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===================================================
DIGITAL MEDIA WIRE -- July 31, 2002
===================================================
Subscribe for free: http://www.digitalmediawire.com

o Justice Department Launches Probe of AOL Accounting Practices
o Listen.com Distributing Rhapsody Service Through Broadband Providers
o Report: China's Online Population Second Only to U.S.
o NY Times: Middlehoff Departure May Kill Bertelsmann-Napster Deal
o AOL Public Sites Being Used to Distribute Pirate MP3s
o Briefly Noted: Macrovision, Mediabolic - Hewlett-Packard, Vibe/Spin
Ventures - Yahoo, Xlibris, Logitech - uBid, InternalMemos.com
_____________________________________________

> Jobs: VP Product Development, Dir. of Communications, VP
Marketing/Product Development, Creative Director, PR Coordinator,
Management Supervisor

> Events: MBDA Business Plan Competition

> Marketplace: Free PR Report, High-Tech Marketing

Full text of ads located beneath "Briefly Noted" section below.

To post a Classified Ad:
http://www.digitalmediawire.com/mainpostingpage.html
or contact David Peebler at david@digitalmediawire.com
_____________________________________________

o Justice Department Launches Probe of AOL Accounting Practices

New York -- The U.S. Justice Department has launched an investigation into
the accounting practices of AOL Time Warner's America Online unit, USA
Today reported on Wednesday. Last week, the company announced that the
Securities and Exchange Commission (SEC) had launched its own inquiry into
the company's accounting practices. AOL Time Warner said it will cooperate
fully with both investigations. "In the current environment, when anyone
raises a question about accounting, it's not surprising that the relevant
government agencies will want to look into the facts," the company said in
a statement. "Our accounting is appropriate and in accordance with
generally accepted accounting principles, and our auditors, Ernst & Young,
have repeatedly confirmed that."
http://www.usatoday.com/money/media/2002-07-30-aol_probe_x.htm
_____________________________________________

o Listen.com Distributing Rhapsody Service Through Broadband Providers

San Francisco -- Listen.com, a provider of digital music subscription
services, announced on Wednesday new distribution agreements for its
Rhapsody subscription service with Hughes Electronics' DirecTV Broadband
and AOL Time Warner's Road Runner high-speed Internet service. Under the
terms, subscribers to both broadband Internet access services will be
offered a free subscription to Rhapsody for the month of August. DirecTV
Broadband and Road Runner will both also market the service -- which
offers a selection of 175,000 tracks from all five major labels and some
independents for on-demand streaming -- to their subscribers via email and
website promotions.
http://www.listen.com
_____________________________________________

o Report: China's Online Population Second Only to U.S.

San Diego -- China's online population was second only to that of the U.S.
in July, accounting for 6.63 percent of all global Internet traffic,
according to Web analytics firm WebSideStory's StatMarket. The U.S. far
outpaced the rest of the world, accounting for 42.7 percent of all global
Internet traffic in July, with Japan ranking third with 5.24 percent and
the U.K. in fourth with 3.94 percent. These figures show China's and the
Far East's growingly rapid adoption of the Internet when contrasted with
the beginning of 2001, when Germany accounted for the largest majority of
non-U.S. Web surfers with 5.56 percent of all global Internet traffic,
followed by Canada with 5 percent. The proportion of surfers from the U.S.
has also decreased during the same period of time, down from 45.02 percent
in January 2001. "We're seeing China and other countries grow into
significant players on the Web," said Geoff Johnston, vice president of
product marketing for StatMarket. "Businesses should take note of this as
they develop their online strategies."
http://www.statmarket.com/cgi-bin/sm.cgi?sm&feature&week_stat
http://www.websidestory.com
_____________________________________________

o NY Times: Middlehoff Departure May Kill Bertelsmann-Napster Deal

New York -- The ousting of Bertelsmann CEO Thomas Middlehoff may end
Bertelsmann's plans to acquire bankrupt file-sharing service Napster and
revive it as a legitimate, paid music service, The New York Times
reported. Middlehoff was influential in getting Bertelsmann to invest $85
million to turn Napster into a legal service, and was the most evangelical
within the company about the potential of the Internet as a distribution
medium for Bertelsmann's assets. It may be less likely now that
Bertelsmann's new leadership would pay out on its offer of $8 million for
Napster's assets and settle the huge monetary damage claims for past
copyright infringement from major record labels that are still pending
against the company. "Middelhoff was not just a lot more bullish and more
aggressive, it was an order of magnitude over anyone else. it may be over
for Napster launching a major-label-backed service any time in the
foreseeable future," one person who has been involved in the negotiations
by Napster and Bertelsmann told The Times.
http://www.nytimes.com/2002/07/31/business/media/31MUSI.html
_____________________________________________

o AOL Public Sites Being Used to Distribute Pirate MP3s

Los Angeles -- Sites hosted by AOL that offer users the ability to post
photos online for free are being used to deliver pirated music files, The
Los Angeles Times reported on Wednesday. The article cites two websites --
21century-MP3.com and SimpleMP3s.com -- which have employed AOL free Web services unwittingly to cover the cost of transmitting the pirated tracks
they offer as downloads to users. Both sites mask the illegitimate content
they are storing on AOL computers, with SimpleMP3s going so far as to hide
songs within the bits that make up digital pictures stored legally there,
so that AOL's normal scans for illegal content do not detect them. AOL
says it will always remove unauthorized content when notified of its
existence, but pirates often combat this simply by moving their MP3s to
other locations on AOL's free services. "What often happens is that the
pirates quickly set up new sites on AOL to replace the ones knocked
offline. Enforcement becomes a cat-and-mouse game, with the Internet
providing a vast playing field," independent technology consultant Bruce
Forest told the LA Times.
http://www.latimes.com/technology/la-fi-pirates31jul31.story
_____________________________________________

Briefly Noted:

(Santa Clara, Calif.) Macrovision, a developer of copy-protection and
digital rights management technologies, announced on Wednesday that it has
been granted a new patent for a method of copy-protecting CD content.
Santa Clara, Calif.-based Macrovision's technology can be used on both
software CDs and those that contain pre-recorded audio and video; the
company says its SafeDisc product is now being used to copy-protect
approximately 80 percent of the top U.S. PC games. "This patent will
further enhance our leading position in that market and in the application
software market, as well as give us added strength in our music copy
protection business," said Macrovision president and CEO Bill Krepick.
http://biz.yahoo.com/bw/020731/310110_1.html
http://www.macrovision.com

(San Francisco) Mediabolic, a developer of middleware used in consumer
entertainment devices, said on Wednesday that Hewlett-Packard will work
with the company to incorporate its software in future consumer products.
San Francisco-based Mediabolic's software lets manufacturers develop
digital entertainment devices with optional networking capabilities that
extend PC entertainment to consumer devices around the home, including
televisions and stereos. No release date for any HP products with the
software was announced. Consumer electronics firm Pioneer has also
licensed Mediabolic's middleware.
http://www.mediabolic.com/press/item.php?press_id=60&selection=PressRelease

(New York) Vibe/Spin Ventures, publisher of music magazines Vibe and Spin,
announced on Wednesday a content distribution agreement with Web portal
Yahoo. A microsite for each magazine has been created that will feature
the latest issue's cover stories, album reviews and expanded editorial
coverage. Online-only features will include news bites, local music
reports and editor's picks, with message boards and real-time polling
coming in the future. The sites will be jointly marketed through Yahoo's
Launch music section and by the two magazines.
http://biz.yahoo.com/prnews/020731/nyw045_1.html
http://launch.yahoo.com
http://spin.yahoo.com
http://vibe.yahoo.com

(Philadelphia) Xlibris, a print-on-demand service for self-published
authors, on Wednesday announced the launch of a new marketing services
business unit to help authors sell more books. A range of marketing
services are slated to be introduced over the next year, including a
publishing announcement campaign, consisting of a professionally designed
announcement card sent to a list of recipients that have an interest in an
author's book and its success. In 2001, Philadelphia-based Xlibris helped
authors publish 7,000 titles and sell over a quarter-million books.
http://www.xlibris.com/marketing_svcs

(Fremont, Calif.) Logitech, a provider of Web cameras and video services,
announced on Wednesday that online auction site uBid will use its
technology to allow sellers to add streaming video to their online
auctions. Sellers will be able to record up to one minute of video and
post it to their uBid auction site, with pricing starting from $3 per
video clip stored up to 30 days. Fremont, Calif.-based Logitech will host
and transmit the video to prospective buyers. "In the setting of an online
auction, it can offer increased credibility and product demonstration
power for the seller, and increased excitement and motivation for the
buyer," said Bruce Friedricks, director of business development for
Logitech's Video Business Unit.
http://biz.yahoo.com/prnews/020731/sfw001_1.html
http://www.logitech.com
http://www.ubid.com

(New York) FuckedCompany.com, a website that has chronicled the demise of
many Internet start-ups and other struggling companies, recently launched
a new site called InternalMemos.com, which will post the internal
corporate memos sent to site operator Phil Kaplan by disgruntled employees
and other parties with access to corporate information. The site currently
offers visitors free content including WorldCom CEO John Sidgmore's email
notifying employees of the company's Ch. 11 filing, but unlimited access
to all documents will only be available to paying subscribers for $45 per
month.
http://www.internalmemos.com
http://www.fuckedcompany.com
_____________________________________________

===================
CLASSIFIEDS - JOBS
===================
To Post Jobs: http://www.digitalmediawire.com/jobpostingpage.htm
Special Summer Discount: 5-day ad: $75; 10-day ad: $125

Vice President, Product Development - Warner Bros. - Burbank, CA

VP to oversees all aspects of customer management, project management,
creative development, and technical development for the delivery of Web
sites and on-line collateral for WBOL clients. Set Product development
organization strategy and priorities. Build Customer relationships. BA
from an accredited university and preferably an MBA or MA in a field
related to the production of on-line marketing services, including a
strong understanding of creative and technology issues. 5-10 years
experience in creative customer service businesses (e.g., advertising),
with 2-3 years of web experience. If you are interested in this position,
please submit your resume to: wbjobs@alexus.com. Also, please use
reference #: WWHJ_VPProdDev in the text of your resume.
_____________________________________________

Director, Communications - Warner Bros. - Burbank, CA

WB seeks a Director of Communications for the Online Marketing & Promotion
department. Position responsible for creating, managing, and executing B2B
marketing online services. Develop strategic initiatives to promote WB
Online as a business communication service and PR strategies and campaigns
for B2B marketing online services, targeting broadcast, print, and online
media outlets. Produces all press kit contents. BA degree required. Proven
success in pitching stories required. Must have existing relationships
with press contacts. 5 yrs. general PR and 2 yrs. Internet PR experience
required. Please visit www.wbjobs.com, go to the Job Search page and enter
#004038 in the keyword search field. Submit your resume by creating a
Career Cart. Please reference code: WWHJ4038 in the text of your resume.
_____________________________________________

VP Marketing & Product Development - Fandango - Santa Monica, CA

As the premiere remote source movie ticketing service, Fandango is
positioned to become the ultimate way to plan a night out to the movies.
Reporting to the Chief Executive Officer, the VP, Marketing & Product
Development, is responsible for leading all marketing and product
initiatives for Fandango's remote ticketing service offerings. Will
develop, direct and execute the total business marketing strategy
including positioning, brand awareness, usability, promotion/advertising
campaigns and customer loyalty programs. BA/BS in Marketing or Business
with 7-10 years of marketing experience. 3-5 years in a senior management
role in entertainment, internet, or consumer products. Resume to:
jobs@fandango.com and indicate position title in the subject.
http://www.fandango.com.
_____________________________________________

Creative Director - CareersFromHome.com - Los Angeles, CA

Oversees all creative aspects of the company. Develops creative briefs and
designs applicable concepts to meet the strategic objectives of the
company. Requires a Masters Degree plus at least 5 years experience
working as a Creative Director. To apply, please visit:
http://www.CareersFromHome.com/internal.asp
_____________________________________________

Public Relations Coordinator - Gartner - San Jose, CA

Responsible for handling daily media inquiries in a timely manner and
supporting the PR team, based in both Stamford, CT and San Jose, CA. This
position will be responsible for directing members of the press to the
appropriate analyst, supplying company research for reporter's stories, as
well as administrative projects for the VP of PR and rest of PR team.
Handle daily media inquiries (average of 30 call per day) in a timely
manner. Locate proper research material as well as direct reporter's to
the appropriate analyst. Handle any broadcast requests from CNN, CNBC and
other broadcast media. Someone who exudes the high energy needed in a news
environment. Apply at:
http://cutnpost.hiresystems.com/apply1.cfmclientid=245&codes=1567HS,WHTJ&si
teid=83
_____________________________________________

Management Supervisor - Grey Interactive - New York, NY

Award winning interactive agency seeks seasoned Management Supervisor with
Strong Management skills. The ideal candidate will have consumer packaged
goods, CRM, interactive and traditional agency experience. Beauty and/or
fashion category experience a must. Are you the type who will roll up your
sleeves, be a strategic thinker, able to build business models on the web
and bring clients to the next level? If so, please e-mail us your resume
for immediate consideration: Jobs@greyinteractive.com
_____________________________________________

====================
CLASSIFIEDS - EVENTS
====================
To Post Events: http://www.digitalmediawire.com/eventpostingpage.htm
Special Summer Discount: 5-day ad: $75; 10-day ad: $125

Call for Applicants - MBDA Business Plan Competition - Ends Aug 9

The U.S. Commerce Department's Minority Business Development Agency (MBDA)
and the Emerging Venture Network (EVN) continue their call for applicants
for the MBDA Equity Capital Access Program. MBDA and EVN will identify up
to 200 entrepreneurs nationally to assess and give a scored evaluation of
their business plan with written comments on strengths, weaknesses and
areas for improvement. Entrepreneurs will be selected to participate in an
intensive "boot camp," where they will be drilled in the fundamentals of
obtaining venture capital. Contact: mgarcia@evn.org
http://www.evn.org/MBDA/index.html
_____________________________________________

==========================
CLASSIFIEDS - MARKETPLACE
==========================
To Post Marketplace:
http://www.digitalmediawire.com/marketplacepostingpage.htm
Special Summer Discount: 5-day ad: $75; 10-day ad: $125

Free Report: Proven Techniques To Get Media Coverage Fast

Free report available for a limited time containing powerful "insider"
techniques for getting coverage in top consumer and business media
outlets. Press coverage builds awareness, credibility, brand, sales,
competitive position, along with many other benefits. Learn what firms you
always hear about are doing and how you can do the same. Send request to:
getpublicitynow@aweber.com
_____________________________________________

Fortune High-Tech Marketing

Fortune High-Tech Marketing is the leader in network marketing. Our
business is customer driven and based on the sale of high-tech products to
end user consumers. The products include long distance, internet service,
cellular, satellite TV, voice messaging services, web hosting, virtual
office, and more coming soon. If you are interested in saving money
through any of these services or would like to learn how to build a side
business with residual income for years, come have a look! Send inquiries
to: jfrancis5@austin.rr.com or call 512-452-2266.
http://www.gofortuneonline.com/al/john
_____________________________________________

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Copyright 2002 Digital Media Wire