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IFP, Indie Filmmakers Sue MPAA Over Ban on Awards Screeners

Authored by Mark Hefflinger on November 25, 2003 - 7:04am.
New York -- A group of independent filmmakers, including the Los Angeles and New York chapters of the Independent Feature Project (IFP), on Monday sued the Motion Picture Association of America (MPAA), asking a federal judge to place an injunction against the MPAA's ban on the distribution of "screener" copies of films to members of various groups that vote on awards. The MPAA enacted a full ban on screeners as a means of stemming potential piracy, but later said it would allows VHS movies to be distributed -- only to those who vote on the Academy Awards -- which prompted complaints from the Golden Globes and others. In its lawsuit, the independent filmmakers say that the MPAA has "conspired" with the major studios to eliminate competitive rivalry among themselves and independent film producers; the group also allegedly "conspired" with the American Academy of Motion Picture Arts and Sciences to unlawfully disadvantage other competing critics' evaluation and awards events. A hearing on the injunction is set for Wednesday morning before the U.S. District Court in Manhattan.

Report: Online Spending to Sharply Increase During Holidays

Authored by Mark Hefflinger on November 25, 2003 - 7:03am.
New York -- Consumers are expected to significantly increase their online shopping budgets during the holiday season, according to a new report from Nielsen//NetRatings, Goldman, Sachs & Co. and Harris Interactive. During the week ending Nov. 15, 67% of those surveyed said that they had visited an e-commerce site, up from 60% during the same week last year. A separate report by Nielsen//NetRatings found that the online holiday shopping season has officially started during the past two weeks, driven by a significant uptick in shopping at toys sites. "Toys and games got the holiday season started this year, with big spikes in many of the firms' online sessions," said Robert Leathern, a director and senior analyst for Nielsen//NetRatings. "Other categories like consumer electronics, and home and garden have shown strong consistent growth throughout this year, and continue to grow traffic strongly as the holiday season is kicking off."

Nintendo Reports Strong Sales for Game Boy Advance Handheld

Authored by Mark Hefflinger on November 25, 2003 - 7:03am.
Redmond, Wash. -- Nintendo of America said this week that U.S. sales of its Game Boy Advance handheld video game and titles for the device will likely top $1.5 billion this year. Nintendo said it sold over 400,000 units of the device during October; the company expects to sell nearly nine million in 2003, up from the seven million it sold last year. Separately, Redmond, Wash.-based Nintendo of America said it named Reginald Fils-Aime as executive vice president of sales and marketing. Most recently, Fils-Aime was senior vice president of marketing at MTV Networks' VH1.

Norwegian DVD Security Hacker Takes on Apple's iTunes

Authored by Mark Hefflinger on November 25, 2003 - 7:01am.
Oslo -- The Norwegian hacker Jon Lech Johansen, nicknamed "DVD Jon," who broke the encryption code for DVDs when he was 15 years old, has struck again, Norwegian online news daily IT-avisen reported this week. DVD Jon has reportedly now posted software code that can be used to evade the copy-protection technology embedded on songs purchased from Apple's iTunes digital music store, so that the songs may be freely copied. CNET News.com reported that, "if other developers -- or Johansen himself -- pursue the project, it could herald the arrival of simple ripping programs that could create unprotected music files from iTunes songs as simply as from an ordinary compact disc."
tags: Apple | DVD | iTunes | Norwegian | Hacker |

Report: Online Advertising in Europe Set to Hit $1.2 Billion in 2005

Authored by Mark Hefflinger on November 25, 2003 - 6:54am.
London -- Online advertising will top $1.2 billion across Europe in 2005 as marketers increase their use of the Internet, according to a new report from Forrester Research. The report acknowledges that traditional methods of advertising, such as television commercials, newspaper ads and poster hoardings, still command the biggest slice of advertising budgets, but says that online advertising is the fastest growing medium. Online display spending -- which includes banner ads and sponsorships but not job ads -- will increase this year by 12.5% to $943 million, and by 2008 will have almost doubled to reach $1.67 billion.

Warner Music Acquired By Bronfman Group for $2.6 Billion

Authored by Mark Hefflinger on November 24, 2003 - 7:08am.
London -- Time Warner on Monday confirmed that it has agreed to a $2.6 billion takeover of its Warner Music division by a consortium led by Edgar Bronfman Jr., the former Seagram CEO who engineered that company's acquisition of Universal Music Group during the 1990's. Other backers included Thomas H. Lee Partners of Boston, Providence Equity Partners and Bain Capital. "While we do not foresee an immediate upturn in the overall market for recorded music, we believe opportunities are emerging that bode well for the long-term future of the business and that Warner Music will continue to be in the forefront of capitalizing on these opportunities," said Thomas H. Lee managing director Scott M. Sperling. Earlier in the day, EMI Group announced that it had withdrawn its own $1.64 billion offer for Warner Music. Eric Nicoli, chairman of EMI Group, said: "We have concluded that it is no longer possible to reach an agreement on terms which would be acceptable to both parties and in the interests of EMI's shareholders."

Vivendi Planning to Offload $21 Billion in Assets, CFO Says

Authored by Mark Hefflinger on November 24, 2003 - 7:07am.
Barcelona -- French media and entertainment conglomerate Vivendi Universal plans to offload nearly $21 billion in assets over the next two years, according to CFO Jacques Espinasse. Speaking in Barcelona, Espinasse said that Vivendi planned to pay a dividend by as early as 2005 and that the company hoped to make as much money from its media assets as from its telecoms. He also confirmed that the ongoing deal to sell Vivendi's entertainment assets to General Electric is going smoothly.
tags: Vivendi | CFO | Offload | Assets |

Senators Ask File-Sharing Services to Self-Regulate, Filter Illicit Content

Authored by Mark Hefflinger on November 24, 2003 - 7:07am.
Washington -- A group of six U.S. Senators has written the heads of the major file-sharing software firms, asking them to self-regulate by providing warnings to their users on the risks of file-sharing software, installing filters for copyrighted and pornographic material, and altering the default settings on their programs so that users don't automatically share files on their PCs with others, CNET News.com reported. Firms including Grokster, BearShare, Blubster, eDonkey2000, LimeWire and Streamcast Networks received the letter, which was sent by a group of lawmakers including Sen. Lindsey Graham (R-N.C.) and Sen. Dianne Feinstein (D.-Calif.). "Purveyors of peer-to-peer technology have a legal and moral obligation to conform to copyright laws, and end the pornographic trade over these networks," Sen. Graham said in a statement. "These programs expose our children to sexually explicit materials and provide an anonymous venue for child pornographers to hide behind the veil of technology."

Yahoo to Buy Chinese Search Firm for Up to $120 Million

Authored by Mark Hefflinger on November 24, 2003 - 7:06am.
Sunnyvale, Calif. -- The Hong Kong unit of Yahoo said on Friday that it will buy 3721 Network Software, a Chinese developer of keyword search engines on the Internet, for as much as $120 million over two years, Reuters reported. After the completion of the deal early next year, 3721, which specializes in online search technologies, will become a unit of Yahoo Holdings. Yahoo is planning to use the technology to incorporate small- and medium-sized Asian businesses into its search listings.

Bronfman Derails EMI's Bid for Warner Music

Authored by Mark Hefflinger on November 21, 2003 - 7:14am.
London -- Shares in U.K. music giant EMI Group tumbled more than 10% on Friday after EMI's hopes of acquiring Warner Music were derailed by a last-minute bid from Canadian billionaire Edgar Bronfman Jr. A consortium led by Bronfman is believed to have made an offer of about $2.5 billion for Warner Music. EMI's bid is said to be almost 1 billion dollars lower. EMI, like the rest of the music industry, is beset with declining recorded music sales and Internet piracy, and industry consolidation is on the cards. "The decision by Warner to further explore Bronfman's bid is very bad news for EMI," commented WestLB.

SBC, RIAA in Court Friday Over Subpoenas for File-Swapper Identities

Authored by Mark Hefflinger on November 21, 2003 - 7:13am.
San Francisco -- Internet service provider SBC Communications and the Recording Industry Association of America (RIAA) will be in court on Friday, battling over whether SBC should be compelled to turn over the identities of certain of its Internet subscribers the RIAA believes infringed copyrights on music file-sharing services. The RIAA filed subpoenas for the users' identities, and SBC sued, arguing that the process by which the RIAA obtained the subpoenas was unconstitutional. Fellow ISP Verizon also sued over similar subpoenas, but a federal judge agreed with the RIAA and ordered subscriber identities turned over to the RIAA, which promptly sued many of the individuals for copyright infringement. CNET News.com reported that on Friday Judge Susan Illston will hear arguments for both the RIAA's motion to dismiss the suit, as well as SBC's motion for summary judgment. Lawyers told News.com a ruling is not immediately expected.
tags: Law | RIAA | Subpoenas | File-Swapper | SBC |

DirecTV President to Resign Following News Corp. Takeover

Authored by Mark Hefflinger on November 21, 2003 - 7:12am.
El Segundo, Calif. -- The president of satellite TV provider DirecTV announced on Friday her intention to leave the company following News Corp.'s pending takeover of DirecTV parent company Hughes Electronics. Roxanne Austin was named DirecTV president and COO in June 2001. News Corp. and Hughes expect to close the transaction, whereupon News Corp. will acquire 34% of Hughes, by the end of the year, following considerations including approval from the Federal Communications Commission.

OMT Acquires Assets of Digital Music Provider Musicmusicmusic

Authored by Mark Hefflinger on November 21, 2003 - 7:11am.
Winnipeg, Canada -- OMT Inc., a provider of multimedia content and delivery technology to the entertainment and broadcast industries, announced that it has acquired the assets of Toronto-based Musicmusicmusic, including the company's library of 365,000 digital audio tracks. Financial terms of the transaction were not disclosed. OMT said the purchase provides the infrastructure to immediately begin delivering subscription-based multimedia services to existing clients and new customers in North America. The company plans to offer services including branded Internet streaming radio, digital audio update services for radio stations, and a retail CD, DVD, and video game preview service.

TiVo Adds 209,000 Subscribers in Third Quarter, Raises Projections

Authored by Mark Hefflinger on November 21, 2003 - 7:11am.
San Jose, Calif. -- TiVo, a provider of standalone digital video recorders and associated services, announced that it added a record 209,000 subscriptions in the third quarter, more than doubling growth in the previous quarter. The company credited its partnership with DirecTV, which now offers a satellite receiver with TiVo features, as well as increased awareness and availability for its product, for the subscriber growth. "Our total sub base is now over one million and the pace of sub growth moving into the holiday season is at an all time high," said TiVo CEO Mike Ramsay. San Jose, Calif.-based TiVo also raised its guidance for the remainder of its fiscal year, now projecting it will have a total of 1.37 million subscribers, instead of its earlier prediction of 1.27 million.

French Telco Alcatel Buys PacketVideo Mobile Video Server Unit

Authored by Mark Hefflinger on November 21, 2003 - 7:09am.
Paris -- French telecommunications firm Alcatel announced on Friday that it has acquired the mobile video server business of San Diego-based PacketVideo, a developer of streaming video technology for mobile devices. Financial terms of the transaction, which does not include PacketVideo's device technologies, were not disclosed. PacketVideo will continue to operate as a developer of streaming video software for mobile devices. PacketVideo's Network Solutions video server business serves customers including NTT DoCoMo, T-Mobile, Orange, Mobilkom, New World Mobility and others. Alcatel said the purchase will strengthen its offering for portals, application service providers, content aggregators and mobile operator customers.

Bertelsmann 3Q Earnings Up 78%; Chairman Resigns

Authored by Mark Hefflinger on November 20, 2003 - 7:19am.
Frankfurt -- German media giant Bertelsmann -- the No. 5 record company in the world and owner of publisher Random House -- on Thursday reported a 78% increase in third-quarter earnings. The news was largely overshadowed, however, by the surprising resignation of supervisory board chairman Gerd Schulte-Hillen, who reportedly quit because of disagreements with senior management over the company's plans to merge its record label business with Sony's. The news has led some analysts to suggest there is a growing rift between the supervisory board chairman and the CEO at Bertelsmann. Former CEO Thomas Middelhoff resigned only a year ago.

Aussie Students Get Suspended Sentences in 'Net Music Piracy Case

Authored by Mark Hefflinger on November 20, 2003 - 7:19am.
Sydney, Australia -- Two Australian college students convicted of illegally distributing 1,800 songs on the Internet were given 18-month suspended prison sentences, and will complete 200 hours of community service, The Sydney Morning Herald reported. The convictions were the first for criminal online copyright violations in the country. Prosecutors had sought prison time for Charles Kok Hau Ng, 20, and Peter Tran, 19, as the recording industry there estimated their losses at $60 million, but the judge in the case took into account the offenders' youth and the fact that they did not personally profit from their MP3 website. A third accused, 21-year-old Tommy Le, also plead guilty to lesser copyright infringement charges and received 200 hours of community service.

EU Delays Vote on Controversial Intellectual Property Law

Authored by Mark Hefflinger on November 20, 2003 - 7:17am.
Brussels -- The EU has once again delayed a vote on controversial legislation that would increase law enforcement's powers to fight intellectual property crimes. The vote was delayed after several EU ministers said more discussion was needed to fully understand the directive's implications. The proposal has sparked considerable controversy in Europe, where critics claim that it will hinder competition and make many harmless practices a crime. The directive, which has been delayed three times already, was originally scheduled for vote on Sept. 11. That date has now been changed to Nov. 27, but industry experts say a vote before year's end is unlikely.

Macromedia Partners with AOL to Create IM Software

Authored by Mark Hefflinger on November 20, 2003 - 7:15am.
San Francisco -- America Online has partnered with San Francisco-based Web publishing software firm Macromedia to develop technology that programmers can use to create software for AOL's instant messaging platform. Macromedia, best known as the developer of Flash animation technology, also is the creator of Macromedia Central, a program that lets users interact with information and software delivered over the Internet. Through the partnership, the companies have opened the door for potentially hundreds of thousands of Flash developers to build applications that incorporate IM features. "This partnership opens the door for developers to build applications that add context through online forums such as discussion groups, virtual classrooms, and multi-party chat," said Kevin Lynch, the chief software architect at Macromedia. AOL's instant messaging network supports over 1 billion messages a day and over 50 million active users each month.

AT&T Wireless to Distribute RealNetworks Mobile Video Content

Authored by Mark Hefflinger on November 20, 2003 - 7:14am.
Seattle -- RealNetworks, a provider of media delivery technology, announced on Thursday that it has partnered with AT&T Wireless to provide streaming video content to subscribers of AT&T's mMode wireless content service. Subscribers with Nokia 3650 handset or the Nokia N-Gage who have installed the RealOne Player software for mobile devices can pay $4.95 per month, plus usage charges, for full-motion video and audio of breaking news, entertainment, sports and weather. Content providers for the service include ABC News, NPR News, CBS MarketWatch, Fox Sports, Sporting News Radio and The Weather Channel.