheon in Las Vegas on Wednesday, Warner Bros. Home Video President Warren Lieberfarb said sales of DVD movies generated revenues of $110 million in the first year. Warner, a unit of Time Warner Inc. , has been a major DVD backer. DVD movies sell at retail for about $25. But the mass rental market is seen as the key to more consumer awareness. The two industry heavyweights, Viacom Inc.'s Blockbuster Video and Hollywood Entertainment Corp. , have slowly embraced DVD and plan to boost its presence in their stores as the Christmas holiday season approaches. John Antioco, Blockbuster's chief executive, told Reuters his company currently was testing DVD in 100 stores, with plans to put the movies in 1,000 stores in the near future. But Blockbuster and Hollywood control only about 34 percent of the video rental market, according to VSDA figures, leaving DVD's backers the other 66 percent to conquer. "I will be bringing DVD into my store," said Scott Prost, a Minneapolis-based independent retailer. "I don't think you can go wrong at a cost of about $18 (to retailers) a unit." To be sure, there are few DVD players in homes compared with VCRs, which are in 80 percent of all U.S. households. Retailers also worry their cost to buy DVDs from Hollywood studios will rise to the average $70 per unit they now pay for videotapes if DVD takes off. They believe the studios may seek to boost their profits by raising prices. At least two studio sources scoffed at that notion, saying once the price paid for DVD was set at $18, studios would face an uproar among retailers if they tried to raise it. He also noted the likelihood that DVD rental pricing would likely turn to one of several new revenue-sharing business models that is sweeping the videotape side. Concerns also focus on DIVX and digital pay-per-view. DIVX, like DVD, offers consumers the ability to play back movies in a digital format on a five-inch disc. But unlike DVD, consumers buy a disc for about $4.99, then download a sort of technological key that allows them to play it. DIVX, backed by retailer Circuit City Inc. , offers a compelling rental alternative to DVD and could confuse consumers, retailers said. Digital pay-per-view movies remain a few years away, but cable, telephone and other companies are trumpeting the delivery of all sorts of digital content -- like movies -- as a product in the future. The small independents worry their customers won't get up from their couches and go to the local video store if companies like proposed merger partners Tele-Communications Inc. and AT&T Corp. can bring the movies into living rooms with just a flick of the remote control.

To: J Fieb who wrote (34244)	7/10/1998 1:28:00 PM
From: DiViT	Read Replies (1) \| Respond to of 50808

Tired of Tradition, China Wants Its DVD --- Market Study Shows Modern Chinese Like New Technology, Not Karaoke By Sarah Tilton 07/10/98 The Asian Wall Street Journal Page 11 (Copyright (c) 1998, Dow Jones & Company, Inc.) HONG KONG -- News flash for businesspeople traveling to China: Karaoke is on the way out. A new study from advertising agency Grey China tracking consumer trends in Shanghai, Beijing, Guangzhou and Chengdu finds that impressing one's hosts no longer depends on the ability to croon time-honored favorites like "Moon River." The survey, called ChinaBase 1998, also reveals that Chengdu has a sweet tooth, Guangzhou has a taste for cognac and in pitching a new product, go with the image of the modern -- not the traditional -- China. This is Grey's third annual survey of Chinese consumer trends. The study was conducted in May using door-to-door interviews across a representative sample of 800 people aged 18-50. The survey examines changes in consumers' habits as well as people's expectations for the future, says Colin Bates, director of strategic planning at Grey China & Hong Kong. The questions cover six categories of consumer goods: instant noodles, chewing gum, pain relievers, skin-care products, air conditioners and refrigerators. The survey also looks at people's feelings about their everyday lives and highlights regional differences and national similarities. Mr. Bates says the most surprising shifts are in technology. "The pace of change is astonishing. VCR sales have come to a stop. People are moving on to DVDs and VCDs," Mr. Bates says. The study shows that 52% of respondents have VCRs and only 1% have plans to buy one in the next three years, while 55% currently have VCDs and 9% plan to buy one in the next three years. In Guangzhou 18% of respondents plan to buy a DVD within the next three years. Grey says the speed with which consumers switch their attention from old technology to new can wreak havoc with manufacturers' planning and suggests that manufacturers focus on expanding to new geographic markets within China. Comparing grocery shopping habits in 1996 and 1998, Grey said the study showed buyers are migrating to a "Western" style of consumption. There has been marked growth in purchases of items like chewing gum and pain relievers. In 1998, 74% of respondents bought chewing gum versus 55% in 1996. In 1998, 38% of those surveyed bought pain relievers against 23% in 1996. The results point out that shoppers don't always consider Western goods the best. Some 71% of those polled say they make an effort to buy Chinese brands over foreign brands, though Western brands like Wrigley's dominate the gum market. The Chinese brand Wahaha dominates the crowded bottled-water market, in which 330 brands advertised on television in 1997, according to Grey. These brands are now trying to differentiate themselves by offering children's bottles, family-size bottles and cans. The study suggests that when pitching a brand in China, a theme based on traditional Chinese lifestyles isn't a draw as 78% of people consider themselves "modernized Chinese." Grey has good news for PC makers. Some 26% of those surveyed intend to buy their first home computer or replace their existing one in the next three years. Grey explains the demand for PCs is fueled by parents wanting to give their children a head start and people turning to the Internet for a window on the world. Attitudes toward different leisure activities show there may be opportunities for companies in the sporting-goods field. Some 70% of respondents say they want to play more sports and 55% say they are likely to play more sports. As for those Celine Dion wannabes, 33% say they'd like to fit in some karaoke, while 47% said they feel obligated to do so. "It suggests karaoke has become a social habit that people feel obliged to do but don't necessarily enjoy," Mr. Bates says. In looking at regional spending patterns, the study finds that Guangzhou is the most status-conscious of the four cities. Respondents there have the highest demand for jewelry, cognac and expensive clothes. People in Shanghai have a penchant for nice kitchens and bathrooms. Beijing residents favor time at the computer if they want to relax. According to the study, 81% of 18-34 year olds in Beijing said using the computer is their leisure activity of choice. People in Chengdu, meanwhile, have the highest demand for tea bags as opposed to loose tea leaves. The study also examines people's attitudes toward their daily lives. Some 84% of respondents are optimistic about the future and think change is a positive thing. However, the current social and economic changes are making 52% insecure about their jobs and causing 66% to cut spending.