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ArchivesReport: 2004 U.S. Online Ad Revenue $9.6 Billion; Tops Dot-Com BoomAuthored by Mark Hefflinger on April 29, 2005 - 6:16am.
New York -- U.S. online advertising revenue rose 33% in 2004 to a record $9.6 billion -- topping even year 2000 figures by almost 20% -- and is expected to grow just as much this year, according to a report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers. The fourth quarter of 2004 also figured as the most profitable on record, with revenues of $2.69 billion. "Interactive Advertising has clearly become a mainstream medium and one that can no longer be ignored as a critical piece of any marketing mix," said IAB president and CEO Greg Stuart. "The PwC 2004 reported figures indicate that Interactive is firing on all cylinders including display, search and classifieds and is squarely on track to surpass consumer magazine revenues." Advertising to consumers comprised 49% of all online ads, up from 37% in 2003, and was followed by ads for computing (18%) and financial services (17%). In terms of the ads themselves, search engine ad listings accounted for $3.9 billion, or 40% of all ads, up from 35% in 2003; display ads (banners, sponsorships, rich media) garnered $3.75 billion or 39% of the market, down from 44% a year ago. Online classifieds held steady with 18% of the market and revenues of $1.7 billion. The report comes just as Google reported a sixfold increase in revenue for its first quarter, largely derived from its online ad business.
President Signs Movie Anti-Piracy Bill Into LawAuthored by Mark Hefflinger on April 29, 2005 - 6:15am.
Washington -- President Bush this week signed into law the Family Entertainment and Copyright Act of 2005, which makes it a federal felony to videotape a movie inside a theater for piracy purposes, or to post a movie, song or game onto file-sharing networks before its commercial release. While Hollywood applauded those provisions, it was not pleased with another section of the law that gives legal standing to technology that can edit offensive dialogue and content from DVD films on the fly for sensitive viewers.
High Tech DTV Coalition Urges Congress to Set Analog Shut-Off DateAuthored by Mark Hefflinger on April 29, 2005 - 6:13am.
Washington -- Technology firms including Dell, Cisco, IBM, Intel and Microsoft have formed the High Tech DTV Coalition, and this week urged Congress to set a firm date for the transition to digital TV broadcasting. Congress is interested in auctioning off the analog spectrum currently used by TV broadcasters, at a potential profit of $20-$30 billion to the government. "We have had 88 megahertz of spectrum lying fallow," Janice Obuchowski, the Coalition's executive director, told the Associated Press. The High Tech DTV Coalition put its support behind a proposed bill from House Commerce Committee chairman Joe Barton (R-Texas) that would remove a stipulation under current law that requires 85% of homes have the expensive new TV sets necessary to receive digital signals before analog signals are shut off on Dec. 31, 2006. Consumer electronics firms have argued that their customers should not be forced into buying expensive new sets; so far, no section of the country has reached the 85% threshold. Some have proposed that low-cost or free receivers capable of receiving free over-the-air digital TV broadcasts be distributed to those who can't afford a new digital set.
Report: 125 Million Will Own Mobile TV Cell Phones by 2010Authored by Mark Hefflinger on April 29, 2005 - 6:11am.
London -- Sales of cell phones capable of receiving TV signals will grow from 130,000 this year to 83.5 million in 2010, when nearly 125 million consumers will watch cell phone TV, according to a report from U.K.-based market research firm Informa Media. Handset maker Samsung has introduced its first TV phones, and Nokia will ship its first in early 2006, while mobile TV networks are just beginning to emerge. "The degree to which these networks will become either competitive or complementary will ultimately determine the fate of market," said Informa analyst David McQueen.
Hong Kong Man Faces Four Years for Posting 3 Movies to BitTorrentAuthored by Mark Hefflinger on April 29, 2005 - 6:09am.
Hong Kong -- In part of a worldwide crackdown on BitTorrent file-sharing technology, which lets users trade full-length movies online, authorities in Hong Kong this week filed charges against a resident accused of posting three films for trading on the network, the Associated Press reported. The 38-year-old suspect, identified only as Chan, faces up to four years in prison and a fine of $6,400 each for the illegal copies of "Daredevil," "Red Planet" and "Miss Congeniality" uploaded to BitTorrent. Arrested in January, Chan is due in court on Friday. In a related move, the Hong Kong, Kowloon & New Territories Motion Picture Industry Association said it will send letters to 100 BitTorrent users in the region, urging them to stop trading movies or face prosecution. The Motion Picture Association of America (MPAA) has of late urged the prosecution of operators of individual BitTorrent servers, resulting in the shutdown of several large BitTorrent in a handful of European nations.
Disney Shutters Trial of MovieBeam Video-on-Demand ServiceAuthored by Mark Hefflinger on April 29, 2005 - 6:07am.
Burbank, Calif. -- Disney has shut down a trial of its MovieBeam video-on-demand service in three cities, as it seeks to upgrade the system and find new partners for the venture. The "datacasting" service utilized unused portions of the broadcast signal sent out by TV stations to deliver a range of movies to special set-top box receivers in viewers' homes in Jacksonville, Fla., Spokane, Wash., and Salt Lake City. The service was due to expand into additional markets, but Disney canceled those plans last fall; it's not clear when or if the company will re-launch MovieBeam. "In order to deliver to consumers an even better entertainment experience, MovieBeam is planning an upgrade of its technology, network and infrastructure," said Disney spokeswoman Michelle Bergman. "MovieBeam's business model is flexible and allows us to deliver the service to a range of devices in addition to the current MovieBeam receiver. We are in the process of making critical decisions about our device strategy and are confident that these decisions will positively impact our plans to bring MovieBeam to a national audience." The Los Angeles Times reported that Peter Murphy, the strategic planning chief at Disney who once championed MovieBeam, no longer holds that position, in a division of the company that is being overhauled.
Rainbow Media to Maintain 21 HD Channels of Defunct VOOM ServiceAuthored by Mark Hefflinger on April 29, 2005 - 5:28am.
Jericho, N.Y. -- Rainbow Media Holdings, a unit of Cablevision and NBC that operates cable channels like IFC, Fuse and AMC, announced on Friday that it will operate all 21 of the HD channels offered by VOOM, the now-defunct high-definition satellite TV service recently shuttered by Cablevision. Rainbow said it signed an agreement with DISH Network operator EchoStar to carry the channels by 2006; EchoStar plans to launch 10 of the channels for its subscribers on May 1. Cablevision planned to shut down the money-losing VOOM service for its 21,000 subscribers on April 30, despite the best efforts and offers of personal financing from Cablevision chairman Charles Dolan to keep the service alive.
Cisco, Macromedia Invest $4 Million in Mobile Game Publisher IndiagamesAuthored by Mark Hefflinger on April 29, 2005 - 5:26am.
Hong Kong -- Chinese wireless Internet firm TOM Online announced on Friday that Cisco and Macromedia have made a combined $4 million strategic investment in its mobile game publishing subsidiary, Indiagames. Following the transaction, Cisco and Macromedia will own 18% of Indiagames, while TOM Online's stake in the company will drop from 76% to 62%. Founded in 1999, the India-based company has distribution agreements for its games with over 100 wireless carriers, including Orange, Verizon, Sprint, Singtel, Airtel and Vodafone. As part of the deal, Indiagames will now also publish all of its titles on Macromedia's Flash Lite platform. "We now have Chinese, Indian and American investors, all leaders in their respective verticals," said Indiagames CEO Vishal Gondal. "This combination is really very unique and will surely help accelerate our global growth plans, keeping us on the cutting edge of mobile, broadband and Internet technology."
TV Chipmaker Pixelworks Buys IPTV Chipmaker Equator for $109 MillionAuthored by Mark Hefflinger on April 29, 2005 - 5:10am.
Tualatin, Ore. -- Digital TV chipmaker Pixelworks announced on Friday that it has acquired Equator Technologies, a maker of chips for IPTV systems, for $109 million in cash. Oregon-based Pixelworks said its purchase of Campbell, Calif.-based Equator will potentially provide the companies' manufacturer customers with TV chips that could decode programming signals sent directly over the Internet. Analysts currently predict that the market for IPTV set-top boxes will reach 15 million in 2008. "We want to enable our customers to deliver solutions that leverage the advantages of digital displays, digital networks, and digital content to deliver a better user experience where consumers can easily find exactly the information or entertainment content they want, when they want it and where they want to watch it," said Pixelworks president and CEO Allen Alley. Pixelworks expects the deal to close in the second quarter.
Ruling Shields Privacy of North Carolina Students from RIAA LawsuitsAuthored by Mark Hefflinger on April 28, 2005 - 6:30am.
Raleigh, N.C. -- A federal magistrate has ruled that two colleges in North Carolina do not have to reveal the identities of students alleged to have engaged in file-sharing of copyrighted songs by the Recording Industry Association of America (RIAA), the Associated Press reported. U.S. Magistrate Judge Russell A. Eliason sided with attorneys who argued that privacy rights of the students at the University of North Carolina and North Carolina State trumped piracy concerns. "We would never condone music piracy," Michael Kornbluth, an attorney for one of the "Jane Doe" student defendants, told AP. "What we're interested in is the rights of the individual -- privacy rights being protected." Likewise, administrators at UNC told AP that they were pleased with the magistrate's ruling, although they do not condone piracy. The RIAA has successfully sued over 7,000 other "John Doe" defendants for file-sharing, compelling other schools and Internet service providers to turn over the identities of the alleged copyright infringers.
Marvel, Stan Lee Settle Litigation; Marvel to Produce Own Films for ParamountAuthored by Mark Hefflinger on April 28, 2005 - 6:27am.
New York -- Comic book publisher Marvel Enterprises announced on Thursday that it has settled all outstanding litigation with legendary comic book author Stan Lee, the creator of "Spider-Man," "The X-Men" and "The Incredible Hulk." Lee sued Marvel in November 2002, claiming Marvel had failed to pay him a share of its profits from "Spider-Man" movies and other film and TV properties that utilized his creations. The settlement covers both past and any potential future payments to Mr. Lee; Marvel's first quarter results cite a one-time $10 million charge attributed to the successful resolution of the litigation. "Stan is one of the founders of today's comic book industry. We are pleased with the settlement and are happy to have resolved all of our disputes with him," said Marvel general counsel John Turitzin. Following the settlement, Marvel announced that it has entered into an agreement with Paramount Pictures, to produce its own slate of films featuring its stable of comic book characters. The company added that it has secured a $525 million, seven-year credit facility with Merrill Lynch to finance production of the films. Marvel will deliver up to ten films to Paramount over the next eight years, beginning with "Captain America" and "Nick Fury."
Sirius Ups 2005 Subscriber Projection to 2.7 Million; Sees Breakeven in 2007Authored by Mark Hefflinger on April 28, 2005 - 6:25am.
New York -- Sirius Satellite Radio has announced that its revenue grew fourfold and it added 305,000 subscribers during the first quarter of 2005, while its net loss widened to $193.6 million, compared with a loss of $142 million a year ago. The company posted revenues of $43.2 million, up from $9.3 million a year ago. Sirius increased its subscriber forecast for the full year to 2.7 million, up from a previous projection of 2.5 million; the company ended the recent quarter with a total of 1.45 million subscribers. By comparison, rival XM Satellite Radio now counts 3.8 million subscribers. Sirius also said that cost associated with acquiring each new subscriber was $190 during the quarter, but expects this figure to drop to $145 by the end of the year, and even more so during 2006. The company reiterated that it expects to breakeven in 2007.
Microsoft, Samsung Partner for HDTV Xbox PromotionsAuthored by Mark Hefflinger on April 28, 2005 - 6:23am.
New York -- Microsoft and Korean electronics manufacturer Samsung on Thursday announced an alliance to promote the high-definition gaming features of Microsoft's next-generation Xbox video game console using Samsung's HDTV sets. Under the deal, Samsung will place over 25,000 HDTV sets at Xbox retail kiosks worldwide. Microsoft also said its first high-definition game title for the new console will incorporate both Samsung-branded products and the Samsung logo. Microsoft plans to unveil its new Xbox during a promotional TV program that will air on MTV on May 12, shortly before the E3 Expo. "Samsung has selected Microsoft Xbox as the best next-generation game console and a key driver in the global HDTV revolution," said Samsung senior vice president Peter Weedfald. "Samsung HDTVs will provide Xbox enthusiasts with the truest high-definition gaming experience available."
U.K. Game Developer Elixir Studios to Shut Down, Sell Game AssetsAuthored by Mark Hefflinger on April 28, 2005 - 6:21am.
London -- U.K.-based video game developer Elixir Studios, creators of "Republic" and "Evil Genius," announced on Thursday that it has ceased operations and laid off staff, and is seeking a sale of its remaining assets. The company cited the recent cancellation of a title it had been working on for a major U.S. publisher, in addition to "the current risk averse publishing climate." "It is clearly a disappointing day for the team here, and for British independent developers in general, but we were extremely keen to wind things down on our terms and treat our employees and creditors properly and in a professional manner," said Elixir CEO Mark Hewitt. The company said it will use a part of its cash resources to provide severance packages to employees and help them find new jobs.
Report: 2005 European Online Content Revenues to Reach $3.9 BillionAuthored by Mark Hefflinger on April 28, 2005 - 6:19am.
Frankfurt -- According to the latest report by the European Information Technology Observatory (EITO), Western European revenues for consumer online content will nearly double this year, reaching more than $3.9 billion (3 billion euro). EITO also predicted that revenues would continue to increase over the next few years, reaching more than $20.6 billion by 2008. More than a third of the current consumer online content market is based on online video, generating more than $1.3 billion in revenue this year alone. EITO said broadband access -- both wireline and wireless -- was the main driver of the booming Western European market. "We are creating very powerful broadband highways, and we have to fill them with real content and value-added services," said EITO Chair Bruno Lamborghini. "Online content is leading the way."
EU: Microsoft Must Comply Immediately or Face New FinesAuthored by Mark Hefflinger on April 27, 2005 - 7:00am.
Brussels -- The EU warned Microsoft on Wednesday that the software giant could face additional fines unless it complied immediately with an order to stop abusing its dominant position in Europe. Earlier this week, Microsoft CEO Steve Ballmer met with EU competition commissioner Neelie Kroes to discuss a number of outstanding differences over the Commission's recent ruling against the company. No progress, however, was made during the meeting, according to EU spokesman Jonathan Todd. "All I can say for the moment (is that) we are still not satisfied," he said. "Over a year has elapsed and, as of today, we are not in a position to say that we are satisfied that Microsoft has complied fully." In a landmark ruling last March, the Commission ruled that Microsoft had abused the dominance of its Windows operating system to lock out competitors and ordered the company to share server protocols with competitors. The EU could now fine Microsoft as much as 5% of its daily global turnover for each day it fails to apply a decision favorable to the Commission.
Infinity Broadcasting Launches Podcasting Radio Station in San FranciscoAuthored by Mark Hefflinger on April 27, 2005 - 6:58am.
New York -- Infinity Broadcasting, a unit of Viacom that operates 183 U.S. radio stations, on Wednesday announced plans to launch the first-ever podcasting radio station, offering listeners MP3 downloads of shows alongside its AM signal. The podcast function will allow listeners to have their favorite programs automatically downloaded to their iPods or other MP3 players. All content featured on KYOURADIO will be created exclusively by its listeners, and will be available both in San Francisco on 1550 KYCY-AM, and at KYOURadio.com. Programming will be evaluated according to listener interests and feedback on a daily basis. "There is a profound shift underway in the way we use technology that allows everyone to have a voice," said Infinity chairman and CEO Joel Hollander. "KYOURADIO harnesses that power by serving our listeners with content developed by them for them and offering a platform to share it with the rest of the world."
XM Satellite Radio Doubles Revenue, Cuts Net LossAuthored by Mark Hefflinger on April 27, 2005 - 6:56am.
Washington -- With subscribers continuing to sign up at a rapid pace, XM Satellite Radio, the D.C.-based provider of nationwide satellite radio services, said on Wednesday that its revenue more than doubled and its net loss shrunk during the most recent quarter. The company's stock was up nearly 2% on Wednesday. Crediting the addition of more than 541,000 net subscribers, the company said that its revenue was $103 million, up from $43 million a year ago. Its net loss subsequently dwindled from $170.1 million to $119.9 million. XM ended the quarter with 3.77 million subscribers, and said it remains on track to reach 5.5 million by year's end.
French Court Strikes Blow Against DVD Copy-ProtectionAuthored by Mark Hefflinger on April 27, 2005 - 6:53am.
Paris -- In an unprecedented ruling against copy-protection technologies, the Paris Court of Appeals ordered local DVD vendors to remove copies of David Lynch's "Mulholland Drive" from store shelves this week. The suit, filed by consumer advocacy group UFC-Que Choisir, concerns a French consumer who was unable to transfer the movie onto a video cassette for personal use (he wanted to show the film at his mother's house). The court ruled that copy prevention software on the DVD had violated the consumer's privacy rights. Pundits say the ruling, which sets a new precedent in the EU, could be a major setback for the DVD industry. "This ruling means that 80 percent of DVDs now on the French market are equipped with illegal mechanisms," said Julien Dourgnon, a spokesman for UFC-Que Choisir.
Time Warner's TBS to Launch Broadband Games On Demand ServiceAuthored by Mark Hefflinger on April 27, 2005 - 6:51am.
Atlanta -- Time Warner's Turner Broadcasting System (TBS) announced on Wednesday plans to launch a broadband video games-on-demand service. When it launches in the fall, GameTap will offer 300 of a total of 1,000 PC games TBS licensed from 17 publishers, in addition to original programming that may be viewed on a PC. Subscribers must first download the GameTap client software, and will then receive unlimited access to the service's slate of PC games. "Turner's lifeblood is creating branded networks and we are excited about the opportunity to create an immersive environment for games following our success with other branded environments like CNN, TCM and Cartoon Network," said Andrew T. Heller, president of domestic distribution for TBS. "With GameTap, we are bringing to games what we brought to cable television: compelling, branded environments where beloved properties live on."
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