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===================================================
DIGITAL MEDIA WIRE -- November 4, 2002
===================================================
To Subscribe For Free: http://www.digitalmediawire.com 

o Report: Online Music Sales Down 25% So Far In 2002
o Judge Throws Out Gemstar Patent Claims Against Scientific-Atlanta
o Listen.com Gets CD Burning License from BMG for Rhapsody Service
o H.264 Video Chipmaker Sand Video Raises $8 Million
o Vivendi Says It Is Target of Two U.S. Investigations
o Digital Publishing Service Provider NewsStand Raises $8 Million
o SeaChange Invests $2.3 Million In U.K.-Based VOD Firm ON Demand Group
o MusicRebellion.com Buys Liquid Audio's Licenses for BMG, EMI Tracks
o VitalStream Raises $1.1 Million, Acquires Assets of Epoch Networks

> Digital Media Wire Event: "iTV Visions" | NYC | Nov. 14
> Featured Section 

o Briefly Noted: Nokia - wireless games, OD2 - Universal Music Group,
Wippit - Shazam, Electronic Arts - Drew Gooden, Ubi Soft - "Batman 2,"
"Sonic the Hedgehog" candy bar
_____________________________________________

> Jobs: East Coast Sales Rep.

> Events: NYNMA's Technology Showcase

> Marketplace: Homeland Security Directory, Interest-Based Navigation

Full Classifieds 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 Report: Online Music Sales Down 25% So Far In 2002

Reston, Va. -- Online music sales are down 25 percent in the first nine
months of 2002, as compared with the same period last year, according to a
report released Monday by market research firm ComScore Networks. Online
music sales -- which represent e-commerce sales of physical CDs and other
formats, as well as paid digital downloads -- were $545 million, down 25
percent from the $730 million recorded for the same period last year. This
figure contrasts the 30 percent overall rise in products purchased online
so far in 2002. "While a host of factors inevitably impact consumer
behavior, the greater sales decline online as reported by comScore would
suggest that Internet file-swapping and CD-burning are having a severe
negative impact on music sales among Internet users," said ComScore's
Peter Daboll. Virginia-based ComScore also reported that popular
file-sharing service Kazaa now counts 9.4 million average monthly users,
and that an analysis of the U.S. home and work Internet audience showed
that six of the leading file-sharing applications collectively were used
by 14 million consumers in the month of September.
http://www.comscore.com/news/online_music_sales110402.htm 
_____________________________________________

o Judge Throws Out Gemstar Patent Claims Against Scientific-Atlanta 

Atlanta -- Set-top box manufacturer Scientific-Atlanta announced on Monday
that a Georgia federal court has thrown out patent claims made against the
company by Gemstar-TV Guide International, regarding electronic program
guide technology. The same court recently threw out several other patent
claims made against Scientific-Atlanta by Gemstar; several additional
claims are still pending in court. The U.S. Securities and Exchange
Commission (SEC) recently launched an investigation into Pasadena-based
Gemstar; the company also announced it would replace founder and CEO Henry
Yuen and restate financial results for almost the past three years.
http://biz.yahoo.com/prnews/021104/atm019_1.html 
http://www.sciatl.com 
http://www.gemstar.com 
_____________________________________________

o Listen.com Gets CD Burning License from BMG for Rhapsody Service

San Francisco -- Listen.com, distributor of a digital music subscription
service called Rhapsody, announced on Monday that it has expanded its
licensing agreement with major record label BMG Entertainment, allowing
the company to distribute downloads of tens of thousands of BMG tracks
that may be burned onto CD. The agreement follows several other CD burning
licensing agreement extensions with major labels Universal and Warner.
Subscribers to San Francisco-based Listen.com's $9.95 monthly service will
now be able to download BMG tracks that may be burned to CD for $0.99
each. BMG artists include Christina Aguilera, Whitney Houston, Outkast,
Santana and The Strokes.
http://www.listen.com 
http://www.bmg.com 
_____________________________________________

o H.264 Video Chipmaker Sand Video Raises $8 Million

Andover, Mass. -- Sand Video, a developer of real-time video compression
technology based on the emerging H.264/MPEG-4 part 10 video compression
standard, announced on Monday that it has raised $8 million in its latest
round of venture capital financing. Baker Capital led the investment
round; Navigator Technology Ventures and a number of private investors
from the CommonAngels of Boston also participated. Massachusetts-based
Sand Video is developing chips compatible with H.264 that may be used in
devices such as personal video recorders, DVD recorders and cable and
satellite TV set-tops. "The issue with H.264 is how to deal with the
complexity of the algorithm in a real-time silicon codec targeted at
standard and high definition consumer video applications," said Sand Video
president and CEO Peter Besen. "The team of people we've brought together
at Sand Video has solved that problem in a very novel and proprietary way,
and we're already in advanced discussions with a number of major players
in the video industry." The company intends to use the money to expand its
product development and sales and marketing efforts.
http://www.sandvideo.com/press_releases.html 
http://www.eetimes.com/story/OEG20020920S0049 
_____________________________________________

o Vivendi Says It Is Target of Two U.S. Investigations

Paris -- Vivendi Universal said on Monday that it is under two separate
criminal investigations in the United States The company said it is
"cooperating fully" with investigators from the U.S. Attorney's Office for
the Southern District of New York and the Securities and Exchange
Commission (SEC) in Miami.  The company is already facing a class action
lawsuit in the U.S. filed by shareholders, as well as an investigation in
France over charges that the company issued false financial information
while Jean-Marie Messier was CEO.
http://biz.yahoo.com/bw/021104/42185_1.html 
http://www.vivendiuniversal.com 
_____________________________________________

o Digital Publishing Service Provider NewsStand Raises $8 Million

Austin, Texas -- NewsStand, a provider of digital publishing services,
announced on Monday that it has raised $8 million in a recent funding
round from Adams Capital Management. This new funding follows Texas-based
NewsStand's March 2002 $8 million Series B round, in which SSM Ventures,
Noro-Moseley Partners and The New York Times Company participated.
NewsStand's technology allows publishers including The New York Times,
Barron's, International Herald Tribune and the Harvard Business Review to
provide subscribers a service where they may download an entire edition as
a replica of the traditional print format. The company will use the
funding to increase marketing and sales, implement new product development
and expand into new, strategic markets.
http://www.newsstand.com/corporate/release29.html 
_____________________________________________

o SeaChange Invests $2.3 Million In U.K.-Based VOD Firm ON Demand Group

Maynard, Mass. -- SeaChange International, a provider of video-on-demand
digital video servers, announced on Monday that it has invested $2.3
million in ON Demand Group, a U.K.-based provider of near video-on-demand
services in Europe. Massachusetts-based SeaChange said it will also invest
an additional up to $13 million in the company if required. The two
companies will partner to deliver video-on-demand services in Europe, with
ON Demand deploying SeaChange's video server equipment to European cable
TV operators. ON Demand currently serves 2 million U.K. customers with its
Front Row Television service; 11 Spanish cable companies distribute its
Mirador pay-per-view service.
http://biz.yahoo.com/bw/021104/42220_1.html 
http://www.ondemandgroup.co.uk 
http://www.seachangeinternational.com  
_____________________________________________

o MusicRebellion.com Buys Liquid Audio's Licenses for BMG, EMI Tracks

Terre Haute, Ind. -- MusicRebellion, an online distributor of digital
music, announced on Monday that it has purchased Liquid Audio's licenses
from major labels BMG and EMI to distribute digital tracks over the
Internet. Financial terms of the transaction were not disclosed. Redwood
City, Calif.-based Liquid Audio recently sold its intellectual property
assets to Microsoft for $7 million in preparation for its proposed merger
with Alliance Entertainment. The addition of Liquid Audio's 200,000 tracks
from 1,900 record labels will complement Indiana-based
MusicRebellion.com's existing 100,000 tracks from independent artists. The
company offers paid tracks for download, with pricing automatically
configured to correspond with demand for each individual song.
http://biz.yahoo.com/prnews/020930/sfm077_1.html 
http://www.liquidaudio.com 
http://www.musicrebellion.com 
_____________________________________________

o VitalStream Raises $1.1 Million, Acquires Assets of Epoch Networks

Irvine, Calif. -- VitalStream, a provider of digital media content
delivery network services, announced on Monday that it has received a $1.1
million investment from Dolphin Equity Partners. The company has also
acquired the assets of Epoch Networks and Epoch Hosting. Financial terms
of the deal call for VitalStream to pay $250,000 in cash and 16.5 percent
of its outstanding shares for Epoch's assets. VitalStream said the
acquisition of Epoch's Los Angeles data center will bring $250,000 in
monthly recurring revenue. Irvine, Calif.-based VitalStream provides
content delivery network services in addition to audio and video
streaming, Web conferencing, advanced media hosting, payment processing
and consulting services.
http://biz.yahoo.com/bw/021104/40111_1.html 
http://biz.yahoo.com/bw/021104/40115_1.html 
http://www.epoch.net 
http://www.vitalstream.com 
_____________________________________________

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===================================
EVENT -- DIGITAL MEDIA WIRE Presents...
===================================

iTV Visions: Technology Transforming Entertainment

New York City | Thurs. November 14 | 1:30-7:30 PM

In association with the Interactive Television Alliance

Sponsors: Etronica | ITA | Filter Media | AIM

This half-day executive forum will present views on the future of
entertainment based on next generation interactive television technologies
emerging today. Thought leaders from leading edge companies that are
driving these technologies into the marketplace will gather to show how
entertainment is on the verge of yet another radical transformation.

For more information and to register:
http://www.digitalmediawire.com/events/itv_visions_111902.htm

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_____________________________________________

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==================
FEATURED SECTION
==================
Featured Section posting at:
http://www.digitalmediawire.com/featuredpostingpage.htm 

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_____________________________________________

Briefly Noted:

(Munich) Cell phone and wireless products manufacturer Nokia on Monday
introduced the latest additions to its portfolio of mobile phones, with
color displays, Java and multimedia messaging support, as well as a mobile
entry phone, a new messaging device, and three new mobile enhancements.
Nokia also announced it will offer products for a new mobile game deck
category, publishing rich media games from developers such as Sega on
removable memory cards.
http://press.nokia.com/PR/200211/880058_5.html 
http://press.nokia.com/PR/200211/880085_5.html 
http://press.nokia.com/PR/200211/880103_5.html 

(London) OD2, the European digital music subscription service co-founded
by musician Peter Gabriel, announced that it has signed a licensing
agreement with major label Universal Music Group to distribute 50,000
songs from the label's artists. London-based OD2's distribution network
includes sites for retailer HMV and Internet service providers MSN and
Freeserve. The company has similar licensing deals with other major labels
BMG, EMI and Warner.
http://www.od2.com 
http://www.umusic.com 

(London) Wippit, a U.K.-based, licensed music sharing service, announced
that it has partnered with Shazam, provider of a wireless music
recognition service. Under the agreement, Shazam users who dial into the
system to have a particular song identified may then forward this
information to their Wippit account, which will search the service for the
song and return information as to whether it is available as a download or
ringtone. Wippit currently offers 60,000 tracks from artists on 168 record
labels in a subscription package costing about $47 per year.
http://wippit.com/press/wippit_shazam.doc 
http://www.shazamentertainment.com  

(Redwood City, Calif.) Video game developer Electronic Arts said on Monday
it has signed former University of Kansas and current Memphis Grizzlies
NBA basketball player Drew Gooden as the spokesman for its upcoming "NCAA
March Madness 2003" title. Redwood City, Calif.-based Electronic Arts will
release the game in late November for Sony PlayStation 2.
http://biz.yahoo.com/bw/021104/40484_1.html 
http://www.ea.com 

(San Francisco) Video game publisher Ubi Soft Entertainment said it will
release "Batman 2," as part of its existing licensing agreement with DC
Comics and Warner Bros. Domestic Products, on all console systems in the
fall of 2003. The titles will be developed at San Francisco-based Ubi
Soft's Montreal studios.
http://www.ubi.com  

(Vancouver, B.C.) Green Fusion Corporation / House of Brussels Chocolates
announced on Monday a license from video game developer Sega, to produce
candy bars based on its "Sonic the Hedgehog" character. "While we will
continue to produce the high quality, premium chocolates that has gained a
high reputation in Canada and the United States, we now will be making a
chocolate aimed at the untapped dynamic youth market," said Green Fusion
CEO Steve Whittington.
http://biz.yahoo.com/bw/021104/42198_1.html 
http://www.hobc.ca 
_____________________________________________

===================
CLASSIFIEDS - JOBS
===================
To Post Jobs: http://www.digitalmediawire.com/jobpostingpage.htm 

East Coast Sales Rep - Imaging and Music Software Firm
 
Imaging and music software firm is seeking an independent, East Coast
sales representative. We have great products - you have strong
relationships with camera and computer hardware manufacturers and
marketers. Significant OEM experience strongly preferred. Position offers
a retainer and generous commissions. Interested parties should forward
their resume to David McKie at:  david@simplestar.com
_____________________________________________

====================
CLASSIFIEDS - EVENTS
====================
To Post Events: http://www.digitalmediawire.com/eventpostingpage.htm 

NYNMA's Technology Showcase, November 7, NYC

Strong companies, an informed audience, New York opportunities. Register
now for NYNMA's Technology Showcase, November 7th. Join 90 top technology
companies and NY's leading executives, investors and entrepreneurs for
only $15 if you pre-register by Tuesday, November 5th. Use MatchPoint to
connect you with Showcase attendees, exhibitors and sponsors who could be
your next partner or customer.
http://www.technologyshowcase.org/registration.html
_____________________________________________

==========================
CLASSIFIEDS - MARKETPLACE
==========================
To Post Marketplace:
http://www.digitalmediawire.com/marketplacepostingpage.htm 

Only 80 copies remaining of Directory of Homeland Security

This is your company's final chance to purchase the inaugural edition of
the Directory of Homeland Security: a 160-page book that lists all federal
and state agencies involved in homeland security. The directory includes
names of over 1,500 homeland security officials, profiles of 500 agencies
involved in homeland security, and a detailed list of technology companies
in this sector. The directory is sponsored by NETSEC, Greenberg Traurig,
AT&T and the Northern Virginia Technology Council.

To purchase the directory, go to: http://www.homeland-directory.com
_____________________________________________

New!! Advanced Search & Personalization Technology by Etronica

Etronica has developed a unique software toolset to enable "Interest Based
Navigation" of digital content. The Patent Pending technology provides for
automated tagging, indexing, and categorization of content. The software
toolset can be incorporated into content websites and portals, installed
in TV settop boxes or integrated as OEM components into various software
platforms and technologies. An Etronica Enabled(TM) site greatly enhances
the user experience. Contact us to learn more: info@etronica.com
http://www.etronica.com
_____________________________________________

Digital Media Wire, Inc. leverages its integrated media network to provide
exceptional value for individuals and companies determined to capitalize
on the convergence of media, entertainment and technology. Digital Media
Wire, the first in a series of business-intelligence publications,
delivers original daily briefings on the business, legal and financial
developments shaping digital media.

Digital Media Wire is part of the Tech Wire Media Group, a national
network of publications that includes Potomac Tech Wire, New England Tech
Wire, Southeast Tech Wire, Bay Area Tech Wire and European Tech Wire. The
network reaches more than 62,000 individuals from over 70 countries
worldwide each business day.

Upcoming publications, events & information at:
http://www.digitalmediawire.com 

Questions, Comments & Suggestions to:
david@digitalmediawire.com 

News Tips, Scoops & Press Releases to:
editorial@digitalmediawire.com 
_____________________________________________

Editor: Mark Hefflinger
Executive Officer: Edward F. Sherman, Jr.
Operating Officer: David J. Peebler

Copyright 2002 Digital Media Wire, Inc. All Rights Reserved.