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DIGITAL MEDIA WIRE -- February 12, 2002
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To Subscribe For Free: http://www.digitalmediawire.com

o Computer and Video Game Sales Grew 7.9 Percent in 2001
o Senate Hearing Focuses on Worldwide Intellectual Property Theft
o Online DVD Rental Service NetFlix Pondering IPO
o Peer-to-Peer Networking Provider CenterSpan Raises $4 Million
o Search Engine Provider Overture Expands Deal with MSN
o Ten-TV Acquires Bankrupt Streaming Services Provider Streampipe
o Sony Aligns Entertainment Sites Under New Digital Networks Division
o Market Research Firm META Group Cuts 43 Jobs Or 7% of Workforce
> Digital Media Wire Panel: Interactive Games | Los Angeles | Feb. 27
o Briefly Noted: Copyright Office - public comments, MetaTV - Cox
Communications, NewKidCo - Dr. Seuss Enterprises, Samsung - DirecTV -
Wink, Ultima Online update, Beckett - NHL.com, Midbar Tech, XM Satellite
Radio - Ain't It Cool News, Video game degrees, Lawrence Lessig - Creative
Commons
_____________________________________________

o Computer, Video Game Sales Grew 7.9 Percent in 2001

New York -- Sales of games for computers and video game consoles increased
7.9 percent in 2001 to $6.35 billion, according to figures released on
Tuesday by industry trade group the Interactive Digital Software
Association (IDSA). "While most analysts had predicted flat year-on-year
sales of computer and video games in 2001, especially after the September
terrorist attacks, the industry defied these forecasts to post solid
year-on-year revenue increases, and established a strong foundation for
the explosive growth expected in the coming three to five years," said
Doug Lowenstein, president of IDSA. The IDSA game sales growth figure is
somewhat lower than the overall sales growth for the industry, which
includes games, video game consoles and accessories. In a year in which
three new game consoles from Sony, Microsoft and Nintendo were introduced,
overall industry sales increased 43 percent to $9.4 billion, according to
market research firm NPD. Game sales are expected to increase further in
2002 as studios roll out titles they have been developing for each of the
new consoles.
http://www.newstream.com/cgi-bin/display_story.cgi?5091
http://www.idsa.org
_____________________________________________

o Senate Hearing Focuses on Worldwide Intellectual Property Theft

Washington, D.C. -- A Senate Foreign Relations Committee hearing scheduled
on Tuesday discussed a recent report calling for increased anti-piracy
efforts both in the U.S. and overseas. The report, commissioned by Senate
committee Chairman Joseph Biden (D-Del.), calls for greater enforcement of
standing intellectual property laws. "Only by being vigilant in
investigating and prosecuting those who steal intellectual property will
we be successful in continuing to nurture the development of the music,
software and entertainment industries, which employ so many people around
the world," Biden wrote in the report. The hearing featured testimony from
entertainment industry executives including Recording Industry Association
of America CEO Hilary Rosen and Motion Picture Association of America CEO
Jack Valenti. Also testifying was Microsoft Group vice president Jeff
Raikes.
http://foreign.senate.gov/menu.html
http://www.newsbytes.com/news/02/174406.html
http://news.com.com/2100-1023-834517.html?tag=cd_mh
_____________________________________________

o Online DVD Rental Service NetFlix Pondering IPO

New York -- NetFlix.com, an online DVD rental service that operates
through the U.S. mail, is considering reviving its plans for an initial
public offering of stock -- as early as this year if economic conditions
improve, Reuters reported. "We are ready," NetFlix CEO Reed Hastings told
Reuters. "It will be a good step for us." Los Gatos, Calif.-based NetFlix
claims 500,000 members for its subscription-based service, and says that
15,000 new subscribers are signing up each month.
http://news.com.com/2100-1023-834519.html?tag=cd_mh
http://www.netflix.com
_____________________________________________

o Peer-to-Peer Networking Provider CenterSpan Raises $4 Million

Hillsboro, Ore. -- CenterSpan Communications, a provider of peer-to-peer
file-sharing network services, announced on Tuesday that it has raised an
additional $4 million through the sale of 650,000 shares of common stock
at a price of $6 per share. The shares were purchased by a group of new
and current institutional investors as well as CenterSpan CEO Frank
Hausmann. Oregon-based CenterSpan recently announced the availability of
an updated version of its C-Star content delivery network, a peer-to-peer
network for delivering digital media such as video and audio files.
CenterSpan acquired the technology assets of the now-defunct Scour
Exchange at auction during that company's bankruptcy proceedings.
http://biz.yahoo.com/bw/020212/120171_1.html
http://www.centerspan.com
_____________________________________________

o Search Engine Provider Overture Expands Deal with MSN

Pasadena, Calif. -- Overture, a provider of search technology that rates
the sites that pay the most to be listed higher in its rankings, announced
on Tuesday that it has expanded its deal to provide search results for
Microsoft's MSN Internet services network. The announcement comes a week
after Overture lost another client, EarthLink, to rival search engine
provider Google. Under the agreement, MSN's search results pages will
feature Overture's top three paid search listings under the heading
"Sponsored Sites." Pasadena-based Overture, formerly known as GoTo.com,
already provides search results to users of MSN Search from the Microsoft
Internet Explorer search pane.
http://biz.yahoo.com/bw/020212/120074_1.html
http://www.overture.com
_____________________________________________

o Ten-TV Acquires Bankrupt Streaming Services Provider Streampipe

Alexandria, Va. -- Hoping to enter the government sector, Ten-TV, a New
York-based provider of video-based online communications services, said it
acquired Virginia-based Streampipe, a bankrupt company that broadcasts
live events over the Internet. Financial terms of the deal were not
disclosed. Streampipe, which filed for Chapter 11 bankruptcy in December
2001, will expand Ten-TV's services by providing live Webcasting services,
particularly to the government market. Some of Streampipe's clients
included the National Institute of Health and the Department of Labor.
Streampipe's CEO Joseph Fisher and CFO GraceAnn LaForgia will not join
Ten-TV, although other employees will join the company. Ten-TV said it
will keep the Streampipe name.
http://www.tentv.com/news/press/release.cfm?release_id=txt_streampipe.cfm
http://www.streampipe.com
_____________________________________________

o Sony Aligns Entertainment Sites Under New Digital Networks Division

Culver City, Calif. -- Sony Pictures Digital Entertainment announced on
Tuesday that its websites SoapCity, Screenblast and its wireless and
platform service units will be aligned under a new unit, the Digital
Networks Division. SPDE named Patrick Kennedy senior vice president of the
Digital Networks Division, which will reside alongside Sony Pictures
Imageworks, Sony Online Entertainment, and the company's recently
announced online promotion unit, Sony Pictures Integrated Network.
Previously, Kennedy helped align Sony's digital media assets into what is
now SPDE.
http://www.spe.sony.com/frameset.html
http://www.screenblast.com
_____________________________________________

o Market Research Firm META Group Cuts 43 Jobs Or 7% of Workforce

Stamford, Conn. -- META Group, a publicly traded technology research and
consulting firm, said that it has cut 43 employees, or about 7 percent of
its total workforce. The company said it expects the cuts to result in
cost savings of approximately $4.2 million in 2002 and about $5 million a
year thereafter. Connecticut-based META Group focuses on information
technology and "business transformation" strategies.
http://biz.yahoo.com/bw/020208/82062_1.html
http://www.metagroup.com/
_____________________________________________

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STREAMING MEDIA WEST 2002: April 23-26, Los Angeles Convention Center

Streaming Media West 2002 is the World’s Largest Digital Media Technology
Event, featuring an extensive exhibition floor and an intensive four-day
Conference program. Co-located with Internet World Spring, Streaming Media
West is the premier event for business and technology professionals to
conduct business, discover the latest advancements in streaming and
digital media and forge valuable relationships.

Join us in Los Angeles and discover for yourself the business and
technology of streaming and digital media!

For your FREE Exhibition pass or to save $200 on your full Conference pass
visit http://www.streamingmedia.com/west
Or contact register@streamingmedia.com or 888-301-8890

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THE CARMEL GROUP’S CONVERGENCE 2002 SERIES - Get in the Game!
A Video Game Industry Focus

The Carmel Group predicts that by year-end 2002, 40% of U.S. homes will be
equipped with a video game system, increasing to 51% by 2005. Attend this
informative event on Tuesday, February 19, from 6-10pm at the Crowne Plaza
Cabana in Palo Alto, CA, to find out how and why the industry is
flourishing in the current economy. Participants include, Canal+
Technologies, Vivendi Universal, Stormfront Studios, DirecTV, IGDA, CTAM,
NATPE and GAMEproducer.com. Digital Media Wire subscribers attend for only
$50 – use promotional code DMW.

For more info or to pre-register visit:
http://www.carmelgroup.com/conferences/conferences.cfm
Or contact info@carmelgroup.com or 831-643-2222.

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_____________________________________________

o Briefly Noted:

(Washington, D.C.) The U.S. Copyright Office has posted public comments on
its website that it received about a proposed agreement between the
Recording Industry of America, National Music Publishers Association and
The Harry Fox Agency regarding the application of a mechanical license to
"limited downloads" and "on-demand streaming" of digital music. Submitting
comments on the matter were performing rights organizations ASCAP, BMI and
SESAC, the Digital Media Association, Yahoo, Liquid Audio and the National
Association of Recording Merchandisers. Reply comments to these
submissions may be submitted to the Copyright Office no later than Feb.
27.
http://www.loc.gov/copyright/carp/dpd/comments.html

(Mill Valley, Calif.) MetaTV, a provider of interactive TV software,
announced on Tuesday that the nation's fifth-largest cable TV operator,
Cox Communications, has hired the company to design, develop, deploy and
manage Cox-branded interactive TV services for its subscribers in selected
markets. The companies did not announce details on proposed deployment
cities or launch dates for the services.
http://biz.yahoo.com/prnews/020212/sftu051_1.html
http://www.metatv.com

(New York) NewKidCo International, a publisher of children's video games,
announced on Tuesday a multi-year agreement with Dr. Seuss Enterprises to
publish games based on the stories and characters of the children's
author. The first title is slated for release in the fall for Nintendo's
Game Boy Advance, with subsequent titles for "all leading platforms"
becoming available in 2003. New York-based NewKidCo also publishes games
based on "Tom and Jerry," "Sesame Street" and "Winnie the Pooh."
http://biz.yahoo.com/bw/020212/122453_1.html
http://www.newkidco.com/
http://www.drseuss.com

(Ridgefield Park, N.J.) Consumer electronics firm Samsung announced a deal
with satellite TV provider DirecTV to manufacture and market satellite TV
receivers with interactive capabilities. The $99 Samsung SIR-S60 satellite
TV receiver device will receive satellite TV signals in addition to
interactive programming and advertisements provided through technology
developed by Wink Communications. Viewers will access interactive features
by using their television's remote control.
http://biz.yahoo.com/bw/020211/112520_1.html
http://www.samsungelectronics.com

(Austin, Texas) Origin Systems, an Electronic Arts video game development
studio, announced on Tuesday that it has begun shipping "Ultima Online
Lord Blackthorn's Revenge," the latest version of the popular online
roleplaying game. The update features 30 new characters designed by
"Spawn" comic creator Todd McFarlane. Austin-based Origin Systems says
that Ultima Online has 225,000 subscribers and is played in more than 50
countries located in every time zone. The new version costs $30, while a
monthly subscription to play the game costs an additional $9.99.
http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/220430471&ticker=erts
http://www.origin.ea.com
http://www.uo.com/

(Dallas, Texas) Sports card grading provider Beckett has signed a
co-branding agreement with NHL Interactive to provide content for NHL.com.
The addition of Dallas-based Beckett's content to the site includes a
fixed-price marketplace for hockey trading cards and a resource for
third-party hockey card grading.
http://www1.internetwire.com/iwire/release_html_b1?release_id=37837
http://beckett.nhl.com/

(Tel Aviv, Israel) Midbar Tech, a developer of digital music anti-copying
technology, said on Tuesday that its Cactus Data Shield has been employed
on over 10 million CDs released in the U.S. and Europe. Tel Aviv-based
Midbar signed an agreement in September 2001 with Bertelsmann's Sonopress
CD manufacturing plant to protect select albums pressed there, and has
deals with a number of other recording companies.
http://www.midbartech.com

(Washington, D.C.) XM Satellite Radio, a provider of nationwide satellite
radio programming, said on Tuesday that it will begin featuring Academy
Awards and other movie-related news from Internet film critic Harry
Knowles. The "Ain't It Cool News" radio update will be aired several times
each weekday on XM's Cinemagic channel, and marks the first off-line
departure for Knowles.
http://biz.yahoo.com/prnews/020212/dctu018_1.html
http://www.aintitcoolnews.com

(San Francisco) Wired News reported on Tuesday on the increasing number of
art schools offering courses in video game design. The Art Institutes, a
nationwide chain of art universities, offers a three-year curriculum
during which students study story telling, cinematography, 3D modeling,
game-level design and story boarding. The International Game Developers
Association will discuss video gaming degrees with universities
considering granting them at an academic summit in March.
http://www.wired.com/news/games/0,2101,50034,00.html

(San Francisco) SFGate.com recently featured an article on Stanford
professor and intellectual property expert Lawrence Lessig's new website.
Creative Commoms offers customizable intellectual property licenses that
artists, writers, programmers and others can obtain free of charge to
legally define what constitutes acceptable uses of their work. The site
will only provide legally enforceable documents for creators to piece
together into a license; enforcing the copyrights will be up to the
creators themselves.
http://www.sfgate.com/cgi-bin/article.cgi?file=/gate/archive/2002/02/11/creatcom.DT
http://www.creativecommons.org
______________________

> Digital Media Wire Panel Discussion: Interactive Games on the Internet
Recent Developments and New Business Opportunities

Date: Wednesday, February 27, 2002
Location: Four Seasons Hotel, Beverly Hills

MODERATOR:
- Victor Hwang, COO of LARTA (the regional technology alliance for
Southern California)

PANELISTS:
- Tracy Fullerton, President of Spiderdance
- Chris Kantrowitz, Co-Founder of The Groove Alliance and
President of 7ate9 Productions
- Mark Kapczynski, Principal Consultant, Microsoft
- Mark Surfas, Founder, Chairman and CEO, GameSpy
*Other panelists to be announced.