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Report: U.S. Consumers Spent Record $21.2 Billion on DVDs in 2004

Authored by Mark Hefflinger on January 6, 2005 - 2:47am.
Las Vegas -- U.S. consumers spent a record $21.2 billion buying and renting DVDs, and purchased over 37 million DVD players over in 2004, according to data from the Digital Entertainment Group, a trade group of electronics firms and home video distributors. DVD retail sales grew 33% over 2003 totals to $15.5 billion, and 2004 DVD rental revenue topped $5.7 billion. In the fourth quarter alone, nearly 530 million DVDs shipped to retailers, a 39% increase over 2003; a total of 1.5 billion units shipped during 2004. Sales of DVD players increased 10% over 2003, with more than 17 million sold in the fourth quarter. The devices are now present in approximately 70 million U.S. households, with 45% of owners reporting having more than one player. When accounting for computers with DVD-ROM drives and DVD-enabled video game consoles, an estimated 79 million households currently have the capability to play DVDs, approaching three-fourths of all U.S. TV households. The Digital Entertainment Group estimates that 80% of U.S. households will have at least one DVD player by the end of 2005.
tags: Reports | DVD | U.S. Consumers |

Microsoft Touts New Deals With MTV, TiVo for Portable Entertainment

Authored by Mark Hefflinger on January 6, 2005 - 2:45am.
Las Vegas -- Microsoft chairman Bill Gates delivered a keynote address for the Consumer Electronics Show in Las Vegas on Thursday that focused on the company's enabling of "the digital lifestyle" and touted new agreements with MTV and TiVo. "We are at the forefront in making broad technology investments and delivering breakthroughs that bring the digital lifestyle into the mainstream," Gates said. Microsoft said that MTV will develop programming and entertainment that will be made available through Windows-based Portable Media Center devices, and create a version of its online music store that is compatible with Windows-based "PlaysForSure" secure portable devices. MTV will also standardize all of its online audio and video content on Windows Media Audio and Video. The download of video to Portable Media Centers and smartphones will also be enabled through a new agreement between Microsoft and TiVo, the maker of digital video recorders. Gates also announced the launch of MSN Video Downloads, which will offer a library of content that may be downloaded to Portable Media Center devices. The service includes content from providers including CNBC, MSNBC, Fox Sports, Cookie Jar Entertainment, Home and Garden Television, DIY Network, Food Network and IFilm. Owners of Portable Media Centers, currently priced around $500, can purchase a one-year membership to the MSN Video Downloads service for $19.95. Gates disappointed some attendees of the convention by failing to announce details about the next Xbox video game console, but remarked that sales of its "Halo 2" game have now surpassed 6.3 million units.
tags: Deals | Microsoft | TiVo | MTV | Portable Entertainment |

Digital Rights Management Firms Pool Patents for Cell Phone Standard

Authored by Mark Hefflinger on January 6, 2005 - 2:43am.
Denver, Colo. -- MPEG LA, a group of technology firms holding patents on digital video technologies, announced on Thursday that it has pooled patents from five companies in an effort to create a standard for protecting music, video and other content transmitted to cell phones. Patents held by digital rights management firms InterTrust and ContentGuard, as well as electronics giants Sony, Matsushita and Philips will create a blanket digital rights management scheme set by the Open Mobile Alliance (OMA), a consortium of handset makers and wireless network operators. The patent holders will charge cell phone makers $1 per handset to include the anti-piracy technology on their phones. The agreement will mean that all cell phones will use the same anti-piracy technology, in the hopes that content providers will now feel safe distributing their content on wireless services.
tags: Digital Rights Management | Pool Patents | Cell Phone Standard |

TiVo to Launch Video Recorder That Eliminates Need for Cable TV Box

Authored by Mark Hefflinger on January 6, 2005 - 2:40am.
Las Vegas -- TiVo, a provider of digital video recorder services, on Thursday announced plans to release a high-definition digital video recorder that will download Internet content and feature a specialized cable TV tuner card that will eliminate the need for a cable set-top box. The cable-ready digital video recorder will support CableCARD technology that enables cable TV to be delivered without a set-top box. The device is expected to ship in early 2006. This week, TiVo also announced an initiative called TiVoToGo, which enables users to transfer recorded TV programs to a desktop or laptop PC, or record them onto DVD.
tags: TiVo | Launch | Video Recorder | Cable TV Box | Eliminates |

Samsung Makes Investment in Video Compression Developer DivXNetworks

Authored by Mark Hefflinger on January 6, 2005 - 2:37am.
San Diego -- DivXNetworks, a developer of video compression and video-on-demand delivery technologies, announced on Thursday that it has received a capital investment from Samsung Ventures America, a $300 million fund operated by the Korean consumer electronics firm. Financial details of the investment were not disclosed. San Diego-based DivXNetworks claims 160 million global users of its video compression technology, and says over 20 million consumer electronics devices that support the DivX format were shipped in 2004. Samsung Electronics itself has released several DVD players that include support for video encoded in the DivX format. "We're very pleased to receive the strong support of Samsung Ventures, and we look forward to bringing the power and performance of DivX compression and advanced multimedia technologies to a wide range of high-quality Samsung products," said DivXNetworks president Shahi Ghanem.
tags: Samsung | Investment | Video Compression Developer | DivXNetworks |

Mobile Entertainment Publisher Jamdat Acquires Downtown Wireless

Authored by Mark Hefflinger on January 6, 2005 - 2:34am.
Los Angeles -- Mobile entertainment publisher Jamdat Mobile announced on Thursday that it has acquired Los Angeles-based mobile game developer Downtown Wireless. Financial terms of the transaction were not disclosed. Founded in 2003, Downtown Wireless has developed a number of casino titles, including "Downtown Texas Hold 'Em," "Downtown Video Slots" and "Downtown Roulette." "The acquisition of Downtown Wireless is consistent with Jamdat's strategy to build value from a slate of owned intellectual properties," said Jamdat chairman and CEO Mitch Lasky. Los Angeles-based Jamdat went public in September 2004 in an IPO that raised $61 million.
tags: Jamdat | Mobile Entertainment Publisher | Acquires | Downtown Wireless |

DirecTV to Offer Home Media Center, Satellite TV Package for Cars

Authored by Mark Hefflinger on January 6, 2005 - 2:30am.
Las Vegas -- Satellite TV provider DirecTV on Thursday introduced a Home Media Center that includes support for high-definition video, digital video recording, and transfer of photos and music to televisions in the home. Available by the end of 2005, the system will be powered with software from Ucentric Systems and will consist of a main server unit, with smaller receiver units attached to televisions throughout the home. The Home Media Center will let consumers schedule TV recordings from any room, as well as online, and view and move any content from room to room. El Segundo, Calif.-based DirecTV also separately announced new features for DirecTV customers, including the ability to view up to six live channels all on one screen, and a new interactive channel that will offer weather, financial and other interactive services. Finally, the company launched a new mobile programming package designed for owners of satellite TV-equipped cars. The programming, which includes a movie package from Starz Encore Group, will be available for $4.99 for existing residential DirecTV customers, or $39.99 as a standalone auto package.
tags: DirecTV | Cars | Home Media Center | Satellite TV Package |