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Past Editions

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DIGITAL MEDIA WIRE -- December 14, 2001
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To Subscribe For Free: http://www.digitalmediawire.com

o Vivendi Pays $1.5 Billion for 10% of Digital Satellite TV Firm EchoStar
o EU Adding Tax to Downloaded Digital Media
o Gemstar Gets Long-Term Program Guide Deal With Panasonic
o Thomson Multimedia Acquires Grass Valley Group for $172 Million
o Calif. Supreme Court to Rehear DeCSS Trade Secrets Case
o Theater Video-on-Demand Firm Showintel Networks Raises Funds
o Briefly Noted: M-Wise - Skyrock, AIM - music trading promotion, "Lord of
the Rings" - online marketing, Ericsson - sporting event WLAN
_____________________________________________

o Vivendi Pays $1.5 Billion for 10% of Digital Satellite TV Firm EchoStar

Paris -- Vivendi Universal announced on Friday that it has made a $1.5
billion equity investment in digital satellite television network
EchoStar, in return for 10 percent ownership of the company. The
eight-year agreement will give Vivendi a U.S. distribution outlet for the
films and music it owns through Universal Pictures and Universal Music
Group in the six million subscribers to EchoStar's DISH Network. Five new
channels, including an interactive games channel, will be created for the
DISH Network to showcase Vivendi content. As part of the agreement,
EchoStar will integrate Vivendi subsidiary Canal Plus Technologies'
MediaHighway middleware software, which will enable DISH Network
subscribers with digital video recorders to access interactive TV services
like video-on-demand. Assuming EchoStar's $30 billion merger with rival
satellite TV firm DirecTV is approved, DirecTV's ten million subscribers
will gain access to the same programming, and Vivendi Universal will hold
about a 5 percent stake in the combined company.
http://biz.yahoo.com/bw/011214/142044_1.html
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o EU Adding Tax to Downloaded Digital Media

London -- The European Union has approved the addition of value added tax
(VAT) to the sales of downloaded digital media such as music, movies and
software, TheRegister reported on Friday. The tax will be levied on
companies based outside of the EU that sell over $90,000 annually worth of
downloads to citizens of EU member countries. The VAT will go through a
three-year trial period, during which time the EU hopes that a global tax
scheme for digitally downloaded products will be established.
http://www.theregister.co.uk/content/31/21676.html
_____________________________________________

o Gemstar Gets Long-Term Program Guide Deal With Panasonic

Pasadena, Calif. -- Gemstar-TV Guide International announced on Friday
that it has entered into a long-term license agreement with Japanese
electronics firm Matsushita -- better known for its Panasonic brand name
-- to include Gemstar interactive TV program guide technology in Panasonic
TVs. The first product to use Pasadena-based Gemstar's G-Guide Gold system
will be a 36" digital TV with built-in digital video recorder, announced
yesterday by Panasonic, that will be available in stores beginning Dec.
20. Gemstar entered into a joint venture with Japanese ad firm Dentsu to
generate revenue based on advertising and transactional services provided
through the interactive program guide service.
http://biz.yahoo.com/bw/011214/140097_1.html
http://www.gemstartvguide.com/
_____________________________________________

o Thomson Multimedia Acquires Grass Valley Group for $172 Million

Paris -- Thomson Multimedia, a provider of broadcast and online digital
video systems, announced on Friday that it will acquire the Grass Valley
Group, a developer of digital broadcast and Internet streaming equipment,
for $172 million in cash. Nevada City, Calif.-based Grass Valley Group,
which had revenues of $200 million in 2000, provides servers, switchers,
routers, modular products and digital news production solutions that are
touched by 80 percent of the world's TV signals. The company will be
integrated into the Thomson Broadcast unit, and Thomson said the
acquisition "will further extend Thomson Broadcast's digital solution
portfolio and strengthen its position as a key supplier of integrated and
networked broadcast solutions for content providers."
http://biz.yahoo.com/bw/011214/142168_1.html
http://www.thomson-multimedia.com
http://www.grassvalleygroup.com
_____________________________________________

o Calif. Supreme Court to Rehear DeCSS Trade Secrets Case

San Francisco -- The California Supreme Court has agreed to rehear a case
regarding the online publishing of the controversial, DVD
security-cracking DeCSS code, Newsbytes reported. The appeal will
determine whether or not Texas resident Matthew Pavlovich may be tried
under California jurisdiction for violating state trade secret law by
posting DeCSS. The Content Scramble System (CSS), which the DeCSS code can
break, was created to protect DVD discs from being copied and distributed
online or sold on the black market. CSS was developed and is owned by
California-based technology and entertainment firms who claim their trade
secret has been compromised, and who filed suit in the state of California
against Pavlovich and a number of others who posted the code online.
http://www.washtech.com/news/media/14191-1.html
http://www.eff.org/intellectual_property/DVD
_____________________________________________

o Theater Video-on-Demand Firm Showintel Networks Raises Funds

Memphis, Tenn. -- Showintel Networks, a provider of interactive technology
to movie theaters, said on Friday that it has raised a multi-million
dollar round of new financing that will provide interim operational funds,
a line of credit and equipment financing. Memphis-based Showintel installs
video-on-demand systems in movie theaters that let patrons review movie
trailers, interact with TV-style advertising and place orders for
soundtracks and DVDs. The company said the funds will allow it to install
its technology in 36 new theaters.
http://biz.yahoo.com/prnews/011214/chf003_1.html
_____________________________________________

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_____________________________________________

o Briefly Noted:

(London) M-Wise, a provider of wireless entertainment delivery technology,
announced on Friday that French radio station Skyrock will use its
services to offer cell phone users the ability to send text messages to
station DJs and vote in wireless polls. The 2SKY2 service will be offered
through all of France's wireless network operators, including Bouygues
Telecom, Orange and SFR. London-based M-Wise's other clients include
Intel, Pepsi and United Airlines.
http://www.m-wise.com
http://www.skyrock.com/

(New York) AOL on Friday announced a music promotion on its AOL Instant
Messenger service. Users can IM one another with audio and video stream
links to holiday-themed songs and videos from Warner Music artists. Tracks
and videos from artists including Macy Gray, Wyclef Jean and Frank Sinatra
will be available for "trading" until Dec. 21.
http://biz.yahoo.com/bw/011214/142165_1.html
http://www.aim.com

(San Francisco) Wired News ran a feature article on Friday on the online
promotional strategy behind New Line Cinema's "The Lord of the Rings"
trilogy. Instead of locking away production information from Tolkien fans
and those interested in the films, New Line invited both journalists and
fan site operators to visit the set and report on script development, set
design and other aspects of the production. "It would have been arrogant
to assume the approach that New Line Cinema was the final authority on the
movie," said New Line vice president of worldwide online marketing Gordon
Paddison. "So we decided to pitch our tent out in the field among everyone
else."
http://www.wired.com/news/digiwood/0,1412,49118,00.html
http://www.lordoftherings.net

(Stockholm, Sweden) Wireless technology developer Ericsson has created
technology that will let spectators at sporting events access video from
cameras mounted on players and referees, Reuters reported. Video will be
delivered to spectators with PDAs or other wireless devices through a
wireless local access network (WLAN). The technology has been tested at a
soccer match in Sweden with a capacity of 500 simultaneous users; Ericsson
said its Event System could easily be altered to work with nascent 3G
networks. In addition to video, the system has sensors attached to
players' bodies that relays their heart rate, and can also provide updated
scores from other ongoing matches.
http://news.cnet.com/news/0-1004-200-8177291.html?tag=mn_hd
http://www.ericsson.com
______________________

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Copyright 2001 Digital Media Wire