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To: John Rieman who wrote (35219)8/16/1998 3:59:00 PM
From: Bob Strickland  Respond to of 50808
 
LSI says CVD is good but too late...

Electronic Buyers' News, June 22, 1998 n1114 p10(1)
C-Cube to supply CVD. (Chinese VideoCD) (Company Business and Marketing) Mark Hachman.
Full Text: COPYRIGHT 1998 CMP Publications, Inc. Silicon Valley -- With the help of C-Cube Microsystems Inc., Chinese OEMs have created the successor to the VideoCD (VCD) player.

The Chinese VideoCD (CVD) seemingly has emerged as the favored blend of cost and MPEG-2 encoding. However, C-Cube's competitors paint a more negative picture, claiming that a worldwide move to DVD will render the new CVD obsolete in a year's time.

C-Cube co-designed the new specification, which will apparently replace another candidate to succeed the VCD, the Super VCD. To date, C-Cube is also the only publicly announced CVD supplier.

The new CVD standard, which uses the same discs and loaders as the older VCD technology, transmits MPEG-2 data at a peak rate of 2.5 Mbits/s. Possible resolutions for NTSC and PAL displays comprise combinations of 480 or 570 horizontal pixels and 352 or 480 vertical pixels. Each disc is expected to store about 50 minutes of audio and video data.

Chinese OEMs ChangHong, Idall, Malata, SAST, and Xiamen Solid will design players based on the CVD standard.

"About a year ago, Chinese OEMs had the idea of looking at higher-quality video as a means of going beyond VCDs," said David Andaleon, director of strategic content development at C-Cube, Milpitas, Calif.

The new players will incorporate C-Cube's CVDx chip, which will sell for approximately $18 to $20 and will ship in a 168-pin PQFP. The drives themselves are expected to cost roughly $150, about midway between the $100 cost of a VCD player and the $250 to $350 cost of a DVD player when it's first released, according to Andaleon.

The CVD "is a very good idea in concept," acknowledged Alain Bismuth, director of DVD consumer products at LSI Logic Corp., Milpitas. "The point is that it's one year too late," with software and players not expected in volume before the first half of 1999-when DVD will have an entrenched foothold, he said.

Furthermore, a Chinese-specific standard eliminates the possibility of export products, and that's frowned upon by the Chinese government, according to Bismuth.



To: John Rieman who wrote (35219)8/17/1998 9:12:00 AM
From: .com  Read Replies (2) | Respond to of 50808
 
C-Cube Named Industry's Leading Provider of MPEG Digital Video Silicon
for 1997 by Dataquest

Monday August 17, 9:02 am Eastern Time

Company Press Release

MILPITAS, Calif.--(BUSINESS WIRE)--Aug. 17, 1998--C-Cube Microsystems (NASDAQ:CUBE - news) announced today that
Dataquest has named C-Cube the world's leading provider of MPEG digital video silicon for 1997.

C-Cube's first mover advantage in the market for digital video has enabled the company take the lead position in Dataquest's annual ranking of MPEG decompression silicon
solutions for the second consecutive year. In 1997 C-Cube controlled more than 40 percent of the worldwide revenue from sales of all types of MPEG digital video decoder chips,
more than twice the share of its nearest competitor.

To determine the leading vendor, Dataquest evaluated worldwide sales of both MPEG-1 and MPEG-2 decompression chips.

''C-Cube's semiconductor business maintained a strong market lead as a result of focused execution and its ability to respond quickly to changing market demands,'' said Alex
Balkanski, president and CEO of C-Cube Microsystems.

''In addition to capitalizing on critical applications in both the communications and consumer segments, we continued to invest in the strategic programs that we expect will drive
the success of the corporation long term. We are excited about the opportunities that lie before us as the penetration of digital video expands to the broad consumer market.''

C-Cube led the creation of the MPEG standard and has continued to play an active role in driving open standards for a variety of digital video applications worldwide.

C-Cube was the first company to deliver an MPEG decoding chip for digital set-top boxes, a digital video decoding chip for consumer electronics, an MPEG encoding processor
for digital broadcast and a frame accurate MPEG editing (FAME(tm)) codec for nonlinear editing.

The company's highly programmable processor architectures will allow C-Cube to continue penetrating new market opportunities for digital video communications and consumer
applications.

About Gartner Group's Dataquest

GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems
and peripherals, communications, document management, software, and services sectors of the global information technology industry.

Additional information about the company is available on the Internet at gartner.com.

About C-Cube Microsystems

C-Cube Microsystems Inc. is the industry-leader in the development and delivery of highly integrated digital video silicon solutions that address the consumer electronics,
communications and convergence markets. C-Cube is headquartered in Milpitas, California with offices in North America, Europe and Asia. Its stock is traded on the Nasdaq
under the symbol CUBE.

C-Cube can be reached at 408/490-8000 or on the World Wide Web at c-cube.com.

Contact:

C-Cube Microsystems
Mary Giani (Corporate Public Relations), 408/490-8628
mgiani@c-cube.com
Nick Kormeluk (Investor Relations), 408/490-8052
nkormeluk@c-cube.com



To: John Rieman who wrote (35219)8/17/1998 10:10:00 AM
From: BillyG  Respond to of 50808
 
Serious article on DVD-ROM. See the sales forecast tables.......
newmedia.com

<<While it may not have lived up to its initial hype, the
introduction of DVD has been a success. To date, about
400,000 DVD video players have been sold worldwide,
and CEMA (the Consumer Electronics Manufacturing
Association) predicts that 1 million will be sold in 1998. It's
time to invest in DVD content.
While DVD-V movies and players are taking hold,
DVD-ROM is where the action is. DVD expands the
multimedia publisher's canvas to as much as 18GB and can
hold more than four hours of video content. In fact, DVD
will revolutionize a key element of the communication
process by turning a PC into a significant platform for
reading and interacting with all types of digital media. Easy
access to gigs of storage should launch an extension of the
desktop publishing revolution that encompasses video,
animation, 3D images, and sound, in addition to text and
graphics.
Over time, DVD drives (of various forms) will also
replace CD drives in PCs. The big question is when? While
experts disagree on the precise date, they do agree that it
will be soon. The vendors are naturally the most bullish in
their predictions. Philips says 25 million DVD-ROM drives
will be on the market worldwide by 2000. Toshiba predicts
that there will be 120 million DVD-ROM drives in the
market by the end of 2000. >>

<<SNIP>>

<<For a more objective view, let's turn to the market
researchers. The Yankee Group predicts 19 million
DVD-PCs by 2001. Forrester believes that there will be a
U.S. base of 53 million DVD-equipped PCs by 2000.
Dataquest says that there will be 33 million DVD players
shipped by 2000. And IDC thinks 70 million DVD-ROM
drives will be sold in 2000 and 118 million in 2001. While
these numbers are all over the map, they do confirm one
key fact: DVD is poised to overtake CD-ROM and
become the distribution medium for software and
multimedia content within the next three years.
If anything, Forrester's prediction that 53 million PCs
will be equipped with DVD-ROM drives by 2000 is low.
In 1998, about 90 million PCs will be sold worldwide.
Virtually all of these will have CD-ROM drives in them. By
mid 1999, the switch from CD-ROMs to DVD-ROMs will
be in full swing, and starting in 2000, every PC that goes
out the door should have a DVD-ROM drive inside. If we
keep selling PCs at rates similar to those of today, we will
have closer to 150 million DVD PCs by 2001. More
importantly, we are getting closer to the time when
multimedia publishers can begin expanding their content
horizons to reflect this new opportunity. >>