Go-Video to Add QSound 3D Audio to Dual-Deck VCR’s

Calgary, Canada. QSound Labs and consumer electronics manufacturer Go-Video have signed a licensing deal that will allow Go-Video to incorporate QSound’s simulated-3D audio technology in its home theatre and high-end digital TV products.

“Combining QSound’s patented 3D audio technology with Go-Video’s flair for product development and marketing seemed a perfect match,” said Roger B. Hackett, Chairman and CEO of Go-Video. “Their professional studio experience provides us with an opportunity to enter the audio market with high-performance niche products, which are always very attractive to our retail customers.”

The first product to take advantage of the deal will likely be a new entry in Go-Video’s successful line of Dual-Deck™ videocassette recorders.

DVD Roll-Out Parade Continues: Toshiba and Pioneer to Introduce Basic Players with CD Audio

Tokyo, Japan. Announcements out of Japan by the nation’s major consumer electronics manufacturers continue to firm up the roll-out plan for DVD, Digital Video Disc (sometimes called Digital Versatile Disc).

In the last few days, Toshiba and Pioneer have made formal announcements of hardware to be introduced in November. These announcements follow in the wake of similar statements earlier this month by Matsushita (Panasonic) and Hitachi. Among the key players in Japan, only Sony has said that it will delay the arrival of DVD due to an expected scarcity of software (video titles). Discs will be slow to arrive, due to disagreements over DVD-video’s copy protection scheme.

The first DVD player from Toshiba, model SD-3000, will go on sale November 1 in Japan at a price of approximately $700 (US). This will be a basic unit, with the ability to play DVD-video and CD-audio discs. Other features include a Dolby AC-3 decoder and S-video output. Toshiba also announced the first DVD-ROM player for computers, to be introduced on the same date.

Pioneer is bringing DVD to market in late October. The first Pioneer unit will be part of a new integrated stereo system, the FX7MD, which will include a receiver and six other components, in addition to the DVD unit. It will be introduced in Japan at a price of approximately $2,000 (US). Pioneer plans to sell the FX series DVD player separately at a price of $750 (US) starting in December.

So far, no manufacturer has announced a DVD player with support for any independent audio format other than the existing CD standard of 44.1 kHz, 16-bit resolution. However, most observers expect a DVD-audio standard or set of standards to be settled soon. Formats that may be supported by DVD’s high data transfer rate (six times faster than CD) and storage capacity (15 times greater than CD) include Dolby AC-3 5.1 channel surround, 2-to-8 channel DTS Coherent Sound, 20-bit 48 kHz PCM four channel, 24-bit 96 kHz stereo, and MPEG Audio (Musicam).

DVD players supporting some form of higher-quality audio are not expected on the market for at least a year.

DCC Compact Classics Reports Decline in Profit Margins

Chatsworth, CA. Classical music, audiophile and audio-book software distributor DCC Compact Classics, Inc. has reported its financial results for the second quarter of its fiscal year, ending June 30, 1996. Sales were $1.22 million, as compared to $1.08 million for the quarter ended June 30, 1995. The increase in sales was largely due to broader distribution and a change in the company’s product mix.

Gross profit margins declined to 44% in the quarter, with a net loss of $8,000. DCC attributed the loss to increased work related to product returns and inefficiency caused by changing distributors.

“We believe we are through our transition period in having changed our distribution system from a group of independent distributors to a national distribution company,” said Marshall Blonstein, President and CEO. “We continue to expect 1996 third and fourth quarters to be profitable with increased sales.”

Kao Increases Northeast CD Manufacturing Capacity

Plymouth, MA. CD and magnetic media manufacturer Kao Infosystems marked the official opening of a new 65,000 sq. ft. state-of-the-art compact disc manufacturing plant today with a ribbon-cutting and open house.

The CD facility is now the largest such operation in the U.S. northeast. It employs 150, incorporates the most advanced CD production equipment, provides a full range of CD mastering services, and operates 16 production lines. The building was previously used as Kao’s east coast distribution center, which has now moved to Lakeville, MA.

“With the addition of this new CD plant, we will be able to further reduce our customers’ cycle-time-to-market, consolidate and lower our cost of operations, and strengthen our long-term position in the market place,” commented Peter McGuirk, President and CEO.

Kao now boasts over 336,000 sq. ft. of manufacturing space in Plymouth, situated on 86 acres of land. Kao Infosystems also operates CD production facilities in Fremont, CA and Arnprior, Ontario (Canada).

TCI Appoints Head of New Music Distribution Division

Englewood, CO. Cable TV giant TCI Communications, Inc. yesterday announced the appointment of John Reardon as Senior Vice President of TCI Communications, Inc. and President and CEO of its recently-announced TCI music subsidiary.

The music division of TCI is positioned to develop new channels of music and audio distribution via broadband networks and the Internet.

“Digital TV is a reality,” said Reardon. “This gives us unprecedented opportunities to deliver music entertainment in many exciting ways, whether its hundreds of channels of CD quality audio, targeted genres of digital music video, or instantaneous access to merchandise sales over the Internet.”

Reardon added, “It’s natural for TCI to focus on music. Music industry global revenues are approaching $36 billion. TCI will now be positioned to contribute to the significant growth the music industry anticipates before the end of the decade.”

Reardon is well known in the cable and music industries. He has held senior executive sales and marketing positions with Warner Amex Satellite Entertainment Company, and MTV Networks, where he was President of MTV: Music Television. Mr. Reardon was also President and CEO of Zing Systems, a pioneering interactive television company.

“As digital distribution technology emerges, we have the opportunity to help companies in the music business to expose their products as never before,” commented Brendan Clouston, President and CEO of TCI Communications. “John’s expertise in television and music will certainly help us realize our goals in this important new area.”