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DIGITAL MEDIA WIRE -- December 14, 2000
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o FTC Approves AOL-Time Warner Merger, FCC To Rule Next
o Peer-To-Peer Networking Site Static Raises $5 Million In Second Round
o CD-Security Provider SunnComm To Encrypt CDs In China
o Music Entertainment Provider Popwire Receives Investment From Ericsson
o Content Personalization Firm ChangingWorlds Raises $4 Million
o Wireless Streaming Firm WeComm Raises $3.5 Million
o Briefly Noted: On-Line Entertainment Network, Media Bay - Rampt, Global
Music Network - 3 Tenors,

o FTC Approves AOL-Time Warner Merger, FCC To Rule Next

Washington -- The Federal Trade Commission (FTC) has voted unanimously to
approve the merger between America Online and Time Warner, CNET reported
on Thursday. The Commission placed provisions on issues including open
access to high-speed cable lines and discrimination against rival content
providers, and will continue to monitor the combined company for five
years. The last hurdle for the merger will be approval by the Federal
Communications Commission (FCC), which has taken issue with aspects of the
merger such as the combined company's control over the instant messaging
market. Disney, which had lobbied against the merger on several fronts,
including the potential favoring of Time Warner content on the combined
company's high-speed cable systems, voiced its approval of the
stipulations imposed by the FTC. "The unprecedented open access and
non-discrimination conditions imposed by the FTC today represent a huge
victory for consumers and for competition," said Preston Padden, executive
vice president, government relations for Disney.

o Peer-To-Peer Networking Site Static Raises $5 Million In Second Round

Los Angeles -- Static, a provider of peer-to-peer networking technology,
announced that it has raised $5 million in its second round of venture
capital financing. Zone Ventures led the investment round; individual
investor Tim Draper of Draper Fisher Jurvetson also contributed. The
company said the funds will be used to hire additional employees. Los
Angeles-based Static develops peer-to-peer technology with features
including rapid file-sharing, multiplayer online gaming and chat.
Developers are encouraged by the company to work on improving the
technology and adding additional features. The company's software is
currently in alpha testing and is available for Windows, Mac and Linux
users. Static also announced the appointment of Jed Haynes as its new CEO.

o CD-Security Provider SunnComm To Encrypt CDs In China

Phoenix -- SunnComm, a provider of copy protection technology for music
CDs, announced on Thursday that it has reached an agreement with
Taiwan-based Will-Shown Technology Co. to place copy protection on CDs
manufactured for the Chinese market. Under the deal, Phoenix-based
SunnComm will receive $20 million to insert its encryption technology on a
minimum of 87 million CDs during a seven-year commitment. The
International Federation of the Phonographic Industry estimates that 90%
of all compact discs sold in China are pirated discs costing
manufacturers, distributors and artists over $1 billion annually SunnComm
says that its technology does not alter the audio quality of the CDs on
which it is used. "The good news is that our solution does not in any way
alter the quality of the audio signal within the licensed manufactured
product and there is no requirement to alter the manufacturing equipment
itself," said John Aquilino, chief technology officer of SunnComm. "Music
pirates will no longer be given carte blanche when it comes to the high
quality copying of first generation product." The company announced
earlier this week that country music label Fahrenheit Entertainment has
licensed its technology, and will release copy protected CDs beginning in

o Music Entertainment Provider Popwire Receives Investment From Ericsson

Stockholm, Sweden -- Popwire, an online music producer and distributor,
announced on Thursday that Ericsson Business Innovation has taken a 15
percent equity stake in the company. Sweden-based Popwire said the
investment will enable the company to work with communications provider
Ericsson to develop technology for distributing entertainment content over
wireless networks, including the emerging 3G wireless network. Popwire
operates an entertainment site that features music downloads from unsigned
bands, as well as music news and videos.

o Content Personalization Firm ChangingWorlds Raises $4 Million

Dublin, Ireland -- ChangingWorlds, a developer of content personalization
software for wireless providers, announced that it has raised $4 million
in its first round of venture financing. Trinity Venture Capital led the
investment round; investors from Merrion Capital Group also contributed.
Ireland-based ChangingWorlds develops technology that allows wireless
network operators to provide their subscribers with the ability to
personalize the content that they receive on their cell phones and other
wireless devices. The company also develops personalization software for
use by providers of interactive digital television.

o Wireless Streaming Firm WeComm Raises $3.5 Million

London -- WeComm, a provider of secure streaming technology for wireless
networks, announced that it has raised $3.5 million in its latest round of
financing. Metropolis Venture Partners led the investment round; Carphone
Warehouse also contributed. London-based WeComm develops software for
streaming data to wireless devices over all network standards. The company
said part of the funds would be used to expand the company's operations in
the U.S.

o Briefly Noted:

(Los Angeles) On-Line Entertainment Network (OEN), a provider of live
interactive webcasts of music concerts, announced on Thursday that it will
offer a concert featuring violinist Itzhak Perlman performing as soloist
and conductor of the Philadelphia Orchestra, under the Classical Music
Internet Agreement. The concert was originally webcast live on August 17;
listeners will now be able to stream the concert at $1 per listen. The
Classical Music Internet Agreement was approved by musicians and managers
of 65 classical music institutions and the American Federation of
Musicians, and governs the rates and distribution of revenues from
Internet broadcasts of orchestral performances.

(Cedar Knolls, N.J.) MediaBay, a provider of spoken word audio content,
announced on Thursday that it has signed a distribution agreement with Los
Angeles-based Rampt, a broadband search and directory service. Under the
agreement, New Jersey-based MediaBay will provide digitally downloadable
content that can be accessed through the site.

(New York) Global Music Network, a music site for jazz, opera and
classical music, announced on Thursday that it has acquired the exclusive
intellectual property rights, including the Internet distribution rights,
to the 3 Tenors -- Luciano Pavarotti, Placido Domingo and Jose Carreras.
The agreement was signed with TTL Limited, a company created to represent
and control the trio's intellectual property. New York-based Global Music
Network said that it plans to release material from the group's archives.

(New York) MTVi, the new media division of music video network MTV, has
announced that its site will begin selling CDs directly from Previously, visitors to would have been directed
to MTVi partner sites to fulfill CD orders.

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