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To: stak who wrote (37496)	11/29/1998 9:23:00 PM
From: John Rieman	Respond to of 50808

Demand for SVCD is strong.................................. asiansources.com Outlook '99: Mainland China S-VCD drawing focus away from DVD One factor that might delay the rise of DVD in China is the introduction of the S-VCD standard by China's Ministry of Information Industry last November. S-VCD, China's first digital A/V product standard, is an upgrade to VCD, so legacy manufacturers will be able to adapt their VCD production technology and resources to S-VCD manufacturing. This, and technical specifications that rival those of DVD, will encourage production, sources say. S-VCD offers a 650M recording capacity, uses MPEG-2 video coding and decoding, can record four monaural channels or two stereo channels, and supports a software read speed twice that of VCD. Although it is considered a transition product between VCD and DVD, S-VCD is expected to take a substantial share of the VCD market, as it boasts reasonable prices and high performance. More importantly, S-VCD software prices will be on the same level as VCD software — much lower than DVD software prices. Jiangsu Shinco Electronic Group Co., the mainland's biggest VCD player supplier, has modified 18 of its VCD production lines for DVD player output. However, the company is currently focusing on the marketing of S-VCD players. "Batch production (of DVD players) can be initiated at any time, if the market allows," said director Qin Zhi-shang. Shenzhen SAST Laserdisc System Co. is in the same position and is putting off batch production of DVD players. "Our DVD production can be put into operation now, but we are still unsure what effect the players will have on the video segment, as the market demand for S-VCD players is so strong," said vice general manager Wu Guang-hua.