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To: Ron Mayer who wrote (39313)	3/17/1999 1:39:00 PM
From: DiViT	Read Replies (1) \| Respond to of 50808

MORE PEOPLE ARE SAYING: 'I WANT MY DVD ' By Jeanette Brown EDITED BY MARCIA STEPANEK 03/22/99 Business Week Page 94E (Copyright 1999 McGraw-Hill, Inc.) THANKS TO FALLING PRICES, better marketing, and a rise in the number of homes with personal computers, digital video disk players (DVDs)--which play video as well as audio and computer data--are starting to take off. Forrester Research Inc. says people are snapping them up at a faster pace in their second year on store shelves than they did during the second year of other technologies such as CD players and VCRs. The Cambridge (Mass.) research firm predicts that more than 4.3 million DVD players will be sold by yearend. That would be up from 1.2 million at the end of 1998. According to Forrester, the cost of basic DVD models has dropped to around $300 from $600. That's key, since in more than half of the U.S. households with DVD players, the main breadwinner earns less than $45,000 a year. How are DVDs getting into those homes? Forrester says 73% of those households bought a PC after 1997 and that 90% of those machines came with DVD -ROMs, a trend that is helping consumers make the transition to DVD players.

To: Ron Mayer who wrote (39313)	3/17/1999 4:44:00 PM
From: John Rieman	Respond to of 50808

AT&T sees big demand for digital services............................ multichannel.com March 16, 1999: AT&T Sees Strong Digital Demand New York -- AT&T Broadband & Internet Services president Leo J. Hindery Jr. touted the former Tele-Communications Inc.'s success at recruiting digital-cable customers as "the primer for the launch of other new services" -- high-speed data and cable telephony. Hindery spoke at a Merrill Lynch & Co. investment conference here Tuesday, after AT&T Broadband reported TCI's 1998 results. TCI's year-end digital-cable-subscriber count was 939,000 in systems that AT&T Broadband will own and operate going forward. That represents digital-cable penetration of about 10 percent. The annualized penetration rate is higher, at 12 percent, as demand is rising, Hindery said. AT&T Broadband wants to end 1999 with 1.8 million digital subscribers, rising to between 2.8 million and 3 million at the end of 2000, he said. TCI also had 29,000 pro forma @Home Network customers at the end of the year. AT&T Broadband's goal is 150,000 to 175,000 @Home subscribers by Dec. 31. Pro forma, adjusting for system deals, TCI's cable revenue rose 5.3 percent in 1998, to $4.8 billion from $4.6 billion in 1997. Operating cash flow rose 2.5 percent, to $2.07 billion. Revenue growth was slowed by TCI's relatively low 3.9 percent average rate increase, and cash flow was crimped by higher "launch and development" costs, mostly for digital cable, Hindery said. TCI's cable operations ended 1998 with 10.7 million pro forma subscribers, with internal growth of about 1.7 percent. - 3/16/99