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Apple Launches iTunes Music Store in U.K., France and Germany

Authored by Mark Hefflinger on June 15, 2004 - 10:23am.
London -- Apple on Tuesday launched its much-anticipated iTunes music download service in France, Germany and the U.K., thereby extending the coverage of its Music Store to an additional 23% of the global music market. All three stores will boast music libraries of more than 700,000 songs from all the major record labels, as well as from a number of independent labels. However, the breakdown of negotiations between Apple and the U.K. Association of Independent Music (AIM) will mean that tracks from artists including The White Stripes, Franz Ferdinand and Basement Jaxx won't be available. Britons will also be paying more per song on iTunes ($1.43) than Americans ($0.99), but less than English patrons of Napster ($1.81). Apple CEO Steve Jobs said the service will launch in another 11 European countries (albeit only in English initially) when the company launches its pan-European store in October; Jobs also plans to build relationships with automakers to connect iTunes with in-car stereo systems. AOL also announced that it will tightly integrate the iTunes Store into AOL music channels in the U.K., France and Germany.
tags: Launches | Apple | Germany | France | U.K | iTunes Music Store |

Video Game Companies Sue Maker of Game Copying Software

Authored by Mark Hefflinger on June 15, 2004 - 10:22am.
Washington, D.C. -- Opening a major new front in the video game industry's battle against piracy, the D.C.-based Entertainment Software Association (ESA) said on Tuesday that several of its member developers and publishers have filed a lawsuit aimed at blocking the trafficking and sale of software designed to crack the copy-protection systems used by game makers to protect their titles from illegal copying. Three ESA members, Atari, Electronic Arts and Vivendi Universal Games, filed the lawsuit against 321 Studios in U.S. District Court for the Southern District of New York, contending that 321 Studios' "Games X Copy" software violates the Digital Millennium Copyright Act. "Masquerading as a consumer friendly tool, 321 Studios' software is, in truth, really nothing more than a device to facilitate the illegal copying of games," said Douglas Lowenstein, the president of the Entertainment Software Association, the trade association that represents U.S. computer and video game publishers.
tags: Law | Sue | Video Game Companies | Maker of Game Copying Software |

Streaming Patent Holder Acacia Sues Cable, Satellite TV Firms

Authored by Mark Hefflinger on June 15, 2004 - 10:20am.
Newport Beach, Calif. -- Acacia Research, a company that claims a patent on basic streaming media technology, announced on Tuesday that it has upped the ante in its licensing pursuits and sued cable and satellite TV firms Comcast, Charter, Cox, DirecTV, Echostar and several others for patent infringement. To its credit, Acacia has won 123 licenses for its patent from digital video distributors including On Command, Radio Free Virgin, Playboy and The Walt Disney Company. Newport Beach, Calif.-based Acacia said the cable and satellite firms use its technology in their basic programming, pay-per-view, video-on-demand and digital ad insertion services. Acacia also has patent infringement actions pending in California against a number of adult entertainment providers who distribute video over the Internet.
tags: Law | Satellite TV | Cable | Sues | Acacia | Streaming Patent Holder |

FBI Arrests Suspects in "Half-Life 2" Source Code Theft

Authored by Mark Hefflinger on June 15, 2004 - 10:19am.
Bellevue, Wash. -- Video game developer Valve Software announced that the FBI has made several arrests in its investigation into the theft of source code from Valve's anticipated "Half-Life 2" PC game last fall. Although it is not clear when they were arrested, suspects in several countries have been apprehended in relation to the hacking of Valve's own internal servers, where the game's source code was lifted and subsequently posted on the Internet. "It was extraordinary to watch how quickly and how cleverly gamers were able to unravel what are traditionally unsolvable problems for law enforcement related to this kind of cyber crime," said Valve CEO Gabe Newell. The company, which delayed the release of the game even before the source code was stolen, has said that "Half-Life 2" will come out this summer.
tags: Law | FBI | Half-Life 2 | Source Code Theft |

RealNetworks, Starz Launch Internet Movies-on-Demand Service

Authored by Mark Hefflinger on June 15, 2004 - 10:17am.
Seattle -- Media delivery technology provider RealNetworks announced that it has partnered with cable TV network Starz Encore Group, a unit of Liberty Media, to launch a broadband Internet video-on-demand service. The Starz Ticket on Real Movies service will offer unlimited access to a rotating library of over 100 movies, downloaded to users' PCs using RealNetworks' RealPlayer software, for $12.95 per month. Starz will also offer a streamed version of its cable TV movie channel to subscribers. Studios supplying films to the service initially are Disney, Universal, MGM, Sony, Fox, New Line, Revolution Studios and Miramax, with titles offered at launch to include "Finding Nemo," "Chicago" and "Pirates of the Caribbean." Consumers will be able to watch movies either on a PC or on a television linked to a PC.
tags: RealNetworks | Starz | Launch | Internet Movies-on-Demand |

XM Satellite Radio Tops 2 Million Subscribers

Authored by Mark Hefflinger on June 15, 2004 - 10:16am.
Washington -- XM Satellite Radio, a provider of satellite-delivered digital radio programming, announced that it has now surpassed 2 million subscribers. The company, which launched in late 2001, counted its first million subscribers in October 2003. "With more than 200 million vehicles on the road and 100 million households, we've just begun to scratch the surface of our market. Our rapid growth in both the retail and automotive markets puts us on our path to reach 20 million subscribers by 2010," said XM president and CEO Hugh Panero.
tags: Subscriptions | XM Satellite Radio | Tops |

Sony: PlayStation 2 Sales Up Twofold Since Price Drop to $149

Authored by Mark Hefflinger on June 15, 2004 - 10:14am.
Foster City, Calif. -- Sony Computer Entertainment America announced that it experienced a more than twofold sales increase since it slashed the price of its PlayStation 2 video game console to $149 a month ago. Citing data from major retail partners, Sony said it saw a week-over-week increase of 216% during the first full week of sales at the $149 price point, and an increase of 141% to date since the price drop, in comparison to the three weeks prior to the announcement. The company has sold a total of 70 million PlayStation 2 consoles worldwide, 26 million of which have sold in North America.
tags: Sony | PlayStation 2 | Sales Up |

iTunes Rival OD2 Launches One-Cent Song Streaming Service in Europe

Authored by Mark Hefflinger on June 15, 2004 - 10:06am.
London -- Aiming to win over customers from Apple, which launched its iTunes Music Store in several European countries on Tuesday, rival On Demand Distribution (OD2) announced the launch of a service that will let Europeans stream songs a la carte at a cost of one cent (.01 euro) per song. The service, offered in France, Germany, Italy and the U.K., will not require users to pay a monthly subscription fee. OD2 also said that it has teamed with Microsoft, to allow Windows Media Player users to buy music downloads from a number of European online stores through OD2's "SonicSelector" service.
tags: Launches | Europe | OD2 | iTunes Rival | One-Cent Song Streaming |

Wireless Entertainment Publisher Mforma Raises $44 Million

Authored by Mark Hefflinger on June 15, 2004 - 10:02am.
Kirkland, Wash. -- Wireless entertainment publisher Mforma Group announced on Tuesday that it has raised $44 million in its first institutional financing round, which was co-led by General Catalyst Partners, eFund and Bessemer Venture Partners. Founded in 2001, Kirkland, Wash.-based Mforma provides games and other wireless content in the U.S., Europe, and, most recently, in Korea. The company will use the funds to extend its global wireless entertainment distribution network, which currently includes over 60 wireless carriers.
tags: VC | Mforma | Wireless Entertainment Publisher |

Muzak Raises $35 Million from GE Commercial Finance

Authored by Mark Hefflinger on June 15, 2004 - 10:01am.
Fort Mill, S.C. -- Muzak, a provider of digital music programming for businesses, has raised $35 million in debt from GE Commercial Finance's Global Media & Communications unit. Muzak's key products are business music programming designed to enhance a client's brand image, and voice, telephone music and marketing on-hold, as well as in-store messaging. Muzak's clients include specialty retailers, restaurants, department stores, supermarkets, drug stores, financial institutions, hotels, health and fitness centers, business offices, manufacturing facilities and medical centers.
tags: VC | Muzak | GE Commercial Finance |

Retail Digital Imaging Provider Scene7 Raises $7.5 Million

Authored by Mark Hefflinger on June 15, 2004 - 9:59am.
West Chester, Pa. -- QVC, the home shopping television network unit of Liberty Media, announced on Tuesday that it led a $7.5 million third round of venture capital financing for Scene7, a company that provides retailers with tools to create and publish pictures of their products to their websites and other marketing materials. Previous Scene7 investors Moore Capital, David Rubenstein of The Carlyle Group, Halpern Denny & Co. and Xcelera also participated. As part of its investment, QVC will collaborate with Novato, Calif.-based Scene7 to further extend the company's platform. Scene7, whose customers include Macy's, Microsoft, Office Depot and Levi Strauss & Co., said it will use the funds to expand its operations and pursue strategic opportunities.
tags: VC | Retail Digital Imaging Provider | Scene7 |

Mobile Content Provider Monstermob to Acquire U.K.-Based Phunky

Authored by Mark Hefflinger on June 15, 2004 - 9:48am.
Edinburgh -- Mobile phone content provider Monstermob announced that it has agreed to acquire mobile entertainment services provider Phunky for about 750,000 pounds ($1.4 million). The acquisition of Phunky, which currently has a database of more than 1 million registered members, will bring Monstermob's total database to more than 5 million members, the company said. "The acquisition of the Phunky business adds extensive mobile network portal knowledge to Monstermob, as well as significant customer numbers, and will be earnings enhancing from day one," said Monstermob Managing Director Martin Higginson. Scotland-based Monstermob said it planned to continue expanding and forge similar relationships with other network operators in the U.K. and on the Continent.
tags: Acquire | U.K | Monstermob | Mobile Content Provider | Phunky |