Top Stories
o Global Digital Music Sales Triple to $790 Million in First Half of 2005
o 20 Lawmakers Sign Letter Asking for "Broadcast Flag" Reinstatement
o Paramount to Support Both Blu-ray, HD DVD Formats
o Yahoo Launches Online Library Project With Publisher Support
o Gwen Stefani's "Hollaback Girl" First Million-Selling Digital Single
o Report: Mobile Video Could Stretch 3G Network Capacity by 2007
o Spark Capital Debuts $260 Million Venture Fund for Digital Media
o Study: 70% of U.S. Adults Own Portable Entertainment Devices
o Acquisitions of Venture-Backed Firms Slow in Quarter; Prices Rise
o Game Physics Technology Developer Ageia Raises $27 Million
o Report: European Online Advertising Market Set to Boom
o U.K.-Based Cable Firm ntl to Buy Rival Telewest for $5.96 Billion
o Online Game Technology Developer Xfire Raises $5 Milllion
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Briefly Noted
o XM Satellite Radio Adds 617,000 Subscribers in Q3
o Comcast Offers VOD Campaign Content on N.J. Governor's Race
o Sony Metreon Announces 2006 Nominees for "Walk of Game"
o Blinkx Lets Users Upload Amateur Video Content
o Arroyo Video Solutions Appoints President and CEO
o Audible Magic Licenses Activated Content Watermarking Tech
o UrbanWorld Wireless Signs Hip-Hop Artists for Original Content
o Electronic Arts Announces Xbox 360 Launch Titles
o Developer b Equal Introduces "The Bible DVD Game"
o THQ Ships "Let's Ride: Dreamer Inspired by a True Story"
o Square Enix Launches "Hexcite Fusion" on Verizon Wireless
o 6th Sense Launches Mobile Social Networking Service
o Blogger Uses Brasso to Fix iPod Screen Scratches
o WIRED Magazine: Phipps Family Heir Heads Chinese DVD Piracy Ring
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London - Nearly offsetting a decline in physical music sales, digital music sales tripled in the first half of 2005 to account for 6% of total record industry sales, according to a report from the International Federation of the Phonographic Industry (IFPI). While digital music sales were up 6% in the first six months of the year -- to $790 million, from $220 million in the first half of 2004 -- physical music sales fell 1.9% to $13.2 billion. The IFPI data includes the sale of a la carte song downloads, music subscription stores and mobile music services offering both full-track and master recording ringtones; sales data from monophonic or polyphonic ringtone sales were not included. In the U.S., single track download sales were up almost threefold in the first half of 2005, to 159 million, while in the U.K., downloads increased tenfold during the period to 10 million, and similar robust download sales growth was also seen in Germany (8.5 million) and France (up fourfold to 4 million). Japan saw digital music sales of $133.4 million in the first half of 2005, the bulk of which (96%) came from mobile music sales. "The digital music boom is continuing and it is growing at an exciting pace for the music industry, for online retailers and for consumers. More and more people in a growing number of countries are turning to the new legal ways of downloading music on the internet or via mobile phones," said IFPI chairman and CEO John Kennedy.
http://www.ifpi.org/site-content/press/20051003.html
http://tinyurl.com/7cox3 (Reuters)
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o 20 Lawmakers Sign Letter Asking for "Broadcast Flag" Reinstatement

Washington - In a letter to the chairman of the House subcommittee on Telecommunications and the Internet, some 20 members of Congress asked for the "broadcast flag" digital TV anti-piracy protections recently unanimously voted down by the Federal Communications Commission to be reinstated, CNET News.com reported. Congress could still pass a law overriding the FCC ruling, which was the motivation for the bipartisan letter from Reps. Charles Pickering (R-Miss.), Edolphus Towns (D-N.Y.) and 18 colleagues. "Program producers will naturally be reluctant to license their high value programs for digital distribution without protection from widespread acts of infringement over the Internet," reads a section of the letter posted on News.com. Movie studios and TV producers have argued that the roll-out of digital TV technology hinges on the broadcast flag, without which they say high-definition programs will become available for free on file-sharing systems.
http://tinyurl.com/8fozd
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o Paramount to Support Both Blu-ray, HD DVD Formats

Los Angeles - Hollywood movie studio Paramount Pictures has become the first to announce plans to release movies on both Sony's Blu-ray and Toshiba's HD DVD next-generation DVD formats. Paramount joins Sony, Disney and Fox in support of Blu-ray, while HD DVD claims support from Universal, Warner and New Line Cinema, in addition to Paramount. Negotiations between Sony and Toshiba on creating a unified next-generation DVD format have thus far been unsuccessful; the companies have also lately taken to disparaging one another's technology in the media. Last week, Microsoft and Intel pledged support for Toshiba and HD DVD, while PC makers including HP and Dell have announced they will offer machines with Blu-ray drives.
http://tinyurl.com/9wfd9
http://www.nytimes.com/2005/10/03/business/media/03disc.html
http://tinyurl.com/9t92t (CNET News.com)
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o Yahoo Launches Online Library Project With Publisher Support

San Francisco - Yahoo has joined with partners including the Internet Archive, the European Archive, the U.K. National Archives, the University of California and HP to form the Open Content Alliance (OCA), which will attempt to digitize the world's public domain and copyrighted literature and make it available online for all search engines to index. Yahoo's project hopes to please publishers were rival Google's Library Project has attracted litigation; the Open Content Alliance will only include material submitted by publishers, whereas Google has been sued by the Authors Guild for not asking permission before including works in its index. "We welcome the launch of the OCA because its approach respects the rights of publishers and other copyright owners," said Sally Morris, CEO of the Association of Learned and Professional Society Publishers (ALPSP). The OCA archive's content will range from historical works of fiction to children's books to highly specialized engineering whitepapers. "We are honored to participate in a program that helps further our vision of expanding all human knowledge by working with content creators to make their content available to a growing online audience," said David Mandelbrot, Yahoo's vice president of search content.
http://tinyurl.com/8hq8j
http://biz.yahoo.com/ap/051003/online_book_project.html?.v=3
http://www.alpsp.org 
http://www.opencontentalliance.org
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o Gwen Stefani's "Hollaback Girl" First Million-Selling Digital Single

Santa Monica, Calif. - "Hollaback Girl," the hit single from No Doubt singer Gwen Stefani's "Love" solo album, has been certified the first digital single to surpass 1 million download sales, according to Interscope Geffen A&M, a record label under the Universal Music Group. The song was released as a digital single on Nov. 23, 2004. Interscope added that the track will also soon reach the 1 million mark for sales of master recording ringtones. "The music industry is changing and this is a major sign that digital downloading has reached the mass market and become a very significant business," said Interscope Geffen A&M chairman Jimmy Iovine.
http://tinyurl.com/agylu
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o Report: Mobile Video Could Stretch 3G Network Capacity by 2007

London - Consumer adoption of emerging high-bandwidth mobile services, such as live mobile TV and video, could stretch capacity on the 3G wireless networks that deliver then as soon as 2007, according to a report from U.K.-based market research firm Analysys. The 3G networks are currently under-utilized, but could quickly become overwhelmed if mobile video services are widely adopted. The firm said that 3G networks have limited capacity to support the substantial bandwidth needed for video streaming, adding that current capacity could be reached "if 40% of 3G users take up mobile TV and video services and each consumes only eight minutes of video per day," said report co-author Dr. Alastair Brydon. While such services are more common in Europe and Asia, with Nokia conducting mobile TV trials and a number of carriers offering mobile TV, U.S. provider MobiTV was just awarded an Emmy for its mobile TV service, which now claims 500,000 subscribers.
http://www.analysys.com/Articles/StandardArticle.asp?iLeftArticle=1970
http://tinyurl.com/baqhe (CNET News.com)
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o Spark Capital Debuts $260 Million Venture Fund for Digital Media

Boston - Spark Capital, a new venture capital firm focused on early-stage investments "in the conflux of the media, entertainment and technology industries," announced on Monday its debut with a first fund totaling $260 million. The firm was founded by former Battery Ventures general partner Todd Dagres, and several former partners of Charles River Ventures and Constellation Ventures. "Over the last decade, telecom operators, Regional Bell Operating Companies and cable operators have spent enormous amounts of capital building out their broadband infrastructures. The next decade will be spent monetizing this infrastructure," said Dagres. "Our focus is on exploiting this opportunity by investing in companies that we perceive to be on the cutting edge of media, entertainment and technology, and have the potential to create new markets and become category leaders."
http://tinyurl.com/9ex2l
http://tinyurl.com/df477 (Boston Globe)
http://www.sparkcapital.com
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o Study: 70% of U.S. Adults Own Portable Entertainment Devices

Arlington, Va. - More than 152 million Americans -- about 70% of the total U.S. adult population -- now own portable entertainment devices, according to a new report from the Consumer Electronics Association (CEA). "The increasing number of consumers who own portable entertainment devices is creating a huge market for handheld content," said Steve Koenig, the CEA's senior manager of industry analysis. "In fact, we estimate that consumers who own these devices will spend $8.3 billion on entertainment content for them in the next 12 months." Study results indicate that listening to music and communicating with others through e-mail are the most common activities for adults using the various devices. Sixty-eight percent of online adults said they used their portable devices to listen to music; the study found MP3 player household penetration has grown to 15%, up from 11% a year ago. The study also found that wireless phones and handheld PCs are the most common devices used to access handheld content, due in part to the wide variety of content available.
http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=10839
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o Acquisitions of Venture-Backed Firms Slow in Quarter; Prices Rise

San Francisco - Eighty-two U.S. venture-backed companies were acquired during the most recent quarter for a total of $6.02 billion, according to a new report from San Francisco-based VentureOne. While the numbers are down slightly from a year ago -- when 102 companies were acquired for $6.2 billion -- the median amount paid in mergers and acquisitions remained relatively high at $59.5 million, up $24 million from the same quarter last year. Meanwhile, the number of initial public offerings (IPOs) reached its highest level so far this year with 16 -- more than the total for entire the first half of the year. The amount raised from the IPOs, however, was just $942 million, down 45% from a year ago. "So far this year, nearly $21 billion has been paid for [venture-backed] start-up companies, indicating that the year is likely to end as the best year for M&As since 2000," said John Gabbert, the vice president of worldwide research for VentureOne. Gabbert said that the IT sector represents more than half the year’s total acquisitions.
http://www.ventureone.com
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o Game Physics Technology Developer Ageia Raises $27 Million

Mountain View, Calif. - Ageia Technologies, a developer of hardware-accelerated physics technology for video games, announced on Monday that it has raised $27 million in its latest round of venture capital financing. Granite Global Ventures led the investment round; new investor Hercules Technology Growth, and previous investors Apex Venture Partners, BA Venture Partners, CID Ventures, HIG Ventures and VentureTech Alliance also participated. Mountain View, Calif.-based Ageia's game physics hardware is supported by developers and publishers including Sony, Atari, Ubisoft, NCsoft and Quantic Dream. The company will use the funds to launch its flagship PhysX processor to the hardcore gamer community market, and expand distribution of its Ageia PhysX software development kit to game developers.
http://biz.yahoo.com/prnews/051003/sfm103.html?.v=22
http://www.ageia.com
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o Report: European Online Advertising Market Set to Boom

London - According to a new report by market analysis firm JupiterResearch, the European online advertising market is set to boom over the next five years, with revenues likely increase threefold from approximately $2.74 billion this year to more than $7.75 billion in 2010. The report also predicts that paid search advertising will dominate the market, generating more than $3.45 billion and accounting for about 44% of total online advertising revenues in 2010. "As European consumers across the demographic spectrum spend ever greater amounts of time on the Internet, advertising investment in online media will continue to grow, and the digital channel will become increasingly integrated into marketers' customer acquisition strategies," said JupiterResearch analyst Julian Smith.
http://makeashorterlink.com/?H185629EB
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o U.K.-Based Cable Firm ntl to Buy Rival Telewest for $5.96 Billion

London - ntl, a U.K.-based cable group, announced that it has agreed to acquire smaller U.K. rival Telewest for approximately $5.96 billion. ntl said the fully merged company would have about 5 million pay TV and broadband subscribers, allowing it to better compete with telecommunication giant BT Group Plc and local satellite broadcaster BSkyB Group Plc. "This is a transforming transaction for the U.K. cable industry," said ntl CEO Simon Duffy. "It marks not just the culmination of a decade of consolidation but, more importantly, the creation of a new competitive force in the communications and entertainment sectors in the U.K." The new company will become the largest provider of residential broadband services in the U.K. with more than 2.5 million subscribers and the second-largest pay TV provider with 3.3 million subscribers. ntl said it expected to complete the deal by the first quarter of next year, pending regulatory approval.
http://makeashorterlink.com/?K1AF468EB
http://www.ntl.com
http://www.telewest.co.uk
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o Online Game Technology Developer Xfire Raises $5 Milllion

San Francisco - Xfire, a developer of online gaming community applications, announced on Monday that has raised $5 million in a follow-on round of venture capital financing. Granite Global Ventures led the round; previous investors Draper Fisher Jurvetson and New Enterprise Associates also participated. San Francisco-based Xfire's service automatically notifies gamers when their friends are playing PC games online, and lets them chat both within and outside of online games; the company also distributes digital content through a peer-to-peer file download system. The funds will be used to support the Xfire service, which has more than 2 million registered users in over 100 countries,
http://biz.yahoo.com/prnews/051003/sfm019a.html?.v=1
http://www.xfire.com

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o XM Satellite Radio Adds 617,000 Subscribers in Q3

Washington - XM Satellite Radio, a provider of subscription radio services, announced on Monday that it added 617,000 new net subscribers during the third quarter of 2005, a 48% increase over the number added in the third quarter of 2004. The company now claims a total of 5.03 million subscribers, and expects to count 6 million by the end of the year. XM on Monday also launched "Take Five," a new channel aimed at women that includes programs like "The Ellen DeGeneres Show."
http://biz.yahoo.com/prnews/051003/dcm009.html?.v=26
http://www.xmradio.com
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o Comcast Offers VOD Campaign Content on N.J. Governor's Race
 
Union, N.J. - Cable TV operator Comcast announced on Monday that it will provide free access to video-on-demand content related to the New Jersey gubernatorial election to subscribers, including information about the candidates, their platforms and policies. "CN8 Presents: Candidates on Demand" will offer 30-minute interviews with candidates, in addition to five-minute segments on policies and platforms submitted by each candidate. The public service initiative follows Comcast's similar on-demand coverage of last year's Colorado Senate race.
http://biz.yahoo.com/prnews/051003/nym096a.html?.v=1
http://www.cn8.tv
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o Sony Metreon Announces 2006 Nominees for "Walk of Game"

San Francisco - Sony on Monday announced that it has opened voting for potential star additions to the "Walk of Game" street display landmark outside its Metreon arcade in San Francisco. The 2006 Walk of Game nominees include real-life developers such as "Doom" creator John Carmack; Sid Meier ("Civilization"); Will Wright ("The Sims"); and Toru Iwatani ("Pac-Man"), and games and game characters including "Pong," "Donkey Kong," "EverQuest," "Grand Theft Auto," Lara Croft and Pitfall Harry. Sony said it received hundreds of thousands of votes for last year's nominees; this year's stars will be inducted in a ceremony held in conjunction with the Game Developers Conference in the spring of 2006. An effort spearheaded by Nintendo earlier this year to get video game character stars added to the Hollywood Walk of Fame in Los Angeles was rebuffed by the City of Hollywood's Chamber of Commerce.
http://tinyurl.com/d8bex
http://www.walkofgame.com
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o Blinkx Lets Users Upload Amateur Video Content

San Francisco - Blinkx, a provider of a searchable index of Web video, on Monday announced the launch of a new feature that lets users upload their own amateur video content to the index for free. Users can also create personal channels on My Blinkx.tv, which may then be viewed online by other Blinkx users, and also downloaded to a PC or personal media player.
http://biz.yahoo.com/prnews/051003/sfm080.html?.v=25
http://www.blinkx.tv
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o Arroyo Video Solutions Appoints President and CEO

Pleasanton, Calif. - Arroyo Video Solutions, a developer of video-on-demand delivery technology, announced on Monday that it has appointed Rick DeGabrielle as president and CEO. Prior to joining Arroyo, DeGabrielle served as vice president of sales and business development for Catena Networks. Pleasanton, Calif.-based Arroyo's technology is currently deployed with cable providers including Comcast and Time Warner Cable. 
http://tinyurl.com/8tgoy
http://www.arroyo.tv
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o Audible Magic Licenses Activated Content Watermarking Tech

Los Gatos, Calif. - Audible Magic, a developer of "audio fingerprinting" peer-to-peer file-sharing network filtering technology, announced on Monday that it has signed an agreement with Activated Content Corporation, to license the company's watermarking technology. The service from Activated Content will add protection for pre-release music, film and other media content, giving copyright holders the ability to trace leaked works back to their pre-release production sources.
http://tinyurl.com/7ocjg
http://www.activatedcontent.com
http://www.audiblemagic.com
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o UrbanWorld Wireless Signs Hip-Hop Artists for Original Content

Los Angeles - Mobile entertainment publisher UrbanWorld Wireless announced on Monday that it has signed hip-hop artists David Banner, G-Unit's DJ Whoo Kid and Heather Hunter, along with hip-hop radio personality Fatman Scoop, to create original mobile content for the company. The artists will produce original ringtones and ringback tones for Los Angeles-based UrbanWorld, which has signed similar deals for original mobile content production with Jay-Z, Snoop Dogg and Chingy.
http://tinyurl.com/cvpfr
http://www.urbanworldwireless.com
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o Electronic Arts Announces Xbox 360 Launch Titles

Chertsey, England - Electronic Arts announced on Monday that it will offer previews of five launch titles for Microsoft's Xbox 360 console at the X05 event in Amsterdam this week. The company will showcase "Need for Speed Most Wanted," "FIFA 06: Road to FIFA World Cup," "NBA Live 06," "Tiger Woods PGA Tour 06" and "Madden NFL 06." In addition to these Xbox 360 launch titles, EA said it is also working on Xbox 360 titles such as "The Godfather," "Battlefield 2: Modern Combat," and a new title in its "Burnout Revenge" franchise.
http://biz.yahoo.com/bw/051003/35519.html?.v=1
http://www.info.ea.com
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o Developer b Equal Introduces "The Bible DVD Game"

Palo Alto, Calif. - Family-oriented game developer b Equal and partner The History Channel on Monday introduced their "The Bible DVD Game." The DVD game, slated for release on Oct. 14, features over 1,600 Bible trivia questions, and is hosted by platinum-selling Christian music artist Jeremy Camp.
http://tinyurl.com/9zzhg
http://www.bequal.com 
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o THQ Ships "Let's Ride: Dreamer Inspired by a True Story"

Agoura Hills, Calif. - Game publisher THQ's Valusoft division on Monday shipped its "Let's Ride: Dreamer Inspired by a True Story" PC title to retailers. The game is based on the DreamWorks children's movie of the same name.
http://biz.yahoo.com/prnews/051003/cgm003.html?.v=19
http://www.valusoft.com 
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o Square Enix Launches "Hexcite Fusion" on Verizon Wireless

Los Angeles - Japanese video game publisher Square Enix on Monday launched its "Hexcite Fusion" mobile game for Verizon Wireless subscribers in the U.S. The title is based on the board game that has shipped over 800,000 copies in the U.S. and Japan combined, and will be available for a monthly subscription fee of $1.99, or $4.99 for unlimited use.
http://biz.yahoo.com/prnews/051003/nym080.html?.v=19
http://www.sqexm.com/games.php?id=6&navid
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o 6th Sense Launches Mobile Social Networking Service

Fremont, Calif. - Wireless application developer 6th Sense Communications on Monday announced the launch of its 6th Sense mobile social networking service. Users create online profiles stating their personal and professional interests, and then location-based technology serves up matches of profiles of persons nearby, which can be viewed on a mobile phone.
http://tinyurl.com/8kf5u
http://www.sixsense.com
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o Blogger Uses Brasso to Fix iPod Screen Scratches

San Francisco - Blogger Todd Daily recently posted an item on how he used Brasso, the mildly abrasive metal polish, in an attempt to reduce the scratches on the screens of his Apple iPod and iPod Nano digital music players. Apple recently announced that it would replace a small number of its newly released Nano devices that shipped with defective screens prone to cracking, but rejectedconsumer complaints that screen surfaces were too easily scratched. The Brasso solution works to smooth down the surface around the scratch, rather than filling in the missing material that created it. "It was completely amazing that I could remove every scratch with just a little work with Brasso," Daily wrote on his blog. "If you wish you had put your nano in a case before you used it, you now have an inexpensive way to get a 2nd chance."
http://tinyurl.com/b8czt
http://www.herc.org/library/msds/brasso.htm
http://www.stanleylondon.com/brasso.htm
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o WIRED Magazine: Phipps Family Heir Heads Chinese DVD Piracy Ring

San Francisco - The latest issue of WIRED magazine includes a feature on Randolph Hobson Guthrie III, an heir to the Phipps multi-billion dollar family fortune, who was arrested in China in 2004 in a joint Hollywood-Chinese government sting and accused of heading an international DVD piracy ring.
http://www.wired.com/wired/archive/13.10/guthrie.html

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