London - U.K. broadcaster and broadband provider BSkyB announced on Tuesday that it has formed a joint venture with major label Universal Music Group, that will create an MP3 store and accompanying unlimited download subscription service for the U.K. and Ireland. [more..]

Los Gatos, Calif. - Online DVD rental service Netflix is closing its Red Envelope Entertainment unit, which helped finance various feature and documentary productions, the Los Angeles Times reported. [more..]

Milpitas, Calif. - Shares of SanDisk dropped 24% on Tuesday, a day after the maker of flash storage cards and MP3 players reported a second-quarter loss that sunk well below analyst expectations. [more..]

Los Angeles - BlueCollarOrDie, a spin-off comedy site of Will Ferrell-backed FunnyOrDie, has been shut down due to lack of Web traffic, according to The Hollywood Reporter. [more..]

Alviso, Calif. - Digital video recorder firm TiVo on Tuesday announced a partnership with online retailer Amazon.com, which will allow TiVo owners to purchase physical products from Amazon on their TV sets, using their TiVo remote control. [more..]

Arlington, Va. - U.S. consumer electronics revenue is expected to reach $173 billion this year, $2 billion more than previous forecasts, according to new data from the Consumer Electronics Association (CEA).
[more..]

San Francisco - ZVUE, an operator of entertainment sites and maker of portable media players, announced on Tuesday that it has restructured its agreements with Eric Bauman, whose eBaumsWorld.com site the company acquired for $52.5 million last year. [more..]

New York - ContextWeb, the provider of a contextual online advertising exchange, announced on Tuesday that it has closed a $26 million fourth round of funding, led by Investor Growth Capital. [more..]

Los Angeles - MyToons.com, an online animation community featuring contributions from pro and amateur creators, announced on Tuesday that it has raised an undisclosed sum in its second round of funding, led by Syncom Venture Partners and Barshop Ventures. [more..]

The holy grail of distribution of digital media over the internet will come from partnering with the many ISPs to enable multicasting and its related protocols, and to peer them as an unwired network, according to Mark Cuban. [more..]

Los Angeles - News Corp.'s MySpace on Tuesday announced its support for OpenID, an initiative that lets users of supported websites login to all of them using a single username and password. [more..]

New York - Digital music service eMusic on Tuesday began introducing several new features that will pull relevant content from around the Web into its site, while allowing users to share eMusic content across social networks, bookmarking sites and blogs. [more..]

London - News Corp.'s Twentieth Century Fox Telecommunications International said on Tuesday that its primetime TV shows "24," "Bones" and "My Name is Earl" have been made available for purchase and download from Apple's iTunes Store in the U.K. [more..]

Los Angeles - Paul Westerberg, frontman for the 80's alternative rock band, has made his latest solo album, "49," available for download from the Amazon MP3 and TuneCore stores for just 49 cents. [more..]

Chicago - Video game publisher Midway Games announced on Tuesday that it will combine its Southern California development studios, merging the operations of its Moorpark (Los Angeles) facility into its San Diego facility. [more..]