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DIGITAL MEDIA WIRE -- March 10, 2003
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To Subscribe For Free: http://www.digitalmediawire.com
o NY Times: AOL Developing "Mystro TV" Service to Compete With TiVo
o Calif. Rep. Lofgren Introduces Bill to Ensure "Fair Use" of Copyrights
o Report: Online Ad Sales Fell 12% in 2002, Despite Overall Market Growth
o Gemstar-TV Guide to Restate Results Again; Revenues Down $111 Million
o Gartner Dataquest: Global Mobile Phone Sales Up 6% In 2002
o Google to Provide Search Services, Sponsored Links on Disney-owned Sites
> DMW Publications: February Law and Policy Report
o Briefly Noted: Citysearch, SCi Games Limited - "Reservoir Dogs," Bungie
Studios - "Halo 2," Microsoft Plus Digital Media Edition, Empire
Interactive - "Bulletproof Monk," DMarc Networks - dDRS Sports, Disney
Blast - broadband, A&E Television Networks - Airborne Entertainment, THQ -
"Sonic Advance 2," Business 2.0 - new columnists, AOL - NPR
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> Events: Games & Mobile Forum: April 28 | NYC
> Marketplace: Entertainment & Corporate Legal Services, Game Industry
Report, iTV Chronicle, Interest-Based Navigation
Full Classifieds located beneath "Briefly Noted" section below.
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http://www.digitalmediawire.com/mainpostingpage.html
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o NY Times: AOL Developing "Mystro TV" Service to Compete With TiVo
New York -- The New York Times on Monday reported on a secretive new
service being developed by AOL Time Warner that would compete with TiVo in
the market for personal video recorder services, which let viewers pause
and record live television. Unlike TiVo, which uses a hard drive to record
programs onto a set-top box in a viewer's home, the AOL service -- called
Mystro TV -- would send individual, interactive streams from cable
companies to each TV household, so that no content could be stored or
copied. The device also would not support the ad-skipping features of TiVo
and ReplayTV that have wrangled studio and network executives. Two senior
AOL executives told The Times that the company hopes to begin rolling out
Mystro TV within two years, initiating the service on its own Time Warner
Cable operations and then selling the service to rival cable operators.
http://www.nytimes.com/2003/03/10/technology/10AOL.html
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o Calif. Rep. Lofgren Introduces Bill to Ensure "Fair Use" of Copyrights
Washington, D.C. -- Congresswoman Zoe Lofgren (D-Calif.) has reintroduced
legislation that would make changes to the controversial Digital
Millennium Copyright Act (DMCA) designed to protect consumers' ability to
enjoy purchased digital copies of books, music and movies. Lofgren's bill,
the Benefit Authors without Limiting Advancement or Net Consumer
Expectations, or BALANCE Act, would give consumers the ability to make
personal uses of digital entertainment such as music, movies and books.
"There is wide agreement to fight piracy, and it is something that needs
to be stopped. But individual consumers are being denied their legitimate
rights in the digital age," said Lofgren. "We can solve this problem, but
lawsuits and locking down content are not the solutions." Lofgren's bill
has found support from Stanford professor and copyright expert Lawrence
Lessig and the Electronic Frontier Foundation's Paula Samuelson. Rep. Rick
Boucher (D-Va.) originally co-sponsored the BALANCE Act, and is himself
currently advancing similar legislation that would ensure consumers'
traditional "fair use" rights with regard to copyrighted materials.
http://www.house.gov/lofgren/news/2003/030304.htm
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o Report: Online Ad Sales Fell 12% in 2002, Despite Overall Market Growth
New York -- Although overall U.S. advertising spending grew an impressive
4.2 percent in 2002, online ad sales dropped nearly 12 percent during the
year, from $6.5 billion in 2001 to only $5.7 billion last year, according
to a report from market research firm CMR/TNS Media Intelligence. Total ad
spending for 2002 came in at $117.3 billion, compared to $112.5 billion in
2001. In spite of the decline experienced in 2002, CMR predicts that
online ad spending will rebound and grow 7.4 percent in 2003.
http://www.cmr.com/news/2003/031003.html
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o Gemstar-TV Guide to Restate Results Again; Revenues Down $111 Million
Pasadena, Calif. -- Gemstar-TV Guide International, a provider of
electronic program guide listings for digital television services,
announced on Monday that it will once again restate its earnings in
conjunction with an ongoing internal accounting review -- this time
cutting revenue figures by $111 million. The company previously reported
that it was investigating its accounting practices, and that revenues from
a licensing agreement with a set-top box manufacturer and several
advertising agreements were reported before actually being received.
Pasadena-based Gemstar is also under formal investigation by the U.S.
Securities and Exchange Commission (SEC).
http://biz.yahoo.com/bw/030310/105361_1.html
http://www.gemstartvguide.com
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o Gartner Dataquest: Global Mobile Phone Sales Up 6% In 2002
London -- Worldwide mobile phone sales totaled 423.4 million units in
2002, a 6 percent increase from 2001, according to research group Gartner
Dataquest. "Consumers embraced a variety of innovative handsets,
especially those with color screens, rather than delaying replacement
purchases because of an ongoing lack of compelling mobile data services,"
according to Gartner Dataquest analyst Bryan Prohm. Nokia was the leading
supplier of mobile phones, with 35.8 percent of the global market,
followed by Motorola and Samsung.
http://biz.yahoo.com/djus/030310/0700000621_1.html
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o Audio Chipmaker SigmaTel Raises $7 Million, Restructures Debt
Austin, Texas -- SigmaTel, a developer of audio codecs and manufacturer of
mixed-signal semiconductors for PCs and consumer electronics, announced
that it has raised $7 million in new financing from existing investors.
Additionally, the company announced that it has entered into a new debt
agreement with Silicon Valley Bank, which replaces an existing revolving
debt facility set to expire in April of this year. Austin-based SigmaTel's
products are currently used in MP3 players made by Sonicblue and are part
of chipmaker Intel's digital audio initiatives. The company said it will
use the new funds to reduce outstanding debt and for ongoing operations to
support its continuing expansion in 2003.
http://www.sigmatel.com/press/030603-ST-strengthens-finances.htm
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o Google to Provide Search Services, Sponsored Links on Disney-owned Sites
Mountain View, Calif. -- Search engine provider Google announced on Monday
an agreement with the Walt Disney Internet Group (WDIG), to provide search
services and sponsored links on a number of Disney-owned websites.
Mountain View, Calif.-based Google's search results and sponsored links
are available now to visitors to Disney's Go.com portal, and will be
available on sites including Disney.com, Movies.com and FamilyFun.com in
the spring. "From a business perspective, Google's sponsored links program
creates a significant revenue opportunity for us," said Larry Shapiro,
executive vice president of operations and business development for WDIG.
http://www.google.com/press/pressrel/disney.html
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DMW Publications: February Law & Policy Report
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Contact tinzar@digitalmediawire.com or call 323-464-0793 to order your
copies.
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Digital Media Law & Policy Report - New Issue
Must-read publication on legal and policy matters related to digital
media. 35+ pages of case summaries, news and analysis, policy updates,
court filings, and exclusive interviews with legal counsel and business
leaders.
Published monthly. February issue on sale now!
**Special Reduced Rates available for a limited time**
Price: $19.00 Per Issue | $195.00 Annual Subscription
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FEATURED SECTION
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Featured Section posting at:
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Briefly Noted:
(Los Angeles) Citysearch, a provider of online local entertainment and
informational listings for major U.S. markets, announced on Monday the
launch of a local pay-for-performance advertising program. Modeled on
similar services offered by search engine firms like Overture and Google,
an advertiser buying a pay-for-performance ad pays Citysearch only when a
user clicks on the ad for a local business or service.
http://biz.yahoo.com/prnews/030310/lam039a_1.html
http://www.citysearch.com
(London) U.K.-based video game publisher SCi Games Limited announced that
it has acquired the video game rights for director Quentin Tarantino's
1992 film "Reservoir Dogs" from Artisan Entertainment. SCi said it is
developing versions of the game for Sony PlayStation 2 and Microsoft Xbox,
but did not set a release date for the titles.
http://www.sci.co.uk/games/press_releases.asp?id=114
(Redmond, Wash.) Video game developer Bungie Studios, the company that
developed the popular "Halo" title for Microsoft's Xbox, has said that its
anticipated sequel to the game will not come out in time for this year's
holiday shopping season, and in fact will not ship in 2003. "This game is
a vast undertaking, considerably more complex than any of our previous
efforts, and there is just no way to squeeze all of the necessary work
into this calendar year," reads a note on Bungie.net. "Microsoft
understands and supports our decision, and we hope you will too."
http://www.bungie.net/perlbin/blam.pl?file=/site/1/news/news_detail.html&id=A
72CE2BD-7BBB-496A-893A-21E608758142
(Redmond, Wash.) Microsoft on Monday announced the retail release of its
Plus Digital Media Edition software enhancement pack for its Windows XP
operating system. The software, which features added photo, music and
movie programs, is now being sold in 8,000 retail stores nationwide. The
new release includes PowerToy software, which allows users to "easily drag
and drop music to and from their portable devices," such as Sonicblue's
Rio and Creative's Nomad line of digital audio players.
http://biz.yahoo.com/prnews/030310/sfm053_1.html
(San Francisco) Video game publisher Empire Interactive announced on
Monday that it has licensed the interactive rights to the upcoming martial
arts film "Bulletproof Monk" from MGM Interactive. Debuting in April, the
film is based on the comic book published by Flypaper Press in 1999, and
is being produced by director John Woo's Lion Rock Productions. U.K.-based
game developer Mucky Foot Productions is producing versions of the game
for all consoles and the PC for a holiday release.
http://us.empireinteractive.com
http://www.muckyfoot.com
http://www.mgm.com/bulletproofmonk
(Newport Beach, Calif.) DMarc Networks, a developer of radio data
distribution technology, announced on Monday the launch of its dRDS Sports
service, offering radio stations the ability to transmit a wireless data
feed of sports scores to listeners' car radio receiver screens. Newport
Beach, Calif.-based DMarc Networks currently offers its service over the
analog FM band, but through a deal with IBiquity Digital the dRDS Sports
service will soon also be offered over digital AM and FM bands. The
company estimates that 75 percent of new cars feature receivers that
support wireless data transmissions.
http://www.dmarcnetworks.com
(North Hollywood, Calif.) Disney Online announced on Monday the launch of
a broadband version of Disney Blast, its online entertainment and
educational subscription service for kids. The new version features
additional games, enhanced stories and richer sound effects, and is
available for an annual subscription fee of $49.95.
http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/230695212&ticker=
http://www.disneysblast.com
(New York) Cable TV network A&E Television Networks on Monday announced
the launch of A&E Mobile and The History Channel Mobile, two wireless
entertainment services developed in conjunction with Montreal-based
Airborne Entertainment. Both services will offer text-messaging
programming alerts, daily-updated content, trivia and other wireless
games.
http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/230695498&ticker=
http://www.airborne-e.com
(Calabasas Hills, Calif.) Video game publisher THQ announced on Monday
that game developer Sega's "Sonic Advance 2" for Nintendo Game Boy Advance
has shipped to North American retailers. The game is the latest release in
Sega's flagship "Sonic the Hedgehog" franchise.
http://biz.yahoo.com/bw/030310/105228_1.html
http://www.thq.com
(San Francisco) Business 2.0 magazine said on Friday that it has added
business columnists John Heilemann, the author of "Pride Before the Fall:
The Trials of Bill Gates and the End of the Microsoft Era," and John
Battelle, the former CEO of The Industry Standard and co-founder of Wired
magazine. Heilemann's column, focusing on the leaders of the information
economy, debuts in the April, while Battelle's, on the intersection of
media, technology and marketing, debuts in May.
http://www.business2.com/
(New York) America Online announced on Monday an agreement with National
Public Radio (NPR) that will result in the addition of an NPR audio stream
to the company's AOL Radio@ Network.
http://biz.yahoo.com/bw/030310/105281_1.html
http://www.npr.org
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CLASSIFIEDS - EVENTS
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Digital Media Wire Presents...Games & Mobile Forum
April 2003, New York City
Focusing on games and mobile entertainment opportunities and business
models. Panel topics will include "The Battle to Control the Living Room:
Is the Game Industry Winning?", "Mobile Games: Business Models & New
Opportunities", "Legal & Policy Issues Impacting the Game Industry &
Mobile Entertainment", and "Home Networking: Technology for Modern Living
& Entertainment."
Door Tickets Price: $250. For Early Bird Specials, pre-register at:
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