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              <p><font face="Arial, Helvetica, sans-serif" size="3" color="#333333"><font size="4"><b><font size="3">Consumer 
                Electronics Online News (c): Jan. 20, 2001 <br>
                By Marjorie Costello, Editor &amp; Publisher</font></b></font></font> 
              </p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>THIS 
                WEEK IN CEON: </b></font><font face="Arial, Helvetica, sans-serif" size="3" color="#000000"><br>
                (For CEON's CES coverage, we will be transmitting a series of 
                editions, starting with the January 20, 2001 CEON below.)</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>CES 
                2001 Report Begins: </b></font><font face="Arial, Helvetica, sans-serif" size="3" color="#000000"><br>
                <font size="2">Technology &amp; Attendees Flock To Show's Big 
                Tent<br>
                * Connecting Components &amp; Concepts <br>
                * Gates Unveils Microsoft Xbox Game Console Design<br>
                * Industry Statistics: DVD Soars, DTV Steady<br>
                * Post CES: VSB Affirmed, FCC Considers Tuner Mandate<br>
                &nbsp;&nbsp;DTV/HDTV/TV Hardware Highlights:<br>
                * RCA Unleashes LCOS HDTV<br>
                * Sony Bows 40&quot; Wega CRT, Shows Grand Wega LCD RPTV<br>
                * DTV Pricing News From Panasonic &amp; Zenith <br>
                * Toshiba, Hitachi Herald HD-Level Plasmas<br>
                * DLP Update From Hitachi, Sharp, Yamaha <br>
                * HD Displays &amp; Boxes: Philips, Samsung, Konka, Sampo<br>
                * DVI Making AV Links, JVC Shows HD D-VHS VCR <br>
                * Net Inside TV Makes Comeback: TeleCruz, Ch.1, EspriTV</font></font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>TECHNOLOGY 
                &amp; ATTENDEES FLOCK TO CES 2001's BIG TENT</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Over 
                122,000 attended the 2001 International CES in Las Vegas, billed 
                as &quot;The world's largest annual technology trade show,&quot; 
                which featured 1.2 million net square feet of exhibit space. The 
                recent show's 122,422 attendance slightly surpassed 2000's record 
                of 122,244, and the final numbers are subject to an independent 
                audit that will be released this spring. According to the show's 
                sponsor, the Consumer Electronics Association (CEA), 2001's attendance 
                exceeded initial projections of 110,000, which factored in relinquishing 
                the adult video exhibits and their attendees to the Video Software 
                Dealers Association Convention. VSDA ran simultaneously -- but 
                unaffiliated -- with CES at the Sands/Venetian, and CEON (like 
                most CE press we spoke with) never made it over there.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">With 
                CES not using the Sands Expo Center this year, the show supplemented 
                convention center space with pavilions -- resembling a &quot;tent 
                city&quot; -- in the parking lots surrounding the LVCC. Though 
                CEA made the claim that the onsolidated venue transformed CES 
                into a &quot;connected community,&quot; the show still proved 
                to be a challenge to navigate and see: some major exhibits were 
                surrounded by unconnected or unrelated product categories. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>MANAGING 
                BIGNESS </b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Due 
                to the many press events scheduled while the show was running 
                -- in addition to the press conferences taking up most of the 
                day before CES opened -- many media members were unable to get 
                on show floor until late on opening day, January 6. Both the sheer 
                size of CES 2001 and its many exhibits drawn from the IT and wireless 
                world contributed to the commonly expressed opinion that CES had 
                surpassed Comdex proportions -- and had become simply too big. 
                </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">As 
                showgoers may have noticed, the LVCC is also growing, and the 
                new expansion -- which will eliminate the need for pavilion structures 
                -- will be ready in time for CES 2002. Next year, home theater/home 
                systems, and home information and wireless will be located in 
                this giant new hall, which may require some Disney-like &quot;people 
                mover&quot; wizardry. Marking a days-of-the-week move, CES 2002 
                will be held from Tuesday, January 8 through Friday, January 11, 
                in the LVCC, Las Vegas Hilton, and Alexis Park Hotel. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>TRENDS: 
                CONNECTING COMPONENTS &amp; CONCEPTS</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                major theme of CES 2001 was the growing influence of all things 
                digital, ranging from HDTVs and DVD recorders -- in three competing 
                formats -- and DVD players, to wireless Web access devices and 
                MP3-enabled products. CEON also detected some other trends related 
                to the growing influence of digital. Though branded individual 
                products will continue to drive sales, it seemed that CES 2001 
                reflected the importance of linking together or networking individual 
                products (HD displays, DVD players) or product &quot;concepts&quot; 
                (multimedia jukeboxes and hard-drive based devices). </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">CE 
                makers are still grappling with copy protection, now even more 
                complicated because of the content community's concern about digital 
                content streaming onto the Internet. At the same time, CE firms 
                are still trying to come up with ways to integrate products with 
                services and revenue-producing models. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">On 
                January 11, just two days after CES closed -- and a year and day 
                after their mega-merger was first announced -- America Online 
                and Time Warner officially closed their merger, following FCC 
                approval. It remains to be seen how the combination of these two 
                giants will influence the CE world, and/or lead to mergers or 
                joint ventures involving other media, online, or PC powers that 
                also affect CE. It is interesting to note that during the CES 
                panel comprised of CE company technology officials, moderated 
                by CEON's editor, executives from Panasonic, Philips, Samsung, 
                Sony and Thomson said the key technology influences at their companies 
                were the Internet, broadband and wireless.</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>GATES 
                UNVEILS MICROSOFT XBOX GAME CONSOLE DESIGN</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                show's most heavily publicized product introduction occurred during 
                Microsoft chairman Bill Gates' opening keynote, when he officially 
                unveiled the design of Xbox, his company's first game console: 
                the black console is emblazoned with a large &quot;X&quot; and 
                a signature green Xbox &quot;jewel&quot; positioned in its center. 
                Beyond marking the return of major game announcements to CES, 
                Xbox -- which will take on Sony's PlayStation 2 while it also 
                takes Microsoft into the livingroom and entertainment space -- 
                has the makings of an impressive AV machine. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">During 
                CEON's private Xbox demonstration (and the public showing Gates 
                provided during his keynote) Microsoft ran an Xbox emulator on 
                a PC at one-fifth of Xbox's final power. As explained by Xbox 
                team members, Xbox outputs in HDTV and supports 5.1 digital audio. 
                Xbox will play DVD movies on its front-loading DVD tray if the 
                consumer decides to buy an accessory Xbox remote control -- a 
                decision Microsoft made to keep down the console's price. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                currently unpriced accessory will include DVD movie playback royalties 
                and licensing fees (reportedly about $15 per machine) plus the 
                remote's manufacturing costs. The Xbox console -- with pricing 
                and U.S. launch data specifics not yet announced -- features four 
                game controller inputs, an Ethernet port (for online gaming via 
                broadband), a 8GB hard-drive, 733 MHz Intel processor and Nvidia 
                graphics processing. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>CE 
                INDUSTRY STATISTICS: DVD SOARS, DTV SALES STEADY</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Despite 
                fears of an economic slowdown, most manufacturers seemed happy 
                with holiday sales, particularly when it came to digital products, 
                backed up by the 2000 year-end estimates released at the show. 
                CEA revised its year-end 2000 estimate of total sales up to $90.1 
                billion, a 10% increase over 1999's $81.9 billion. The association 
                also predicted that in 2001 sales to dealers would surpass $95.6 
                billion, up 6%. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">At 
                the show, CEA reported that during 2000, more than 8.2 million 
                DVD players were sold -- but since CES, CEA said that shipments 
                had reached just under 8.5 million. The association projects unit 
                sales of 12.5 million DVD players in 2001. The DVD Entertainment 
                Group (DEG) issued even rosier DVD sales numbers for 2000 during 
                CES, estimating that consumers bought more than 9.8 million DVD-Video 
                players during 2000. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">There 
                are two reasons for the disparity with CEA's numbers: DEG takes 
                into account the approximately 700,000 players sold by Chinese 
                brands (such as Apex, Oritron, Konka) that do not report their 
                numbers to CEA. Additionally, DEG estimated that over 600,000 
                DVD players were incorporated in home theater systems and TV/DVD 
                combinations -- units not factored into CEA's DVD total.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Sales 
                of DTVs and displays surpassed earlier projections, <br>
                reaching an estimated 625,000 and $1.4 billion in revenue. CEA 
                projects that number will increase to 1.13 million units in 2001, 
                representing an 80% increase and accounting for more than $2 billion. 
                </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>POST 
                CES: VSB AFFIRMED, FCC CONSIDERS TUNER MANDATE</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">TV 
                makers were no doubt encouraged by January 15's announcement by 
                two major broadcast trade groups -- the National Association of 
                Broadcasters (NAB) and the Association for Maximum Service TV 
                (MSTV) -- regarding the DTV standard. Based on a series of tests 
                and studies, the broadcast groups reaffirmed their endorsement 
                of the 8VSB modulation standard and rejected the need to add COFDM. 
                As Bill Kennard's FCC chairmanship came to an end on January 19, 
                the FCC offered mainly good news for TV makers. The commission 
                affirmed 8VSB, denied requests to set performance standards for 
                DTV sets, and set deadlines to encourage broadcasters to provide 
                digital service to their full service area. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">However, 
                the FCC is considering a DTV tuner requirement, and is asking 
                for comments on how best to implement it (i.e. starting with larger 
                screen sizes, what percentage over how long, etc.). CEA's president 
                Gary Shapiro issued a statement applauding most of the FCC's actions 
                but expressed &quot;concern about the proposal mandating the inclusion 
                of digital receivers in a specific category of analog television 
                sets,&quot; calling it &quot;anti-consumer&quot; and predicting 
                it &quot;would slow the transition to DTV.&quot;</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>LIKELY 
                FCC CHIEF WANTS TO AVOID DTV DISPUTES</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                likely (but not yet named) new FCC chairman, Michael Powell, provided 
                several signals about future DTV-related issues during his CES 
                2001 SuperSession interview with Gary Shapiro. Powell said he 
                would prefer that the FCC not intervene in industry disputes over 
                the future of DTV, and that the marketplace should determine the 
                success of DTV. However, he acknowledged that the FCC will &quot;eventually 
                do something&quot; about cable must-carry of broadcasters' DTV 
                signals, but believes the FCC's role with regard to copy protection 
                and home recording rights is &quot;extremely limited, if existent 
                at all.&quot; We will have to see what the new Bush Administration 
                has to say about DTV.</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>PRIMETIME 
                CRIME IN HDTV </b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">CEA 
                and TV makers believe that more HDTV content will be decisive 
                in driving DTV sales, and a little more HDTV programming was recently 
                announced for national channels. While the SuperBowl is set for 
                broadcast in HDTV by CBS on January 28 (following several AFC 
                playoffs in HDTV, also underwritten by Thomson), HDTV is now taking 
                a higher profile in primetime &quot;crime.&quot; </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">ABC's 
                &quot;NYPD Blue&quot; is now being broadcast each week in HDTV 
                (720p), marking the network's first regularly scheduled series 
                in HDTV. And, HBO is now presenting the encore of the second &quot;The 
                Sopranos&quot; season in HDTV and will also offer the third season 
                -- which begins on March 4 -- in HDTV. This is the first time 
                an HBO original series has been available in HDTV.</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>CES 
                HDTV HARDWARE HIGHLIGHTS</b></font><font face="Arial, Helvetica, sans-serif" size="2" color="#000000"> 
                </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Though 
                HDTV was not the &quot;star&quot; of CES 2001, companies were 
                out in force showing their wares. The show did not bring a deluge 
                of new models, with many companies either showcasing models introduced 
                at CEDIA or waiting for upcoming line shows that start next month 
                and run until the summer. Companies seemed pleased with retail 
                sales of HDTV models, and looked toward 2001 when it is widely 
                believed that HD-level rear PTVs will overtake sales of analog 
                RPTVs -- particularly as HDTV prices continue to fall.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Another 
                important development was the arrival, finally, at retail of a 
                number of long overdue DirecTV HD/ATSC set-tops (Panasonic, Mitsubishi, 
                Toshiba and soon Sony) and more support plans from other brands, 
                noted shortly. A major trend was the proliferation of display 
                technologies companies were showing, with some major brands entering 
                new display categories with new products.</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>RCA 
                UNLEASHES LCOS HDTV</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Perhaps 
                the most significant announcement was made by Thomson -- though 
                not officially exhibiting at CES -- when it announced and showed 
                its official entry into the LCOS (Liquid Crystal On Silicon) display 
                field at the Mandalay Bay. The company's first LCOS model will 
                be the RCA L50000, a 50&quot;W, 720 progressive scan rear projection 
                unit incorporating a DirecTV HD/ATSC tuner, making it a full HDTV. 
                </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Expected 
                this summer, priced in the $6,000 to $8,000 range, the L50000 
                will display up to 2.76 million actively lit pixels, <br>
                weighs about 100 pounds, with a cabinet depth of only 18&quot; 
                -- the same as a typical 19&quot; TV. The model functions either 
                as a sleek tabletop unit or as an entertainment center with its 
                matching stand. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>THOMSON'S 
                TECHNOLOGY AND PARTNERS</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Thomson's 
                model is based on reflective LCD technology, also used by JVC 
                in its D-ILA (direct-drive image light amplification) models, 
                including JVC's upcoming D'Ahlia HD-level rear PTV for the consumer 
                market. The RCA model relies on new microdisplay imaging technology 
                that utilizes three reflective light valves called imagers, assembled 
                with other new components to form the HDTV display's light engine. 
                (JVC uses a single imager and a holographic filter in order to 
                separate the three colors.) </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Thomson 
                is working with three key partners to bring its new LCOS product 
                line to market: ColorLink (optical prism), Three-Five Systems 
                (silicon imagers), and Corning Precision Lens (illumination and 
                projection optics). Speaking at Thomson's pre-show press conference, 
                senior VP Mike O'Hara said the company had made a significant 
                investment in LCOS, which included a 30-person engineering team. 
                According to O'Hara, &quot;Our line of LCOS receivers will be 
                lighter and less expensive than other advanced reflected light 
                displays.&quot; Thomson is looking at other screen sizes and resolution 
                levels, including a 1080p model. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>JVC 
                UPS D'AHLIA PRICE</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">JVC 
                said that it will finally ship its D'Ahlia model in April of <br>
                this year, and the set will add a Digital Visual Interface (DVI) 
                <br>
                to its two sets of component video inputs. And pricing for the 
                <br>
                61&quot;W the model has been increased to $10,000, up from $8,000 
                (or the $7,000 that has also been quoted), but the specific reasons 
                were not provided. The addition of a DVI connection is apparently 
                related to two other pieces of news, covered later in this edition. 
                </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>SONY 
                SHOWS GRAND WEGA LCD-BASED RPTV, <br>
                PLUS 40&quot; CRT WEGA</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Sony 
                showed its first 16:9 rear LCD PTV for the consumer market in 
                its Grand Wega -- as a &quot;demonstration model&quot; at CES. 
                Using three wide-XGA LCD panel (and transmissive LCD technology) 
                Sony showed a 50&quot;W model. Pricing and introduction plans 
                for this relatively slim and lightweight rear PTV are still being 
                finalized. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">For 
                consumers who do not care about weight, Sony also introduced its 
                largest Wega direct-view flat-tube TV: a 40&quot;, 4:3 XBR model 
                that weighs close to 300 pounds. Claiming the mantle as the &quot;industry's 
                largest CRT television,&quot; the KV-40XBR700 Wega direct view 
                features a Hi-Scan chassis for displaying an HD signal as 1080i, 
                and will be available in October for about $4,000. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>DTV 
                PRICING NEWS FROM PANASONIC &amp; ZENITH</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Significant 
                DTV pricing news was made by Panasonic and Zenith, though most 
                of Zenith's DTV and HDTV introductions were covered in our report 
                from its CES preview (CEON, 12/16/00). </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Panasonic 
                introduced a rear PTV 47&quot;W HDTV monitor with a suggested 
                retail price of $2,000 that is slated for May. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">At 
                CES, Zenith said it will market the first DTV with an <br>
                integrated ATSC tuner at under $1,000. The 27&quot; standard <br>
                definition (SDTV) model will ship during the second half of this 
                year, followed by a 32&quot; 4:3 expected to sell for slightly 
                more than $1,000. This makes Zenith -- which mounted a large and 
                trendy &quot;Club Z&quot; booth on the floor -- the first brand 
                to publicly announce plans to offer an SDTV with on-board ATSC 
                tuner. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>TOSHIBA, 
                HITACHI HERALD HD-LEVEL PLASMAS</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Toshiba 
                and Hitachi both introduced their first HD-level plasma TVs for 
                the consumer market. Toshiba's 50&quot;W 720p (1366x768) model, 
                with glass sourced from NEC, will arrive in May at $19,999. (In 
                the analog, flat, direct-view TV category, Toshiba's FST Pure 
                4:3 models -- a 20&quot; ($349) and 24&quot; ($549) -- start arriving 
                this month.) </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Hitachi 
                -- part of the PDP joint venture with Fujitsu (FHP Ltd.) <br>
                that also includes Sony -- will offer a 42&quot;W 1024x1024 plasma 
                during the first quarter. Pricing is yet to be determined with 
                Hitachi officials grappling with Sony's aggressive $7,995 pricing 
                for its similar PDP. Hitachi is also considering marketing 32&quot;W 
                and 37&quot;W panels. (Other companies -- such as Pioneer, Zenith, 
                Samsung, and Panasonic -- also showed plasmas covered in our CEDIA, 
                Comdex or pre-CES reports.) </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>DLP: 
                REAR AND FRONT, OFF-SITE AND ON</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Showing 
                its product line off-site at the new (and too big) Aladdin Hotel, 
                Hitachi said that its 55&quot;W 720p rear DLP, priced at $12,995, 
                will finally ship this month -- joining models from Panasonic 
                (52&quot;W, $12,999, displayed at the LVCC) and Mitsubishi (65&quot;W, 
                $15,000, exhibiting very privately in Las Vegas). </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Back 
                at the LVCC, Sharp said and showed that it was using the 1280x720 
                16:9 TI chip -- featured currently in these rear-screen DLPs -- 
                in the first front projector. The unpriced Sharp model is slated 
                for Q3. As announced at CEDIA, Yamaha will also be marketing a 
                single-chip DLP front projector, and provided additional information 
                at CES. Though capable of projecting a widescreen picture, Yamaha's 
                DPX-1 ($10,000, late Q2) relies on TI's 4:3 (1024x768) chip. However, 
                Yamaha's front PTV features a tri-color wheel -- claimed as a 
                first for a home front PTV -- for delivering higher contrast.</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>DISPLAY, 
                SET-TOP INTROs FROM PHILIPS, SAMSUNG</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Other 
                brands were either adding to or tweaking their direct-view HD-level 
                lines and/or announcing DTV set-tops. Philips finally said it 
                will offer a DirecTV HD/ATSC box, with the unpriced model DSHD800 
                (sourced from Hughes) expected by the end of the first quarter. 
                This fall, Philips will market 4:3 Real Flat HDTV monitors in 
                32&quot; ($1,799) and 27&quot; ($1,299). They join the three upgraded 
                (with 3D Y/C digital comb filters) Real Flat widescreen models 
                that are slated for the second quarter: 30W&quot; ($2,999), 34&quot; 
                ($3,999; $4,999 black high gloss with Pronto remote). </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Samsung 
                debuted its new short-depth, DynaFlat HD CRT in a 30&quot;W model 
                that becomes the flagship of the Tantus DynaFlat series. Reducing 
                the depth of a direct-view set as much as 20% -- to 17.9&quot; 
                -- the TSL-3099HR, with 1080i native display, will be available 
                in June for $2,999. The company claims its delayed 720p fLCD rear 
                PTVs (which also fall in the LCOS category) -- a 43W&quot; ($5,999) 
                and 50W&quot; ($5,999) -- will now ship in early 2001. Samsung's 
                DirecTV HD/ATSC set-top is slated for spring, as is Zenith's. 
                </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>VALUE-PRICED 
                NEWCOMERS KONKA, SAMPO SHOW</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">In 
                order to make room for new models, Konka has reduced prices about 
                $1,000 on average for its first (and delayed) HDTV displays and 
                set-top. The models finally received FCC and UL approval -- after 
                modifications were made -- this past September. For example, Konka's 
                30&quot;W will now carry a $1,599 price, and $2,499 for the version 
                with onboard DTV tuning. The Chinese TV brand is planning newer 
                direct-view HD models and an updated DTV set-top that replace 
                their predecessors' S-VGA jacks with HD component connections. 
                Though Konka showed a 50&quot; analog rear PTV as a &quot;statement&quot; 
                at CES, executive VP Wendy Wu said the model that will be sold 
                in the U.S. will be DTV-ready. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Taiwan's 
                Sampo -- returning to the U.S. TV market under its name -- was 
                off-site at the Mirage, meeting with media and dealers, presenting 
                a line of value-priced digital products, including HDTVs. Sampo 
                America's energetic president James Chen explained the company 
                saw the sales opportunities (and margins) made possible with digital 
                products. Sampo is currently focusing on distribution through 
                regional chains and retailers represented by buying groups while 
                also authorizing E-commerce sites. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Sampo's 
                34W&quot; direct view with Toshiba-sourced flat tube offers both 
                720p and 1080i native display at $3,499. The company also sells 
                a 32&quot; 4:3 HD-level monitor at $1,299 and a 27&quot; version 
                at $999. Though Sampo showed a DTV tuner, Chen said the company 
                &quot;is not promoting it,&quot; since he expects ATSC decoding 
                to go inside Sampo's sets -- both HDTV and SDTV -- in the future. 
                Sampo is marketing a 42&quot;W VGA-level plasma TV (using Fujitsu 
                glass) at $8,995 -- one of the first with the Digital Visual Interface 
                (DVI). </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>DVI 
                MAKING AV LINKS </b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">DVI, 
                though originally developed for connecting PCs to digital displays, 
                is becoming more important for linking digital AV devices -- and 
                stealing some of 1394's fire. This development is seen in JVC's 
                plans -- mentioned earlier in this report -- to add DVI to its 
                D'Ahlia HD-level RPTV. DVI is currently the only digital interface 
                with enough bandwidth to accommodate uncompressed HD digital video. 
                EchoStar -- JVC's home satellite partner -- said at CES that it 
                will now back DVI, and not IEEE-1394, because &quot;DVI was better 
                for copy protection than 1394.&quot; </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">However, 
                EchoStar told CEON that its first HDTV set-top with DVI -- though 
                demonstrated as a prototype at CES 2001 -- will not be available 
                until 2002. Toshiba officials also mentioned they were looking 
                at DVI, particularly now that DVI's second version would also 
                support digital audio.</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>JVC 
                HOLDS OFF ON OFFICIAL D-VHS HD VCR BOW</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">JVC 
                showed -- but apparently decided to delay the official introduction 
                of -- its consumer D-VHS HDTV VCR at CES. Officials seemed uncomfortable 
                about discussing the product, which was at JVC's booth. But printed 
                materials -- which made their way into some early kits in the 
                press room -- indicated $1,999 pricing for the HM-DH30000. The 
                model uses the high-speed HS mode for recording 3.5 hours of HDTV 
                on a D-VHS tape, and features a built-in MPEG-2 decoder, DV input/output 
                via 1394, a Dolby Digital decoder. But copy protection and connection 
                specifics were unclear, which seems to have been the reason for 
                delaying the official introduction. (We also saw a prototype D-VHS 
                HD VCR in Zenith's booth with a built-in ATSC decoder.)</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Adding 
                to the confusion, it seems that a future JVC D-VHS model will 
                incorporate DVI and High-bandwidth, Digital Content Protection 
                (HDCP) -- a plan first announced last year (CEON, 4/15/00, part 
                1). Hollywood studios, which JVC hopes will offer D-VHS HD prerecorded 
                cassettes, like DVI's uncompressed digital output, since it discourages 
                home copying and streaming on the Internet. HDCP, which been endorsed 
                by Fox, Universal, Warner Brothers and Disney, is only available 
                over the DVI link. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>NET 
                INSIDE TV MAKES COMEBACK</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">As 
                we predicted, Internet support built into TVs is making a comeback 
                -- shown mainly in three platforms at CES: TeleCruz, Ch.1 and 
                EspiriTV. As we reported, Zenith will offer a 27&quot; TV this 
                spring at $599 incorporating TeleCruz's (San Jose, CA) platform. 
                At CES, Panasonic also announced plans to market TeleCruz TVs 
                -- a 27&quot; ($549) and 32&quot; ($849) -- slated for summer. 
                Other TV makers that plan to support TeleCruz include Konka and 
                Daewoo. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Ch.1 
                (Santa Ana, CA) announced that its high resolution, integrated 
                Internet architecture will be built into digital TVs. The first 
                Ch.1-enabled TV will be a 36&quot; 4:3 direct view HD-level display 
                offered by Princeton Graphic Systems this month at $3,499. Ch.1's 
                monthly service plans start at $8.95 for a single user or $11.95 
                for a family plan with an existing ISP, and $10 additional a month 
                if the customer does not have an ISP. Ch.1 has also formed an 
                alliance with NadaPC. NadaPC will make a 27&quot; HD-level Ch.1-enabled 
                TV available to consumers for $199 if they sign up for 36 months 
                for NadaPC's ISP service at $21.95 a month.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">EspriTV 
                of LA said its Internet TV will be available in stores this summer 
                at $998 for a 27&quot; flat-screen model and $798 for a 16&quot; 
                set. EspriTV's partners include Acer, Planetweb and Finland's 
                Turku TV, and consumers can select an ISP.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Future 
                CEON editions will cover CES products and news regarding DVD recorders 
                and DVD players, hard drives in a range of products, audio components, 
                Internet radio, camcorders and more.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#FF3300">***************************************************************</font><font face="Arial, Helvetica, sans-serif" size="2" color="#000000"><br>
                Copyright (c) 2001 Consumer Electronics Online News. All rights
                    reserved. The material may not be reproduced or distributed
                    in any form without a subscription/licensing agreement from
                    Costello Communications, Inc., NY, NY. The content is based
                    upon information provided to the editor which is believed
                    to be reliable. Costello Communications is not responsible
                    for errors or omissions. (phone: 212-735-5771; fax: 212-735-6441.) </font></p>
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