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Viacom Announces Divestiture of Blockbuster Unit

Authored by Mark Hefflinger on June 18, 2004 - 9:22am.
New York -- Media conglomerate Viacom, whose holdings include CBS, MTV Networks, Paramount Pictures, Infinity Broadcasting and Simon & Schuster, announced on Friday the terms of its separation from Blockbuster, its wholly-owned video rental subsidiary. The divestiture will involve a "split-off" offer to Viacom stockholders, including the pre-offer distribution of $5 per share to Blockbuster stockholders, or a total of approximately $905 million. Viacom expects to receive $738 million of this distribution. Blockbuster also announced a new $1.45 billion financing commitment from JPMorgan, Citigroup and Credit Suisse First Boston. "Following the split-off, Viacom will devote all its energies and resources into expanding in core areas, particularly the content creation engines that we believe will drive our future performance," said Viacom chairman and CEO Sumner Redstone. "The split-off, which is also expected to result in a reduction of Viacom's outstanding shares, enables Blockbuster to focus on its mission to become a specialty retailer of home entertainment." Viacom expects the divestiture to be completed in the third quarter of 2004.
tags: Viacom | Announces | Divestiture of Blockbuster Unit |

Copy-Protected Velvet Revolver CD Hits No. 1 on U.S. Charts

Authored by Mark Hefflinger on June 18, 2004 - 9:21am.
Phoenix, Ariz. -- For the first time ever, a CD with embedded copy-protection technology designed to keep songs from being uploaded to the Internet has become the top-selling album in the U.S., with the release of Velvet Revolver's "Contraband" on BMG last week. The anti-copying system, developed by Arizona-based SunnComm International, blocks tracks from being uploaded to P2P networks while providing alternate, protected digital versions that may be played on a PC, burned to CD, and transferred to some portable devices. Currently, the technology does not allow transfers to Apple's iPod, which does not support the Windows Media Audio format used by SunnComm. The success of the Velvet Revolver album will likely encourage other labels to explore SunnComm's technology, and the company on Friday announced that major record label EMI has signed on to test its MediaMax technology on select promotional CDs it distributes worldwide.
tags: Copy-Protected Velvet Revolver CD | Hits No.1 | U.S. Charts |

U.K. Newspapers Launching Own Digital Music Download Stores

Authored by Mark Hefflinger on June 18, 2004 - 9:20am.
London -- A number of major U.K.-based newspapers including The Guardian, Times, Mail, Mirror and Sun are considering their own digital song download stores, following the launch of Apple's iTunes service in the U.K. this week, New Media Age reported. First in line will be The Guardian, which has a licensing deal with major label EMI and plans to launch a $1.82-per song service later this month, featuring artists performing at the Glastonbury Festival, such as David Bowie and Air. "In a market this new it's still not quite clear how a publisher can make this work profitably. That's why the tie-up with EMI is a good step towards helping us understand that, and helps EMI understand how it can work with media owners," Simon Waldman, director of digital publishing at Guardian Newspapers, told New Media Age. The editor of The Mirror's website told New Media Age a music download service may be part of the site's re-launch later this year, and News Group Newspapers also said it is in discussions with potential suppliers for its own service.
tags: Launch | U.K. Newspapers | Digital Music Download Stores |

CNET: Nokia Invests in Open-Source Mobile Browser Developer Mozilla

Authored by Mark Hefflinger on June 18, 2004 - 9:19am.
San Francisco -- CNET News.com reported on Friday that Finnish cell phone giant Nokia has provided funding to the Mozilla Foundation, a developer of open-source Web browser software, earmarked for an open-source browser for cell phones. Terms of the funding were not disclosed, but the partnership has already produced a workable prototype called "Minimo." America Online spun off Mozilla as a nonprofit a year ago, providing $2 million in seed money. To this point, Nokia has used either an internally-developed browser or one made by Norway-based Opera in its cell phones, but the investment in the open-source Mozilla would mean freedom from associated licensing fees, as Mozilla software is made available for free to users.
tags: CNET | Nokia | Invests | Open-Source Mobile Browser Developer | Mozilla |

Peer-to-Peer Group Asks MPAA to License Movies for File-Sharing

Authored by Mark Hefflinger on June 18, 2004 - 9:17am.
Washington -- The Distributed Computing Industry Association (DCIA), a trade group made up of peer-to-peer file-sharing networks, including Sharman Networks' Kazaa, on Friday made a plea to the Motion Picture Association of America (MPAA) member studios to license their films for trading on file-sharing networks. "Mr. Valenti, end the major studio boycott of peer-to-peer. Urge your members to work with us to counter copyright infringement and commercially develop file sharing to its full potential," said DCIA CEO Marty Lafferty. "Our mission is to make it attractive for the Universal Musics and Paramount Pictures of this world to become wholesale suppliers, literally, to the Kazaas and Groksters, as online resellers of music and movies." The DCIA proposed a six-step licensing program, that includes using software from Relatable to catalog and "fingerprint" all content; creation of a rights holder registry; employment of content verification; application of usage rules; the addition of digital rights management including encryption; and the implementation of a range of payment options for end-users.
tags: MPAA | File-Sharing | Peer-to-Peer Group | License Movies |

Holding Company for easyJet Airlines to Launch Free Digital Music Service

Authored by Mark Hefflinger on June 18, 2004 - 9:14am.
London -- EasyGroup, the holding company that controls U.K.-based discount airline easyJet, announced on Friday that it plans to enter the increasingly competitive music download market in Europe and launch a new online music store from which customers will be able to download songs for free. Dubbed "easyMusic", the new service will utilize the "copyleft" principle that frees customers from copyright laws by using songs produced by unknown artists who want extra publicity, EasyGroup founder Stelios Haji-Ioannou said. Haji-Ioannou went on to say that customers who still want to download music by better-known artists will have to pay a small fee.
tags: Launch | Holding Company | easyJet Airlines | Free Digital Music Service |