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Sen. Stevens Proposes $3 Billion Subsidy for Digital TV Transition

Authored by Mark Hefflinger on October 20, 2005 - 9:35am.
Washington - The chairman of the Senate Commerce Committee has proposed setting aside $3 billion to subsidize converters that will allow analog TVs to receive digital signals once broadcasters switch to digital broadcasting, the Washington Post reported on Thursday. The proposal from Sen. Ted Stevens (R-Alaska) drew criticism from other lawmakers, who would put a $1 billion cap on the subsidy. The converter subsidy is a key element in the transition to digital broadcasting; current law stipulates that 85% of a TV market must have access to digital TV before broadcasters may abandon their analog signals. While Stevens has proposed an April 2009 analog shut-off date, House Commerce Committee chairman Rep. Joe Barton (R-Tex.) supports a date of Dec. 31, 2008, and Sen. John McCain (R-Ariz.) has called for an even earlier transition, in late 2006 or early 2007. Stevens said the $3 billion would be come out of an estimated $10 billion to be generated by an auction of the freed analog spectrum to wireless companies. Other elements of Stevens' proposal call for $1 billion from the auction to be spent on communications equipment for first responders; $250 million for a national alert system; and $200 million to generally aid disaster-prone coastal states.

Netflix Profit Down, Revenue Up; Company Shelves Planned Download Service

Authored by Mark Hefflinger on October 20, 2005 - 9:33am.
Los Gatos, Calif. - Online DVD rental service Netflix said on Thursday that profit fell 63% during the third quarter of 2005, to $6.9 million, while revenue increased 23% to $172.7 million. The company's emphasis on attracting new subscribers through multi-tiered subscription offerings helped spur a 61% increase in the number of subscribers it added during the quarter, when compared with a year ago; Netflix added 396,000 subscribers in the third quarter, to end with a total of 3.59 million subscribers. It also reduced its "churn," or the percentage of subscribers who do not renew their subscriptions, from 5.6% a year ago to 4.3% in the recent quarter. The company hopes to count 5.65 million subscribers by the end of 2006; its main competitor, Blockbuster, recently said it would fail to reach its goal of having 2 million subscribers by April 2006. Netflix CEO Reed Hastings also announced that licensing difficulties with movie studios have forced the company to indefinitely postpone a test of its planned online movie download service, with Hastings telling analysts the service "will be ready to launch when the content climate begins to thaw," Reuters reported.

Sony Sees North American PSP Sales of 2.5 - 3 Million During Holidays

Authored by Mark Hefflinger on October 20, 2005 - 9:31am.
San Francisco - Sony hopes to sell between 2.5 million and 3 million PlayStation Portable (PSP) handheld game devices in North America during the upcoming holiday shopping season, Sony Computer Entertainment America president and CEO Kaz Hirai told Reuters on Thursday. The company has sold some 2.3 million PSPs in North America since the device went on sale in late March. Sony also on Thursday announced that it will begin selling a $299 PSP "Giga Pack," which includes the PSP, a 1GB memory stick, battery pack, AC adaptor and a new PSP stand; the standalone device costs $249. Hirai additionally told Reuters that Sony expects to sell between 2.5 million and 3 million PlayStation 2 consoles before the end of the year. The PS2 will compete this holiday season with the release of Microsoft's next-generation Xbox 360. Sony plans to release the PlayStation 3 in the spring of 2006.

FTC Acts Against Site Claiming File-Sharing is "100% Legal"

Authored by Mark Hefflinger on October 20, 2005 - 9:29am.
Washington - A U.S. District Court has ordered the website MP3DownloadCity.com to stop making the claim that membership in its service will immunize users of peer-to-peer file-sharing services from copyright infringement lawsuits. While the site does not actually distribute its own peer-to-peer software, it does sell a $24.95 tutorial on how to use peer-to-peer services to download music and movies. The site makes claims such as, "Rest assured that file-sharing is 100% legal," and "Best of all, people are not getting sued for using our software." The motion picture and recording industries in the U.S. have to date sued thousands of individual users of file-sharing services for copyright infringement. The Federal Trade Commission (FTC), which brought the action, is now seeking a permanent bar on the deceptive claims, refunds for users, and a requirement that the company notify customers its claims were false.

Campus P2P Service Cdigix Raises Venture Capital, Names New CEO

Authored by Mark Hefflinger on October 20, 2005 - 9:27am.
Seattle - Cdigix, a provider of campus digital music and movie download services to over 30 colleges and universities, announced on Thursday that it has raised an undisclosed amount in a new round of venture capital financing, and that it has named former RealNetworks president Larry Jacobson as its new CEO. The investment round was led by Meritage Private Equity Funds and Novak Biddle Venture Partners, with additional participation from Iron Gate Capital. The new funds will be used to accelerate development and marketing of its services, and to increase content offerings. Finally, the company announced that it is in the process of moving its headquarters from Englewood, Colo. to Seattle, Wash.
tags: VC | New CEO | Cdigix | Campus P2P |

Motorola, MTV Launch Made-for-Mobile TV Series, "Head and Body"

Authored by Mark Hefflinger on October 20, 2005 - 9:25am.
New York - MTV Networks and wireless developer Motorola on Thursday announced the global launch of "Head and Body," a television series developed especially for distribution on mobile TV services to cell phones. The series, which was produced by @radical.media and features an original score composed by Paul Westerberg (The Replacements), follows the comedic adventures of a character whose head is detached from his body. Eight "mobisodes" of "Head and Body" will be distributed through MTV Networks International's mobile distribution channels, Comedy Central, and Motorola's HelloMoto.com portal.

Major Publishers Launching Retail Sites to Sell Books Directly to Consumers

Authored by Mark Hefflinger on October 20, 2005 - 9:22am.
Frankfurt - Reuters reported on Thursday on how several large publishers recently have ventured into retail, quietly launching websites to sell their books directly to consumers.
Random House, a unit of Bertelsmann, launched a site earlier this year that offers its entire catalog for sale; Simon & Schuster and Penguin are also now selling online. The publishers were quick to say their sites were not meant to be seen as a threat to established booksellers like Amazon or Barnes & Noble. "We can offer features, services and guidance that might be difficult for another retailer to provide," Penguin Group chairman John Makinson told Reuters. "What we're not going to be is competitors to Amazon or any other retailer in this area." Simon & Schuster spokesman Adam Rothberg added, "It would have been foolish to pass up the opportunity to let visitors to our site buy a book they came to find out about."

Report: Chinese IPTV Subscribers to Number 16.7 Million by 2009

Authored by Mark Hefflinger on October 20, 2005 - 9:18am.
Beijing - TV delivered over the Internet (IPTV) in China will grow from a market of 1.2 million subscribers at the end of this year to 16.7 million by the end of 2009, when IPTV will generate $2.1 billion in revenue, according to a report from market research firm Analysys. The firm pointed to recent offerings such as Chinese online game provider Shanda's deployment of its own IPTV set-top box. Issues facing the growth of IPTV in China include the "uncertainty of regulations, insufficient hardware platforms, long-term obstacles of an immature value chain and unclear business models," Analysys said.

Macromedia Completes Acquisition of Mobile Innovation

Authored by Mark Hefflinger on October 20, 2005 - 9:16am.
Bracknell, England - Macromedia, the distributor of media software including Flash, announced that it has completed its acquisition of Mobile Innovation, a U.K.-based user interface (UI) designer, developer and integrator for mobile devices. Macromedia said the acquisition would strengthen its ability to develop new mobile applications and content built on the Flash Platform. The company also said that Mobile Innovation would be integrated into the Macromedia Consulting team, led by Peter Lelliott, and that Mobile Innovation co-founder and chief technology officer Matt Millar would head the Mobile and Devices practice in the EMEA region. Financial terms for the deal were not disclosed.

XM to Give Free Satellite Radios to World Series Attendees

Authored by Mark Hefflinger on October 20, 2005 - 9:14am.
Washington - XM Satellite Radio said on Thursday that it will offer a free satellite radio to every fan attending the first game of the World Series on Saturday in Chicago. Fans arriving at U.S. Cellular Field, home of the White Sox, will receive a coupon good for the new Delphi XM RoadyXT satellite radio, with has a suggested retail price of $79.99. Fans will then be able to redeem the coupons online. If the Series goes to a fifth game, XM will extend the same offer to fans at Minute Maid Park in Houston, home of the Astros. XM's service, which costs $12.95 a month, is not included. The World Series caps the first season of Major League Baseball carried on XM, which provides satellite radio services to more than 5 million subscribers nationwide.

HP Pressures Sony to Add Advanced Features to Blu-ray DVD

Authored by Mark Hefflinger on October 20, 2005 - 9:12am.
Palo Alto, Calif. - PC maker HP has stepped up pressure on Sony to offer advanced features in its Blu-ray next-generation DVD format, to bring it up to speed with features to be offered by the rival HD DVD format. HP wants Sony's Blu-ray to include "managed copy," which lets consumers transfer movies onto PCs and distribute them over home networks, and "iHD," a suite of interactive DVD features that Microsoft plans to support in its forthcoming Windows Vista operating system. "HP is committed to delivering rewarding consumer experiences, and we see format compatibility as critical to making technology accessible and easy to use for consumers," said HP senior vice president John Romano.

French Telecom Alcatel Launches Mobile TV Unit

Authored by Mark Hefflinger on October 20, 2005 - 9:10am.
Paris - French telecom Alcatel announced on Thursday that it has formed a new unit that will focus on mobile TV. Alcatel senior vice president of strategy and business development Olivier Coste was named president of Alcatel Mobile Broadcast, which will address issues facing mobile TV such as providing global coverage, and bandwidth limitations when large numbers of subscribers in the same area are simultaneously accessing the same channel. "Alcatel's unique positioning in both mobile and satellite activities worldwide will help to bring a complete and efficient Mobile TV solution to our customers based on a hybrid offer combining terrestrial and satellite coverage," said Etienne Fouques, president of Alcatel's mobile activities.

Sirius Leads Satellite Radio Tuner Sales for September

Authored by Mark Hefflinger on October 20, 2005 - 9:08am.
New York - Sirius Satellite Radio, a provider of subscription radio programming that expects to count 3 million subscribers by the end of the year, announced on Thursday that it captured 56% of satellite radio sales during September -- the company's largest monthly market share to date -- according to data from NPD Group. The company said 82,000 Sirius tuners were sold during September, a 93% increase over a year ago and a 52% increase over August 2005 tuner sales. Separately, New York-based Sirius said it plans later this week to launch "Talk Sex with Sue Johanson," a talk radio show featuring the Oxygen Network TV personality.

EMusic Licenses Full Naxos Classical Catalog for Subscription Service

Authored by Mark Hefflinger on October 20, 2005 - 9:06am.
New York - Digital music subscription service eMusic announced on Thursday that it has signed an agreement to become the only online digital music service to offer the entire 75,000-track catalog of Naxos, a classical music label. To promote the availability of Naxos tracks on eMusic, the company is offering subscribers and readers of classical music magazine Gramophone 50 free MP3 downloads. New York-based eMusic added that it provides much more data on classical recordings in its store than rivals such as iTunes, offering actual reviews and context for more than 80% of the Naxos catalog.

Odiogo Launches Text-to-Speech Podcast Service for News, Blogs

Authored by Mark Hefflinger on October 20, 2005 - 9:04am.
San Francisco - Odiogo on Thursday introduced an application that can convert news articles and blog posts into audio files on the fly, which may then be downloaded to an MP3 player, much like a podcast. A single page of text translates into, on average, a 2MB audio file. The $29 software can convert any website containing RSS feeds using advanced text-to-speech technology, which the company says observes punctuation and more natural speech patterns. Odiogo comes with 200 pre-installed news feeds, from sources including The New York Times, CNN, The Wall Street Journal and the BBC.

Orange U.K. Mobile Music Service Enables PC-to-Mobile Song Transfers

Authored by Mark Hefflinger on October 20, 2005 - 9:02am.
London - European wireless network operator Orange said on Thursday that it has launched a new feature for its U.K. mobile music download service, which allow users to move existing tracks in their PC music collection to mobile phones. The Orange Music Player sells a library of 300,000 tracks for over-the-air download to phones for about $2.66 each. The new feature allow users to convert songs in their PC collections from MP3, WMA and WAV files into the aacPlus mobile format for uploading to their mobile phones.

LodgeNet to Offer ESPN HD in Hotel Guest Rooms

Authored by Mark Hefflinger on October 20, 2005 - 8:59am.
Sioux Falls, S.D. - LodgeNet, a provider of in-room broadband and interactive TV services to the hotel industry, announced on Thursday that it has signed a deal with Disney's ESPN cable TV sports network, to offer ESPN HD and ESPN2 HD through its hotel systems. South Dakota-based LodgeNet also offers high-definition channels from HBO and HDNet, and HD movies from Paramount Pictures.

Digimarc Licenses Anti-piracy Watermarking Tech to Cinea

Authored by Mark Hefflinger on October 20, 2005 - 8:55am.
Beaverton, Ore. - Digimarc, a developer of digital watermarking technology, announced on Thursday that it has signed a multi-year patent licensing agreement with Cinea, a unit of Dolby Laboratories that provides anti-piracy technologies to the film and TV industries. Under the deal, Cinea will be able to offer Digimarc's forensic tracking, which can trace the source of an unauthorized leak of video content to its source file through inaudible digital watermarking.

Amp'd Mobile to Offer Ultimate Fighting Championship Content

Authored by Mark Hefflinger on October 20, 2005 - 8:53am.
Los Angeles - Amp'd Mobile, a mobile network operator and developer of mobile entertainment, announced on Thursday that it has signed a deal with the Ultimate Fighting Championship. Under the terms, Los Angeles-based Amp'd will become the official wireless sponsor of UFC, and will offer exclusive live and on-demand coverage of UFC competitions, in addition to 3D wireless games, ringtones and other mobile content. Amp'd Mobile is slated to launch its service in the fall.

2K Sports Ships "Major League Baseball 2K5: World Series Edition"

Authored by Mark Hefflinger on October 20, 2005 - 8:51am.
New York - 2K Sports, a unit of video game publisher Take-Two Interactive, on Thursday shipped its "Major League Baseball 2K5: World Series Edition" title for PlayStation 2 and Xbox to retailers. The limited edition game features an exclusive DVD that recreates and lets gamers play great moments from memorable World Series, including the "Battle of the Bay" and "Subway Series."