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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16. Form 4 or
Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person
Dawson-Samberg Capital Management, Inc.
354 Pequot Avenue
Southport, CT 06490
2. Issuer Name and Ticker or Trading Symbol
Digital Generation Systems, Inc.
DGIT
3. IRS Number of Reporting Person (Voluntary)
4. Statement for Month/Year
11/97
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s)to Issuer (Check all
applicable)
( ) Director ( ) 10% Owner ( ) Officer (give title below)
(X) Other (specify below) (1)
7. Individual or Joint/Group Filing (check Applicable Line)
X Form filed by One Reporting Person
Form filed by More than One Reporting Person
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<TABLE>
<CAPTION>
TABLE I -- NON-DERIVATIVE SECURITIES ACQUIRED,
DISPOSED OF, OR BENEFICIALLY OWNED
1. Title of Security| 2. Transaction| 3. Transaction| 4. Securities | 5. Amount of | 6. Ownership |7. Nature of |
(Instr. 3) | Date | Code | Acquired (A) | Securities | Form: | Indirect |
| | (Instr. 8) | or Disposed | Beneficially | Direct (D) | Beneficial|
| (Month/ | | of (D) | Owned at End | or Indirect| Ownership |
| Day/ | | (Instr. 3,4, | of Month | (I) | (Instr. 4)|
| Year) | | and 5) | (Instr. 3 and 4)| (Instr. 4) | |
| | | | |(A) or| | | | |
| | Code | V | Amount|(D) |Price| | | |
_________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOT APPLICABLE
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<TABLE>
<CAPTION>
TABLE II -- DERIVATIVE SECURITIES ACQUIRED,
DISPOSED OF, OR BENEFICIALLY OWNED
1. Title of | 2. Conver- | 3. Trans- | 4. Trans- | 5. Number of | 6. Date Exer- | 7. Title and Amount |
Derivative | sion or | action | action | Derivative | cisable and | of Underlying |
Security | Exercise | Date | Code | Securities | Expiration | Securities |
(Instr. 3) | Price of | (Month/ | (Instr. | Acquired | Date | (Instr. 3 and 4) |
| Deri- | Date/ | 8) | (A) or | (Month/Day/ | |
| vative | Year) | | Disposed of | Year) | |
| Security | | | (D) (Instr. | | |
| | | | 3, 4 and 5) | | |
| | |____________|_________________|___________________|_____________________|
| | | | | | | | | | |
| | | | | | | Date | Expira- | | Amount or |
| | | | | | | Exer- | tion | | Number of |
| | | Code | V | (A) | (D) | cisable | Date | Title | Shares |
___________________|_____________|____________|______|_____|________|________|_________|_________|________|____________|
<S> |<C> |<C> |<C> |<C> |<C> |<C> |<C> |<C> |<C> |<C> |
Series A | | | | | | | | | | |
Convertible | | | | | | |Immediate| |Common |1,498,441(2)|
Preferred Stock | | | | | | | | |Shares | |
___________________|_____________|____________|______|_____|________|________|_________|_________|________|____________|
Option |$6.375 |11/14/97 | A | |10,000(2)| |Various |11/14/07 |Common |10,000(2) |
|Shares
___________________|_____________|____________|______|_____|________|________|_________|_________|________|____________|
</TABLE>
<TABLE>
| 8. Price of | 9. Number of | 10. Ownership | 11. Nature of |
| Derivative | derivative | Form of | Indirect |
| Security | Securities | Derivative | Beneficial |
| (Instr. 5) | Benefi- | Security | Ownership |
| | cially | Direct (D) | (Instr. 4) |
| | Owned at | or Indirect | |
| | End of | (I) (Instr. | |
| | Month | 4) | |
| | (Instr. 4) | | |
|_______________________|___________________|___________________|_________________|
|<S> |<C> 1,498,441(2) |<C> (I) |<C> Investment Adviser|
| | 10,000(2) | (I) | Investment Adviser|
|_______________________|___________________|___________________|_________________|
</TABLE>
(1) The reporting person is an investment adviser registered
under Section 203 of the Investment Advisers Act of 1940
and has voting power and investment power with respect to
securities in its clients' accounts. An employee of the
reporting person is a member of the board of directors of
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the issuer. The reporting person disclaims any obligation
to file this report, and this report shall not be deemed an
admission that the reporting person is subject to Section
16 with respect either to the issuer or such securities.
(2) The reporting person disclaims beneficial ownership of
these securities, and this report shall not be deemed an
admission that the reporting person is the beneficial owner
of such securities for purposes of Rule 16a-1(a)(1) or
(a)(2) or for any other purpose.
Dawson-Samberg Capital Management, Inc.
By: /s/ Kevin E. O'Brien December 10, 1997
_______________________ _________________
Kevin E. O'Brien Date
**Signature of
Reporting Person
** Intentional misstatements or omissions of facts constitute
Federal Criminal Violations. See U.S.C. 1001 and 15 U.S.C.
78ff(a).
Note: File three copies of this Form, one of which must be
manually signed. If space is sufficient, see Instruction 6 for
procedure.
17975010.AK0
