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Supreme Court Rules Against Child Online Protection Act

Authored by Mark Hefflinger on June 29, 2004 - 7:12am.
Washington, D.C. -- By a 5-4 margin, the U.S. Supreme Court on Tuesday ruled that legislation aimed at protecting children from Internet pornography violates free speech rights. While shooting down the measure, however, the justices left the door open for the Child Online Protection Act (COPA) to make a comeback, ruling that a lower court should decide whether technological advances now make it possible to block "harmful" online material from children while still preserving the rights of adults. Voting with the majority, Justice Anthony Kennedy wrote that while Internet filters undeniably have flaws, "content-based prohibitions" like COPA "have the constant potential to be a repressive force in the lives and thoughts of a free people." The decision was seen as a victory for the American Civil Liberties Union (ACLU). "The Court has made it safe for artists, sex educators and web publishers to communicate with adults about sexuality without risking jail time," said Ann Beeson, who argued the case for the ACLU last March and earlier in 2001.

Report: Global Entertainment & Media Industry to Grow to $1.7 Trillion in 2008

Authored by Mark Hefflinger on June 29, 2004 - 7:10am.
New York -- The global entertainment and media industry will be worth $1.7 trillion in 2008, as spending increases at a 6.3% compound annual growth rate (CAGR), up from a growth rate of 4.2% and spending of $1.2 trillion in 2003, according to a report from PricewaterhouseCoopers. The firm credits an impressive 9.8% CAGR for the Asia/Pacific regional market, as well as improved economic conditions, new distribution channels and new technologies for the overall growth. The number of broadband households will grow at a 31.3% CAGR to surpass 300 million for the first time in 2008, while Internet advertising will outpace the rest of the industry with a 12.7% CAGR as it grows to $18.9 billion in 2008. The fastest growing segment of the entertainment industry during the next five years will be video games, expected to grow at a 20.1% CAGR to $55.6 billion in 2008. PricewaterhouseCoopers also expects a turnaround for the struggling music industry, which will see a 2% CAGR and global spending of $33.7 billion by 2008. "After a few years of economic uncertainty, our projections for industry growth are encouraging across the board, highlighted by particularly swift gains in the video games and Internet advertising and access spending segments," said Wayne Jackson, leader of PricewaterhouseCoopers' entertainment and media practice.

Survey: 56% of U.S. Adults Say RIAA Shouldn't Sue File-Swappers

Authored by Mark Hefflinger on June 29, 2004 - 7:09am.
Eagan, Minn. -- A majority of Americans surveyed said the music industry should not sue individuals who illegally download music off the Internet, according to a poll conducted by legal website FindLaw. The Recording Industry Association of America (RIAA) has thus far filed suit against over 3,400 suspected file-swappers, with around 600 of these settling out of court for about $3,000 each. FindLaw's survey of 1,000 American adults found that 56% oppose the lawsuits, while 37% support the industry's legal actions. Opposition was more pronounced among 18 to 34-year-olds, nearly two-thirds of whom were against the lawsuits; also more opposed were people with lower incomes. "I suspect that many people, when educated about the purpose of copyright law, support the law," commented Prof. Sharon Sandeen, of the Hamline University School of Law. "Public opposition to the lawsuits may be due, in part, to what some people consider hard-handed tactics by the RIAA."

Traffic's Steve Winwood, "Access Hollywood" Team for P2P Promotion

Authored by Mark Hefflinger on June 29, 2004 - 7:07am.
Los Angeles -- Steve Winwood, a veteran musician who played in Traffic and Blind Faith, announced that he has teamed with entertainment news program "Access Hollywood" to promote his music on peer-to-peer file-sharing networks like Kazaa, Reuters reported. The deal was brokered between interactive marketer Jun Group and Hearst-Argyle Television, which owns a stake in "Access Hollywood" as well as 10 NBC affiliate stations. The promotion will include the distribution of a previously unreleased live version of Traffic's "Dear Mr. Fantasy" -- with an embedded five-second audio ad for "Access Hollywood" -- onto peer-to-peer networks, as well as the placement of additional video content and links to buy Winwood's new independent CD on the "Access Hollywood" website.

U.K. to Launch Weekly Sales Chart for Music Single Downloads

Authored by Mark Hefflinger on June 29, 2004 - 7:06am.
London -- The British Phonographic Industry (BPI) said it would launch an official chart for downloaded music singles by Sept. 1. The BPI said the chart would record the sale of paid tracks from websites run by OD2, iTunes, HMV, Coca-Cola and Microsoft's MSN, among others. The organization has already released a Top 20 list for the third week of June, with the Pixies' iTunes-exclusive "Bam Thwok" leading U.K. download sales, followed by Maroon5's "This Love," OutKast's "Hey Ya!" and Anastacia's "Left Outside Alone." "Music remains overwhelmingly a CD market," said BPI Chairman Peter Jamieson. "But the excitement and energy surrounding the new legal music sites is giving a lift to the entire market." The chart will be compiled by the Official UK Chart Company, and the results will be broadcast by Radio 1, the BPI said.

Report: Global Digital TV Sales to Reach $70 Billion in 2008

Authored by Mark Hefflinger on June 29, 2004 - 7:05am.
Framingham, Mass. -- Global sales of digital televisions are poised to reach $70 billion in 2008, fueled by the popularity of DVD players, as well as plasma and LSD displays, according to a report from Massachusetts-based market research firm IDC. Sales for all televisions will grow from 170 million in 2003 to 196 million in 2008, as consumers begin to replace their analog sets. IDC reports that in 2003, 7.1% of global TV shipments were digital; this year the percentage will climb to more than 12%, and by 2008, 60% are projected to be digital. "As consumers become exposed to the crisp, vivid images and overall cinematic experience of HD, they will begin to see a compelling reason to replace their otherwise functioning analog solutions. This move is well underway as the selection of DTVs and HDTVs in retail continues to swell," said Danielle Levitas, director of consumer research at IDC.

Video Gaming Network IGN Acquires DVD Site Rotten Tomatoes

Authored by Mark Hefflinger on June 29, 2004 - 7:03am.
Brisbane, Calif. -- IGN Entertainment, a video game news and information provider, announced on Tuesday that it has signed an agreement to acquire Rotten Tomatoes, a destination site for movie and DVD buyers. Financial details of the agreement were not disclosed. Rotten Tomatoes reached a worldwide audience of 5.2 million during May 2004, according to comScore data, as compared with 17.7 million for all of IGN's properties. "Rotten Tomatoes will add tremendous depth and complementary value to IGN's existing portfolio of movie and DVD coverage on IGN's FilmForce," said IGN CEO Mark Jung. "The acquisition is a good demonstration of how IGN is applying our expertise in amassing vertical content, which we honed in the gaming field, to another key digital entertainment market segment -- movies and DVDs." Brisbane, Calif.-based IGN has also acquired GameSpy Industries and TeamXbox within the past year.

Online Marketing Firm Agency.com Acquires Ad Firm Exile on Seventh

Authored by Mark Hefflinger on June 29, 2004 - 7:02am.
New York -- Agency.com, a provider of interactive marketing and technology services, announced on Tuesday that it has acquired the assets of San Francisco-based online ad agency Exile on Seventh LLC. Financial terms of the deal were not disclosed. Exile on Seventh, whose clients include eBay, 21st Century Insurance and Wells Fargo, will be integrated into Agency.com's San Francisco office and will assume the Agency.com brand in all markets except London.

BBC Sets Out Future Role in "Digital Britain"

Authored by Mark Hefflinger on June 29, 2004 - 6:59am.
London -- The BBC, seeking to renew a royal charter due to expire in 2006, on Tuesday published its submission and outlined its role in creating a new "digital Britain." In its manifesto, the BBC pledged to improve public access to digital services and encourage more active and interactive participation. It also promised to open up its creative archive and grant more access to a veritable "treasure trove" of content. At the launch of the charter review paper -- called "Building public value: renewing the BBC for the digital world" -- Director General Mark Thompson and Chairman Michael Grade said the BBC was committed to working with the government and leading Britain into the digital age. Even so, the company criticized the government's 2010 target date for the national switchover to digital and set its own target of 2012.

Senate Approves Bill Enabling Federal Civil Lawsuits Against File-Swappers

Authored by Mark Hefflinger on June 28, 2004 - 7:25am.
Washington -- The U.S. Senate on Friday approved the "Pirate Act," which would expand the authority of the Attorney General and Justice Department to pursue civil lawsuits against copyright infringers. Previously, the Justice Dept. has only been able to prosecute criminal copyright cases, while the Recording Industry Association of America (RIAA) has launched its own campaign of civil suits against music file-swappers, with a total of 3,429 sued thus far. "These acts will provide federal prosecutors with the flexibility and discretion to bring copyright infringement cases that best correspond to the nature of the crime and will assure that valuable works that are pirated before their public release date are protected," said RIAA chairman Mitch Bainwol. The bill will now be sent to the House for approval. "This turns the Department of Justice into a civil law firm for the industry's benefit," Adam Eisgrau, executive director of file-sharing trade group P2P United, told CNET News.com.

European Commission Suspends Sanctions Against Microsoft

Authored by Mark Hefflinger on June 28, 2004 - 7:23am.
Brussels -- The European Commission said on Sunday that it has suspended its ruling that Microsoft must offer a new version of the Windows operating system without its media player software. Microsoft appealed the decision earlier this month. Last weekend, the Commission said it would not enforce the sanctions until the Court of First Instance in Luxembourg decided whether to suspend them pending the outcome of Microsoft's appeal. In its prior ruling, the Commission fined the U.S. software giant 497 million euro ($605 million) and ordered it to share information with rivals and start selling a new version of Windows without the Windows Media Player. On Sunday, the Commission said it was inappropriate to enforce the sanctions before the court had made its decision on the appeal, which analysts say could drag on for several years.

Report: PC-TV Tuners, Set-tops to Generate $3.8 Billion in 2008

Authored by Mark Hefflinger on June 28, 2004 - 7:22am.
Scottsdale, Ariz. -- Sales of devices that enable PCs to tune into TV stations and record programs will grow to more than $3.8 billion in 2008, according to a report from Arizona-based market research firm In-Stat/MDR. These products include entertainment-focused PCs, as well as digital terrestrial set-top boxes, which are increasingly popular in Europe and are projected to do well in Asia. The firm predicts that current PC-based add-on tuners will evolve into tuners that come built into computers. "In the next step for this market, [entertainment-focused] PCs will define a class of PCs that include a PC-TV tuner and a hard disk drive, and then evolve to include multiple PC-TV tuners, different types of tuners (analog, digital, cable TV, satellite), massive disk storage, DVD recording capabilities, High Definition (HDTV) video and surround sound audio outputs, HD-DVD recording capabilities, in-home network capabilities, and broadband external network capabilities," predicted In-Stat/MDR senior analyst Gerry Haufhold.

Cable TV's Fuse Launches Daily Top Song Downloads Countdown Show

Authored by Mark Hefflinger on June 28, 2004 - 7:19am.
New York -- Fuse, a cable TV music network operated by Rainbow Media Holdings, announced on Monday that it is doing away with its daily music video countdown show and replacing it with one that measures the daily most downloaded songs from legal Internet services. The show's data on the daily most-downloaded songs will be culled from sources including iTunes, BuyMusic.com and SoundScan. "The Daily Download" will also offer free legal downloads of songs of videos aired during the show, provided by Blue Mountain and Tower Records, in addition to ringtones and other content. The show, which launched on Monday, will in debut episodes feature interviews and live performances from artists including Metallica, The Streets, The Darkness and Jet.

Clear Channel Live CD Service Signs Jewel, Plans MP3 Distribution

Authored by Mark Hefflinger on June 28, 2004 - 7:17am.
Boston -- Instant Live, a division of Clear Channel that records and distributes live concert CDs at venues following performances, announced on Monday that it will provide its service on summer concert tours from Jewel, KISS, Peter Frampton and the Cowboy Junkies. Atlantic Records artist Jewel, the service's first major label participant, will only sell Instant Live CDs in limited edition at concert venues, while other artists plan to also make their shows available at retail locations, including Newbury Comics, Virgin, FYE, Amazon.com and CD Baby. Boston-based Instant Live said it is also "close to announcing an agreement with a leading online music store to distribute Instant Live recordings as MP3 files."

RealNetworks Gets Support From Linux Developers for Media Software

Authored by Mark Hefflinger on June 28, 2004 - 7:16am.
Kristiansand, Norway -- RealNetworks, a provider of media delivery technology, announced on Monday an agreement with Linux software developer Red Hat, to ship its open source Helix Player with Red Hat's desktop PC software. The company signed a similar deal with Linux developer Novell, and also said that it will soon add the GNU General Public License to the Helix Player, allowing developers to freely build upon the software without paying royalties. Seattle-based RealNetworks also said that on Wednesday it will release its free RealPlayer 10 software for Mac OS X.

Telenor Mobile Interactive Acquired by Telenor Venture

Authored by Mark Hefflinger on June 28, 2004 - 7:13am.
Rockville, Md. -- Telenor Mobile Interactive USA, a maker of mobile applications and messaging services, said on Monday that it has been acquired by Telenor Venture, the venture capital company within the Telenor Group. The company, to now be called Telenor Interactive, said that it plans to continue expanding its operations within the U.S. messaging and mobile content market. Steinar Svalesen, the CEO of Telenor Interactive, said that the acquisition "provides the company with added resources to execute our current strategy," both financially and through Telenor Venture's relationships with telecomm and media companies. Last July, the company launched cross-carrier messaging services with Disney's ABC Television group. Since then, Telenor Interactive has facilitated numerous text-to-screen, text- to-radio, text alert and text-based games services with companies such as Walt Disney Interactive, 20th Century TV, Univision, Telemundo, and ABC.

Senate Passes Movie Theater Camcorder Piracy Bill

Authored by Mark Hefflinger on June 25, 2004 - 7:37am.
Washington -- The U.S. Senate voted unanimously on Friday to make it a crime, punishable by up to three years in prison, to bring a camcorder into a movie theater for the purpose of pirating a film. The Cornyn-Feinstein ART Act will also ratchet up penalties for anyone who distributes promotional or pre-release movies or music on the Internet before their release dates, and enable copyright holders to sue for damages. In addition, the bill provides the Justice Department with an added $5 million per year through 2009 to support enforcement efforts. "The digital age is making rampant theft easier and more damaging, and the overlap between online file swapping and the production of counterfeit movies and CDs has become so blurred as to become indistinguishable," said Sen. John Cornyn (R-Texas), who sponsored the bill. "We are now one step closer to making thefts far more difficult, prosecution of criminals much easier, and the protection of consumers and artists much stronger."

Microdrive Maker Seagate Files Patent Suit Against Rival Cornice

Authored by Mark Hefflinger on June 25, 2004 - 7:35am.
Scotts Valley, Calif. -- Seagate Technology, a manufacturer of hard disk drives, announced this week that it has filed a patent infringement suit against Colorado-based rival Cornice, which makes the microdrives used in digital music players from firms including Rio and iRiver. Earlier this month, Scotts Valley, Calif.-based Seagate released the first of its own 1-inch, 5GB microdrives designed for consumer electronics. "We cannot allow the competitive advantage we've established through our long-term investment in R&D to be unfairly attacked by those who would illegally infringe on our technology portfolio and intellectual property," said Seagate president Bill Watkins. Seagate is seeking monetary damages and a permanent injunction that bars Cornice from making, using, importing, offering to sell, or selling the allegedly infringing products in the United States.

Wash. Schools, Libraries Receive Questionable Antitrust Settlement CDs

Authored by Mark Hefflinger on June 25, 2004 - 7:34am.
Seattle -- The Seattle Post-Intelligencer recently reported on the quantity and quality of CDs being distributed to area schools and libraries by the major record labels, as part of their antitrust settlement with the government over CD price-fixing. Several recipients of Washington state's 115,241 CDs, many of which were earmarked for public schools, reported receiving too many copies of the same CD, several marked with "Explicit Lyrics" labels, and dozens that were marked "For Promotional Use Only," or notched, indicating they could not be resold. Gary Larson, spokesman for state Attorney General Christine Gregoire, told the Seattle PI that the terms of the settlement called for titles to have been on a Billboard chart for at least 26 weeks and to have appeared in the top half of the chart, but added that national settlement administrators discovered mistakes when they calculated the distribution for the CDs. "We didn't feel they were up to snuff to be added to our collection," King County Regional Library spokeswoman Julie Wallace said of the 7,700 CDs they received, which the library decided instead to donate to a fund-raising foundation to sell. The Puget Sound Educational Service District received 1,355 copies of Whitney Houston singing "The Star-Spangled Banner; among its CDs, the Seattle Public Library received 48 copies of "Scary Sounds for Halloween" from Martha Stewart and 84 copies of an album by rhythm-and-blues artist Samantha Mumba. In addition to the library and school CD handouts, labels also paid out $13 checks to thousands of consumers who purchased CDs during the price-fixing period as part of the settlement.

Report: U.S. Video Game Sales in May Down 17.1% From 2003

Authored by Mark Hefflinger on June 25, 2004 - 7:33am.
Toronto -- U.S. sales of video games for consoles and handhelds during the month of May were down 17.1% from a year ago, reports Toronto-based analyst firm RBC Capital Markets, citing sales data from NPD Group. PlayStation 2 unit game sales were down 11.7%, Game Boy Advance game sales down 11.8% and Xbox title sales down 10.4%, while sales of games for Nintendo GameCube were up 36% over May 2003 figures. RBC added in its note that, last year, a single title, Atari's "Enter the Matrix," was responsible for a large chunk of game sales during May and no comparable breakaway title sold as well last month.