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Past Editions

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DIGITAL MEDIA WIRE -- January 14, 2002
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To Subscribe For Free: http://www.digitalmediawire.com

o Sony Music Licenses Songs to Listen.com for Rhapsody Service
o Activision Acquires Game Developer Gray Matter Interactive Studios
o Thomson Multimedia to Make EchoStar Set-Tops
o DVD, Digital Audio Software Firm InterVideo Files for $52 Million IPO
o 3D Image Software Firm Kaon Interactive Raises $6.4 Million
o Report: Set-top Box Sales Projected to Reach 88 Million by 2007
o Search Engine Provider Ask Jeeves Acquires Octopus Software
o Briefly Noted: Comcast - video game channel, SESAC - Audible Magic,
Encore Software - Marvel's "Daredevil," In Demand - DreamWorks, Virgin
Megastore France - Tornado Group, Philips Semiconductors, Muze -
Amazon.com, N2 Broadband - Diva Systems, NCube - BigBand Networks, Two Way TV (US) - Digeo - Charter, Zandiant Technologies, Scale Eight - MSN Music
_____________________________________________

o Sony Music Licenses Songs to Listen.com for Rhapsody Service

New York -- Sony Music Entertainment announced on Monday that it has
licensed tens of thousands of songs from its catalog to online music site
Listen.com for its Rhapsody digital music subscription service. Financial
terms of the agreement were not disclosed. Listen.com last week announced
that it had negotiated licenses from two other majors -- BMG Entertainment
and EMI Recorded Music -- and also offers music from a number of
independent labels. Unlike MusicNet and Pressplay, the two services
offered through joint ventures between the major labels, Listen.com's
Rhapsody does not offer downloads. Instead, the service offers unlimited
on-demand streaming of music in addition to providing Web radio stations
programmed by its staff. All five major labels have made investments in
San Francisco-based Listen.com.
http://rhapsody.listen.com/press/sony_agreement_011402.html
_____________________________________________

o Activision Acquires Game Developer Gray Matter Interactive Studios

Santa Monica, Calif. -- Activision, a developer and publisher of video
games, announced on Monday that it has exercised its option to acquire the
remaining 60 percent of Gray Matter Interactive Studios for $3.2 million
in stock. Los Angeles-based Gray Matter is the game developer responsible
for the current hit PC title, "Return to Castle Wolfenstein." Activision
said that Drew Markham will continue to manage Gray Matter and that it
also signed long-term employment contracts with a number of key Gray
Matter employees. The acquisition adds to Santa Monica-based Activision's
stable of first-person action game developers; the company also owns Raven
Studios, which has developed a number of "Star Wars"-related action games
based on the "Quake III: Arena" game engine.
http://biz.yahoo.com/prnews/020114/lam046_1.html
http://www.gmistudios.com/
http://www.activision.com
_____________________________________________

o Thomson Multimedia to Make EchoStar Set-Tops

Paris -- Thomson multimedia, a provider of video technologies and
services, announced on Monday that it has negotiated an agreement with
satellite TV provider EchoStar to develop and manufacture set-top boxes.
Consumers will use the devices to access TV programming on EchoStar's DISH
Network. The agreement is not contingent on the merger of EchoStar and
Hughes Electronics -- which owns EchoStar rival DirecTV -- that is pending
approval of the U.S. government. Paris-based Thomson's intention is that
future receivers for EchoStar will, however, meet technical requirements
that will facilitate the migration to a combined network once the pending
merger is approved. Thomson expects to begin production of EchoStar
set-top boxes by mid-2002.
http://biz.yahoo.com/bw/020114/142148_1.html
http://www.thomson-multimedia.com
http://www.echostar.com
_____________________________________________

o DVD, Digital Audio Software Firm InterVideo Files for $52 Million IPO

Fremont, Calif. -- InterVideo, a provider of digital video and audio
software, on Monday filed registration documents with the SEC to raise as
much as $52 million in an initial public offering of stock. Microsoft
recently began marketing Fremont-based InterVideo's software for MP3
ripping and DVD decoding as "add-on packs" for Windows Media Player for
its Windows XP operating system. InterVideo competes in its field with
companies including Sonic Solutions. The company said it will use funds
gained through the IPO for general corporate purposes, including working
capital, marketing, research and development.
http://www.hoovers.com/co/capsule/0/0,2163,105140,00.html
http://www.intervideo.com
_____________________________________________

o 3D Image Software Firm Kaon Interactive Raises $6.4 Million

Maynard, Mass. -- Kaon Interactive, a provider of Web-based 3D image
technology, has raised $6.4 million in its second round of venture capital
funding. Westwood-based Prism Venture Partners invested $4 million in the
latest round, while Longworth Venture Partners invested $1 million.
Private individuals accounted for the remainder. To date,
Massachusetts-based Kaon has raised a total of over $10 million. Kaon's
technology allows Web marketers to put interactive 3D product images
online, so that consumers can get a better view of the merchandise as
compared to static 2D images -- the theory being that online sales are
increased as a result, while product returns are reduced. Kaon's
technology is Java-based and requires no special plug-ins on the user's
end. The company's customers include Dell, Ogilvy Interactive, Samsung
Electronics America and Casio.
http://www.kaon.com
_____________________________________________

o Report: Set-top Box Sales Projected to Reach 88 Million by 2007

Oyster Bay, N.Y. -- Worldwide sales of digital set-top boxes that deliver
cable and satellite television and advanced services like interactive TV
and video-on-demand will reach 88 million in 2007, according to a report
released Monday by Allied Business Intelligence. This year, sales of
set-tops from companies including Scientific-Atlanta and Motorola are
expected to reach 45 million units, up from 36 million in 2001 and 28
million in 2000. Market revenues for the devices are expected to reach
$13.9 billion in 2007. "Digital services will spur vendors to build more
powerful boxes and more powerful boxes will allow operators to deploy more
compelling services. The first trick is to make sure that these two forces
work in tandem," said Allied Business Intelligence senior analyst Joshua
Wise. "The second trick is to make sure that the consumer stays in the
picture too."
http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/220142210&ticker=
http://www.alliedworld.com/servlets/PressPopup?pressid=HID02
_____________________________________________

o Search Engine Provider Ask Jeeves Acquires Octopus Software

Emeryville, Calif. -- Ask Jeeves, a provider of search engines software
and services, announced on Monday that it has acquired the technology
assets of Octopus Software and hired the company's engineering team. Terms
of the agreement were not disclosed. Emeryville-based Ask Jeeves said that
Octopus's product will enable it to improve the "natural-language" search
capabilities that it offers its corporate clients by providing users with
deeper access to information on companies' systems. The company also
expects the Octopus acquisition to speed up the release of its automated
enterprise software product, JeevesOne, by eight months.
http://biz.yahoo.com/prnews/020114/sfm093_1.html
http://www.jeevessolutions.com/products/jeevesone_product.asp
http://www.askjeeves.com
_____________________________________________

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Interactive TV Roadshow
Jan 22nd - 26th 2002 -- NYC, Calif.

Virtual Media Partners LLC has drawn on its extensive Interactive TV
experience in the USA and Europe to design this broad based introduction
to the amazing potential of Enhanced Interactive Television - "The 4th
Dimension". A unique concept held from coast to coast on five separate
days. Contact: yaqub@virtualmediapartners.com

Info/to register:
http://www.virtualmediapartners.com/trainingevent.htm

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_____________________________________________

o Briefly Noted:

(Los Angeles) Cable TV operator Comcast plans to launch a $150 million
effort in April to create a cable channel focused on video games, The Los
Angeles Times reported on Monday. The channel -- G4 -- will provide news,
video game reviews and game hints for PC and console games 24 hours a day.
Santa Monica-based G4 will operate the cable channel, which hopes to
attract advertisers interested in targeting the young male demographic
among Comcast's 8.4 million subscribers that play video games.
http://www.latimes.com/business/la-000003458jan14.story
http://www.comcast.com

(Nashville, Tenn.) Performing rights organization SESAC announced that it
has signed a three-year licensing deal with Audible Magic, a provider of
digital audio identification technologies. SESAC will use Audible Magic's
software to monitor terrestrial radio broadcasts through their Internet
simulcast counterparts, for the purpose of tracking airplay for royalty
distribution. Los Gatos, Calif.-based Audible Magic's software will be
used to track 34 stations in various formats nationwide.
http://www.audiblemagic.com
http://www.sesac.com

(Los Angeles) Game developer Encore Software announced on Monday that it
has signed an exclusive, five-year worldwide agreement with comic book
publisher Marvel to create console games based on the character Daredevil.
Game releases will coincide with the theatrical release of 20th Century
Fox's "Daredevil" movie, which stars Ben Affleck and is slated to come out
during the 2002 holiday season.
http://biz.yahoo.com/bw/020114/140338_1.html
http://www.encoresoftware.com
http://www.marvel.com/comics/bios/bio_daredevil.htm

(New York) In Demand, a provider of television pay-per-view and
video-on-demand services, announced on Monday that it has extended its
agreement with film studio DreamWorks SKG to include video-on-demand
rights. Cable subscribers with access to New York-based In Demand's
services will now have access to current releases and select DreamWorks
library titles, including "Shrek" and "A.I. Artificial Intelligence,"
through video-on-demand.
http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/220142136&ticker=
http://www.indemand.com

(London) Virgin Megastore France announced that it has partnered with
digital media distributor Tornado Group to offer an online store where
French users can pay to download songs and eventually video games, Reuters
reported on Monday. Buckinghamshire, Great Britain-based Tornado Group has
similar deals with other Virgin Megastores and HMV in Britain, as well as
Danish retailer Fredgaard to develop download sites within the following
months. Digital music subscription services such as MusicNet and Pressplay
are currently only available in the United States, meaning the market for
such services has not yet been tapped abroad. The French download site is
expected to launch in the spring.
http://news.cnet.com/news/0-1005-200-8477062.html?tag=mn_hd
http://www.tornadogroup.com/
http://www.virginmega.fr

(San Jose, Calif.) Philips Semiconductors on Monday released the first
multi-standard, high-definition video codec into the market. The
compression technology is the first to combine high-definition TV and
standard TV output capability on a single chip that can be installed in
both standard and HD-ready TVs. The chip enables the delivery of
PC-generated content such as movies, 3D games, decoded TV broadcasts and
high-resolution graphics. It also offers support for copy-protection
technology developed by Sunnyvale-based Macrovision.
http://biz.yahoo.com/bw/020114/140082_1.html
http://www.semiconductors.philips.com

(New York) Muze, a provider of informational databases on music, movies,
books and video games, announced on Monday that online retailer Amazon.com
will use its services to deliver streaming audio samples for 2 million
songs it sells through its online store. New York-based Muze's song
samples will be available on Amazon.com in both Real Audio and Microsoft's
Windows Media Audio formats.
http://biz.yahoo.com/iw/020114/036732.html
http://www.muze.com

(Redwood City, Calif.) N2 Broadband, a provider of digital asset
distribution software for video-on-demand systems, announced on Monday
that it has successfully integrated its technology with Atlanta-based Diva
Systems, a provider of video-on-demand servers to the cable TV industry.
The complete package will offer cable operators a video-on-demand service
that can manage, store and stream movies and other digital video content
to cable TV subscribers.
http://www.n2broadband.com
http://www.divatv.com

(San Francisco) NCube, a provider of streaming media services to broadband
networks, said on Monday that it has formed an alliance with BigBand
Networks to offer ad insertion technology. Under the agreement, San
Francisco-based NCube will integrate its Digital Program Insertion ad
insertion software with Fremont, Calif.-based BigBand Network's Broadband
Multimedia-Service Router. The solution will give broadcasters digital ad
insertion capabilities alongside other broadcast and advanced services.
http://www.ncube.com
http://www.bigbandnet.com

(Los Angeles) Interactive TV games developer Two Way TV (US) said on
Monday that it has partnered with interactive TV developer Digeo. The two
will offer an interactive games channel through Digeo's offering on
Charter Communications' cable service. Los Angeles-based Two Way TV (US),
a joint venture between U.K.-based parent company Two Way TV and TWIN
Entertainment, develops free and fee-based arcade, trivia, casino and
strategy games that users can play on their TVs using only their remote
control. Washington-based Digeo's interactive TV offering provides Charter
with interactive channels that deliver on-demand local and national news,
weather, sports, entertainment, shopping, games and email.
http://biz.yahoo.com/bw/020114/140086_1.html
http://www.twowaytvus.com
http://www.digeo.com
http://www.charter.com

(Lake Forest, Calif.) Zandiant Technologies recently introduced a car MP3
player that uses 802.11 wireless technology to transfer music files from a
PC in the home to the player in the car. Lake Forest, Calif.-based
Zandiant's device will connect to aftermarket car stereo receivers,
interfacing in the same manner as typical add-on CD changers. The product
does not store files on a hard drive within the car, but rather on
solid-state memory, to eliminate potential skipping of a hard disk.
Storage capacity for the device was not provided.
http://www.zandiant.com/news_wifi.html

(San Francisco) Scale Eight, a provider of file storage services,
announced on Monday that Microsoft will use its services to house and
manage hundreds of thousands of digital music files delivered to MSN Music
users. MSN Music streams over 300,000 stations of pre-programmed music to
its users. San Francisco-based Scale Eight provides similar services to
MTV, Zoom Culture and Octavo.
http://www.s8.com
http://entertainment.msn.com/music/
______________________

Larta University Winter Workshops

Larta University, a service of the Los Angeles Regional Technology
Alliance, provides the entrepreneur with the "toolbox" you need to help
grow your company. Through a series of interactive workshops, our "guides"
help you turn your inspired ideas into sustainable advantage.

Attacking the Market: Marketing and Selling Your Product
Jan. 16 - Irvine | Jan. 17 - Santa Monica

For more information/to enroll:
http://www.larta.org/LartaU/Workshops.htm
______________________

> Digital Media Wire Directory Launched

Digital Media Wire just launched the Digital Media Directory, an online
directory and RFP engine that facilitates the search and negotiation
process between buyers and sellers.

Register as a provider in the Digital Media Directory at
http://digitalmediawire.newmediary.com/dmw111301nl
______________________

To subscribe, go to:
http://www.digitalmediawire.com

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Copyright 2002 Digital Media Wire