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To: J Fieb who wrote (40208)	4/27/1999 8:32:00 PM
From: John Rieman	Read Replies (1) \| Respond to of 50808

Settop box(or DEB) projections..................................... jpa.com For Immediate Release -------------------------------------------------------------------------------- Contact: Debbie Nelson Nelson Marketing Services (415) 455-9533 debbien@ix.netcom.com Claire Goodhue Director of Sales 415-759-6555 claire@jpa.com New JPA Study Maps Convergence in Home Entertainment Market ~ Report outlines technology, infrastructure and market dynamics ~ Tiburon, CA (January 19, 1999) – InternetTV will be the first to be assimilated by set top boxes and digital TV appliances is one of several key findings in The Digital Entertainment Box Study, a comprehensive new study from Jon Peddie Associates (JPA). The Digital Entertainment Box Study anticipates conflicts and collaborations over the next decade between technologies, suppliers and regulators of home entertainment. It evaluates the spectrum of existing products and describes possible evolutionary steps to convergence of television, the Internet and personal computers. Jon Peddie Associates is a leading market research firm covering graphics and digital media technology markets. JPA's Digital Entertainment Box Market Study is the result of an extensive review of the industry's top vendors, and includes a compilation of research conducted among hundreds of companies. The study focuses on the six primary classes of products battling for a place in the home entertainment arena. Current and emerging entertainment TV accessory boxes vying for the consumer's dollar and covered in The Digital Entertainment Box Study include: Cable and satellite set top boxes Game consoles Entertainment PCs and virtual VCRs DVD players InternetTV Digital TV and DTV converters Technology issues such as operating system, processor bandwidth and delivery system are predicted to have a major impact. The winner could either be the category with the best technology, content or the best marketing. Regulatory issues will also influence the situation, as will price, manufacturing capability, enabling technologies and consumer demand. "The rush to occupy the space on top of the TV, or replace the TV is upon us," states Dr. Jon Peddie, a leading authority on the computer graphics industry and company president. "Any system or component we can point to today has the potential to influence the outcome of the market. There is considerable confusion in the marketplace and that spells both opportunity and disaster for companies entering it." "The biggest issue facing the market is that each of these product configurations has a different business model. Consolidating the various models will be the most difficult phase of digital entertainment box (DEB) evolution," states Peddie. "Other issues critical to this evolution are the requirements of streaming data types for hardware playback. And it can be certain that Microsoft and Intel will be pushing towards a web-based universe where the operating system and browser can be controlled." By 2001, JPA predicts the total installed figures for the various systems will by as follows: Cable and set top boxes will have reached 103.8 million units Game consoles will be at 104.5 million units Entertainment PCs will grow to 149.9 million units DVD Players will reach 31.1 million units InternetTVs will reach 1.37 million units Digital TV will reach 0.94 million units The Digital Entertainment Box Market Study from Jon Peddie Associates (JPA) addresses not just the obvious questions -- How big is this market? How fast will it grow? But other important questions: What other segments will it steal mind-share, market-share, and manufacturing resources from? What market enablers are needed to crystallize and consolidate this market? Where will the financing for the market development come -- from large established mega-consumer companies or VC-backed startups with surprising new technological approaches? For more information and pricing contact Claire Goodhue at 415-759-6555, fax 415-759-1577, email claire@jpa.com or visit the company's web site at www.jpa.com. About JPA Jon Peddie Associates (JPA) was founded in 1984 by Dr. Jon Peddie, a pioneer in the computer graphics industry. JPA is the leading market research group focusing on the graphics and digital technology markets. JPA's analysis and market research is relied on by a wide variety of computer industry professionals and financial institutions. JPA is also the publisher of The Peddie Report, a weekly newsletter that is recognized as the PC industry's technical marketing advisory, and The Quarterly Report, which tracks semiconductor and add-in board shipments of digital media devices.