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NY Atty General Spitzer to Probe Digital Music Price-Fixing

Authored by Mark Hefflinger on January 3, 2006 - 8:20am.
Albany, N.Y. - New York Attorney General Eliot Spitzer has subpoenaed several of the major record labels, in connection with a preliminary inquiry into digital music price-fixing, according to published reports. Labels that have confirmed receipt of subpoenas include Warner Music Group, Sony BMG and Universal Music Group. A spokesman for Spitzer told the Associated Press that it would take several months to decide whether the Attorney General's office would launch a full investigation. Spitzer has also investigated the record labels' relationships with radio stations, which resulted in multi-million dollar settlements over charges that labels paid stations to play certain songs in an updated version of the "payola" scandal of the 1950s.

Federal Court Tosses California Ban on Violent Video Game Sales

Authored by Mark Hefflinger on January 3, 2006 - 8:18am.
San Francisco - A federal judge has blocked enactment of California's recently passed law that bans the sale of violent video games to minors, saying the law is an unconstitutional restriction on First Amendment free speech rights. The Dec. 21 ruling from U.S. District Judge Ronald Whyte follows actions from federal courts in Illinois and Michigan to block similar video game sales bans recently passed into law in those states. The courts have also struck down bans in Washington state, the city of Indianapolis and St. Louis County, although the Supreme Court has yet to take up the matter. Judge Whyte wrote in his ruling that "games are protected by the First Amendment," and cited other rulings that found research has not established a causal connection between video game and real-world violence. "For the sixth time in five years, Federal Courts have now blocked or struck down these state and local laws seeking to regulate the sale of games to minors based on their content," said Douglas Lowenstein, president of the video game trade group the Entertainment Software Association, which sued to have the laws overturned in California and the other states. "It is therefore time to look past legislation and litigation in favor of cooperative efforts to accomplish the common goal of ensuring that parents use the tools available to control the games their kids play."

Sony BMG Offers Cash, Free Downloads to Settle CD Copy-Protection Suits

Authored by Mark Hefflinger on January 3, 2006 - 8:16am.
Los Angeles - Major record label Sony BMG has proposed offering free music downloads to millions of consumers who joined class action lawsuits after purchasing CDs containing anti-piracy software that created security risks for their computers. The proposed settlement, filed in federal court in Manhattan, would provide up to 11 million consumers who purchased the faulty CDs with either $7.50 in cash and one free digital album from a list of 200, or else three free albums from the list. "The proposed settlement will provide significant benefits for consumers who bought the flawed CDs," said Cindy Cohn, legal director at the Electronic Frontier Foundation, which is representing some consumers. "Under the terms, those consumers will get what they thought they were buying -- music that will play on their computers without restriction or security risk. EFF is continuing discussions with Sony BMG, however, and believes that there is more they can do to protect music lovers in the future." Sony BMG was forced to recall millions of music CDs after it was discovered that the copy-protection technology they contained could allow malicious software to be installed on computers by third parties.

Motorola Introduces iRadio Cell Phone Music Subscription Service

Authored by Mark Hefflinger on January 3, 2006 - 8:14am.
Las Vegas - Motorola on Tuesday introduced its mobile phone-based iRadio subscription music service. The service will initially offer 435 commercial-free radio channels for about $7 a month when it debuts later this year. Using Bluetooth wireless technology, Motorola will enable iRadio subscribers to transfer radio channels downloaded on a computer to their cell phone, as well as to a car stereo or home stereo system. The iRadio service will also bookmark songs, and provide links to artist, album and song information, and sites to purchase paid downloads, CDs and concert tickets via the Web, or through a wireless carrier's over-the-air mobile song download service. Users will also be able to upload their own music collections to iRadio-compatible phones, the first of which will be Motorola's forthcoming Rokr E3 handset. The company did not announce any partnerships with wireless carriers who plan to offer iRadio.

Starz Launches Vongo Web-Based Portable Video-on-Demand Service

Authored by Mark Hefflinger on January 3, 2006 - 8:13am.
Englewood, Colo. - Starz Entertainment Group, a cable TV network unit of Liberty Media, on Tuesday announced the launch of a new Internet-based video-on-demand service, Vongo, that lets users download movies for playback on their TVs, computers or portable media devices. For $9.99 per month, subscribers will have access to unlimited downloads of more than 1,000 movies and video selections -- including recent titles from Universal Pictures and New Line Cinema, and library selections from other studios -- in addition to a live stream of the Starz TV channel. Pay-per-view titles will also be offered for $3.99 per movie. Starz partnered with Sony's Connect Video download service, and Vongo will be a featured content provider when that service launches later this year. Starz also teamed with Microsoft, whose Windows Media technology will be used to allow transfer of content to Windows-based PCs and Windows Mobile-based portable media players. "Vongo will provide the key content application that will drive a new era in portable video delivered over the Internet," said Starz president and CEO Robert B. Clasen.

Nintendo: DS Sales Hit 4 Million in U.S., 5 Million in Japan

Authored by Mark Hefflinger on January 3, 2006 - 8:12am.
Redmond, Wash. - Japanese video game maker Nintendo announced on Tuesday that its portable DS handheld game console has now sold 4 million units in North America, and 5 million units in Japan -- making it the fastest-selling game device to hit the Japanese market. When combined with sales of the company's other handheld, the Game Boy Advance, Nintendo now accounts for 78% of the U.S. market for portable game devices. Nintendo also said that more than 550,000 unique visitors worldwide have logged on to its free Wi-Fi online game service for the DS, in the seven weeks since the service's launch. U.S. sales of the DS titles "Nintendogs," "Super Mario 64" and the Wi-Fi capable title "Mario Kart DS" have all surpassed one million units, the company added.
tags: Nintendo | DS | Japan | U.S |

Report: Console and Handheld Online Gamers to Number 30 Million by 2009

Authored by Mark Hefflinger on January 3, 2006 - 8:10am.
Scottsdale, Ariz. - Video game consoles and handheld game devices are greatly expanding the market for online gaming, according to a report from market research firm In-Stat. Gamers who play online via their Microsoft Xbox, Nintendo DS or other console numbered 3.4 million in 2004, and are expected to reach 30 million by 2009. In-Stat predicts Microsoft's Xbox Live online game service will see just under 50% annual subscriber growth between 2004 and 2009. For its part, Nintendo has eschewed online gaming for its GameCube, but has launched a network of Wi-Fi hotspots worldwide in connection with its free online game service for the Nintendo DS handheld. Meanwhile, Sony, which currently offers free online play through the PlayStation 2, is expected to have a big impact on subscriber growth and revenues over the next few years with the release of the PlayStation 3; it's unclear whether Sony will continue to offer online gaming for free with the new console, or try to generate revenue with a subscription service.

IPTV Chipmaker S3 Raises $12 Million

Authored by Mark Hefflinger on January 3, 2006 - 8:09am.
Dublin - Silicon & Software Systems (S3), a privately owned, Ireland-based IPTV and broadband chip specialist, announced that it has raised $12 million in venture capital financing. S3 said the investment, led by ACT Venture Capital, would allow it to develop its design capabilities and expand its operations in Asia, Europe and the U.S. Under the terms of the investment, Dutch firm Philips Electronics will maintain a strategic shareholding in S3 and continue to be a key customer and technology partner of the Irish company, S3 said.
tags: VC | IPTV | Chipmaker | S3 |

Digital Media Distribution Technology Firm Pathfire Raises $5 Million

Authored by Mark Hefflinger on January 3, 2006 - 8:08am.
Palo Alto, Calif. - Pathfire, a provider of digital media distribution and management technologies for the entertainment industry, announced on Tuesday that it has received $5 million in financing from Hercules Technology Growth Capital. Atlanta-based Pathfire's technology is used by broadcasters, news organizations, television networks, Hollywood studios and other media companies, to receive news feeds, syndication and ad content directly onto media professionals' desktops. The company's Digital Media Gateway system is currently utilized by more than 1,300 broadcasters in North America.

Report: U.K. Overtakes France as Europe's Broadband Leader

Authored by Mark Hefflinger on January 3, 2006 - 8:06am.
London - According to a recent report by broadband industry research firm Point Topic, the U.K. has overtaken France as Europe's broadband leader. The report found that there are now more than 9.8 million broadband lines in the U.K., compared to 9.7 million in second-placed France and 8.4 million in third-placed Germany. Over the first nine months of 2005, the U.K. added more than 2.8 million lines, while France added approximately 2.2 million over the same period. Point Topic said the gap between the two countries would continue to grow as rival service providers in the U.K. gain more access to unbundled telephone lines from incumbent operator BT Group, thereby increasing both competition and investment.

Verizon to Launch Mobile Music Service With PC-to-Phone Downloads

Authored by Mark Hefflinger on January 3, 2006 - 8:05am.
San Francisco - Mobile network operator Verizon plans this month to launch a mobile music download service that lets users transfer songs between their phones and a PC, CNET News.com reported. Scheduled to launch on Jan. 16, V Cast Music expects to offer 1 million songs from all the major record labels, and, through a partnership with Microsoft, the ability to transfer songs stored on a PC to compatible phones. It's likely that the Verizon service will charge about $2.50 per song -- comparable to pricing for Sprint's mobile download service -- that includes one copy for the PC and another for the phone.

Sirius Satellite Radio Reaches 3 Million Subscribers

Authored by Mark Hefflinger on January 3, 2006 - 8:04am.
New York - Sirius Satellite Radio recently announced that it has surpassed 3 million subscribers for its digital radio service. The company recently became the home for shock jock Howard Stern's radio show. Rival XM Satellite Radio claims more than 5 million subscribers.

XM Radio to Introduce In-Car Video, Voice Navigation Features

Authored by Mark Hefflinger on January 3, 2006 - 8:02am.
Washington - XM Satellite Radio plans to introduce new features including in-car video and voice-activated navigation at this week's Consumer Electronics Show. The company partnered with video compression developer On2 Technologies for the in-car video service, which will deliver both live video programming and content that may be stored for later playback. XM and VoiceBox Technologies developed the Voice Command system, which will allow drivers to, for instance, browse for different channels by genre. These features and others that provide information on weather conditions and parking space ability will be contained in an XM Advanced Services prototype vehicle at CES.

BBC News Offers Free, Remixable Video Clips to U.K. Users

Authored by Mark Hefflinger on January 3, 2006 - 8:01am.
London - BBC News announced that it has opened up its online video archive to U.K. Internet users, who are free to download clips and re-use them at their leisure. The Open News Archive will contain clips including BBC footage of the 1966 England World Cup team, and the fall of the Berlin Wall. The video will be offered under the Creative Archive License, which allows users to freely edit and remix the video for their own purposes. "This trial is an important step in allowing us to share with our audiences the extraordinary news archive which the BBC has recorded over the years," said BBC News director Helen Boaden. "We look forward to getting their reaction."

Cornice Develops Smaller Microdrives in 8GB, 10GB Capacities

Authored by Mark Hefflinger on January 3, 2006 - 8:00am.
Longmont, Colo. - Cornice, a developer and manufacturer of miniature hard drives for portable consumer electronics devices, has introduced a new line of smaller hard drives in 8GB and 10GB capacities. The company said its Cornice Dragon hard drives are 40% smaller than its previous models -- now about the size of a book of matches -- and will begin volume shipments in the first quarter of 2006. Cornice's hard drives are used in portable MP3 players and also in music cell phones, such as the Samsung SGH-i300.
tags: Cornice | Microdrives | 8GB | 10GB |

Delphi Begins Shipping Car Satellite Radio Receivers to Canada

Authored by Mark Hefflinger on January 3, 2006 - 7:59am.
Las Vegas - Delphi, a maker of car stereos and other auto parts, announced on Tuesday that it has begun producing satellite radio receivers for the Canadian market. The company, which has produced over 8.5 million satellite radios since 2001, said receivers for both XM and Sirius are now being supplied to both automakers and retail channels in Canada. Delphi filed for bankruptcy in October 2005, and expects to complete its reorganization plan in the first half of 2007.

Humax USA Portable Media Player to Offer DirecTV 2Go

Authored by Mark Hefflinger on January 3, 2006 - 7:57am.
Las Vegas - Humax USA, the U.S. arm of the Chinese consumer electronics maker, announced on Tuesday that it has developed a hard drive-based handheld portable media player, which will initially be utilized for satellite TV operator DirecTV's DirecTV 2Go service. The device features a 4-inch LCD display, and can connect directly to digital video recorders for transfer of recorded TV shows. Humax USA did not provide pricing details for the Portable Media Player, which it plans to release later this year at retail, in addition to deployment through DirecTV.

Handheld Entertainment Introduces W-Fi ZVUE Portable Video Player

Authored by Mark Hefflinger on January 3, 2006 - 7:56am.
San Francisco - Consumer electronics firm HandHeld Entertainment said on Tuesday that it plans to introduce two new third-generation ZVUE portable media players at the Consumer Electronics show this week. Both devices feature a 3.5-inch LCD screen and use Microsoft's Windows Media technology. A $300, Wi-Fi-enabled ZVUE will begin shipping in the second quarter of 2006, while HandHeld's 1GB ZVUE 500 will go on sale for $225 later in the first quarter.

Fraunhofer Institute Offers New Features for MP3 Surround Format

Authored by Mark Hefflinger on January 3, 2006 - 7:55am.
Erlangen, Germany - Germany's Fraunhofer Institute, which developed the MP3 audio format, on Tuesday announced the addition of two new elements for its MP3 Surround software. The company's MP3 SX allows for enhancing of MP3 stereo files for multi-channel playback, while Ensonido provides portable MP3 Surround sound using stereo headphones. Both MP3 Surround enhancements may be downloaded for free from the company's website.

SimpleDevices, Gibson Partner on Wurlitzer Digital Jukebox

Authored by Mark Hefflinger on January 3, 2006 - 7:53am.
Cypress, Calif. - SimpleDevices, a unit of Universal Electronics, announced on Tuesday that it has provided software to Gibson that will enable wireless remote control of the company's Wurlitzer Digital Jukebox. The digital jukebox will allow for digital storage of up to 1,000 CDs and 100 Internet radio channels. It will also provide access to a download store where songs can be purchased and added to the jukebox, and include a wireless touch-screen remote powered by technology from SimpleDevices. Gibson will introduce the digital jukebox at the Consumer Electronics Show this week.