Top Stories
o WSJ: Google In Talks To Buy 5% Stake in AOL For $1 Billion
o Blu-ray Backer HP to Also Support Rival HD DVD Format
o Study: Online Wikipedia About as Accurate as Encyclopedia Britannica
o RIAA Sues Another 751 File-Swappers for Copyright Infringement
o Clear Channel Reviewing Proposals for New Radio Ratings System
o Command Audio Settles DVR Patent Litigation Against Sony
o AMD-Fujitsu Flash Memory Joint Venture Raises $506.4 Million in IPO
o Digital Media Distributor DG Systems to Acquire FastChannel for $25 Million
o German Mobile Radio Firm Spodradio Raises $2.4 Million

o Note to Readers: Holiday Publishing Schedule
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Briefly Noted
o Microsoft Awarded Interactive TV "Pause" Patent
o Cingular to Offer Mobile Video Clips of HBO's "The Sopranos," Other Shows
o Atari to Publish Games Based on Luc Besson's "Arthur and the Minimoys"
o Video Game Ad Network Massive Signs Developer Spark Unlimited
o Starbucks to Open 2 Additional Hear Music Coffeehouses
o Three Top U.S. Theater Owners Plot Digital Cinema Rollout
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Dulles, Va. - Despite recent talks about a potential advertising deal with Microsoft, America Online is now in exclusive negotiations to expand its current advertising partnership with Google and potentially sell the search engine giant a 5% stake in AOL for $1 billion, The Wall Street Journal reported in its online edition on Friday. Citing people close to the situation, the Journal said that a deal could be finalized after AOL parent Time Warner's board meeting on Wednesday. The deal will likely allow AOL to sell ads that will be displayed on the Google network. Google also is likely to promote
AOL's properties in the sponsored links section of its search results. AOL had been in talks with Google since January. Microsoft entered the discussions in September.
http://tinyurl.com/a6ag3 
http://biz.yahoo.com/rb/051216/media_timewarner_google.html?.v=5
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o Blu-ray Backer HP to Also Support Rival HD DVD Format

Palo Alto, Calif. - HP, formerly an exclusive supporter of Sony's Blu-ray next-generation DVD format, announced on Friday that it will additionally support Toshiba's rival HD DVD format by joining the HD-DVD Promotions Group. HP had asked Sony to adopt two technologies that will be offered on HD DVD -- Mandatory Managed Copy, which permits legal copies, and iHD, which provides interactive features -- threatening to end its exclusive Blu-ray support if Sony declined. While Sony has adopted Mandatory Managed Copy, HP said in announcing its support for HD DVD that Microsoft's intention to integrate iHD into its Windows Vista operating system was a factor in its decision. "Because HP wants to deliver the most user-friendly and cost-effective solution to our customers, we have decided to support both formats," said Maureen Weber, general manager of HP's personal storage business. The company said it will not decide which technology to include with its PCs and other products until it assesses development costs for both standards.
http://biz.yahoo.com/bw/051216/20051216005350.html?.v=1
http://tinyurl.com/b2anv (CNET)
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o Study: Online Wikipedia About as Accurate as Encyclopedia Britannica

London - Wikipedia, the online encyclopedia that has come under fire recently for inaccuracies and submission guidelines, is about as accurate as the Encyclopedia Britannica, according to the findings of a study conducted by the scientific journal Nature. Founded in 2001, Wikipedia now features nearly 4 million entries, all of which are submitted by its users and may be edited by anyone online. Nature's sampling of 42 articles from both reference sources were examined by experts, who found that Wikipedia's science-related entries featured an average of four errors, while Britannica's had an average of three. "I'm pleased," Wikipedia founder Jimmy Wales told Nature. "Our goal is to get to Britannica quality, or better." The survey found eight "serious" errors, such as misinterpretations of important concepts -- four from each source. "People will find it shocking to see how many errors there are in Britannica," Michael Twidale, an information scientist at the University of Illinois at Urbana-Champaign, told Nature. "Print encyclopaedias are often set up as the gold standards of information quality against which the failings of faster or cheaper resources can be compared. These findings remind us that we have an 18-carat standard, not a 24-carat one."
http://www.nature.com/nature/journal/v438/n7070/full/438900a.html
http://tinyurl.com/bjrz2 (AP)
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o RIAA Sues Another 751 File-Swappers for Copyright Infringement

Washington - The Recording Industry Association of America (RIAA) has sued another 751 alleged music file-swappers for copyright infringement. The "John Doe" defendants named in the suits included students at Harvard, USC and Drexel. The RIAA said it also filed 105 new lawsuits against defendants whose identities were revealed by their Internet service providers through previous "John Doe" actions. "The end of the year is an especially important time for the music community, and an especially fortunate time for music fans, with a great slate of new releases in stores," said RIAA president Cary Sherman. "We must do everything to protect the integrity of the marketplace. That means educating fans about steering clear of pirated product and continuing to enforce our rights to send a clear message that stealing music will bring consequences." To date, the recording industry has sued more than 17,000 file-swappers for copyright infringement.
http://www.riaa.com/news/newsletter/121505.asp
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o Clear Channel Reviewing Proposals for New Radio Ratings System

San Antonio - Clear Channel, the nation's largest radio station operator, announced on Friday that it has selected finalists from companies that submitted proposals after it called for a new, more accurate radio ratings system. "The potential to provide information that is more accurate and timely than the current diary system, as well as the ability to gather radio listening data in a more 'real life' setting than a recall based methodology can. All finalists share the capability for multi-media measurement," said Jess Hanson, senior vice president of research for Clear Channel Radio. An evaluation team of radio companies, media buyers and advertisers will review proposals from current ratings provider Arbitron, as well as Integrated Media Measurement, MediaAudit/Ipsos, Mediamark Research, Paladin Adsolutions, RadioStat and Simmons, with the goal of making a selection by March 3. Clear Channel said it expects to implement a new radio ratings system later in 2006.
http://tinyurl.com/atl4d
http://www.clearchannel.com
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o Command Audio Settles DVR Patent Litigation with Sony

San Mateo, Calif. - Command Audio, a developer of video-on-demand delivery technology, announced this week that it has settled a patent infringement suit it brought against Sony Electronics in 2002. Under the terms, Sony paid an undisclosed sum for a worldwide royalty-bearing license on Command Audio's technology. "Our patents are critical to the time-shifting functionality and convenience that millions of TV viewers and radio listeners are demanding," said Command Audio chairman and CEO Don Bogue. "Our license agreement with Sony demonstrates the strength and value of our patents. We expect continued success as we actively protect and license our intellectual property." San Mateo, Calif.-based Command Audio has also licensed its technology to Motorola, XM Satellite Radio and iBiquity Digital, but said Sony was the first firm to license its digital video recorder technology.
http://tinyurl.com/by63o
http://www.commandaudio.com
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o AMD-Fujitsu Flash Memory Joint Venture Raises $506.4 Million in IPO

Sunnyvale, Calif. - Shares of Spansion rose more than 12% in their debut Friday after the Flash memory joint venture of Sunnyvale-based AMD and Fujitsuraised $506.4 million in its initial public offering (IPO). It was the second largest IPO for a U.S. technology company this year. That in spite of the fact that the company priced its 42.2 million shares at $12 each, below its expected range of $13-$14, which itself had been lowered from $16-$18. Spansion's technology is used in consumer electronics products such as cell phones, PCs, set-top boxes and DVD players. The company's shares, trading on the Nasdaq under the symbol "SPSN," closed at $13.44.
http://biz.yahoo.com/prnews/051216/nyf035.html?.v=29 
http://www.spansion.com
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o Digital Media Distributor DG Systems to Acquire FastChannel for $25 Million

Needham, Mass. - FastChannel Network, a provider of digital media distribution and intelligence services to the advertising and broadcast industries, has agreed to merge with DG Systems, a Dallas-based provider of digital media distribution services. Under the agreement, DG Systems will issue Massachusetts-based FastChannel's shareholders about 52 million DG shares, which are traded on the Nasdaq and have a current value of about $0.50 a share. DG Systems shareholders will own about 59% of the combined company, while FastChannel shareholders will own about 41%. The combined company expects to have revenue of about $83 million in 2005.
http://www.fastchannel.com/fastchannel/press_release_view.aspo  
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o German Mobile Radio Firm Spodradio Raises $2.4 Million

Munich - Spodradio, a Stuttgart-based firm whose product allows users to turn their mobile phones into "music jukeboxes" with hundreds of interactive visual radio channels, has raised $2.4 million in first-round financing from BayTech Venture Capital. Spodradio said it would use the funds to bring its mobile visual-radio platform to the market in Germany. Users who download Spodradio's free player can listen to radio on their mobile phones while downloading songs and extras such as artist photos, artist news and ringtones. Twenty-five radio stations have already gone live with the product.
http://shorterlink.com/?C0CW62
http://www.spodradio.de
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o Note to Readers

The last edition of Digital Media Wire for the year will arrive on Tuesday, Dec. 20. We will resume our normal publishing schedule again on Tuesday, Jan. 3.

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CONNECTIONS (TM) at CES - Las Vegas, January 5-6, 2006

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Moderated and presented by the leading market research analysts, these events will provide you with the latest consumer research and industry analysis on “digital living” technologies and services.  Learn more at www.cesweb.org.

CONNECTIONS interactive sessions will cover the following topics: Portable Entertainment Devices, Advertising in the Digital Age, TV on Consumers’ Terms, Whole-Home Entertainment, Making the Network Work, and Global Buyer Preferences www.connectionsconference.com. 

Aren’t familiar with our research? Visit www.parkassociates.com and download our latest white papers, Making TV Meaningful: Consumers and IPTV Applications & Reaching the Unreachable Consumer: Advertising in the Digital Age
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Interactive & Multi-Media Web Designer - NPR Online

Responsible for daily art/design needs of NPR.org. Designs and produces news and editorial graphics and interactive storytelling applications.  BA in Design or Art w/3 years professional exp as graphic artist/designer and with Web design and/or graphics; demonstrated ability as illustrator; command of Photoshop, Illustrator, and Flash and web design technologies; information architecture, accessibility, and usability matters; ability to present ideas and designs to a group.  Apply to employment@npr.org.  EOE

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o Microsoft Awarded Interactive TV "Pause" Patent

London - Microsoft has been awarded a patent on technology that pauses a television show while viewers follow embedded links to relevant websites, chat rooms or other content, The Register reported. The company originally filed for the interactive TV "pause patent" in 1993. "Hyper-links to Internet sport pages or chat rooms can be included and the information displayed in a split screen along with the game, or the viewing of the game can be paused at the viewer's discretion for any length of time. Even with these arbitrary pauses the present invention(s) permits the viewer to watch the entire game, no matter when and how many viewing pauses are taken," reads the patent application.
http://www.theregister.co.uk/2005/12/15/microsoft_tv_pause_patent
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o Cingular to Offer Mobile Video Clips of HBO's "The Sopranos," Other Shows
 
New York - Wireless network operator Cingular has signed a three-year deal with HBO to provide video clips of shows including "The Sopranos" to mobile phones, Reuters reported. A subscription service slated to launch in several weeks will include HBO clips tailored for both adults and children, featuring celebrities including "Sex and the City" star Sarah Jessica Parker, comedian Dane Cook and hip-hop mogul Russell Simmons. The clips will initially be accessible on select handsets made by LG Electronics and Samsung, with others to follow.
http://tinyurl.com/747o3 (Reuters)
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o Atari to Publish Games Based on Luc Besson's "Arthur and the Minimoys"

New York - Atari announced this week that it has signed an agreement with movie production company EuropaCorp, to develop and publish video games based on the upcoming animated feature film "Arthur and the Minimoys," from writer and director Luc Besson. "By working with the film crew from day one, not only have we stayed extremely faithful to the film, but we have also developed parallel adventures specifically for the game, which should be popular with the public," said Atari Group chairman Bruno Bonnell. Games for PlayStation 2, PSP, Nintendo DS, Game Boy Advance and the PC will be released alongside the film at the end of 2006.
http://www.webwire.com/ViewPressRel.asp?aId=7002
http://www.atari.com
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o Video Game Ad Network Massive Signs Developer Spark Unlimited

New York - Massive Incorporated, a provider of an in-game advertising network, announced on Friday that it has signed an agreement with game developer Spark Unlimited, creator of Activision's "Call of Duty" franchise. Under the deal, Spark will add several upcoming titles to the Massive Network, which inserts ads from firms including Coca-Cola, Comcast, Honda, Paramount, T-Mobile into online games from 29 publishers.
http://tinyurl.com/bf3fy
http://www.sparkunlimited.com
http://www.massiveincorporated.com
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o Starbucks to Open 2 Additional Hear Music Coffeehouses

Seattle - Starbucks announced on Friday that it plans to open two additional Hear Music Coffeehouse locations, the company's experiment in music retailing where customers can sample music and burn custom CD compilations within the cafe. The company's first Hear Music location opened in March in Santa Monica, Calif.; new locations will launch in San Antonio on Monday, and in South Beach, Florida in early 2006. Custom CDs at Hear Music Coffeehouses cost $8.99 for the first 7 tracks and 99 cents for each additional song.
http://biz.yahoo.com/bw/051216/20051216005150.html?.v=1
http://www.starbucks.com/hearmusic
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o Three Top U.S. Theater Owners Plot Digital Cinema Rollout

Denver - National CineMedia, a joint venture of three top U.S. movie theater chains -- AMC Entertainment, Cinemark USA and Regal Entertainment Group -- announced this week that it is now working on a digital cinema business plan. "NCM's primary objective is to work with manufacturers to reduce the cost of digital cinema equipment through efficient volume purchasing for NCM's partners' 13,000 screens and other participating exhibitor screens," said NCM chairman and CEO Kurt Hall. "NCM will also seek to develop an efficient financing structure for the purchase of the digital cinema equipment that will be open to all capital sources…Once the financing model and equipment volume pricing has been established, our founding partners and other exhibitors who participate will have ultimate responsibility for deployment of digital cinema systems."
http://tinyurl.com/awe9c
http://tinyurl.com/avh6d (CNET)

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