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To: Jock Hutchinson who wrote (15371)	10/2/1998 1:53:00 PM
From: shane forbes	Respond to of 25814

Jock: That is the RCA player that was scheduled to come out this month. Will give the DIVaXed medium one more shot - but still hoping that it is no more than a niche (an itch? <g>). I think the RCA player may go at the $100 premium which just won't work these days. For DIVX to be successful: (1) Content? Needs those porno flicks... Will they get it? <ha ha> (2) Price? Needs to bring it down to par with DVD or ideally a tad lower (3) Distribution? Initially tough because C.City is the backer and the other retailers will surely just say NO - why enrich the pockets of a competitor? (4) Advertising? C.City slashed costs heavily and likely needs help (5) Content Again? All the studios have now committed to DVD (6) Compatibility? DVD is showing up all over the place in other consumer electronics gadgets and that means the DIVX things just won't work in these new gadgets(even though there isn't much point right now it will be important in the future). (7) Why were sales so poor in the initial run? hmmmm... (8) Privacy? I don't like extra lines (9) WorldWide Distribution? Not so sure DIVX will do much here (10) Momentum? The 2 million units per year train is DVD and that is packed now. (11) Extra costs for Suppliers? Those extra lines etc that are needed are not freebies for the suppliers - someone has to foot the cost - and over time it sure as heck won't be the C.City shareholders - the ROI may prove to be poor. (12) R&D? They need to have initial success to foot the bill for future R&D. There is only so much the first 100 million or 60 million can do. After that the product has to sell. Since sales are poor would the manufacturers have the stomach to support it over time? Also there are vastly more players in the DVD market and that theoretically means that improvements to DVD will continue at a faster clip than improvements to DIVX (again where is the money?). [Of course with DVD - more players means more bickering...] add any more... I think they are a tad desperate but hey you never really know ... until the Slightly Obese Lady sings... <g> Shane.