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TuneGrabber Rewards Shoppers with iTunes The concept of loyalty reward programs is nothing new; airlines have been offering frequent flyer mile rewards for years, some credit cards offer "cash back" incentives and any number of grocery and stores and Web sites promise special sale prices in exchange for "member" customers giving up some personal demographic information. Sasha Nordeen took this idea of rewarding customers and gave it a new twist. Rather than concoct a complicated program in which shoppers need to save up varying numbers of credits to earn different rewards, Nordeen's TuneGrabber.com has a simple plan - when a member's account reaches 10,000 so-called "TuneTokens," he gets a $10 gift certificate to Apple's iTunes Music Store. And TuneGrabber doesn't sell anything. Think of it more as a portal with links to some 300 retailers. Shop at any of the retailers, earn TuneTokens, get an iTunes gift certificate automatically mailed to you. What could be easier, especially considering this sample list of participating online retailers: Macy's, Sharper Image, Office Depot, 1-800-Contacts, 1-800-Flowers, Blue Nile, Cricket Communications, dELiA*s, Drugstore.com, eCampus.com, Hammacher Schlemmer, Hickory Farms, HotTopic.com, Hotwire.com, KBtoys.com, Liz Claiborne, Overstock.com, Payless ShoeShource, Petco, Philips Electronics, Radisson Hotels & Resorts, Sephora, Shoes.com, Steve Madden, Thrifty Rent-a-Car and WorldPerks Visa. According to Nordeen, making sure the sites were ones where folks actually shop was the most important factor in choosing which merchants to invite to participate. "This is an incredibly simple and rewarding way to get free, legal music downloads," she said. "Many consumers shop online but are completely unaware of the bargains and perks that can be found if you know where to look. Visiting TuneGrabber.com before you begin shopping is the key to receiving free music downloads for doing something you had planned to do anyway. There is absolutely nothing to lose and lots of free music to be gained." In order to gain more traffic, Web sites often offer or participate in affiliate programs, where third-party sites set up a link to the retailer and earn a commission for sales generated through the link. For the most part, the online retailers keep the entire commission, which, Nordeen says, means that consumers are "in essence donating to that particular site when they could be keeping that bonus for themselves." On TuneGrabber.com, the number of TuneTokens earned per dollar spent depends on the commission offered by the individual retailers, so there's no strict formula for determining how much a consumer has to spend before receiving a reward. All new members get 1,000 TuneTokens for signing up, so that's one-tenth of an iTunes gift certificate before the shopping even starts. According to Nordeen, one member recently earned 5520 tokens on his first transaction - and he didn't even spend $100. TuneGrabber uses the money it receives based on member transactions to buy the iTunes gift certificates. "Apple is not affiliated with TuneGrabber or involved in the redemption and delivery process," said Nordeen. If Apple isn't affiliated with TuneGrabber, then why reward the company by buying gift certificates and driving traffic to iTunes? Nordeen, a self-professed Mac and iPod fan, decided to offer iTunes gift certificates as rewards for a number of reasons, including the facts that it's available to both Mac and PC users and is the clear market leader with more than 200 million downloads. It's not all about the shopping at TuneGrabber; it's about the music, too. While the site has no plans to offer downloads from other services as part of its rewards program, but is willing to give folks who visit the site the chance to download free tunes. Michael Hektoen, manager of Canadian band NewSchool approached Nordeen in early December in an effort to boost US awareness of the group. He provided TuneGrabber.com with an MP3 of NewSchool's Canadian hit "The Sweetest Christmas," and the track was made available as a free download for a limited time on the site. "I am definitely open to working with artists who would like to have consumers download their music for free, as both music fans and artists can benefit from this type of exposure," said Nordeen. Intel Invests in 3 Digital Home Developers
Intel is very clear in where it wants to drive digital media technology. Scott Darling, Intel Capital VP and director of enterprise and digital home sectors, said the investments were made "to support widespread adoption, use and sharing of digital entertainment and information - music, games, news, video - among multiple devices in the home and elsewhere." He said that Intel Capital would continue to invest in companies whose technologies permit PC and CE devices to work together and in companies that deliver premium content services over the Net. Darling said that the companies that Intel Capital invests in contribute to connecting PC and CE devices together, ensuring their ease-of-use and paving the way for new services to deliver digital entertainment and information. Financial terms of the investments were not provided. Intel Digital Home Fund investments announced earlier this year include BridgeCo, Cablematrix, Digital 5, Envivio, Mediabolic, Pure Networks, Staccato Communications, Trymedia Systems and Wisair. Orb Networks Launches Remote Digital Content Access Service Orb Networks, a developer of streaming media software and services, has launched its debut service, Orb Media 1.0. The software and service provides consumers with a simple way to view, hear and access all kinds of their digital content from virtually any Internet-enabled device, anywhere in the world. Orb's solution provides access to a person's music, live TV, videos, photos and other digital content from any device that can connect to the Net, such as a cell phone, PDA or notebook, allowing users to create their own "personal media portal." "When talking about this type of technology, one of the first issues that always comes up is digital rights management," said Orb CEO James Behrens. "We are in constant discussion with the major content providers, wireless carriers, consumer electronics companies, and event he top executives at the FCC, and once they understand what we are doing there is always the same reaction, 'we want to work with you to bring this service to our customers.'" At the consumer electronics show this week Orb announced several partnerships with some of these major CE companies and content providers. -A deal with digital video
solutions developer Pinnacle Systems allows Pinnacle's
customers to use the Orb service to connect to their digital
media, including the digital videos they've created with
Pinnacle Studio or videos they've recorded with Pinnacle
MediaCenter and PCTV from any Net-connected device. The Orb service starts at $9.99 a month or $79.99 a year for the first user. Up to five additional users can be added to the account for as little as $3.99 per user per month or $29.99 per user per year. At launch, the service works with Windows XP Media Center Edition PCs. The company is currently testing a version for XP systems and expects to release that version within the next two months. SBC to Offer 'Grand Slam' Set-Top DSL/Fiber Box The unifying technology for the digital home may not come from either the PC or the CE industries - two camps that have been warring over digital media standards. Instead it could come from the phone and cable TV companies. SBC Communications this week announced a new set-top box that may prove to be the "box-of-the-year." Developed in conjunction with 2Wire and using 2Wire technology, the all-in-one box provides multiple digital media services - broadband (DSL or fiber), TV programs from the Dish Network, digital video recorder functions, video-on-demand, home networking, Yahoo's online music service, music storage that serves music to the home's networked PCs and stereos plus a Yahoo package of content and services such as Yahoo Photo and parental controls.
The SBC/2Wire Set-top's User Interface SBC and 2Wire plan to launch the home entertainment service via a new set-top box by mid-year. Users will see the "familiar and intuitive" Yahoo user interface. SBC will use the box to deliver home entertainment video services to customers through either high-speed fiber or DSL. The box will deliver the Dish Network's satellite TV service, which SBC has been selling with Dish Network's set-top box. The SBC box will offer a
"grand slam" of services: SBC thinks its integrated service will hit consumers' sweet spot. Ed Cholerton, CEO of the newly formed SBC Media Solutions and VP of SBC DSL, said that the unified service would "bring together many of the features that consumers want most - TV programming, video-on-demand and Internet content and services, in a way that competitors and cable TV providers can't match." He said that it would allow SBC to deliver a "complete, personalized and seamless entertainment and communications service" while it builds its fiber optic network. SBC calls the service its "grand slam" strategy of voice, wireless, broadband Internet and video services. The set-top box, using 2Wire's MediaPortal technology, combines a satellite TV receiver, DVR, DSL/fiber modem, networking and storage for music and photos. Users will be able to access the box from any Internet-connected PC and remotely display photos, remotely play music and schedule their digital video recorder remotely. A future enhancement will allow remote access through Cingular Wireless phones. SBC owns 60% of Cingular.
SBC/2Wire Music Center Interface "Seamless," "total integration" and "easy chair" are SBC's mantra. The company claims users will be able to use a remote control from their easy chair to access an "easy-to-use" Yahoo interface to "seamlessly" operate the box for any of its functions. A deal with EchoStar Communications lets SBC offer TV entertainment from the Dish Network as well as DVR functions and video-on-demand. Nolan Daines, executive VP of broadband at EchoStar, called the service "cutting edge" and said it combines Dish Network's "proven" satellite video service with the "promising" features of broadband. Key functions of the new box and service include: - Satellite TV from the Dish
Network. SBC said that the home entertainment service is separate from, but complements, its recently announced plans to deliver advanced next-generation television services called IPTV over its SBC fiber network, an initiative dubbed Project Lightspeed. Customers will not need access to the fiber network to subscribe to the home entertainment service. The Consumer Electronics Association has recognized the 2Wire set-top box at the heart of the service as an Innovations 2005 Design and Engineering Showcase honoree in the Home Data Networking category. SBC Media Solutions will develop and market the set-top box. Cholerton has been appointed CEO of the new company. Brian Hinman, 2Wire president and CEO, will assume the role of president, SBC Media Solutions. Hinman said that the goal is to advance broadband and home networking to families and small businesses. He said, "We're working with SBC companies to bring broadband connectivity beyond the PC to TV." In addition to the SBC deal,
2Wire has signed up British Telecom and Teléfonos de México.
Headquartered in San Jose, 2Wire was founded in July 1998 by
Brian Hinman, a co-founder of PictureTel and Polycom. TiVo subscribers with Series2 boxes saw the year start with a free upgrade. The company this week started automatically downloading the so-called TiVoToGo software that lets users copy recorded TV programs to laptops or other PCs that run Windows 2000 or XP. They will not, however, be able to copy TV programs that are protected by Macrovision copy protection including pay-per-view (PPV), video-on-demand (VOD) and commercial DVDs. Later in the year, TiVo expects to upgrade DVD recorders that have TiVo technology built-in. The TiVoToGo upgrade is only for subscribers with DirecTV TiVo's. "Consumers don't want to be tied to their living room to watch their favorite entertainment. Other generic DVRs confine your entertainment experience to the living room, but with TiVoToGo, subscribers can take their favorite shows with them to enjoy on business trips or family vacations," said TiVo chief marketing officer Matt Wisk. To get the thing to work, users must download a program to their PC that will encrypt the TV programs copied from the TiVo. TiVo Series2 standalone subscribers, except those with built-in DVD recorders, will automatically receive the new TiVoToGo feature when their DVRs make their routine connection to the TiVo service. TiVo boxes will automatically retrieve the software update necessary to enable the new capability and subscribers will receive a message on their TiVo boxes after they have received the update. To copy a recorded TV program to a PC, the user connects the PC and the TiVo to the home network. The next step is to download and install the TiVoToGo software on the PC by going to www.tivo.com/togo. The TiVoToGo service enhancement securely encrypts programming during the transfer to the laptop. Once transferred, subscribers enter a password they created during software installation that will allow decryption and playback of the file. TiVoToGo gives the company another function that its says is an exclusive feature not found on the DVRs the satellite and cable TV services are selling - what TiVo calls "generic" DVRs. TiVo says the exclusive list includes online scheduling, Season Pass recordings, WishList searches and home networked music and photos. The non-DirecTV TiVo does, however, have some significant shortcomings. It has only one tuner and so cannot, out-of-the-box, record one channel while the user is watching another. To "watch-one, record-one" on the non-DirecTV TiVo requires a trip to an electronics store for an adapter and sometimes an online purchase of a hard-to-find cable booster. TiVo Exclusives It appears that the DirecTV TiVo model is easier to install and has "record-one, watch-another-one" right out of the box - without the user having to purchase any additional gear. On the other hand, the TiVo model has the advantage of being networkable and now having the "to-go" function for copying recorded shows. The phone companies are
expected to flood the market this year with multi-function
set-top boxes that include TiVo-like features - see the
SBC-2Wire announcement this week. The cable companies will no
doubt follow suit. Assuming they have "watch-one,
record-one" functionality out-of the box, they'll be
easier for users to install and more useful. With their
existing contacts with millions of their users, the phone and
cable TV companies already have a big marketing edge over
TiVo. How in that market does TiVo succeed? The answer can
only be by continuing to add unique functionality and getting
partners to develop add-on products and services. Otherwise,
it is hard to see how the current non-DirecTV TiVo can succeed
in the coming competitive market as a stand-alone product. It plans to introduce a high-definition DVR that receives and records content delivered over the Internet as well as from over-the-air broadcasts and from cable TV services. The unit, to be launched in early 2006, will have its own cable TV tuner based on the CableCARD initiative. It can be connected to a cable TV service without the need for a separate cable set-top box. It can also receive over-the-air HD broadcasts. As part of the company's "Tahiti" strategy, the new DVR will allow consumers to access, download and manage broadband content. TiVo chairman and CEO Mike Ramsay said that the deployment of CableCARD technology "is an essential development for the future of digital television." He said that TiVo intends to "play a key role in driving this technology forward to bring it to the masses." TiVo's Tahiti product strategy features an open software platform that will allow third parties to develop applications and distribute content to the TiVo subscriber base. TiVo intends to roll out components of Tahiti throughout this year and into 2006. Ramsay said the company expects that the trend in TV entertainment will follow that of digital music - with the consumer increasingly in control. He said that consumers would expect "the increased choice in à la carte programming that Internet-based TV will offer." Included in that, he said, is "the ability to take their recorded shows with them on business travel or family road trips." He said that consumers want entertainment to fit into their busy lives, not the other way around. TiVo also announced partnerships with Microsoft, Advanced Micro Devices and Sonic Solutions to give users the ability to copy recorded TV shows and movies to a DVD or view them on a handheld device, via TiVo's new TiVoToGo service. "Now that millions of consumers are enjoying the TiVo service in their living rooms, we found that many of them had a desire to take that entertainment experience with them," Wisk. Wisk said that the company and its partners want to quickly extend the "TiVo experience" to a broad range of devices. Microsoft chairman Bill Gates in his keynote address at CES demonstrated how television programs stored on a TiVo can be copied to a Windows XP PC for playback on Windows Mobile devices, including Portable Media Centers, and media-capable Pocket PCs and Smart phones. Sonic Solutions introduced the latest version of its MyDVD Studio line (version 6.1) that lets users record TiVo programming to DVD for playback on any of the millions of DVD players and DVD-equipped PCs worldwide. Starting mid-January, a MyDVD Studio 6.1 free 15-day trial and complete product software download will be available to TiVo subscribers on www.tivo.com/togo. The complete product software download will be offered to TiVo subscribers at a discounted rate of $49.99. TiVo also announced that microprocessor developer and Intel competitor AMD had released a new embedded multimedia solution, the AMD Alchemy Au1200 processor. It enables the copying of content from TiVo boxes to portable devices built on that platform. Back to Headlines
TiVo's Seven-Point Tahiti
Product Strategy 1. Content Delivery Service. To provide consumers even more convenience and control over their entertainment experience, TiVo is developing a new content delivery service that will enable TiVo Series2 subscribers to search and access broadband content. In conjunction with this effort, TiVo is also developing television commerce capabilities allowing subscribers to purchase products with a push of a button on the TiVo remote control. 2. Entertainment Applications Platform. TiVo's position in the living room, connectivity and usability make it an attractive platform for third-party innovation and services. TiVo's Entertainment Applications Platform will facilitate the development of innovative new services in the living room. These services could range from music services to network promotions to on-line video stores and more. 3. TiVo HD Digital Cable-Ready DVR. This box will fully integrate an HD digital cable receiver and TiVo DVR in a single set-top box. CableCARD technology will be built-in, giving consumers access to digital cable programming and other features of the TiVo service. With TiVo's new digital ready DVR and access to broadband content, consumers will have more choice, including à la carte programming options via the Internet versus paying for premium bundled packages from cable providers. The TiVo HD Digital Cable-ready DVR is expected to be available in early 2006. 4. Portability. With the TiVo service, consumers can watch what they want, when they want and now, where they want. The Humax and Toshiba DVD recorders with TiVo service let consumers record their favorite shows and then easily burn them to DVD for playback anywhere they have a DVD player. With TiVoToGo, consumers can securely transfer their favorite shows from a TiVo box to a laptop or portable media player in their home so that they can take the programs with them on business travel or family road trips. Alternately, they can use the DVD recorder they may already have on their PC to save a show to DVD. The TiVoToGo service enhancement is available now as a service update and is included in the TiVo service at no additional charge. 5. PC and Online Integration. TiVo desktop software 2.0 allows consumers to integrate music, photos and video into their TiVo experience. Online scheduling lets subscribers schedule a recording on their TiVo box from anywhere they have internet access. This will be extended to make it easy to record broadband content as well. 6. Personalization. Exclusive TiVo personalization features like WishList searches and Season Pass recordings will be extended for broadband use, helping subscribers personalize their searches to find their favorite broadband content. 7. TiVo Series2 box. It is the
only combination broadcast and broadband platform that easily
connects to a home network to bring together all the home's
entertainment - personal content, such as music and photos,
favorite television programs and later this year, with TiVo's
content delivery service, broadband content as well.
Back
to Headlines
NetGear Intro's Wireless Networked Digital Media Player NetGear introduced a new networked home entertainment system dubbed the Wireless Digital Media Player (MP115). This latest addition to NetGear's family of digital entertainment solutions, the MP115 is supposed to make it simple for consumers to access video, photos and music files anywhere on the home network. It lets folks share digital home movies and slideshows or stream MP3s and online radio stations through TV sets and stereo systems - without having to get up from the sofa. The Player features a remote control and intuitive onscreen menu that make it possible for even the most inexperienced PC users to browse and enjoy their digital library of songs, movies and photos. The MP115 operates on both
802.11b and 802.11g networks. It works with most PCs and
connects to a TV through an AV jack without the need for
special cables or adapters. The Wireless Digital Media Player
comes with media server software that automatically catalogs
all the digital image and music files on the home network
allowing users to search for files based on title, artist,
genre, playlist and other keywords.
It also streams digital content available through premium online content services such as the RealNetworks Rhapsody music service. Users can choose 50 radio stations from vTuner to stream through their MP115. The player also comes with a free trial of Rhapsody. Compatibility with different file formats won't be much of a concern, as the player supports MPEG-1, MPEG-2, MPEG-4, JPEG, GIF, TIFF, BMP, MP3, WMA, WAV, M3U, PLS and streaming MP3 formats. It also interoperates with any Universal Plug-and-Play-enabled server software. The player can connect to home theater devices through stereo audio, composite video, component video, S-Video jacks and SCART interface (for Europe and Australia). It has a dual 2dbi antenna that provides better wireless reception and enables content to transmit across greater distances. The NetGear Wireless Digital
Media Player needs a PC running Windows 98, 98SE, Me, 2000 or
XP; a Pentium 500MHz processor; 128MB of memory and 20MB of
free disk space. Its hardware-based WEP 64-bit and 128-bit
encryption, the player prevents hackers and snoops from
tapping into the user's home network. It's available now for
$220. Back
to Headlines
Xingtone Powers MoS Mobile Content Downloads MP3 ringtone software outfit Xingtone has inked a deal to power the new US-based mobile content download store for record label Ministry of Sound (MoS). MoS, one of the largest indie labels in the world, already provides 3G mobile content including ringtones, wallpaper and games, in its native Europe. Now it's taking on the mobile content market in the states with a mobile content site powered by Xingtone's mobile content delivery engine. The site, at
ministryofsound.com/usa, contains exclusive content from MoS
artists including the polyphonic ringtone version of
"Call On Me," the number one hit from Eric Prydz.
Other artist ringtones available on the site include Boogie
Pimps, Aloud, Deepest Blue and Tomcraft among others.
Back
to Headlines
Mobile Operators Need More than Music Downloads Mobile operators wanting to offer music-on-demand services need to come up with additional strategies beyond simply selling music tracks that can be downloaded to cell phones if they want to make money from the venture according to a new report from Strategy Analytics. The market researcher believes that volume sales of full-track mobile music downloads won't come easy, despite the notable success of mobile ringtones and fixed online download services. Strategy Analytics sees mobile music download services generating only $2 billion in annual revenue by 2009, a far cry from the $57 billion in projected SMS revenue. Over the past six months, several European mobile carriers including Vodafone, Orange and O2 have started offering new services that let consumers download full-length songs directly to cell phones. However, according to Strategy Analytics, services focusing only on mobile downloading don't have a prayer of competing with the lower costs, better interfaces, larger catalogs and faster transmission speeds of the more traditional digital music services, such as iTunes and Napster, which let users download songs over high-speed broadband connections. Although the number of phones that can access mobile music services is expected to grow rapidly over the next five years, "We believe that mobile operators wanting to compete with in the music download business must play to the strengths of mobility and combine the use of fixed online channels with bundled product offerings," said Strategy Analytics senior analyst Nitesh Patel. "Simply replicating iTunes over cellular networks is not going to be sufficient." In the US, AT&T Wireless (now part of Cingular) has introduced a mobile music service that addresses these issues. Customers search for and purchase music via a cell phone and then download the purchased tracks from a home PC with a fixed Internet connection rather than over the slower mobile network. Vodafone has said that it's targeting consumers in the 25-35 age group with its mobile music service. While Strategy Analytics sees the early adopters in this group using their cell phones to listen to music, it believes that they are unlikely to actually download the music over a cellular network. As a result, mobile music on demand services will struggle to grow beyond a niche market, at least through 2009. According to David Kerr, VP of
the Strategy Analytics Global Wireless Practice, "We do
not believe that technophile 'music lovers' who currently
purchase music through physical points of sale or online, will
migrate to cellular distribution. Given the slim margins
afforded by music downloads, we view the low likelihood of
achieving scale as a serious barrier to the longevity of
mobile music on demand services." Back
to Headlines
Music Choice Now an Option from Sprint PCS Music Choice has gone mobile. The multi-platform music network is available to some 44 million digital cable and satellite TV subscribers as well as through a new broadband offering. Now, through a new partnership with Sprint, it's offered as part of the wireless carrier's PCS Vision Multimedia Services channel as well. The Music Choice audio channels cover a wide variety of music genres including - but not limited to - R&B, hip-hop, Hit List, 80s, 90s, country and rock. Sprint also offers access to "Music Choice Today," which delivers daily video clips including artist interviews and performances produced at the Music Choice studios, and "Music Choice News," which supplies consumers with music news and artist gossip. Subscribers to the mobile Music Choice service can check out the latest headlines or click on a music genre to start streaming and turn their phone into a portable music player. The companies are promoting the service as a way for consumers to enjoy "a quick few minutes of music while waiting in line, walking, or sitting in the airport or train station." "This alliance furthers our objective to reach a larger audience through diverse mediums," said Music Choice president and CEO David Del Beccaro. "As wireless phones evolve into multipurpose, mobile devices, Music Choice is poised to deliver unparalleled music content, extending our reach from the home to the mobile universe." Sprint's PCS Vision Multimedia Services deliver streaming audio and video at up to 15 frames per second. In addition to Music Choice, content comes from the likes of NBC Mobile, CNN, ABC News, Fox Sports, The Weather Channel, Discovery, E! Entertainment, mFlix, 20th Century Fox, AccuWeather, Cartoon Network, Comedy Time and 1KTV. Initially, the Music Choice option will only work on the Sanyo MM-7400 multimedia phone. Additional supported handsets will be out in the near future. The Sprint TV package of
multimedia services, including news, sports and entertainment
with Music Choice Today, is $9.99 a month. Customers can also
subscribe to the full Music Choice channel for $5.95 a month.
Other premium channels are available from $3.95-$5.95 a month.
The full-blown Sprint Multimedia Pack, which includes Sprint
TV, unlimited Sprint PCS Vision, Picture Mail, Sprint PCS
Video Mail and 100 SMS text messages, is $25 a month.
Back
to Headlines
Fans of hip-hop who want to extend the music experience to their cell phones now have a wireless record label to turn to where they can get songs recorded exclusively for mobile handsets. Rather than create ringtones
that are snippets of previously recorded hit songs, BlingTones,
a division of Lagardere Active North America, the US branch of
European content provider Lagardere Active Broadband, promises
original content. The new wireless label has signed several
top hip-hop producers to create original 30-second songs
available exclusively through the BlingTones label. "We provide more than traditional 'ringtones,'" claims BlingTones CEO Julien Mitelberg. "With BlingTones, we've taken it to the next level by providing unique hip-hop music - real music, made by top producers, only for your cell phone." In addition to the exclusive
songs, BlingTones will also provide BlingPix, exclusive
screensavers with contemporary urban themes. Plans are also in
the works to sign comedians to create original content for
ringtones and ringback tones. Back
to Headlines
Sprint PCS Vision Adds 'Toons, Mini Movies Sprint has added content from CellToons and Fun Little Movies (FLM) to its multimedia service offering. Sprint customers who subscribe to the company's PCS Vision Multimedia Services can access more than 600 streaming video and audio clips every day in categories ranging from news and sports to entertainment and cartoons created specifically for mobile viewing. CellToons are one- to three-minute animated shorts developed by Thumbworks. The available 'toons include several created and produced by the Vancouver Film School, Blur Studios and well-known animators Bruno Bozzetto and Mike Wellins. Fun Little Movies features made-for-mobile comedy films and animation. The Fun Funny Phone Films live-action comedies include humorous headlines in "Comedy USA," sci-fi parody "Spacey Movie" and "The MiniBikers," in which little people on motorcycles fight crime. CellToons content is available
on the PCS Vision Multimedia Services channel 18 for $4.95 a
month. The FLM content, also $4.95 a month, can be found on
channel 19. Back
to Headlines
Jamdat Buys Texas Hold 'Em Publisher Mobile entertainment content publisher Jamdat Mobile has acquired Downtown Wireless, the developer of Downtown Texas Hold 'Em and other casino titles for cell phones. The acquisition furthers Jamdat's strategy of growth through the ownership of a wide portfolio of popular titles for casual gamers. Headquartered in Los Angeles, Downtown Wireless was formed in 2003 and publishes such games as Downtown Video Slots and Downtown Roulette in addition to the popular Texas Hold 'Em poker. Terms of the deal were not
disclosed. Back
to Headlines
RealNetworks Signs Comcast for Rhapsody RadioPlus RealNetworks expanded an
existing online music agreement with Comcast, which will now
offer RealNetworks' Rhapsody RadioPlus premium Internet radio
service to its 6.5 million high-speed Internet customers.
It'll be available to Comcast's broadband subscribers during
the first half. Comcast is the largest US broadband provider.
Terms of the deal were not disclosed. Back
to Headlines
Tiny Eatel Challenges Cox Cable for Triple Play Fiber optic networks are expanding to every nook and cranny in the US. Eatel, a tiny phone company that operates in only part of one rural Louisiana parish, has not only started installing fiber optic cable to every home, it has started promoting the TV, high-speed Internet access and phone service on billboards and in the newspapers.
Eatel will spend $30 million on the fiber network that it calls FiberEdge. It's running fiber past about 1,300 homes a month. Eatel is taking direct aim at Cox Cable for Internet, phone and TV service. Separately, the city-owned
public utility service in Lafayette, Louisiana is seeking
approval for offering fiber to the home. BellSouth and Cox
cable would both be competitors in Lafayette. The Fiber To the
Home Council lists over 128 communities in 32 states that are
getting fiber to about 146,000 homes, mostly in smaller towns.
Back
to Headlines
Satellite Antenna Brings Video to the Car Video-to-the-car seemed to be
the hottest new topic this week. Automotive electronics
manufacturer Audiovox launched its SkyBox, a car antenna
capable of receiving Dish Network and other satellite TV
services in cars equipped with mobile video systems. RaySat
developed the 5.7-inch antenna, which Audiovox will market in
the US and Canada. Audiovox also introduced a $200 car adapter
that allows an iPod to be directly connected to most
factory-installed radios. The device allows drivers of cars
equipped with steering wheel radio controls to skip tracks and
fast-forward and rewind tracks on their iPods via the steering
wheel. Back
to Headlines
Comcast, Delphi: Any Content in any Car Comcast is partnering up with
the automotive electronics manufacturer Delphi to develop an
in-vehicle entertainment system. Delphi will develop the
receiver device, expected to be based on its wireless-enabled
rear-seat video system. Comcast will examine ways to allow
users to access video content. Users will be able to transfer
video and other content from a home PC or server to the
in-vehicle receiver over a wireless connection. It's expected
to take six to 18 months to develop the service. Back
to Headlines
BellSouth Drops to $9.95 a Month BellSouth has lowered its
monthly DSL rate to $9.95 a month for the first six months.
The company has been the least aggressive of the four major
regional phone companies in marketing its DSL service, both on
pricing and extra services offered. After six months, the rate
goes to $24.95. The modem and installation activation are
free. Back
to Headlines
BitBand, which develops
video-on-demand technology for telecommunication companies'
broadband networks, has raised an additional $4.75 million of
venture capital financing. Israel-based BitBand said it would
use the funds to expand its global presence and engage in new
development activities. Back
to Headlines
LIES, DAMN LIES, AND STATISTICS Online Holiday Sales Boom - Up 25% US consumers spent $23.2 billion during the 2004 holiday season, excluding travel, a 25% increase from the $18.5 billion spent online during the same timeframe in 2003. Goldman Sachs, Harris Interactive and Nielsen//NetRatings compiled the latest holiday "eSpending Report." Last year online consumers spent the most on apparel/clothing, totaling $3.8 billion, or 16% of total online revenue. The toys/video games category was second with $2.5 billion, or 11%, while the consumer electronics category rounded out the top three with $2.3 billion, or 10% of the total. Jewelry was the fastest growing with a 113% increase to $1.9 billion from $888 million. Floral retailers had a 59% increase to $530 million. Computer hardware/peripherals increased 30% over 2003 to $2.1 billion in online revenue. The majority of online
consumers said they were satisfied with this season's Web
shopping experience: Three main factors contributed to the size of the online shopping segment. Similar to last year, the 2004 eSpending report showed that 36% of respondents said a preference to avoid crowds was the top reason to buy online rather than visit a store. A lower price was cited by 36% as their reason for buying online. Roughly a third cited a wide product selection. Online Shopping Catagories Ranked by Total Online Revenue - 2004 Holiday Season Category
% of Total
2004
Projected Source: Goldman Sachs, Harris
Interactive and Nielsen/NetRatings eSpending Report, 2004. 20% of Americans in the Market for an MP3 Player SigmaTel, which makes the MP3 audio chips for portable digital music players, commissioned a study to check the interest level of US consumers for MP3 players. The study, conducted by research firm StrategyOne, found that nearly 20% of Americans between the ages of 18 and 35 are considering buying an MP3 player within the next six months - that's roughly 13.5 million people. Carried out in late November, the unofficial kick-off of the holiday shopping season, the survey found that 59% of would-be buyers planned to give the gadgets as gifts. Several factors are involved in the purchasing decision, with storage capacity, ease-of-use and price all playing a large part. Some 29% of respondents cited price as the leading factor, with 39% willing to spend up to $100 and 24% willing to shell out $150. Of those who already own an MP3 player, 31% said they'd be willing to spend $150-$249 for a player with more storage, indicating that they value additional storage and are willing to pay a higher premium to get it. The survey revealed, surprisingly, that brand lagged behind price and storage capacity, with just 9% of respondents considering it the most important factor. The main reasons consumers
cited for wanting an MP3 player are the ability to take
advantage of digital music download services (63%) and
superior audio quality (69%). Back
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HMV Planning Microsoft-powered Download Service British music, video and book retailer HMV Group is relaunching itself in to the music download world with some help from Microsoft. HMV has been offering downloads for two years from a site powered by OD2, now part of US-based Loudeye. Now that consumers in the UK have a growing number of options for music downloading - iTunes, Napster, Sony Connect and supermarket chain Tesco to name just a few of the new entrants - HMV has apparently decided that it's time to make some radical changes to its online business. It plans to spend roughly £10 million to launch the new service, including capital, marketing and other random expenses. The new HMV download site is due to launch in the second half of the year. It's working with Microsoft to develop custom applications, including a jukebox that will let customers browse, buy, listen to and manage all their digital music in one place. The downloads will be in WMA format, of course, and can be transferred to any of the 75+ portable digital music players compatible with the Microsoft standard. Microsoft and HMV are also developing some special hardware and software to be used with the downloads. HMV will sell the products in its 200 retail stores across the UK as well as through its Web site at www.hmv.co.uk. No details have been released
about how many tracks the site will offer or how much they'll
cost to download. Back
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Mediaport Entertainment has snagged its first major label content provider for its music download service. The Salt Lake City start-up has developed the MusicATM, a sort of self-serve kiosk where consumers can download complete albums, custom mix CDs or individual tracks. Warner Music Group recently signed on to offer music from its labels and artists through Mediaport's MusicATMs as well as its Web site. Mediaport launched the first MusicATMs in Salt Lake City in November 2003. The company describes the unmanned point-of-sale kiosks as "a complete retail music store within 3.5 square feet." The songs can be burned to CD or played on any WMA-compatible portable music player. "The concept behind our company is simple - we bring music to the consumer rather than forcing them to come to the music," said Mediaport CEO Helen Seltzer. "Now, thanks to our agreement with WMG, consumers will finally have the ability to buy the music they want, when and where they want to." Mediaport's expansion plans
include placing MusicATMs at universities, military bases,
travel centers and mall-based lifestyle retail stores. In
addition to the WMG catalog, MusicATMs offer music from
Sanctuary Records and Brigham Young University's Tantara
Records. Back
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easyMusic 'Copyright' Side Launches The easyGroup, a holding company for a wide range of businesses, has launched its music download business. Well, half of it anyway. The "Copyright" side of easyMusic.com, a collaboration of the easyGroup and UK-based music download service Wippit, has launched a site that offers downloads starting at 25 pence per track. The easyMusic library includes current hits and back catalog content from more than 200 record labels, including all the majors. According to Wippit founder and CEO Paul Myers, "easyMusic.com is set to be the first stop destination for shoppers seeking value. That won't mean a compromise on quality, though, just keener pricing and less restrictions on what you can do with the music you buy." The other half of the easyMusic site, the so-called "Copyleft" side, has yet to launch. Copyleft, the opposite of "copyright," will feature music from unsigned artists, including tracks that can be downloaded for free. Visitors who download from the copyleft site are free to share the music files, as long as they don't try to make money from the music themselves. Back to Headlines
Most-Played CDs on the Internet For the Week Ending December 12 This,
Last 1
2
U2/How to Dismantle an
Atomic Bomb (Interscope) Aggregatedfrom over 30 million
listeners using media players powered by the Gracenote CDDB
Music Recognition Service. Back
to Headlines
Napster Forecasts $35m-$40m in Revenue Napster CEO Chris Gorog told
CNBC viewers that he expects the company to generate $35
million to $40 million in revenue in the current fiscal year,
of which about 75% would come from subscribers rather than
download sales. He said the company had not projected when it
would become profitable. Gorog forecasts that the digital
downloading industry would grow to billions of dollars in size
within a few years. Back
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Music Sales Up 1.6%; Universal Leads Nielsen SoundScan estimates
that US music sales volumes increased by 1.6% in 2004,
according to the Financial Times. It says that US users
purchased 140.9 million tracks in 2004 through legal online
music services such as iTunes and Napster, compared with 19.2
million in 2003. The article said that sales of digital tracks
reached a new record of 6.7 million units in the last week of
the year. Estimates are that Universal is the online music
leader with a 30.8% market share. Universal is also estimated
to have a 29.6% share of the music album market. The FT said that such an upturn in the US music industry "could encourage Warner Music to proceed with a potential stock market flotation later this year." Estimates are that worldwide
music sales fell from about $40 billion to $32 billion over
the past five years. Internet piracy, physical copying of CDs,
falling prices, less appealing music and competition for
entertainment budgets are said to have contributed to the
decline. Most analysts do not expect the industry to grow
again until at least 2006. Back
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Tapwave Connects to Virgin Digital's Online Music Service Tapwave has done a deal with
Virgin Digital to provide Virgin's audio download and
subscription services to owners of Tapwave's portable Zodiac
media player. Users will be able to access songs on Virgin
Digital's online music service for $7.99 per month. The $269
Zodiac stores 2.5GB. Back
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Coding Technologies Signs Up Equator Coding Technologies has signed up chipmaker Equator Technologies to put the MPEG-4 aacPlus v2 codec on Equator's BSP-15 processor. Equator makes programmable, low-power system-on-a-chip (SoC) processors for video streaming and processing applications. Coding Technologies claims to be the leading provider of audio compression for digital broadcasting, mobile and Internet. Device makers and developers will use Equator's BSP-15 processor and reference platforms to implement aacPlus v2 for digital media adaptors, set top boxes and personal video recorders. "The explosion of IP-delivered content has blurred the lines between stereos, computers, televisions and set-top boxes," said David Frerichs, VP and US general manager of Coding Technologies. He said that the deal would help equipment makers to get new products to market more quickly. The addition of aacPlus allows device makers to access standards like DVB and DVD. DVB is a key standard globally for digital television broadcasting. Within DVB, aacPlus is a core MPEG format and is the required audio format for DVB-over-IP (used in DSL TV). Also, aacPlus is an enabling factor for BSP-15 digital media adapter products to playback content from a number of mobile download and Internet streaming services from vendors like America Online and Musiwave, including content distributed in the new DVD compressed audio format. Equator's target market for the
aacPlus v2 codec-enabled BSP-15 processor is developers and
makers of digital media adaptors, set-top boxes, and DVRs
according to John O'Donnell, VP and CTO of Equator
Technologies. Back
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Linksys Adds DTCP-IP to Digital Media Adapter Cisco's Linksys division and Intel have come out with a new digital media adapter that allows users to stream content stored on their computers to a TV set or stereo system. What is new about the Linksys Wireless-G Media Link device is that it includes Digital Transmission Content Protection over Internet Protocol (DTCP-IP) technology. DTCP-IP, which is supported by technology companies including Intel and consumer electronics companies including Sony, Toshiba and Panasonic, allows the secure streaming of content from a PC to a TV or stereo system. According to Robert Crooke, Intel's general manager for desktop marketing and strategic planning and VP of desktop platforms group, DTCP-IP is "an in-home counterpart to DRM (digital rights management) technology." The Wireless-G Media Link sits by the TV and stereo and connects to each using standard A/V or component, composite or S-Video cables. Then the product connects to a home network by Wireless-G (802.11g) wireless networking, or if users prefer, it can be connected via standard 10/100 Ethernet cabling. The Media Link also works in peer-to-peer mode (direct connection between the media link and a wired or wireless enabled computer) so no Internet service is required if customers only want to move content from a PC to the entertainment center. The Linksys Wireless-G Media Link supports high-definition (HD) content and media formats such as MPEG4 and WMV, something that other available adapters don't, according to Linksys. Users can thus connect their HDTVs and play high-definition video content and display high-resolution photos. Malachy Moynihan, Linksys VP of engineering and product development said that without a standard for home network content protection, it would be difficult for consumers to build the networks they need to move Internet-based protected content from the PC into the living room. He said that the collaboration between Linksys and Intel would "help drive consumer adoption of convergence devices like Wireless-G Media Link." Media Link requires a Windows XP or 2000 PC. Intel says that using it with a Pentium 4 PC that has Intel's Hyper-threading technology allows the PC to send multiple entertainment streams to the Media Link while still handling productivity applications such as e-mail. Shipment is expected in Q2 with
pricing announced at that time. Back
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Pioneer, Microsoft Networking Plasma-screen TVs Pioneer is working with Microsoft to create a network card that can be inserted into Pioneer plasma-screen TVs. The card would work with a Windows XP-based PC and Microsoft's Windows Media Connect software to allow media stored on a PC to be played on the Pioneer plasma display, using either a wired or wireless connection. Pioneer will also begin selling
a $140 iPod car adapter that connects the portable music
player directly to a car stereo. Back
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MPEG LA Gets Open Mobile Alliance Deal MPEG LA, which licenses and
manages MPEG-related patents, announced that digital rights
management companies InterTrust and ContentGuard as well as
consumer electronics companies Sony, Matsushita (Panasonic)
and Philips have pooled "essential patents" for the
Open Mobile Alliance (OMA) 1.0 DRM standard, according to
Reuters. The deal requires cell phone makers to pay a $1 per
device fee to MPEG LA when they use OMA 1.0 DRM technology.
The fee will be distributed to the patent pool participants.
Back
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Microsoft, Panasonic Working on DRM Microsoft and Panasonic are
working together to develop digital rights management (DRM)
system interoperability, according to Info World.
Interoperability will be between Microsoft's Windows Media
technology and Panasonic's Secure Digital (SD) memory cards,
which use Copy Protection for Recordable Media (CPRM) DRM
technology. The two companies want to allow users to transfer
content purchased on online services using the Windows Media
DRM system to SD Cards. To do so, the two will develop
technology that adapts Windows Media DRM protected content to
store it as CPRM protected files on an SD Card. Back
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VWB Unveils MediaREADY Flyboy, x40 Video Without Boundaries, whose MediaREADY converged digital media set-tops play and record music and movies and enable e-mail, Web surfing and karaoke, is talking up two new devices. Unveiled at the Consumer Electronics Show in Las Vegas, the MediaREADY Flyboy is a portable MPEG-4 media player and recorder with a 40GB hard drive. The Linux-based handheld can record up to 80 hours of |
