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Microsoft details DRM for consumer devices
By Rick Merritt
EE Times
May 07, 2004 (9:30 AM EDT)
SEATTLE — Microsoft Corp. provided technical details this week of its next-generation Windows Digital Rights Management software, its first to support paid-for content on consumer electronics devices. The software will be released this summer and appear in a new class of handheld video and music players to emerge in time for Christmas.
DRM is an enabling technology for the shift to digital music and video because it provides studios a way to protect and charge for their premium content using a still-emerging variety of business models. For systems makers, the Microsoft DRM provides a new route for getting online subscription music and rental videos into portable or networked consumer devices. Creative Labs, Samsung and others will ship this fall portable media players based on Microsoft's Portable Media Center. That software includes Windows CE, a new Windows Media Player that will include the new Microsoft DRM and a new Microsoft protocol called Media Transport Protocol for fast data transfers over USB 2.0. The devices come with a 320 x 240 LCD and are generally based on an XScale PXA255 processor.
The systems will compete with a handheld version of the Playstation that Sony Corp is expected to launch next week (May 9). The Sony system, billed by some observers as the next-generation Walkman, will play videogames in addition to video and music.
With the new Microsoft DRM, code-named Janus, Web-connected consumer devices including handheld gear and networked set-top boxes can buy content directly over the Internet without going through a PC. The DRM will also let PCs transfer or stream to consumer devices music and videos from online subscription and rental services originally purchased on the PC. Previously, Microsoft's DRM only worked on PCs.
The new DRM only works with content encoded in Microsoft's Advanced Systems Format (ASF), a container used primarily by its Windows Media format and codec. A small group of cellphone makers in Japan have used ASF. However, the DRM does not support content encoded in other popular digital media formats including those used by Apple Computer and Sony.
"Supporting other formats was not a priority for us at this point. We wanted to get this right in ASF," said Brooks Cutter, lead program manager for Windows Media DRM. The DRM uses a secure time stamp from an onboard real-time clock and links to a system-specific ID or serial number to track when a song or movie from a rental or subscription service has expired. Portable devices will be required to prevent users from tampering with the system clock. They may have to initialize the device clocks over the Internet as a security measure.
Systems makers also will be held responsible for providing secure systems buses and storage of digital keys. That includes not allowing users to transmit paid-for content via unapproved I/O links under some scenarios.
In tandem with the new DRM, Microsoft has designed a so-called Media Transport Protocol for USB 2.0 geared for quickly transferring large object files securely between a PC and a consumer device. MTP is optimized for use with the Janus DRM and will first appear in Microsoft's Portable Media Center software this fall.
Microsoft also hopes MTP will be used on future digital still and video cameras, and eventually on PDAs and cellphones. MTP is a superset of Picture Transport Protocol widely used on digital cameras today.
Microsoft is making the Janus DRM available as C language source code that can be ported to most processors. Chip makers Cirrus Logic, PortalPlayer, Sigmatel and Texas Instruments are porting the new DRM software to their processors used in MP3 players, said Cutter. They will likely optimize the source code by putting key sections into assembly language.
The DRM uses a set of encrypted digital keys to transfer licenses and policies securely between devices. Currently it employs on portable devices the so-called "cocktail" algorithm of 56-bit DES and 64-bit RC4 along with 160-bit Public Key Infrastructure (PKI) for storing keys. Networked devices such as set-tops use 128-bit AES and 2,048-bit PKI cryptography.
Future portable versions will migrate to AES, said Cutter. That could encourage chip makers to support AES directly in future consumer silicon. Both portable and networked devices use SHA-1 hashing algorithms.
The DRM requires about 194 kbytes of ROM for program storage and 37 kbytes of RAM for working space. It is running in Microsoft's labs on relatively low-end ARM 7 and TI 55x-class DSPs, said Cutter.
The DRM is available for a one-time licensing fee of $25,000 plus a per-unit royalty to be negotiated with Microsoft. Currently Microsoft is licensing MTP free of charge.
OT: Samsung Introduces The World's Smallest Flash-Based Portable Digital Audio Players
Thursday May 6, 10:42 am ET
Powerful Flash-Based Music Players Combine Multi-Format Compatibility, FM Tuner, SRS WOW 3-D Surround and Multi-File Storage Capability in 128 MB and 256 MB Sizes
RIDGEFIELD PARK, N.J., May 6 /PRNewswire/ -- Samsung Electronics America, Inc., an award-winning innovator in the digital audio arena, expands its YEPP Digital Audio Player line with the introduction of the world's smallest digital audio players, the YP-T5H and the YP-T5V. The new models are the latest in Samsung's series of advanced products intended for the music lover who wants the ultimate in style and portability.
"Samsung has built a strong reputation as a leader in portable digital audio, and these new YEPP models bolster that standing," says Mark Farish, Marketing Manager, Samsung Electronics America. "Both of these flash-memory players are designed for consumers who want an easy way to organize and manage their digital music collections in a small, stylish package that delivers higher quality audio playback typically lost with compressed audio files. The ability to double as a multi-file storage device is an added benefit for those who wish to take presentations, homework or even images with them in addition to their music."
Available in two sizes (128 MB for the YP-T5H and 256 MB for the YP-T5V) these models offer multi-format compatibility for MP3, WMA, WAV and upgradeable firmware files with advanced SRS WOW sound technology for higher quality playback, a built-in FM tuner, and voice recording for capturing lectures or your next great idea wherever you happen to be. The text viewer LCD comes in a choice of seven different colors and the built-in Lyric Auto Sync Display (LDB) provides an automatic link to a lyric database web server for display on the player.
Housed in a tiny 23 x 54 x 23 mm case and weighing only 24g (0.85oz, without battery), both models also double as removable storage devices that offer fast file transfer with a direct USB adapter. One AAA battery will provide up to 15 hours of playback and both models come with a necklace enabling the unit to be worn around the neck for added accessibility and convenience.
The Samsung YP-T5H (MSRP $129.99) and the YP-T5V (MSRP $179.99) will be available at consumer electronics retailers nationwide by May 2004.
About Samsung Electronics America, Inc.
Headquartered in Ridgefield Park, NJ, Samsung Electronics America, Inc. (SEA), a wholly owned subsidiary of Samsung Electronics Co., markets a broad range of award-winning, advanced digital consumer electronics and information systems products. The SEA organization oversees the North American operations of Samsung's Consumer Electronics Division (CED), Information Technology Division (ITD), as well as its subsidiaries including Samsung Telecommunications America (STA) and Samsung Semiconductor Inc (SSI). Please visit www.samsungusa.com for more information.
Conflict over MP3 handsets deepens
The conflict between the recording industry and mobile carriers over online music is widening, with lobby groups threatening to seek an injunction on the sale of LG Telecom Co.'s MP3 player-equipped handsets.
"LG Telecom's MP3 cellular phone provides no protection against playing free copies of copyrighted songs, which is a threat not only to the music industry but to the mobile content industry as a whole," said a legal advisor working for the Korean Association of Phonogram Producers yesterday.
"We are considering every legal measure possible, including filing a provisional injunction against the sale of the MP3 handsets," he added.
The statement comes a day after mobile operator LG Telecom offered to pay a percentage of sales from its MP3 phones to set up a digital music development fund, in a belated attempt to mend fences. However, the producer's association officials balked at the offer and insisted LG Telecom halt the sale of its MP3 phones immediately.
The association and other lobby groups, including the Recording Industry Association and Entertainment Producers' Association, held a rally in front of LG Group headquarters in Seoul's Yeouido district yesterday, demanding the company remove its MP3 phones from the market.
The groups said they will refuse to provide music files to www.ez-i.com and other music download sites operated by LG Telecom starting today.
The dispute over online music began in February when the country's three mobile carriers - SK Telecom Co., KTF Co. and LG Telecom - and cell phone manufacturers confirmed plans to launch MP3 player-equipped handsets within the first half of the year.
The recording industry responded by expressing their concerns over the illegal distribution of music files and both sides have been engaged in talks ever since to set the guidelines of copyright protection.
The conflict appeared to be nearing a settlement early last month, when SK Telecom, KTF and cell phone makers Samsung Electronics Co. and SK Teletech reached an agreement to limit the playing time of free MP3 copies to 72 hours after downloading.
However, LG Telecom refused to accept the conditions and went on to release their LG-LP3000 model, made by handset manufacturer LG Electronics Inc.
Around 80,000 units of the LG-LP3000 model have been sold through this month, making it one of the hottest items on the telecom market. LG Telecom is Korea's smallest mobile service provider, controlling 5.5 million of the country's 35 million cellular phone users.
"Our MP3 phones are equipped with a DRM (digital rights management) system that limits the transmission of content to other handsets, thus reducing the possibility of illegal reproduction," said LG Telecom's Kim Seung-bum.
"We consider it a violation of consumer rights to limit the usage of individually obtained music files downloaded on personal computers. There are currently no such limitations on personal MP3 players here or abroad," he added.
In a survey conducted by local portal site Daum.net, 83 percent of the 6,398 respondents said they take the limitations on the playing time of MP3 files as a violation of consumer rights.
With more than 11 million Korean households, or 73 percent, having Internet access, the free distribution of digital music has always been at the center of copyright disputes. The online music site Bugs Music (www.bugs.co.kr), which provides free music streaming services, has more than 14 million subscribers, while the peer-to-peer file-sharing network Soribada has more than 4.5 million members.
(thkim@heraldm.com)
By Kim Tong-hyung
Apple sells 3.3 million songs on iTunes
Reuters
San Francisco, May 6: Apple Computer Inc's iTunes online music store broke its one-week sales record after the computer maker updated its music player software with new features including the ability for users to publish play lists, the company said on Wednesday.
Apple, maker of the Macintosh computer and the popular iPod digital MP3 music player, said it had sold 3.3 million songs on iTunes since the online music store's relaunch one week ago. The previous peak was 2.7 million songs per week, an Apple spokeswoman said.
Cupertino, California-based Apple reported 3 million downloads of iTunes 4.5, which incorporates the online music store, since its release last week.
Apple executives said the timing of the release helped boost sales on days that would have otherwise been slow.
"Because we rolled out on a Wednesday, we increased traffic on days that would have been slightly slower for us," Eddie Cue, Apple's vice president of applications, told Reuters. The music store's busiest days have been Tuesday, Saturday and Sunday, he said.
Apple's announcement came a day after Sony Corp., the pioneer in portable music with its Walkman players, launched its own online music store, Sony Connect. That store features pricing virtually identical to Apple's and, like Apple, offers the ability to copy songs to portable players or burn them to CDs.
Apple now has nearly 50 percent of the market for MP3 players and says its iTunes music store claims 70 percent of all songs sold by online music stores.
The company also said users had downloaded more than 500,000 free songs during a promotion giving away tracks by popular artists including Courtney Love and Nelly Furtado.
Apple said users published more than 20,000 custom playlists to the music store in the week since it was upgraded with that new feature and others.
The iTunes music store now has more than 700,000 tracks available for purchase, an increase from 200,000 when it launched the service just over a year ago. Tracks cost 99 cents and albums, which account for about 40 percent of music sold, typically cost $9.99.
In addition to being able to publish playlists, which Apple calls iMix, to the online store, iTunes 4.5 also allows for the automatic conversion of songs in Microsoft Corp.'s WMA, or Windows Media Audio, to AAC, a standard format that Apple uses for its iPod and the store.
On April 28 Apple said it had sold 70 million songs through the store in its first year, well short of its original goal of 100 million but more, the company said, than any other digital music service.
iPod shuffle shakes up music habits
BY JOSEPH P. KAHN
BOSTON GLOBE
"Just take those old records off the shelf, I sit and listen to 'em by myself," Bob Seger sings in "Old Time Rock and Roll," a staple of classic-rock radio. If today's music doesn't have the same soul, as Seger laments, it surely comes packed inside a remarkable new listening tool, one that is keeping more and more of those old records, and CDs, on a lot of shelves these days.
Most conspicuous among the tools of this burgeoning revolution is the Apple-made iPod, a compact, lightweight digital-music player with a king-size capability to store, index, and play tunes at the flick of a wheel or the tap of a button. Introduced in 2001, the iPod is not the only MP3 player on the market, but it is the most popular and versatile of the bunch, offering prodigious amounts of computing power in a highly portable container.
Its popularity has soared since the past holiday season; when the newest model, the iPod mini, debuted in February, 100,000 preorders were already booked. This forced the company to delay a worldwide rollout planned for this month.
The iPod is also a rare crossover hit for Apple, since the company offers the iTunes software for both Mac and Windows.
PORTABLE JUKEBOXES
Even more wondrous than its sophisticated technology, though, is how the iPods and their ilk are changing the way music is being experienced, or re-experienced, by all sorts of audiophiles in all sorts of settings, from health clubs and school cafeterias to malls and subway cars.
In essence, these devices function much like customized jukeboxes or personalized radio stations, but don't require a pocketful of coins to feed them or noisy advertisements to support them. "All my music, all the time -- and all in my pocket" might be their operating mantra.
When thousands of titles are transferred onto the machine's hard drive and in rotation, users say, what happens on the listening end can be aesthetically stimulating, even liberating. This is not necessarily because the tracks are unfamiliar, but because the software's shuffle-play capability juxtaposes them in intriguing ways, not only across an entire 5,000-track collection but within, say, a compilation of blues tunes or Broadway melodies, or even shuffling through only the tracks played in the past 90 days.
In many cases, such specialized playlists can be automatically expanded by iTunes, the companion software that is another vital component of iPod chic. Want to create a continually updated playlist of every song on your iPod that was released during your college years? The machine can be programmed to do that, too.
CDS AS BACKUPS
Users can now stow away their albums and CDs as backup files while hauling their collections wherever they go. These tiny music boxes and their distinctive, earbud-style headphones have become life-transforming accessories: the keys to a musical magic kingdom where hundreds of favorite tunes, from Rachmaninov to Ricky Skaggs, can happily share space and be retrieved almost instantly.
One devotee is New Yorker classical music critic Alex Ross. Writing in the magazine a few weeks ago, Ross, 36, marveled at the way his machine "goes crashing through barriers of style in ways that change how I listen" when programmed to skip randomly from one track to another. His breakthrough moment, Ross says in a recent telephone interview, occurred when the shuffle mode on his iPod took him from a recording of Igor Stravinksy's "Rites of Spring" to Louis Armstrong's "West End Blues," an unexpected yet inspired musical transition that "was exactly in synch with what I'd been thinking about," he says.
"For me, it's all about the mix," says Ross, who got his iPod two years ago. "All these different types of music coexisting in ways they haven't before."
With as much as 40 gigabytes of memory (equivalent to what a powerhouse desktop computer offered just a few years ago), some iPods have enough room to absorb a complete, bookcase-size collection of music -- 10,000 songs or more, stored on a device scarcely bigger than a deck of playing cards. Another hallmark is the device's ability to transfer tracks from a computer at lightning speed, thanks to FireWire, the Apple-devised standard for high-speed data transfer.
BRAVE NEW WORLD
To youth-market researcher Max Valiquette, this combination of smallness and technological muscle is part of an accelerating cultural shift away from home-based entertainment toward a brave new world of portability, allowing consumers vastly greater control over what they listen to and view.
"One, you don't have to wait for what you want to hear," says Valiquette, 30, an iPod user and president of Youthography, a research firm based in Toronto. "Two, it's not the volume of songs but the navigation -- by mood, genre, popularity, artist, et cetera -- that's the real genius here."
Southwest's stock has lost altitude
Growth hits headwinds, despite airline's enviable profit record,
08:43 AM CDT on Tuesday, May 4, 2004
By ERIC TORBENSON / The Dallas Morning News
A roaring stock performance fed Southwest Airlines Co.'s cheery corporate culture for more than two decades, but now that momentum has stalled.
That's despite Southwest's consistent profitability, sterling balance sheet and an enviable position as the largest discount airline. Although its peers have collectively lost more than $22 billion in the last three years, Southwest has earned nearly $1.2 billion in the same period.
Collectively, Southwest's 31,000 employees represent its largest shareholder group. Many of them are millionaires several times over, thanks to the stock. One projection suggests their collective net worth rises or falls by $200 million for each dollar the shares move.
These days, the stock is moving, but not in the right direction. Having split 13 times since 1978, shares in the Dallas-based carrier are down 27 percent from a recent high in October. And although no one is suggesting the "magic" of Southwest's culture is fading, there are signs of employee unrest, including an increasingly public spat with its flight attendants.
"It's pretty frustrating," said Robert Wooster, an aircraft mechanic whose co-workers check the share price every day. "We're dumbfounded some days. We post a nice profit, and the stock goes down."
Nearly all large airlines find themselves with declining shares because oil prices are out of sight and the industry's nascent revenue recovery has sputtered.
But Southwest isn't like any other airline. Its shares were among the top performers in any industry during the 1990s. The industry took a huge hit after the September 2001 terrorist attacks, but Southwest has kept growing and remained profitable.
Yet the shares trade lower than just before Sept. 11, when they traded at $16.94. (On Monday, LUV stock closed at $14.42, up 14 cents.) By contrast, Fort Worth-based American Airlines Inc. saw shares of parent company AMR Corp. rise about 700 percent last year – not through posting record earnings but by avoiding bankruptcy.
"It's definitely an issue," said Alan Sbarra, a consultant with Unisys R2A Transportation Management Consultants, who recently spent time visiting with the airline at its Dallas Love Field headquarters.
Forms of payment
Although base pay rates for the carrier's employee groups may not be as high as at competing airlines, Southwest employees are the industry's best paid when benefits such as profit-sharing are included. The profit-sharing, which many workers opt to convert to Southwest shares, comes in lieu of a defined pension benefit. Last year, it amounted to $126 million.
Enthusiasm for options and shares may be waning. Southwest's mechanics won 2,400 options each at the very end of their contract talks. The options were priced near $13 a share. "It's not that much right now," Mr. Wooster said.
At the flight attendant talks, stock options are generally being discussed, but the Transport Workers Union wants significant base pay increases to help raise the standard of living for 7,000 flight attendants, said Thom McDaniel, president of the local.
"You can't pay your bills with stock options," he said. Though the union has faith in Southwest, he added, options should be a bonus on top of regular pay raises.
Talks between the union and airline are stalled as Southwest chairman Herb Kelleher takes over negotiating duties from chief executive Jim Parker, who stepped aside from the role because he thought the talks had become too personal.
That kind of hiccup rarely comes from Southwest, and to see it played out in public is even more unusual, said Robert W. Mann, an airline consultant based in Port Washington, N.Y. A broader investor concern is Southwest's labor costs, which are rising at an alarming clip, said analyst Jamie Baker of J.P. Morgan Chase, in a recent research note.
Southwest chief financial officer Gary Kelly has said the carrier believes it can control its costs, which will be close to flat this year compared to 2003, even with a new flight attendant contract. The airline declined to discuss its stock prices, but officials have quietly been puzzled as to Wall Street's seeming indifference to its shares.
Much of investors' attention has been focused on JetBlue Airways Corp., which has shattered many of the preconceptions about how to run a low-cost, low-fare airline.
Southwest has been contemplating whether to copy two of JetBlue's key tactics: in-flight entertainment for each seat and the use of a second, smaller type of aircraft to open up more markets.
Southwest executives don't seem particularly eager to change their ways, but Wall Street seems ready for it. Were the airline to announce "any modifications to its tried-and-true business plan, we would expect to take a distinctly more favorable view," Mr. Baker wrote.
What's often lost in the low-cost hubbub is Southwest has far more planes and a broader national reach.
Airline's view
The carrier's story remains:
• Southwest is expanding quickly again, after slowed post-9-11 growth. Southwest will soon be growing at about 10 percent or more a year, which should boost earnings. It's launching service in Philadelphia this weekend.
• Its balance sheet is impeccable. With comparatively little debt and $1.8 billion in cash, Southwest doesn't look anything like its highly leveraged brethren such as American.
• It's the best at hedging for jet fuel prices. While the rest of the industry faces record high oil prices, Southwest has 80 percent of its jet fuel pre-purchased at discounts.
Some analysts predict Wall Street is just about to get wind of Southwest's renewed growth.
"They're going to get very close to a normalized type of pre-9-11 profit," said Ray Neidl of Blaylock & Partners in New York. "When they start performing like they should, you'll see the shares head back up, barring a complete meltdown in the market."
E-mail etorbenson@dallasnews.com
More on iPod sound dropouts; Large folder transfer problems; Remote control issues
Tuesday, May 04 2004 @ 07:37 AM PDT
Last week we reported problems with audio dropouts when attempting to play back files encoded in the new, larger file-size "lossless" format offered in iTunes 4.5.
The iPod and iPod mini both sport a 32MB RAM buffer. When a track commences, the iPod caches the audio (up to 25 minutes) in the buffer, allowing for uninterrupted play if the hard drive is disrupted, as well as increasing battery life by accessing the hard disk less frequently.
If files exceed this 32MB buffer, the iPod has to re-access its hard drive, in some cases causing the audio dropout.
Grant Jacobson writes "I originally purchased an Ipod because of a little-known capability it has. It can playback aiff and wav files. These are direct digital copies of the original and are not compressed in any way. This made for the best sound quality I had heard from a portable device. I was a happy camper! However, as I started following the upgrade trail, I began uncovering a nasty bug that I dutifully reported to Apple. I upgraded from 1.2.1 to 1.2.6 and that was a good upgrade - added features and better battery life. I then upgraded to 1.3.0 and the problem surfaced. After approximately 2:20 minutes of playback the sound would cut out for about a second. It was absolutely repeatable. Second level support was very courteous and professional and committed to taking the information to engineering. The memory buffer was not being refilled in time to prevent the dropout. "
Possible solution One MacFixIt writes "To get over this I always ensure that any mp3 or aiff over 20Mb is segmented into smaller files so that they always fit into the buffer. "
Specific to iPod firmware 2.2? For some users, the sound dropout problem is only occurring after the iPod firmware 2.2 update:
Pawel Soltysinski writes "I can confirm similar problem with iPod (firmware 2.2) - I have converted some long audiobooks into AAC into pieces about 7 hours long (a piece). Dropouts are quite often - just stops playing or goes to the beginning of the next audio file.
"I had those files with iPod firmware 2.1 and there were no such troubles. To me it is definitely file-length problem - long files are causing problems to the new iPod's firmware."
Remote control issues We're seeking confirmation for an issue where iPod remote control problems surface after the iPod 2.2 updater. MacFixit reader Jason writes "I have a 20 GB iPod and since updating it with the latest update, it is recognized fine by my mac and everything seemed to work okay until I started playing sound files. Anytime I use the remote to rewind or fast forward, the music being played becomes garbled for a few seconds then the iPod shuts off. Once I turn it back on, everything works fine again, until I use the remote. The volume and pause/play buttons on the remote work fine. Rewinding and fast forwarding using the scroll wheel still works fine as well. There just seems to be a problem with the remote."
iRiver America Introduces Sleek, Sport-Ready Flash-Memory Music Players
SAN JOSE, Calif., May 4 /PRNewswire/ -- iRiver, the emerging leader in digital entertainment, today announced the unveiling of its iFP-700 and iFP-800 series flash-memory music players. As the latest addition to iRiver's successful line of award-winning portable audio devices, the new flash-based music players combine a sleek, sport-ready design with many advanced features
such as USB 2.0*, integrated voice recorder, programmable FM recorder, up to 1GB of internal memory and the ability to record MP3s on the fly from any source.
The iFP-700 and iFP-800 series are available in four different capacities -- 128MB**, 256MB, 512MB and 1GB -- and play up to 40 hours of music on a single AA. The new line also comes with accessories for an active lifestyle including a sport armband, neck strap, carrying case and line-in encoding cable. In addition to playing MP3, OGG, ASF, WMA and WMA-DRM music files the iFP-700 and iFP-800 series are compatible with online music services that use Windows Media DRM technology.
The flash-memory music players offer customers real-time MP3 encoding from a variety of sources, including home audio systems and handheld CDplayers. The fully Windows and Macintosh compatible iFP-700 and iFP-800 series allow customers to store or transfer files of any type and adding or deleting files is fast and intuitive. Connect the player to the PC using its USB cable, click on the music player icon and drag files into or out of the folder.
"The new iFP-700 and iFP-800 series flash-memory music players provide superior flexibility for on-the-go users' listening experience," said Jonathan Sasse, president of iRiver America. "The new flash music players extend the imagination and set the bar for excellence in the flash-memory player category. In addition to an outstanding battery life, we added USB 2.0 and a programmable FM recorder, which allows users to schedule MP3 recordings of their favorite radio program or sports broadcast."
iFP-700 and iFP-800 Series Feature:
-- USB 2.0 provides up to 3x faster transfer speeds over USB 1.1
-- Up to 1GB internal storage
-- Supports MP3, OGG, ASF, WMA and WMA-DRM music files
-- An integrated digital FM tuner with presets
-- Programmable FM recorder
-- Up to 40 hours of battery life
-- Integrated voice recorder
-- Upgradeable to future formats and features
-- Store or transfer files of any type
-- Lighted 4-line text display
-- Weighs only 40 grams (1.4 ounces)
-- Ultra-small design
Pricing and Availability
The iFP-700 and iFP-800 series are available now at iRiver's eStore at http://www.iriveramerica.com/estore and will be at selected stores in May 2004.
Suggested retail price for both models start at USD $129.99 for 128MB of internal storage.
About iRiver
iRiver is the emerging global leader in delivering portable digital media devices. iRiver provides consumers with the viewing, listening and recording flexibility to accommodate their active lifestyles by manufacturing award- winning hybrid products supporting existing and emerging formats, including
MP3, OGG, ASF, WMA and WMA-DRM. Milpitas-based iRiver America, Inc. can be found on the Web at http://www.iRiverAmerica.com.
D-Link Wireless Media Player Validated by Intel to Meet Interoperability Guidelines
FOUNTAIN VALLEY, Calif., May 4 /PRNewswire/ -- D-Link, the global leader in the design and development of connectivity and communications technologies for the digital home and the small to medium business markets today announced it is working closely with Intel on the compatibility of D-Link connectivity products with other digital media devices and PCs, beginning with its role as the first major networking device manufacturer to secure the Intel NMPR Product Validation for the D-Link MediaLounge Wireless Media Player (DSM-320).
D-Link recognizes the need for UPnP* AV-based interoperability to enable the transparent connectivity and sharing of content between media players, set-top boxes, digital storage products and PCs on a home network. This seamless interaction between devices will strengthen the future of the digital home for consumers. D-Link engineers collaborated with Intel developers throughout the extensive Intel NMPR validation testing process to ensure that the D-Link Wireless Media Player, as well as future D-Link products, meets all of Intel's requirements for network media interoperability.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010327/DLINKLOGO )
D-Link is a member of the Digital Home Working Group, a group dedicated to the development of interoperability guidelines for digital devices that are both PC-based and Consumer Electronics (CE)-based. The Intel NMPR program is an existing set of guidelines and tools defined by Intel that enables products such as the D-Link Wireless Media Player to easily move to the upcoming Digital Home Working Group common interoperability standard through a free firmware upgrade.
"D-Link continues to show dedication to the UPnP AV-based interoperability of its devices as demonstrated by achieving Intel NMPR Validation," said Kevin Corbett, vice president and chief technology officer, Intel's Desktop Platforms Group. "We developed the Intel NMPR program to ensure that digital media devices meet a set of requirements so they will be compatible and will seamlessly connect with PCs."
"It is great that a respected company like Intel has taken the lead in the setting of guidelines for interoperability between digital media devices and PCs, and we look forward to working with them as we develop the next generation of networking connectivity for the digital home," said AJ Wang, CTO and Sr. VP of Technology, D-Link. "We continue to be committed to delivering maximum interoperability in standards-based products for consumers."
The current Intel NMPR Validation requires conformance with over 40 industry standards and protocols. Required connectivity protocols include the IEEE 802.3 wired Ethernet and IEEE 802.11 standards for wireless networking and the UPnP and UPnP AV standards for seamless installation and connectivity of media devices.
The D-Link MediaLounge Wireless Media Player (DSM-320) is a stand-alone unit that resides within a home entertainment center and connects to the television and/or stereo using standard A/V or S-video cables. For users with high-end entertainment systems, the D-Link DSM-320 supports component video, optical digital audio and coaxial digital audio connections. Using the included remote control and step-by-step TV interface, it is then easily connected to a home network via 802.11g wireless, or if preferred, through standard Ethernet cabling. With support for the UPnP AV standard, the D-Link Wireless Media Player can seamlessly find media content files on the network from other UPnP AV-enabled devices such as the D-Link Central Home Storage Drive (DSM-602/4H) without installing additional software.
The D-Link Wireless Media Player includes D-Link MediaLounge Media Server Software for Windows 98SE, ME, 2000 or XP which intuitively compiles digital content from network PCs and devices and organizes it by file type (audio/video/photo), cataloguing the individual audio files by categories such as genre, artist and title for immediate access through the Media Player.
Users can wirelessly locate and stream multiple types of digital content from the Internet or hard drive using the included remote control and intuitive interface. The Player supports virtually all digital content standards, including the popular MP3, WAV, AIF and WMA audio formats, the JPG, BMP, PNG, TIFF, JPG2000 and GIF Image formats, the MPEG-1, MPEG-2, MPEG-4, Quicktime, AVI and XviD Video formats and the M3U and PLS Audio Playlist formats. The Wireless Media Player also supports streaming audio and video Internet services including an exclusive offer with the Radio@AOL for Broadband service featuring Best of Breed radio programming.
About D-Link
Ranked by BusinessWeek as one of the top 100 Information technology companies, D-Link is the worldwide leader and award winning designer, developer, and manufacturer of networking, broadband, digital electronics, voice and data communications solutions for the digital home, Small Office/Home Office (SOHO), Small to Medium Business (SMB), and Workgroup to Enterprise environments. With $746 million in revenue for 2003 and millions of Ethernet adapters, hubs and switch ports, manufactured and shipped, D-Link is a dominant market participant and price/performance leader in the networking and communications market. D-Link U.S.A., Canada and Mexico headquarters are located at 17595 Mt. Herrmann, Fountain Valley, CA, 92708. Phone 800-326-1688 or 714-885-6000; FAX 866-743-4610; Internet http://www.dlink.com/.
NOTE: UPnP is a certification mark of the UPnP Implementers Corp.
D-Link is a registered trademark of D-Link Systems Inc. All other company names mentioned herein may be trademarks of their respective owners.
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010327/DLINKLOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, 1-888-776-6555 or +1-212-782-2840
D-Link Systems, Inc.
CONTACT: media, Anna-Marie Claassen, Media Relations Manager,+1-800-326-1688, ext. 6232, or aclaassen@dlink.com, or Bradley Morse, Sr. VPof Marketing, +1-800-326-1688, ext. 6236, or bmorse@dlink.com
Web site: http://www.dlink.com/
TNW: How do you plan to take the iPod crown away from Apple?
Sasse: Apple can keep the "iPod crown." The "portable entertainment crown" is still up for grabs, however, and we have our sights set squarely upon it.
iRiver President Jonathan Sasse on Creating the iPod Killer
By Kirk L. Kroeker
TechNewsWorld
04/30/04 6:00 AM PT
"Without question, Apple has done a great job marketing their solution and the industry as a whole has benefited from that," iRiver president Jonathan Sasse told TechNewsWorld. "Apple can keep the 'iPod crown.' The 'portable entertainment crown' is still up for grabs, however, and we have our sights set squarely upon it."
Contrary to popular misconception, Creative Labs was the first company on the market with a hard-drive-based digital music player, the original Nomad Jukebox, which came out initially built around a 6 GB 3.5" hard disk. The Jukebox looked like a portable CD player, which could account for its initial popularity, but the form factor that would later prove to be most popular was the player built in the shape of a notebook computer's smaller hard disk and then later the form factor that Apple and iRiver built their respective players around: the 1.8" drive, slightly smaller than a standard 2.5" laptop drive.
When Apple's iPod came out -- the first hard-drive-based player on the market to come in a form factor not much bigger than the hard drive itself -- and quickly dominated the media-player space, Creative Labs, iRiver, Diamond Rio and several other consumer electronics vendors responded with their own versions, like the iRiver iHP-120, a media player that quickly garnered several awards around the industry.
Clearly, amid much competition by other industry players, iRiver has been keeping pace, neck and neck, with iPod innovations, even offering a wider range of technologies and players than Apple. In addition to the company's set of hard-disk-based media players designed to go head to head with the iPod and other players at the high end, iRiver has a full arsenal of smaller media players based on the flash media storage format.
According to most analyst estimates, the iPod has the largest market share among all portable digital media players. But if any company can take on Apple in the media-player space, it is iRiver, a company that has been setting the high-mark standard for media-format compatibility. The company is perhaps the first major media-player manufacturer to offer players that are compatible with MP3, WMA, ASF, WAV and OGG music file formats.
To hear about the future of media players, TechNewsWorld turned to iRiver president Jonathan Sasse for an exclusive interview. Sasse talked about new storage formats, the future of personal media-player technology, and how the company is planning to take on the iPod to dominate the media-player space.
TechNewsWorld: First, can you tell us a little about your background and what you do at iRiver these days?
Jonathan Sasse:: I started my work in the digital audio space very early on with Diamond Multimedia as the Rio branded MP3 player was getting ready to launch, the first major MP3 device in the U.S. market. During my time with Diamond Multimedia, Rio and SONIC blue, I was involved in all aspects of new product development, new technology research and market development for the compressed audio category, launching dozens of new products. In 2002, I joined forces with iRiver to help brand and launch the iRiver brand into the U.S. market. Today, as President and CEO of iRiver America, I oversee the sales, marketing, product planning and operations for North America.
TNW: Your company, unlike Apple, has not focused on a direct synergy with an online music store. Instead, iRiver has favored background partnerships, media player integrations and broad format compatibility. Are you planning an integration effort or some partnership that will pair your media players directly with an online source for music?
Sasse: We are doing our best to remain as agnostic as possible in this arena. Our customers are looking for flexibility to choose the options that best suit their needs. By favoring the secure Windows Media format, it opens up the opportunity for competition in services, ultimately providing our customers with multiple libraries, service options, and payment structures to choose from. We aim to produce the best devices possible, in multiple categories, supporting multiple formats and services so our customers can always choose what is best for them.
TNW: How has the onset of digital rights management technology affected your hardware strategies?
Sasse: Digital Rights Management technology has been around for some time; it is the abundance of services, content and the support of key labels driving consumer demand at this point that is shaping the hardware industry. Certainly with the marketing efforts of the major online services, along with similar activity from the hardware side, consumer awareness is up considerably and the need to supply customers with the products and services they desire is a top priority.
TNW: Given that iRiver has moved in recent years to the cutting edge of sound technologies and consumer electronics, do you foresee a time when you'll branch out into other areas, like mobile phones or PDAs?
Sasse: As products and technology converge, there are always opportunities to integrate entertainment into the devices that we use every day. Adding functionality to products such as mobile phones or PDAs too early is little more than a novelty. Our focus now, and in the immediate future, is to provide consumers with outstanding portable entertainment devices. As it makes sense to do so, other peripheral products could benefit from our entertainment advances while at the same time it is not unreasonable to envision key technology from the business applications making their way into a future product line.
TNW: Many companies, like Gateway and Microsoft, have begun to approach the living room with consumer electronics designed to be more about entertainment than office work. Is iRiver planning any kind of non-PC technology that can be used in an entertainment center?
Sasse: Devices that we are launching as early as this year are taking a step forward in this direction. As the Media Center systems make their way into the living room, and out of the office, there are still devices that will be needed to keep that content mobile. The iRiver Portable Media Center product launching in the second half of this year will begin that process. Home products of this kind are still very much in their infancy, but portable integration with these solutions is still a very important value add.
TNW: What's the most exciting technology happening in the development lab at iRiver right now?
Sasse: Keeping in line with the previous comment about the Portable Media Center, I believe that bringing a complete multimedia experience to a portable device is a very compelling opportunity for consumers. As we will launch several variations of a portable multimedia player this year, our customers will now be able to take all of their music with them as they have previously, but in addition they will be able to take photos and videos with them as well. Whether it is a portable TiVo-like experience, a digital photo collection or a supercharged audio experience, these devices will change the face of portable entertainment completely.
TNW: Do you see the Apple iPod as your main competition at this point, or are there other players you admire more on the market?
Sasse: At this point, there are very few companies that have a product line that rivals iRiver. Without question, Apple has done a great job marketing their solution and the industry as a whole has benefited from that, but our strategy is entirely different. We believe there are many different consumer needs that need to be met with the right product; as such, our product line has something for everyone, whereas other companies may take the approach of "one product for everyone."
TNW: How do you plan to take the iPod crown away from Apple?
Sasse: Apple can keep the "iPod crown." The "portable entertainment crown" is still up for grabs, however, and we have our sights set squarely upon it.
TNW: What about other media formats, like Ogg Vorbis, which you've recently accommodated in your latest firmware? Is there room for adoption of other new formats?
Sasse: In maintaining the flexibility of our product line, we are constantly looking at different formats, audio and video. If consumer demand is there, and a new format is robust, it is worth a closer look. MP3 was the standard; WMA enhanced that experience by offering a secure element in a quality format, while Ogg Vorbis removed the licensing restrictions for consumers and maintaining a high-fidelity media format. As secure content grows, new formats may give way to existing formats evolving accordingly.
TNW: Creative Labs has a proprietary sound-enhancing format, called EAX, that has been widely praised around the industry. Does iRiver have a comparable sound-enhancing technology that the company is working on?
Sasse: Sound enhancements for portable devices are quite abundant from many credible audio specialists in our industry. We have adopted several of these, including sound enhancements from SRS, which enrich the listening experience for many customers.
TNW: With new storage formats on the horizon that will likely outmode flash-based technologies, can you hint about what storage media the company will focus on in the future?
Sasse: I will say that drives will continue to get smaller and more robust. As the durability and capacity of small drive technology increases, this will be a good solution moving forward for many products. The advantage that flash memory still has over any other storage format is the lack of internal moving components. Flash players have certainly shifted a bit -- initially being the only solution for compressed audio, to becoming the perfect solution for athletic activities -- but flash is very difficult to beat in this regard. Small drive technology has not yet reached the point where it can replace flash, but I do see a time in the future where the gap will be much smaller, as will the drives.
TNW: What do you think media players will look like in 10 years?
Sasse: In 10 years I see two types of highly evolved entertainment devices. There will be a strong play for very small audio devices, perhaps which fit nicely in your ear, without the need for wires or cables, and possibly doubling as your cell phone earpiece when you aren't on the treadmill. Portable video will make gains with the display, either with visual glasses for personal use, or advanced display technologies enabling several people to enjoy a single portable device. I do believe the business and entertainment will remain mostly separated on specialized devices for each respective function. With cell phones picking up the PDA, Internet and commerce functions, and portable entertainment devices evolving the video, audio, and gaming experience.
TNW: How about 20 years?
Sasse: It will be a lot of fun.
TNW: Given that iRiver manufactures many products that are widely used as storage media for pirated music -- and of course legitimate music also -- does iRiver have a corporate stance or policy toward the RIAA and other industry groups that are suing consumers for sharing files online?
Sasse: As I have mentioned a few times, we design products to suit our customer's needs as best as we can. By doing this, our product grows and evolves with our customer's desired use model. Other industry groups are in a position to grow in a similar way, offering their products and services in the way that paying customers wish to use them. Customers aren't obtaining illegal content because they are criminals; it is because the existing model did not suit their needs. People are quite used to paying a fair price for products they enjoy, which is a clear indication that the product isn't meeting the customer's needs.
TNW: Is there anything else you would like to add?
Sasse: I appreciate the opportunity to discuss this very exciting industry with you, and iRiver's role in it. This year will be fun for consumers as the industry continues to mature. Services and devices will continue to evolve, all in an effort to entertain. It will be a great ride.
Microsoft Announces New Version of Windows Media Digital Rights Management Software
REDMOND, WA USA 09/09/2003
America Online, CinemaNow, Creative, Dell, Disney, Motorola, Napster and OD2 Embrace New DRM to Enable Delivery of Subscription or Video-on-Demand Content to Portable Devices and Over Home Networks
REDMOND, Wash., May 3 /PRNewswire-FirstCall/ -- Microsoft Corp.
(Nasdaq: MSFT) today unveiled the features of the next version of its Windows Media(R) Digital Rights Management (DRM)software, and announced early adopters of the platform, including leading online music and movie services entertainment companies, consumer electronics manufacturers and chip makers.
Microsoft's next generation of Windows Media DRM technology will make new scenarios possible, such as protecting, delivering and playing subscription- based or on-demand digital music and video. These scenarios span Windows(R)- based PCs and devices, including portable audio devices, Portable Media Centers, cellular phones and personal digital assistants (PDAs) such as
Windows Mobile(TM)-based Pocket PCs and Smartphones, and networked devices connected within the home, including those that connect over a wireless network.
The promise of how this DRM technology enables these new scenarios has already attracted support from the following companies:
-- Content companies America Online Inc., The Disney Co. and OD2
-- Service providers CinemaNow Inc., Movielink LLC, MusicNow LLC, Napster LLC, VirginMega France and Yacast
-- Consumer electronic device manufacturers Archos SA, Creative, Dell Inc., Digital 5 Inc., iRiver International, PRISMIQ Inc., PURE Digital, Rio, Samsung Electronics Company Ltd., SimpleDevices Inc. and 2Wire Inc.
-- Chip makers BridgeCo AG, Equator Technologies Inc., Imagination Technologies, Micronas, Motorola Inc., Sigma Designs Inc. and SigmaTel Inc.
There is also support for the new DRM by manufacturers of Windows Media Center Extender Technology and Windows Media Connect devices, including Alienware Corp., Creative and Dell. This new version of Windows Media DRM reinforces Microsoft's strong commitment to the digital media marketplace supporting the company's vision of enabling the seamless flow of music and
movies for consumers while ensuring that content owners are able to build robust businesses.
'Consumers are embracing online music with a passion, as evidenced by the nearly 20 million people that visit our music sites every month streaming up to 4 million songs and videos a day,' said Alex Blum, vice president of broadband, music, games and entertainment products for AOL. 'Our goal has always been to offer music fans the widest range of options to experience leading content in the highest quality possible. Microsoft's latest version of Windows Media DRM will help us continue to take legitimate digital music offerings, particularly for our rapidly growing broadband audience, to the next level, ultimately meeting the consumer's goal of taking purchased or rented digital songs, games and movies with them wherever they want, on any device.'
'This is a positive development in the continuing effort to provide consumers with more choices for enjoying legitimate entertainment content on emerging digital platforms,' said Bob Lambert, senior vice president of New Technology at Disney. 'Consumers, content companies and technology companies
stand to benefit as content continues to migrate from analog to digital devices, and Microsoft's ongoing commitment to create robust, flexible and secure media technology will help facilitate these new experiences and business initiatives.'
With the growth in popularity of portable media players and the emerging market for networked media devices, such as digital audio receivers, content owners want to make sure that their music and movies can be enjoyed by consumers in a variety of situations while still being protected from piracy.
Microsoft's new DRM will enable a more secure yet seamless flow of content to dozens of devices, and support the widest range of purchase and rental options for digital media ever available.
'The next generation of Windows Media DRM breaks new ground for music and video services so they can offer consumers more choices and an even better experience when buying, renting or previewing premium content,' said Amir Majidimehr, corporate vice president of the Windows Digital Media Division at Microsoft. 'Imagine paying a low monthly fee to fill your portable music player with thousands of songs, or renting a dozen movies to take with you on a Portable Media Center when you go on holiday, perhaps watching them as you sit on the plane, or letting your kids watch them in the back seat of the car. This kind of flexibility is what our technology is designed to enable.'
New Features of Windows Media DRM The next version of Windows Media DRM will offer new features designed to improve the user experience and offer music and video services the flexibility
to implement new business models. These features cover a range of user scenarios. For instance, license chaining makes it easier for licenses to be renewed (a direct benefit for consumers with large content libraries filled with subscription content), and support for secure time clocks and metering
make it possible for services to offer subscription content to portable devices for transfer and playback for the first time. In addition, improved license synchronization and license store performance make it easier and faster for consumers to manage and access their music. Microchip and device manufacturers can implement support for next-generation Windows Media DRM today through porting kits that include ANSI C code and other tools to help them rapidly integrate these new features into any device, including portable media players, set-top boxes, mobile devices or digital media receivers. Also available is the Windows Media Rights Manager Software Development Kit (SDK), which supports the new DRM functionality being delivered on the PC and devices.
'
This improved Windows Media DRM opens the door for Napster subscribers to increase their value by putting the music they've paid for through theirsubscription onto their digital players without having to pay again for each song,' said Chris Gorog, chairman and CEO of Roxio Inc., parent company of Napster. 'Microsoft's technology might be the biggest step forward in the fight against digital piracy and should catalyze the recurring revenue model for record labels and artists.'
'The next generation of Windows Media DRM technology can enhance
Creative's customer experiences both on the go and throughout the home,' said Craig McHugh, president of Creative. 'Creative is already enhancing digital entertainment with support for Windows DRM across various product categories and will continue to support the next generation of Windows DRM technology
this year in a variety of products.'
About Microsoft
Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
NOTE: Microsoft, Windows Media, Windows and Windows Mobile are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
Windows Media Digital Rights Management Software
Quote Sheet
May 2004
'Consumers are embracing online music with a passion, as evidenced by the nearly 20 million people that visit our music sites every month, streaming up to 4 million songs and videos a day. Our goal has always been to offer music fans the widest range of options to experience leading content in the highest
quality possible. Microsoft's latest version of Windows Media DRM will help us continue to take legitimate digital music offerings, particularly for our rapidly growing broadband audience, to the next level, ultimately meeting the
consumer's goal of taking purchased or rented digital songs, games and movies with them wherever they want, on any device.'
- Alex Blum
Vice President of Broadband, Music,
Games and Entertainment Products
America Online Inc.
'As the pioneer in pocket-sized digital media solutions for mobile consumers, Archos is pleased to expand our product advantages with support for the new Windows Media Digital Rights Management technology. By combining leading-edge portable media solutions with secure Windows Media DRM content, we will ensure even faster market penetration for our devices and expand our
content relationships worldwide.'
- Stefan Serwe
Director of Worldwide Marketing
Archos SA
'BridgeCo's silicon and firmware platform for wireless audio allows consumers to enjoy digital music anywhere in their home. With Microsoft's highly secure DRM technology, content owners have the security to offer a wide variety of digital audio on the Internet, and that means products built on BridgeCo's platform will have legal access to a vast archive of popular
entertainment. BridgeCo is working very closely with Microsoft engineers to make sure Windows Media DRM-based consumer products are available this year.'
- Christof Heidelberger
Chief Technology Officer and Founder
BridgeCo
'CinemaNow is very excited about Microsoft's new Windows Media DRM because it allows us to offer portability to our users. Now people can take our movies off the PC, put them on a handheld device, and take them wherever they go: a business trip, a family trip, a hotel room. It's a great development for us
and one that we know movie fans are going to be very thrilled about.'
- Bruce Eisen
Executive Vice President
CinemaNow
'The next generation of Windows Media DRM technology can enhance
Creative's customer experiences, both on the go and throughout the home. Creative is already enhancing digital entertainment with support for Windows Media DRM across various product categories and will continue to support the next generation of Windows Media DRM technology this year in a variety of products.'
- Craig McHugh
President
Creative
'Microsoft Windows DRM gives Digital 5 the ability to offer more choices to our customers. We are able to add value to our technology and enable our premium content providers with a platform for the distribution of secure digital media files from the PC and across all their client devices.'
- Jodie Hughes
Chief Executive Officer
Digital 5
'This is a positive development in the continuing effort to provide consumers with more choices for enjoying legitimate entertainment content on emerging digital platforms. Consumers, content companies and technology companies stand to benefit as content continues to migrate from analog to digital devices, and Microsoft's ongoing commitment to create robust, flexible
and secure media technology will help facilitate these new experiences and business initiatives.'
- Bob Lambert
Senior Vice President, New Technology
The Disney Co.
'Equator looks forward to providing the next version of Windows Media DRM technology to consumer electronics manufacturers for use in network-connected video appliances based on the Equator BSP-15 chip and Windows Media 9 Series. This next-generation technology allows subscribers legal and licensed access to upcoming TV-centric content and VOD services. Microsoft leads the industry
in providing a comprehensive and cohesive Windows Media 9 Series media ecosystem -- from creation through delivery -- driving innovation in a range of consumer devices. Resulting devices are not defined by the operating system they run, but instead by the content they are able to carry, the providers they are able to serve, and the consumers they satisfy.'
- Rich Christopher
CEO and President
Equator Technologies Inc.
'As a leading digital audio decoding semiconductor provider, we welcome the introduction of Microsoft's new security technology. This is an excellent technical symbiotic relationship. Microsoft provides security for the music content, and Freescale provides fast, feature-rich, high-quality audio for the listener.'
- Bill Pfaff
Vice President and General Manager,
Digital Audio, Radio and Telematics
Business
Freescale Semiconductor Inc.,
a subsidiary of Motorola Inc.
'Effective rights management technology, and in particular the emergence of standards in this area, are key requirements to drive the next step in the digital media revolution. Imagination sees the new version of Microsoft's Windows Media DRM as a key development and intends to support the technology in its video, audio and graphics IP solutions.'
- Hossein Yassaie
CEO
Imagination Technologies
'Windows Media DRM is fast becoming a uniting format that powers a growing array of music services. Our customers are embracing online music services that are simple to use and allow them to take their favorite songs on the go. We recognize that music services appeal to a growing number of our customers, and as a result we have included Windows Media DRM support in our wide range of flash-based portable audio players with plans to further increase support for Windows Media DRM in our expansive product line of portable entertainment
devices.'
- Jonathan Sasse
President
iRiver America
'With the next generation of Windows Media DRM technology, Microsoft will bring about the consolidation option required to finally enable a long- standing consumer and industry need. This is a cohesive step to bring media content distribution and management to the next and, more important, an accepted level. Within Micronas we have embraced the need for the protection
of legal rights at an early stage. In fact, our company has always participated in standardization activities and supported industry initiatives such as SmartRight and consequently implemented the respective security arrangements in our products. With the licensing of Microsoft's new DRM technology, Micronas has expanded its data security portfolio with one which we expect will be shown to be a major catalyst to both the uptake of consumer services and the industry as a whole.'
- Shawn Richards
Director, Marketing Multimedia
Micronas
'By creating a more-secure bridge between the PC and TV, Microsoft's most recent progress on DRM will enable Movielink to provide an even more compelling service.'
- Jim Ramo
CEO
Movielink
'Microsoft's latest DRM technology holds the promise to revolutionize the consumer's digital music experience. The tremendous value proposition of paying a reasonable monthly fee for access to a world of content that can be played on portable and other digital devices will spark a torrent of interest in services like MusicNow.'
- Scott Kauffman
President and CEO
MusicNow LLC
'OD2 continues to integrate Microsoft's Windows Media technology into its service to deliver European music fans a truly flexible and user-friendly music service. The new Windows Media DRM technology heralds another step in the development of the European digital media industry and will allow OD2 to offer consumers a seamless and legitimate digital music experience with the added ability to take their music with them. This is a very exciting opportunity for the digital music industry.'
- Charles Grimsdale
CEO
OD2
'We are excited to be working with Windows Media DRM as it allows us to viably roll out Web-based movie services such as CinemaNow to our\ entertainment gateway set-top-box product line. Extending Web-based movie services from the PC to the TV through our home-networked set-top boxes is key to pushing our product category into the mainstream.'
- Brad Kayton
Vice President of Marketing and Business
Development
PRISMIQ Inc.
'We recognize that our customers are looking for improved methods to buy music and enjoy it on their portable players. Rio will support the next- generation Windows Media DRM in our products as we believe it will be accepted industrywide, leading to a better consumer experience while creating more pricing options for purchasing digital music and spoken word content.'
- Hugh Cooney
President
Rio Audio
'This improved Windows Media DRM opens the door for Napster subscribers to increase their value by putting the music they've paid for through their subscription onto their digital players without having to pay again for each song. Microsoft's technology might be the biggest step forward in the fight
against digital piracy and should catalyze the recurring revenue model for record labels and artists.'
- Chris Gorog
Chairman and Chief Executive Officer
Roxio, parent company of Napster
'Samsung is very excited about Microsoft's new DRM technology. It allows for the perfect marriage between legal content providers and Samsung portable devices in one easy-to-use, intuitive interface. It will at last enable consumers to enjoy music, movies and more through such products as Samsung's
YH-999 portable media center.'
- Mark Farish
Marketing Manager
Digital Audio Group
Samsung
'SimpleDevices is pleased to be working with Microsoft on Windows Media DRM to enable the distribution of premium content to portable devices within the home and car. With the rapid proliferation and acceptance of online music stores, playback of premium content is a necessity for PC-connected media players powered by the SimpleWare media distribution platform. To address this growing need, SimpleDevices is collaborating with Microsoft to provide this capability to our OEM customers.'
- Hanford Choy
Vice President, Sales
SimpleDevices Inc.
'2Wire will be using the new Windows Media DRM for distribution of content through its Component Management System, for delivery to our MediaPortal and Media Point set-top box family. It is the most robust solution available for distribution of secure media through the 2Wire platform, furthering our vision of providing the 'triple play' of data, voice and entertainment services.'
- Arthur Cinader
Director of Media Products
2Wire
'Thanks to Microsoft's Windows Media DRM technology, VirginMega has been able to build a robust, flexible and secure digital music download service. The new Windows Media DRM will allow us to improve it with new business models and full music portability to give our consumers the best value proposition
possible.'
- Laurent Fiscal
Director General
VirginMega France
'Yacast will integrate the new Windows Media DRM into its platform and in its new professional Muzifast Service to secure the distribution of new music and video releases in broadcast quality. The technological progress of Microsoft's Windows Media DRM has allowed Yacast to give to the music industry full transparency and control of its content. Muzifast and other Yacast Services will achieve with the new Windows Media DRM all the flexibility, quality and security required for the distribution of highly valuable music and video content to radio stations, television networks and end users.'
- Philippe Cheron
Chief Technology Officer
Yacast
SOURCE Microsoft Corp.
Web Site: http://www.microsoft.com
OT:Best Buy Again Named Nation's Top Consumer Electronics Retailer in TWICE Magazine's Annual Retailer Report
Consumer Electronics Retailers' Sales Hit Record Breaking $106.6 Billion in 2003, Driven by HDTV Purchases
NEW YORK, May 3 /PRNewswire/ -- The nation's largest consumer electronics retailers rang up a record-breaking $106.9 billion in aggregate sales during 2003, according to the authoritative annual "Top 100 CE Retailers Report" published today in the May 3 edition of TWICE (This Week In Consumer Electronics), the leading trade publication covering the consumer electronics
(CE) industry.
Once again, Best Buy (NYSE: BBY) was ranked the number one U.S. consumer electronics retailer with $19.5 billion in sales, an increase of 17.7 percent versus the previous year.
TWICE noted that the record setting performance for the industry's top retailers was particularly significant in light of consumer anxieties during 2003 over the war in Iraq, high unemployment and job security woes, as well as blizzards and blackouts. "Given the circumstances, 2003's performance is
remarkable, a tribute to the consumer electronics industry whose products and technologies continue to inspire the imagination and shopping appetites of Americans of all ages," said Steve Smith, editor in chief of TWICE.
Leading the 2003 product parade, high-definition television sales rocketed dramatically as consumers flocked to stores to ask questions and buy LCD, plasma and other new flat panel formats at lofty prices. A flood of other products sparked consumer demand, including MP3 players, led by Apple's
(Nasdaq: AAPL) iPod; digital cameras; picture-taking, game-playing cellphones; recordable DVD decks (as well as the commodity-priced DVD players); TiVo (Nasdaq: TIVO) and competing personal video recorders (PVR); and high-end audio systems.
Universal mass merchant Wal-Mart (NYSE: WMT) ranked no. 2 in the report after Best Buy with $15.7 billion sales, a 10.9 percent increase. Specialist Circuit City (NYSE: CC), whose CE sales dropped 2 percent to $9.75 billion, ranked No. 3.; computer leader Dell (Nasdaq: DELL) ranked fourth with $6.26 billion in sales; and mass merchant Target (NYSE: TGT) ranked fifth with $4.96 billion.
The ubiquitous RadioShack (NYSE: RSH) chain holds the No. 6 slot with $4.6 billion; home office specialist Staples is No. 7 with $4.02 billion in sales, edging out CompUSA, No. 8 on the list, with $4.01 billion. Rounding out the Top Ten is Wal-Mart-owned warehouse operation Sam's Club with $2.76 billion at No. 9 and another home office chain, Office Depot (NYSE: ODP), with $2.59
billion at No. 10.
All-in-one trend hits MP3 players
Makers of music devices follow path of cell phones, adding digital camera to dictionary
By Lee Chae-eun
The MP3 player, a youth favorite for music listening, is becoming more and more like a gadget for everything.
Following the manufacturing model for multitasking mobile phone, the makers of MP3 players are transforming their device into an all-purpose information tool. Apart for basic function of compressing and replaying Internet music file, the new models include a range of features, including digital photography and language study.
They are being released in a steady stream in what some analysts regard as valuable additions to Korea's electronics offerings to global markets.
ReignCom Inc.`s MP3 player "Prism Eye" has a built-in 30,000 pixel-resolution digital camera. ReignCom plans to release models with better picture quality this year to fend off LG Electronics Inc. and Samsung Electronics Co. [ReignCom Inc.]
"The MP3 player is expected to evolve into a handy entertainment device that forecasts the competition among Korean manufacturers that lead the international industry in flash-memory MP3 player" said an analyst at Samsung Securities. MP3 is an audio compression format for accessing Internet music files. Flash memory is computer storage that is not lost when power is turned off.
Last year, about 1 million MP3 players were sold in the world. This year, many manufacturers' forecast a 50 percent sales increase. Seoul-based ReignCom Ltd., the international leader in sales of flash-memory chip MP3 players, has a higher prediction - more than 2 million units.
ReignCom recently released a MP3 player with a digital camera. The Prism Eye model features zoom focusing and 300,000 pixel resolution, which means picture quality far lower than mainstream digital cameras that are 2 million to 3 million pixel.
"Prism eye supports more sophisticated photography than camera phones with equal resolution and is targeted at low resolution digital camera market," said Kim Dong-hwan, Reign.com public relations manager, adding that the company plans to roll out a MP3 player camera providing up to 1-million-pixel resolution before July.
ReignCom said it sold about 1.6 million units worldwide last year with 600,000 units sold in Korea. That gave the company commands a 25 percent global market share and 50 percent domestic market share.
ReignCom revenues nearly tripled in 2003, while its profit rose five-fold to $36 million. The company looks forward to a double in profit this year. Already the company announced a 158.5 percent increase in net sales this first quarter from same time last year.
There is no assurances the hot pace will continue. A clash with large conglomerates such as Samsung Electronics and LG Electronics is intensifying. In fact, MP3 player is one of a few areas where Samsung Electronics lags behind since 2002.
This year, the Samsung Electronics aims to unseat ReignCom releasing three new models earlier this year with at least one to come every month. Among them is Samsung's Yepp Sports YP-60, which tries to tap the "momjjiang," or "perfect body" fad with options that measure heart rate and total calories burned while working out and listening to music.
LG Electronics plans to launch its own line of MP3 players by the end of June. Until now, it has contracted other manufacturers to produce its line of MP3 players
LG Electronics and Samsung Electronics also pose a potential threat with their camera phones, which are capable of playing music. They already have unveiled 1-million pixel camera phones coming up with 2-million-pixel models in the first half of this year.
Industry analysts disagree about the extent of the threat. The sound quality of the camera phones is inferior and the handsets are capable of storing far fewer songs. Still, they provide the ultimate in all-in-one handheld electronics.
ReignCom CEO Yang Duk-jun remains nonplussed. He is confident the MP3 player can coexist with losing market share to ramped-up mobile phones. "Not even Samsung can worry us," said Yang.
"The competition does not trespass the boundary of MP3 player and MP3 phone," said Choi Yong-ho, LG Securities analyst "It does not mean that people will not buy MP3 player just because there is MP3 phone. It provides low music quality and little space," he said.
To help ensure growth, ReignCom has launched its first large-scale a TV advertising campaign. ReignCom is poised to benefit with unexpected luck.
In an effort to broaden its customer base from teenagers and those in their twenties to people of all ages, ReignCom will release a MP3 model, PMP-100, that has video recording capability, allowing users to download and watch movies and TV programs.
But the PMP-100 coincides with government encouragement of more TV-based education programs, to help relief the financial burden of parents sending their children to after-school classes.
Courses aired on EBS to prepare for college entrance examinations are expected to generate sales to high school students, making PMP-100 an unintended double winner in securing different age groups.
In another foray in combining music capability and education, ReignCom also will launch an MP3 player that boasts an electronic dictionary. The model is designed in cooperation with education publisher YBM SIsa.
Large music storage is another trend, starting with Apple's 'iPod' and Cowen Systems' s "iAUDIO M3." Both have 40GB capacity, that can save up to 5,000 songs.
(congcong82@heraldm.com
Microsoft unveils new antipiracy tools
Last modified: May 2, 2004, 8:35 PM PDT
By John Borland
Staff Writer, CNET News.com
Microsoft will release details of a long-delayed update to its content protection technology Monday, offering new features aimed at bringing piracy-proof digital content to mobile devices and home networks.
Originally expected as long as a year ago, the technology--internally code-named Janus--has been seen as a potential way to let subscription music services such as Napster and RealNetworks' Rhapsody move to portable MP3 players. Those services, which allow subscribers to listen to unlimited amounts of music in return for a single monthly fee, are typically tied to PCs today.
But the new digital rights management tools also include features that would protect content that is streamed around a home network, or even block data pathways potentially deemed "unsafe," such as the traditional analog outputs on a high-definition TV set. That's a feature that has been sought by movie studios in advance of the move to digital television.
"This release of technology really enables all kinds of new scenarios that are emerging now," said Jason Reindorp, a group manager in Microsoft's Windows digital media unit. "We're taking quite a holistic view."
Microsoft is betting that the steady release of new content protection technology will help its audio and video formats become standard ways of distributing digital music and films, in turn, keeping people purchasing and using the Windows operating system and associated products.
The company has spent considerable time and money wooing record labels and movie studios over the past several years, hoping to see more content released online in its formats. To date, the majority of mainstream label- or Hollywood studio-authorized online services do use Microsoft's formats.
Nevertheless, Apple Computer's iTunes music store, which distributes music in its own rival proprietary copy-protected format, remains far more popular than any of the Microsoft-based services, controlling about 70 percent of paid music downloads.
Apple has wholly eschewed the monthly subscription model for its music store. But others services have looked to the predictable income as a better revenue source. They believe that ultimately consumers will prefer to fill their hard drives completely in return for a low monthly payment, instead of purchasing each song one by one.
Not yet in tune with consumers
However, even some of the most sympathetic subscription-model backers predict it will take a long time before consumers warm to subscriptions on their MP3 players.
"There's a lot of hype and talk about subscription downloads" for portables, said Sean Ryan, vice president of music services for RealNetworks, which operates the Rhapsody subscription service. "Our views on this are that it will be important in the long term, but it won't be in 2004."
RealNetworks uses Microsoft's audio format for the Rhapsody service, and so could theoretically take advantage of Janus. The company has not said it plans to license the technology, however.
The technology itself will likely take many more months to work through the often difficult process of being integrated into actual devices and chips. A long list of manufacturers, including Dell, Archos, Creative, Rio and iRiver have said they will support it.
But the services themselves may take just as long to emerge. The record industry is far from certain how to treat a service that allows consumers to fill up their 40-gigabyte MP3 players with music in one digital gulp. Labels worry that the model might simply siphon off the most active CD buyers.
"It would be very attractive if it expanded the market," one top record label executive said in a recent interview. "Anything that cannibalizes the market isn't as attractive. No one knows yet."
As a result, licensing negotiations are ongoing, executives said.
Along with chipmakers, device makers and music services, America Online and Disney both have indicated their support for the new digital rights management technology, further evidence that Microsoft's strategic alliances with both companies may be bearing fruit. Neither gave details on how they planned to use the new release, however.
How do you plan to take the iPod crown away from Apple?
Sasse: Apple can keep the "iPod crown." The "portable entertainment crown" is still up for grabs, however, and we have our sights set squarely upon it.
Apple probes iPod-update hitch
By Macworld staff
Friday - April 30, 2004
Apple has confirmed that it is investigating problems in updating some iPods, and that its new lossless audio feature is compatible only with third-generation iPods and iPod minis.
iTunes 4.5 introduced a new feature – the Apple Lossless Encoder – which the company says "lets you enjoy the full quality of uncompressed CD audio at half the size". It's aimed at audiophiles who feel that compressed audio sacrifices quality and loses valuable slices of tone.
The company last night said: "If you update your iPod or iPod mini by running the iPod Updater 2004-04-28, you'll be able to enjoy that quality in your third-generation iPod or iPod mini."
The need for a third-generation iPod was not clarified initially when the feature was announced.
Some iPod-owners installing the software have experienced problems, reports claim. It seems that when they attempt to update their music player the software is unable to detect their music player.
Apple's forum carries several reports from iPod users facing problems. One explains: "Tunes 4.5 won't recognize my original 10GB iPod, I am unable to install the updater. The iPod appears mounted in Finder and the iPod screen shows it is mounted but neither the updater nor iTunes 4.5 recognizes it."
Another says: "It has rendered my 3G 15GB iPod useless – it pops in and out of Folder Exclamation and the Apple Logo and when put in the Dock it puts itself into disk mode, but it will not mount on the desktop. The computer will not even recognize the hard drive. Every time I try to restore the software it locks up my G4 tight as a drum. I've even tried going back to 2.1 or 1.3 with the same results. I'm on hold with support as we speak."
Apple issued a statement saying: "Apple is aware of a few isolated reports and is looking into it. Those who encounter a problem should contact AppleCare."
Digital Music: Does Apple Hold the Best Hand?
By Robyn Weisman
E-Commerce Times
04/30/04 4:32 AM PT
"While Apple has a staggering 30 percent of the market in music players, that also means the other 70 percent of the market will work everywhere but iTunes Music Store," The Mac Observer publisher Bryan Chaffin told the E-Commerce Times. "That's a lot of other hands in this metaphorical poker game."
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A recent Jupiter Research report entitled "Portable Media Devices -- Beyond Music" calls Apple's iPod the most successful portable media player today.
"More than two and a half years after its introduction, no vendor has come close to Apple in capturing the hearts and minds of the marketplace," the report states, adding that the iPod's sleek form factor, ease of synchronization and reasonably long battery life are its core attributes.
With regard to standards, the report says the online music market has become polarized between Apple's Advanced Audio Coding (AAC) and Microsoft's Windows Media Audio (WMA). "Microsoft may hold the larger hand of cards (particularly widespread use of WMA and WDRM), but Apple holds the aces with the iPod and iTunes," it notes.
Granted, the majority of digital music files are MP3s rather than AAC or WMA files, but as legal downloads increase in popularity, the battle between Apple and Microsoft for digital music supremacy increasingly may resemble the World Series of Poker. The Mac Observer publisher and poker aficionado Bryan Chaffin said he found Jupiter Research's poker metaphor to be a great analogy.
"In Texas Hold 'Em poker, having a pair of aces is a great hand when you are against one, or at most two, opponents. In such a case, the aces will win as much as 94 percent of the time," Chaffin told the E-Commerce Times. "When you add in more players, however, those aces lose a lot of power, winning less than 50 percent of the time. While still favored, the aces are just not as powerful the more opponents you add."
So, who is holding the better hand? Should Apple hold with its aces? Or will Microsoft upend its rival with a full house of WMA-based partners?
A Winning Hand?
According to Chaffin, Apple's strategy to tie the iPod with the iTunes Music Store (iTMS) has been a hands-down victory so far. However, the company has had relatively few rivals with which to contend.
"While Apple has a staggering 30 percent of the market in music players, that also means the other 70 percent of the market will work everywhere but iTunes Music Store," Chaffin said. "That's a lot of other hands in this metaphorical poker game. It will only take one of those opponents to hit, as they say in poker, for customers to turn to a different product and service."
He noted that such an event is especially possible in the broad, Windows-based market, adding that Apple could easily lose its momentum if this were to occur. "In the grand scheme of things, it's most likely a matter of when, not if, that happens," he said.
Nascent Market
Jupiter Research vice president Michael Gartenberg, the author of the abovementioned report, said the portable media player market is still nascent, with just 2 percent of those surveyed reporting they own a hard drive-based digital jukebox.
"Apple is playing a very strong hand, with lots of folks looking on enviously," Gartenberg told the E-Commerce Times.
GartnerG2 research director Mike McGuire concurred that, from a business standpoint, Apple is doing a great job with its iPod/iTMS combo. Apple's interface is a primary reason for the company's success in this arena.
"Being able to [purchase] songs and make playlists easily on a portable device is the heart of online music in the future," McGuire told the E-Commerce Times. "The challenge is growing the overall market. A lot of people still are not hip to the idea of online or PC-based music."
For his part, Chaffin praised Apple for growing the online music market from nothing to a multibillion-dollar business. But he cautioned that when Microsoft enters the market more directly and "starts throwing serious money at it," Apple will have to compete against more opponents in both the music-player and download markets.
"The mistake that Apple has always made is in not adjusting its tactics once the rest of the industry [gets] anywhere even close to what [it is] doing," Chaffin said.
"So far, it seems as if Steve Jobs is intent on repeating that mistake, though I hope to be proven wrong on this," he continued. "Good poker players learn from their mistakes."
'Apple Is Fine'
Apple's announcement Wednesday that its latest version of iTunes for Windows will support WMA-to-AAC conversion may be a step in the right direction, given that the default version of Windows Media Player rips only to the WMA format.
"Apple has provided a straightforward means of getting [WMA files] into a format supported by iTunes," Jupiter analyst Joe Wilcox told the E-Commerce Times. "Because Windows Media Player doesn't come with a high-quality MP3 decoder, some consumers may have unwittingly created vast WMA collections that won't play in iTunes."
Jupiter's Gartenberg said he does not see the WMA/AAC issue as similar to the Mac-vs.-Windows battle that took place more than a decade ago, partly because other players like Sony are entering the market with their own proprietary technologies.
"There is no center of gravity right now except for the MP3. Customers expect support on that," Gartenberg said. "The iPod is an open platform. It supports MP3s. Apple is fine."
Cold, Harsh Reality
GartnerG2's McGuire noted that if Apple continues to dominate the online music market, the company might license its Fairplay digital rights management (DRM) technology to make it compatible with RealNetworks and other services and players.
However, he said, making a business case to license Fairplay right now would be difficult. The cold, hard business reality is that Apple's primary loyalties lie with its customers, employees and shareholders, all of whom likely want the company to extract as much profit and value from the iPod/iTMS nexus as possible.
Meanwhile, Gartenberg noted that Apple's core digital media business is selling iPods, not songs.
"There are a number of players with very different business models," he said, "and there seems to be a lack of recognition that they're pursuing different business models than Apple might be doing right now
iRiver President Jonathan Sasse on Creating the iPod Killer
By Kirk L. Kroeker
TechNewsWorld
04/30/04 6:00 AM PT
"Without question, Apple has done a great job marketing their solution and the industry as a whole has benefited from that," iRiver president Jonathan Sasse told TechNewsWorld. "Apple can keep the 'iPod crown.' The 'portable entertainment crown' is still up for grabs, however, and we have our sights set squarely upon it."
Contrary to popular misconception, Creative Labs was the first company on the market with a hard-drive-based digital music player, the original Nomad Jukebox, which came out initially built around a 6 GB 3.5" hard disk. The Jukebox looked like a portable CD player, which could account for its initial popularity, but the form factor that would later prove to be most popular was the player built in the shape of a notebook computer's smaller hard disk and then later the form factor that Apple and iRiver built their respective players around: the 1.8" drive, slightly smaller than a standard 2.5" laptop drive.
When Apple's iPod came out -- the first hard-drive-based player on the market to come in a form factor not much bigger than the hard drive itself -- and quickly dominated the media-player space, Creative Labs, iRiver, Diamond Rio and several other consumer electronics vendors responded with their own versions, like the iRiver iHP-120, a media player that quickly garnered several awards around the industry.
Clearly, amid much competition by other industry players, iRiver has been keeping pace, neck and neck, with iPod innovations, even offering a wider range of technologies and players than Apple. In addition to the company's set of hard-disk-based media players designed to go head to head with the iPod and other players at the high end, iRiver has a full arsenal of smaller media players based on the flash media storage format.
According to most analyst estimates, the iPod has the largest market share among all portable digital media players. But if any company can take on Apple in the media-player space, it is iRiver, a company that has been setting the high-mark standard for media-format compatibility. The company is perhaps the first major media-player manufacturer to offer players that are compatible with MP3, WMA, ASF, WAV and OGG music file formats.
To hear about the future of media players, TechNewsWorld turned to iRiver president Jonathan Sasse for an exclusive interview. Sasse talked about new storage formats, the future of personal media-player technology, and how the company is planning to take on the iPod to dominate the media-player space.
TechNewsWorld: First, can you tell us a little about your background and what you do at iRiver these days?
Jonathan Sasse:: I started my work in the digital audio space very early on with Diamond Multimedia as the Rio branded MP3 player was getting ready to launch, the first major MP3 device in the U.S. market. During my time with Diamond Multimedia, Rio and SONIC blue, I was involved in all aspects of new product development, new technology research and market development for the compressed audio category, launching dozens of new products. In 2002, I joined forces with iRiver to help brand and launch the iRiver brand into the U.S. market. Today, as President and CEO of iRiver America, I oversee the sales, marketing, product planning and operations for North America.
TNW: Your company, unlike Apple, has not focused on a direct synergy with an online music store. Instead, iRiver has favored background partnerships, media player integrations and broad format compatibility. Are you planning an integration effort or some partnership that will pair your media players directly with an online source for music?
Sasse: We are doing our best to remain as agnostic as possible in this arena. Our customers are looking for flexibility to choose the options that best suit their needs. By favoring the secure Windows Media format, it opens up the opportunity for competition in services, ultimately providing our customers with multiple libraries, service options, and payment structures to choose from. We aim to produce the best devices possible, in multiple categories, supporting multiple formats and services so our customers can always choose what is best for them.
TNW: How has the onset of digital rights management technology affected your hardware strategies?
Sasse: Digital Rights Management technology has been around for some time; it is the abundance of services, content and the support of key labels driving consumer demand at this point that is shaping the hardware industry. Certainly with the marketing efforts of the major online services, along with similar activity from the hardware side, consumer awareness is up considerably and the need to supply customers with the products and services they desire is a top priority.
TNW: Given that iRiver has moved in recent years to the cutting edge of sound technologies and consumer electronics, do you foresee a time when you'll branch out into other areas, like mobile phones or PDAs?
Sasse: As products and technology converge, there are always opportunities to integrate entertainment into the devices that we use every day. Adding functionality to products such as mobile phones or PDAs too early is little more than a novelty. Our focus now, and in the immediate future, is to provide consumers with outstanding portable entertainment devices. As it makes sense to do so, other peripheral products could benefit from our entertainment advances while at the same time it is not unreasonable to envision key technology from the business applications making their way into a future product line.
TNW: Many companies, like Gateway and Microsoft, have begun to approach the living room with consumer electronics designed to be more about entertainment than office work. Is iRiver planning any kind of non-PC technology that can be used in an entertainment center?
Sasse: Devices that we are launching as early as this year are taking a step forward in this direction. As the Media Center systems make their way into the living room, and out of the office, there are still devices that will be needed to keep that content mobile. The iRiver Portable Media Center product launching in the second half of this year will begin that process. Home products of this kind are still very much in their infancy, but portable integration with these solutions is still a very important value add.
TNW: What's the most exciting technology happening in the development lab at iRiver right now?
Sasse: Keeping in line with the previous comment about the Portable Media Center, I believe that bringing a complete multimedia experience to a portable device is a very compelling opportunity for consumers. As we will launch several variations of a portable multimedia player this year, our customers will now be able to take all of their music with them as they have previously, but in addition they will be able to take photos and videos with them as well. Whether it is a portable TiVo-like experience, a digital photo collection or a supercharged audio experience, these devices will change the face of portable entertainment completely.
TNW: Do you see the Apple iPod as your main competition at this point, or are there other players you admire more on the market?
Sasse: At this point, there are very few companies that have a product line that rivals iRiver. Without question, Apple has done a great job marketing their solution and the industry as a whole has benefited from that, but our strategy is entirely different. We believe there are many different consumer needs that need to be met with the right product; as such, our product line has something for everyone, whereas other companies may take the approach of "one product for everyone."
TNW: How do you plan to take the iPod crown away from Apple?
Sasse: Apple can keep the "iPod crown." The "portable entertainment crown" is still up for grabs, however, and we have our sights set squarely upon it.
TNW: What about other media formats, like Ogg Vorbis, which you've recently accommodated in your latest firmware? Is there room for adoption of other new formats?
Sasse: In maintaining the flexibility of our product line, we are constantly looking at different formats, audio and video. If consumer demand is there, and a new format is robust, it is worth a closer look. MP3 was the standard; WMA enhanced that experience by offering a secure element in a quality format, while Ogg Vorbis removed the licensing restrictions for consumers and maintaining a high-fidelity media format. As secure content grows, new formats may give way to existing formats evolving accordingly.
TNW: Creative Labs has a proprietary sound-enhancing format, called EAX, that has been widely praised around the industry. Does iRiver have a comparable sound-enhancing technology that the company is working on?
Sasse: Sound enhancements for portable devices are quite abundant from many credible audio specialists in our industry. We have adopted several of these, including sound enhancements from SRS, which enrich the listening experience for many customers.
TNW: With new storage formats on the horizon that will likely outmode flash-based technologies, can you hint about what storage media the company will focus on in the future?
Sasse: I will say that drives will continue to get smaller and more robust. As the durability and capacity of small drive technology increases, this will be a good solution moving forward for many products. The advantage that flash memory still has over any other storage format is the lack of internal moving components. Flash players have certainly shifted a bit -- initially being the only solution for compressed audio, to becoming the perfect solution for athletic activities -- but flash is very difficult to beat in this regard. Small drive technology has not yet reached the point where it can replace flash, but I do see a time in the future where the gap will be much smaller, as will the drives.
TNW: What do you think media players will look like in 10 years?
Sasse: In 10 years I see two types of highly evolved entertainment devices. There will be a strong play for very small audio devices, perhaps which fit nicely in your ear, without the need for wires or cables, and possibly doubling as your cell phone earpiece when you aren't on the treadmill. Portable video will make gains with the display, either with visual glasses for personal use, or advanced display technologies enabling several people to enjoy a single portable device. I do believe the business and entertainment will remain mostly separated on specialized devices for each respective function. With cell phones picking up the PDA, Internet and commerce functions, and portable entertainment devices evolving the video, audio, and gaming experience.
TNW: How about 20 years?
Sasse: It will be a lot of fun.
TNW: Given that iRiver manufactures many products that are widely used as storage media for pirated music -- and of course legitimate music also -- does iRiver have a corporate stance or policy toward the RIAA and other industry groups that are suing consumers for sharing files online?
Sasse: As I have mentioned a few times, we design products to suit our customer's needs as best as we can. By doing this, our product grows and evolves with our customer's desired use model. Other industry groups are in a position to grow in a similar way, offering their products and services in the way that paying customers wish to use them. Customers aren't obtaining illegal content because they are criminals; it is because the existing model did not suit their needs. People are quite used to paying a fair price for products they enjoy, which is a clear indication that the product isn't meeting the customer's needs.
TNW: Is there anything else you would like to add?
Sasse: I appreciate the opportunity to discuss this very exciting industry with you, and iRiver's role in it. This year will be fun for consumers as the industry continues to mature. Services and devices will continue to evolve, all in an effort to entertain. It will be a great ride.
Notice how some seemingly only took a hit on eDigital? On every other stock, everyone seems to play it perfectly, making the big bucks, holding only free shares when the other stocks tank.
How many times have we heard that one? Only eDigital is the dog. Only eDigital is the loser. LOL Sure is amazing how smart we all are with "other" stocks. Truly amazing..........
Apple Misses Music Goals as Pepsi Promo Fizzles
Paul Thurrott
On the first anniversary of the launch of its iTunes Music Store, Apple announced that it has sold 70 million songs online, a tremendous achievement for such a nascent market, but far below the 100 million songs that CEO Steve Jobs promised. Furthermore, Apple's high profile song giveaway promotion with Pepsi has been a complete flop: Only 5 million songs have been redeemed, far fewer than the 100 million that have been circulated.
"iTunes has exceeded our wildest expectations during its first year," Jobs said, in a bit of hyperbole, given the 30 million song shortfall and the Pepsi debacle. Apple also quietly began retreating on its anti-Microsoft technology bent, adding support for Windows Media Audio (WMA) to iTunes 4.5, a new version of the player the company released yesterday. With the new version, iTunes users can't play WMA songs directly, but they can morph them into Apple's AAC format, and the resulting songs will play on Apple's hugely successful iPod (and iPod Mini, if you're on of the lucky few that got one).
There have been other changes in Apple's music strategy, some of which appear to be designed to head off competition from the Microsoft camp, which will soon mount a multi-pronged digital media attack. With iTunes 4.5, users can share music between up to five computers (up from three), and a new mixing feature will automatically set up playlists for parties and other events. Apple notes that the iTunes Music Store now sports 700,000 songs, up from 200,000 when the service first launched.
Some of the changes aren't so positive. With previous iTunes versions, users could make up to 10 mix CDs from the same playlist; that number has been dropped to 7. And though customers can purchase more music than ever from the online service, many albums on iTunes now cost significantly more than $9.99 because of price increases from the record companies.
Apple also refuses to budge from its buy-only, music-only strategy. Despite rumors that the company would introduce an iPod with a color screen, or a video iPod, Jobs says that iPods are about music only, and the company has no plans to venture from that niche. Furthermore, the subscription music services that are gaining traction on the PC side are unsuccessful, Jobs says. "People want to own their music," he noted in a conference call yesterday.
That's short-sighted. Late this summer, Microsoft and its many hardware partners will unveil a collection of portable media center devices and portable audio players that will be able to play back subscribed, and not just purchased, music. That means for a low monthly price--expected to be $10 to $20 a month depending on the service--customers will be able to stock their devices with a revolving inventory of 20 GB to 60 GB of content. Purchasing that content would be prohibitively expensive, backers of the scheme correctly note.
Despite the missed goals, it's impossible to underscore the important and far-reaching effects that iTunes has had on the music and consumer electronics industries. In a way, it's a shame that Jobs had to brag about the success he expected to achieve with the service, because iTunes, in fact, been hugely successful with an amazing number of songs sold. That misplaced bravado, the Pepsi debacle, and Apple's downplaying of markets for which it has no solution, suggest the company isn't prepared to innovate the next big consumer electronics push. And that's a shame: A video iPod with subscription services capabilities would have surely kept the Microsoft camp on the sidelines yet again.
Song Completes Installation of In-Flight Entertainment System; All 36 Aircraft Fully Outfitted with Live Satellite TV, Audio Programming, Interactive Trivia Game
ATLANTA--(BUSINESS WIRE)--April 29, 2004--
Pay-Per-View Movies, MP3 Programming and Video Games Coming Soon
Song(R), Delta Air Lines' high-quality, low-fare air service, announced today that its entire fleet of 36 aircraft has been outfitted with its state-of-the-art in-flight entertainment system, providing customers with an extensive array of on-board entertainment, including live TV, audio programming and an interactive trivia game. All Song aircraft are currently equipped with personal video monitors at each seat, allowing passengers to access a variety of entertainment options via convenient touch-screen technology, including:
-- 24 all-digital, live, DISH Network TV channels available to passengers for free;
-- all-digital broadcast radio programming with 24 free channels; and
-- an interactive trivia game that allows play between passengers, also for free.
"Customer response to Song's extensive entertainment offerings has been outstanding," said Tim Mapes, Director of Marketing for Song. "It's our goal to make flying as entertaining and interesting as possible, and we're thrilled that our customers can now enjoy the wide range of choices this technology provides on each and every flight. They can watch their favorite television shows live, relax with a wide range of music or challenge other passengers in music trivia."
In April, installation began of the second phase of Song's in-flight entertainment technology throughout its entire fleet. This technology, scheduled to be complete by December, will provide an even broader array of amenities, including:
-- video-on-demand, pay-per-view movie programming -- providing a wide range of current offerings for all ages;
-- digitally-streamed MP3 programming that allows customers to create individual play lists during their flights;
-- 10 additional video games;
-- interactive iXplor moving map program with zoom capabilities and points of interest information; and
-- connecting gate information broadcast directly to personal in-seat video monitors.
More information about Song's in-flight entertainment system, including a list of television and audio channels, can be found at flysong.com/entertainment.
Song provides non-stop service between major cities in the Northeast United States and key Florida leisure destinations, plus Atlanta, Los Angeles, Las Vegas and direct service to San Juan. Utilizing a fleet of thirty-six 199-seat, one-class Boeing 757s, Song provides more than 142 daily flights. Song offers an onboard food program, created by Chef Michel Nischan, featuring healthful, organic selections. Additionally, Song partners with Dylan's Candy Bar -- the innovative candy store co-founded by Dylan Lauren, daughter of Ralph Lauren -- to provide Song-branded chocolates and candies for sale exclusively on board Song flights. Customers can use their credit card or cash to make food and other purchases onboard.
Song was recently awarded the highest overall ratings from BusinessWeek and The Los Angeles Times in two separate comparisons of low-fare airlines, including food, comfort and entertainment amenities. Song presently serves all three New York metro area airports -- JFK, Newark and LaGuardia -- the only low-fare service to do so. All Song flights are operated by Delta Air Lines. Song tickets can be purchased by visiting flysong.com or calling 1-800-FLY-SONG (1-800-359-7664).
Rockwell Collins Chooses Touch International's Touch Screen Technology
Touch International's Durable Touch Screen Technology Used With Rockwell's In-Flight Entertainment Products
AUSTIN, TX -- (MARKET WIRE) -- 04/28/2004 -- Touch International Corporation, a leading manufacturer of touch technology, today announced that Rockwell Collins (NYSE: COL) has selected Touch International to provide touch screen technology for use with Rockwell's line of in-flight entertainment products. The win showcases the continued growth of Touch International as one of the top touch system component manufacturers and places the company's durable touch screen technology in front of millions of flyers while they use Rockwell's popular passenger entertainment products everyday.
In-flight entertainment products are installed on nearly every newly purchased twin and single aisle aircraft being flown with many of these units built by Rockwell Collins. These systems have become client-server computer networks where passengers are able to make entertainment selections from a centralized onboard cache of audio and video materials as well as games. The systems need to be as easy to use as pushing a button, but due to space restrictions, cannot include bulky computer peripherals. To answer this need, Rockwell developed a touch-based in-flight entertainment system, and chose Touch International to provide the touch-based components for the product.
Touch International offers durability and a high degree of customization, allowing Rockwell to design systems that fit the very strict space requirements, with the durability to survive possible misuse by a multitude of people over the life span of the airplane. Touch International also met specific requirements from Rockwell that required special EMI shielding to provide as much filtering of display noise as possible, privacy filters to ensure that only the passenger sitting directly in front of the unit is able to view the screen, and built-in self-extinguishing capabilities in case of aircraft fire.
"We needed touch technology that not only could withstand hot coffee spills, active three year olds and everyday wear and tear, but could fit the numerous heating and electrical design specs that air travel and government regulations require. We looked at a number of other touch manufacturers, and Touch International was the best company to meet our durability needs along with the ability to easily customize their manufacturing to fit our designs," said Bob Wadell, Manager, Purchasing and Subcontracts, Rockwell Collins.
"Rockwell is a great win for us. This is one of the world's premier companies, and is a company that has developed a touch-based product with very strict safety and durability requirements. Rockwell has to put a very high premium on the quality of its touch components, and I am pleased to say that Touch International has met every Rockwell need," said Michael Woolstrum, CEO, Touch International.
In-flight entertainment is only one part of the overall avionics picture that Rockwell Collins delivers to its customers; we're looking at advanced communication, navigation and surveillance systems, on-the-fly maintenance monitoring, en route email, and audio and video on demand (A/VOD) for passengers to give you just a few examples of what Rockwell Collins brings to its customers.
About Rockwell Collins
Rockwell Collins (NYSE: COL) is a leader in the design, production and support of communications and aviation electronics solutions for government and commercial customers worldwide.
About Touch International
Founded by industry veterans, Touch International, Inc. is a privately held, worldwide supplier of high-quality touch screen components. Through its expanded manufacturing facilities, Touch International is able to offer a wide variety and rapid delivery of lower-priced, high-reliability products, based on customer needs and specifications. Touch International is headquartered in Austin, with four factories strategically placed around the globe, and additional sales and support offices on four continents.
For photographs, datasheets, or any additional information, contact Heather McLaren at 512.832.8292 or send email to hmclaren@touchintl.com.
Air Canada to offer upgraded product on new Airbus A340-500 aircraft
Air Canada announced the introduction of first-ever non-stop service from Toronto to Hong Kong with the delivery of its first A340-500 aircraft, the world's longest range airliner. Effective August 1, 2004, the new daily non-stop service with a flight time of 15.5 hours will link eastern North America and southeast Asia with convenient daily flights that will save travellers more than four and a half hours compared to other carriers' best routings.
Concurrent with the start-up of its new service, Air Canada is introducing exciting new inflight amenities for customers in both Executive First and Hospitality Service cabins configured to seat 42 and 225 passengers, respectively.
The airline is significantly enhancing its premium international product, Executive First, with the introduction of industry leading lie-flat seats on its new A340-500 service to Hong Kong. Combined with a generous 63 inch pitch, the ultra-luxurious seats recline to a flat 180 degrees and provide the ultimate experience in restful long haul flying. The carrier's Executive First seats also feature adjustable privacy dividers, stowage areas, individual reading lights, lumbar support system and personal large screen monitor offering video on demand.
In addition, Air Canada's Hospitality Service customers will enjoy, for the first time, individually controlled video on demand with personal monitors at each seat for a state-of-the- art inflight entertainment experience using a fully digital audio and video system. The Hospitality Service cabin features fully adjustable seats and headrests in a spacious 2x4x2 layout with 33-inch pitch providing more legroom than other carriers.
"We are very excited to offer travellers the fastest, most convenient air service between Toronto and Hong Kong with the first-ever non-stop service," said Montie Brewer, Executive Vice President, Commercial.
"With the introduction of the new Airbus A340-500 aircraft in our fleet, Air Canada customers will enjoy state of-the-art entertainment, the most spacious cabin and a further enhancement to our premium Executive First product with the introduction of lie-flat seats. Following on the opening of a brand new air terminal at our Toronto hub only days ago, we are focused on strengthening our international network to offer our customers superior value, choice and the best schedule to meet their needs from coast to coast, and around the world."
SkyWay Communications Holding Corp. Announces Orders From Continental Airlines for SkyWay's Media Server
CLEARWATER, FL, Apr. 27, 2004 (MARKET WIRE via COMTEX) -- SkyWay Communications Holding Corp. (SWYC), and its wholly owned subsidiary, Sky Way Aircraft Inc. announced today that they have received purchase orders from Continental Airlines for the purchase and installation of the SkyWay Media Server. The modules of the Media Server include the FX Flight Scripting System and the SkyWay Media Data Loader. These servers are to be installed on 14 of Continentals new 737/757 aircraft. Delivery and installation are to begin immediately and will continue over the next several months as the designated aircraft become available. This is only one of several in-flight and passenger communications systems SkyWay will be offering.
Brent Kovar, President of SkyWay Communications Holding Corp. stated, "With this initial order from Continental for the SkyWay Media Server, we are very pleased to be able to supply Continental with this equipment and we look forward to working with them in the future with additional enhancements to our system. These purchase orders represents a significant event for SkyWay as we continue moving our business model forward in providing in-flight services to the airlines and we are extremely excited about the opportunities that it presents."
About SkyWay Communications Holding Corp. (Sky Way Aircraft, Inc).
Sky Way Aircraft is a division of SkyWay Communications Holding Corp., a Clearwater, Florida-based company developing a unique ground to air in-flight aircraft communication network that will facilitate homeland security and in-flight entertainment. Sky Way Aircraft is focused on bringing to market a network supporting aircraft-related service including anti-terrorism support, real time in-flight video surveillance and monitoring, WIFI access to the Internet, telephone service and enhanced entertainment service for commercial and private aircraft throughout the United States. Based on the final upgrading of a previous airborne telephone and communications network, Sky Way Aircraft intends to provide broadband connectivity between the ground and in-flight aircraft throughout the U.S. using technology that provides a broadband high-speed data transmission. Sky Way Aircraft intends to be the communications solution for commercial and private aircraft owners wanting real time access to on-board security systems, aircraft health and welfare monitoring, avionics operations and for passengers wanting real time high-speed access to the internet. Their network will enable applications that can personalize the in-flight entertainment experience, provide real time access to flight management avionics with long-term data storage and also support for ground monitoring of in-flight surveillance systems that are being designed with the goal of enhancing current airline security standards.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
Contact:
Brent Kovar
President
(727) 535 8211
www.skywayaircraftsecurity.com
Cornice a magnet for venture funds
By Aldo Svaldi
Denver Post Business Writer
Cornice Inc. of Longmont managed to corner a lion's share of venture capital flowing to Colorado companies in the first quarter.
"We have had a lot of people who want to invest in us, and we have gotten to write our own terms," said Melissa Kutrubes, Cornice spokeswoman.
The company raised $51 million during the quarter, or 61 percent of the $83.5 million that venture capitalists invested among 15 companies in Colorado, according to the MoneyTree Survey. The survey was released Monday by PricewaterhouseCoopers, Venture Economics and the National Venture Capital Association.
Cornice makes storage devices for consumer electronic products, primarily MP3 players, using technology that costs less than hard-drive systems.
The company plans to use the new capital to beef up its engineering and sales force and grow its employment from 105 to 150 by year-end, Kutrubes said.
VantagePoint Venture Partners, CIBC Capital Partners, and Nokia Venture Partners returned for another round of funding, along with some new investors, Kutrubes said.
Overall, the volume of venture funding in the state fell 43 percent from the first quarter of 2003, according to the MoneyTree Survey.
An absence of funding to energy and industrial firms in Colorado, the target of $101.4 million last year in venture funding, explains some of the decline, said Matt Kosmicki, a technology partner at PricewaterhouseCoopers in Denver.
Nationally, venture funding during the first quarter totaled $4.6 billion, up from $4.2 billion in first quarter 2003, according to the MoneyTree Survey.
Besides Cornice, some of the other Colorado companies receiving venture funds during the quarter include:
$8.7 million to InPhase Technologies Inc., a Longmont maker of holographic storage technology.
$6 million to Indicative Software, a Fort Collins provider of business software.
$6 million to Olive Software, a Denver developer of content management software for publishers and libraries.
$4 million to Efficas Inc., a Longmont biotech firm.
$2.7 million to Rapid Communications LLC, a Parker-based cable-television provider.
$1.25 million to Oxlo Systems Inc., a Louisville developer of business software.
$1 million to HomeSphere Inc., a Golden firm that makes software for the homebuilding industry.
OT: Hard Disk Drives Not Ready for Mass Market Marriage with Mobile Phones, IDC Says
FRAMINGHAM, Mass.--(BUSINESS WIRE)--April 27, 2004--Positioned at the center of the mobile device universe, mobile phones are quickly becoming robust multifunctional platforms that will enable mobile users to get out from under the weight of multiple devices. According to new research from IDC, however, the incorporation of hard disk drives (HDDs) into mobile handsets will require a number of further evolutionary steps before HDD-enabled mobile phones will represent a beneficial investment for consumers and enterprises.
"The addition of HDD storage will eventually address many of the limitations that have kept converged devices from reaching their full potential," said Alex Slawsby, senior research analyst in IDC's Mobile Devices service. "Handsets already have the killer application of wireless telephony, and adding increased storage will make them a viable option for extensive music, imaging, reference, and business applications."
Today's MP3-enabled phones, for example, can only store about 8-12 4MB songs. In contrast, a new breed of HDD-based phone, similar to an HDD-based MP3 jukebox players, could easily hold several thousand songs, images, or hours of video.
Although ultimately promising, HDDs have not yet achieved the economies of scale necessary to attract the masses. "Cost, size, and power consumption are prohibitive factors," said Dave Reinsel, IDC research manager, Hard Disk Drives and Components. "Flash memory is sill the best near-term option with rotating storage solutions too costly, too large, and too power hungry for all but the highest-end, business-class mobile phones." This will not change until HDD technology improves further and the price of such drives drops below $50, and arguably below $30.
Key Findings
-- Increased wireless network bandwidth (3G networks) will continue to drive the need for additional storage capacity on mobile devices.
-- Solid state storage, although more expensive, will continue to surpass the performance of HDD solutions in the vast majority of mobile phones.
-- The availability of several gigabytes of local storage allows mobile phone vendors to add sought-after memory-intensive functionality to their products.
-- In 2003, 1.8-inch drives (the kind used in most portable MP3 jukeboxes) represented a mere 1% of all HDDs shipped worldwide and the 1.0-inch drive represented just 0.1%.
-- Today's rotating storage designs continue to draw significantly higher power than other memory options.
This study, Worldwide Hard Disk Drives in Mobile Phones 2004-2008 Forecast: Hype Versus Reality (IDC #31066), is the collaborative result of IDC's ongoing research on mobile devices and hard disk drives (HDDs). Market data was acquired and refined based on a number of IDC proprietary and public sources, both primary and secondary.
To purchase this study, call IDC Sales at 508-988-7988 or email sales@idc.com.
About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.
IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com.
All product and company names may be trademarks or registered trademarks of their respective holders.
Gateway now at Costco and Sams Club emachine at Walmart eom
iTunes ushers in a year of change
By John Borland and Ina Fried
CNET News.com
April 26, 2004, 4:00 AM PT
John Gillilan has hundreds of Pepsi caps lined up in rows in his University of Southern California freshman dorm room, each one representing a song downloaded from Apple's iTunes Music Store.
A Macintosh user and avid music fan, he started buying music from the store when it launched a year ago. This year Gillilan realized he could apply much of his $2,500 college dorm food allowance to purchasing bottles of Pepsi and taking advantage of Pepsi's iTunes song-giveaway promotion, he said.
The 18-year-old Gillilan might be a little more single-minded than most iTunes fans, but as a music major and recording engineer he sees the success of online digital distribution--today best evidenced by iTunes' sales--as a harbinger of his own future.
"Obviously the record industry has been reluctant, but it's crazy how much has actually happened (this year)," he said. "My career at this point realistically is going to depend on how successful this business model is."
Gillilan isn't alone in looking at iTunes as an industry bellwether. Launched a year ago Wednesday with a blaze of publicity, the service effectively kick-started a languishing digital music business.
Over the next year, Sony, Microsoft and Virgin all are aiming at the market. Yahoo is expected to throw its hat into the ring, and AOL may open its own store, instead of pointing its subscribers to iTunes as it currently does.
Even the major record labels are excited--a dramatic reversal for an industry that had previously seen Internet downloads as a threat to their business, rather than an opportunity for growth.
For the two years leading up to Apple's launch, attention had been focused on Napster, Kazaa and other file-swapping services that were allowing billions of songs a month to be downloaded for free. The major record labels, stung by falling revenue, focused much of their attention on filing lawsuits, drawing charges that their main interest was to smother development of the digital music business.
"iTunes has been incredibly valuable," said Larry Kenswil, president of Universal Music's eLabs division. "It has changed the debate, changed the buzz, changed people talking about record companies putting up a wall" against digital music.
But as the so far unchallenged market leader, Apple has established several other market realities against which various rivals chafe. The company's iTunes service is so tightly integrated with its hardware business that songs bought through the store can only be easily played on Apple's iPod, not other MP3 players. The close integration also means Apple can afford what it openly concedes are miniscule profit margins on the store itself, seeing it as a way to drive iPod sales.
Although Apple has taken a largely proprietary approach to iTunes, it made one major concession by making its software compatible with Microsoft's Windows operating system, effectively untying the iPod from the Mac in hopes of tapping into the much larger market for Windows PC users. The company has also struck a deal under which Hewlett-Packard will sell PCs with iTunes preloaded and also sell HP-branded iPods.
The most public overtures when it comes to opening the iPod have come from RealNetworks Chief Executive Officer Rob Glaser, who--not long after comparing Apple's closed technology doors to a Soviet grocery store--found his own private appeal to Apple CEO Steve Jobs rejected.
Jobs says he sees little reason to open up to rivals, given Apple's commanding lead.
"To be honest, it's just not worth it," Jobs said at last week's Apple shareholder meeting. "It doesn't make any business sense."
However, record company executives are quietly advocating industry cooperation, contending digital balkanization will be bad for business over the long haul.
"Interoperability is critical," said EMI Music Senior Vice President Ted Cohen. "We need to get to that point, and people need to work together to do it."
Just getting started
Despite Apple's success, the digital music business is only beginning to get off the ground, and it's hard to predict what might happen next. The iTunes launch was seen by many in the record industry as an experiment with loosening previous restrictions on digital files. Now that the first stages of the experiment have proven successful, labels may be amenable to further experimentation.
Some of that variability will come in prices. Apple's 99 cent price for single songs and $9.99 price tag for albums has been widely copied. But already that's beginning to change, with some record executives saying they're eager to test tiered price models.
A little of this is already evident on iTunes. Singles have remained steady at 99 cents, but a few albums have begun creeping upward. Aerosmith's newest was priced at $11.99 last week, while rock-guitar virtuoso Joe Satriani's new release was $14.99, for example.
Apple declined to comment for this story, but other services said they had already seen labels raise prices on some individual songs as well as albums. None has passed on those per-song price increases yet, citing a continued need to present consumers with the simplest offer possible, however.
Label and Web company executives said the price increases reflect an experimentation with tiered pricing that mimics the way retail album prices fluctuate according to title, and over time. Under this model, pre-release singles or very popular artists might cost $1.50 or more per song, average tracks might stay at 99 cents, and back catalog and other promotional songs or albums could drop even lower, for example.
"It is a good thing to have that experimentation, both up and down," said Sean Ryan, RealNetworks vice president for music services. "Just because everyone went out at 99 cents doesn't mean that's always the right price."
Labels are sensitive to charges that they want to charge more online than for CD sales, however.
"We've built in a lot of flexibility," said EMI Group spokeswoman Jeanne Meyer. "There are tiered prices (for wholesale digital tracks), but they're all lower than in the physical world."
With that experimentation in pricing may come some fluctuation in usage rules. Currently iTunes customers can use their purchased music on up to three computers and burn the same songs in the same order up to 10 times. However, those rules may be tweaked as the record companies renegotiate their contracts with Apple.
Other companies, if not Apple itself, are likely to begin experimenting more with subscription services as well. Jobs has dismissed these as virtually irrelevant, saying that people want to "own, not rent" their music.
For the most part, these have remained niche products, although RealNetworks has said it now has a total of more than 495,000 subscribers to either its unlimited Rhapsody product or a cheaper online radio service. But for companies that do not have an iPod-like hardware device to depend on for profits, this monthly stream of revenue looks far more appealing, and will likely drive more experimentation next year.
Microsoft is also hoping to make such services more attractive through technology, code-named Janus, that would allow subscription music to be transferred to portable devices--a key drawback to the current crop of subscription services.
Though Apple has been the undisputed leader in the market--and has done better than some would have thought a year ago--online downloads still represent a small part of how people get their music. File-swapping services continue to be popular, and CD sales have started to show some signs of life. Apple itself had predicted it would distribute 100 million songs by the time the one-year anniversary rolled around, a goal the company seems likely to miss.
To date, rivals like Napster and Musicmatch have fallen far short of Apple's sales. According to the NPD Group, Walmart.com's cut-rate pricing has come closest, drawing about half the number of customers seen by iTunes in March.
Analysts say that although many of the new entrants to the market could pose strong competition, Apple will continue to benefit from the fact it has sold so many iPods--devices that work only with Apple's service. Last quarter Apple sold 800,000 of the portable music players, with rivals such as Dell and Samsung selling only a fraction of that total.
"Apple set the bar incredibly high," said Mike McGuire, an analyst with GartnerG2, a division of the Gartner research group.
But some rivals said they expect Apple's dominance will be temporary.
"Apple is probably still riding the wave of their initial launch," said Jason Reindorp, a group manager in Microsoft's Windows digital media unit. "They have spent an inordinate amount of money to generate awareness around their closed ecosystem. (But) as people get more sophisticated in this area they are going to be getting more frustrated with a closed ecosystem. I think the market will kind of self-correct as things get more mainstream."
OT: Philips: Back On The Beam
MAY 3, 2004
Its upturn looks solid, but previous ones have quickly flamed out
Shoppers at the Darty electronics store near Place des Ternes in Paris are a picky bunch. In the TV section, real estate agent Henri Durand, 48, stares at the flickering screens, checks price tags, and studies spec sheets. A third of the models come from Dutch giant Royal Philips Electronics, but there are also goods from Sony (SNE ), JVC, Thomson, and others. Durand picks Philips. "I'm no specialist, but I trust Philips," he says. "It's European."
Such sentiments are music to Philips Chief Executive Gerard J. Kleisterlee. Since stepping into the top job in 2001, he has battled through one of the worst crises ever to hit a company long known for missteps and seemingly endless restructurings. Now, Philips seems to be getting back on track. Thanks to cost cutting, more efficient manufacturing, and solid sales of chips and flat-panel displays, it booked net earnings of $872 million in 2003, on revenues of $36.5 billion. Among the highlights: Sales in China soared 34%, and the troubled U.S. consumer electronics unit ended the year with its first quarterly profit in a decade.
It has been a long, tough climb for Kleisterlee. Revenues have fallen 23% in the past three years, and the company racked up $5.6 billion in losses in 2001 and 2002. Some 55,000 employees -- a quarter of the total when Kleisterlee took over -- have been shown the door. And Europe's No. 1 electronics maker still faces questions about its place in an industry dominated by Asian giants such as Sony Corp. and Samsung Electronics.
DEMONS AT REST? For now, at least, Kleisterlee's turnaround seems solid. On Apr. 13, Philips reported first-quarter net income of $670 million on a 2% gain in sales over the same period last year. Analysts predict Philips will remain profitable into 2005. What's more, investors looking for a recovery have bid up its shares 58% in the past 12 months. On Apr. 21, the stock closed at $28.45 in Amsterdam.
To merit investors' faith, Kleisterlee now has to get Philips growing again. "I see a lot of momentum in many of our businesses," the 58-year-old CEO says with measured optimism. Indeed, Philips has delivered several bona fide hits in recent years, from its Senseo coffeemaker to recordable DVDs. Its joint venture with Korea's LG Electronics to produce large-format liquid crystal displays for TVs and PCs grabbed the No. 1 position from Samsung last year, according to iSuppli/Stanford Resources, a researcher in Santa Clara, Calif. And its long-troubled semiconductor division is enjoying an upswing, with 20% year-on-year growth.
It's enough to suggest the Philips of old. With 100,000 patents to its name, Philips has a rich, 113-year history of innovation. It pioneered medical X-rays, electric shavers, audiocassettes, and compact disks, and for years it was emblematic of European technical prowess. But the same engineering culture that produced such excellence also generated products that flopped, from a 1980s rival to VHS and Beta VCRs to an interactive entertainment system. "Philips has always been great at innovation, but it has had big problems with marketing," says Paul O'Donovan, an analyst at researcher Gartner Inc. (IT ) in Egham, outside London.
The big question is whether Philips has put its demons to rest. The company nearly collapsed in the early 1990s; revenues are barely above where they were 10 years ago. Although profitability has been restored, analysts forecast slow overall growth in the next few years. Morgan Stanley (MWD ) predicts revenues will edge up only 2.8% this year and 3.4% in 2005.
To pick up the pace, Kleisterlee, a 30-year Philips veteran, started by once again reorganizing the company. He divested $850 million in poorly performing or noncore businesses and squeezed out more than $1.2 billion in operating expenses. He has also shuttered a dozen factories, outsourced nearly all consumer electronics and appliance manufacturing, and farmed out chip production. These changes are showing up in improved returns on assets and capital, benchmarks by which Philips outpaces rivals Sony and Matsushita.
Now the goal is to refocus Philips around its fastest-growing and most profitable sectors, especially medical systems, while pushing products from analog to digital. "No question, it's a much more focused company," says René Verhoef of Fortis Bank in Amsterdam. Key to the tighter focus is Kleisterlee's plan to break down the walls separating Philips' fiercely independent divisions and get them to communicate. "We're transforming ourselves into a single company," he says. Under the rubric "One Philips," the CEO is centralizing functions such as marketing and human resources to eliminate duplication. Two years ago, Philips used more than 225 management software systems; by the end of 2004 that number will be 75% smaller. Kleisterlee also has brought in fresh talent. John McClure, a 40-year-old American from Sun Microsystems Inc. (SUNW ), is vice-president in charge of strategy; Andrea Ragnetti, a 43-year-old Italian from the consumer division of Telecom Italia (TI ), is now chief marketing officer.
"FLEETER OF FOOT". The new execs are bearing Kleisterlee's one-company gospel to the ranks. A month after Ragnetti joined Philips in January, 2003, he held a meeting in the U.S. for division marketing managers, many of whom were meeting for the first time. Now they hold monthly checkups to coordinate activities.
Such links are blurring the lines between units. The medical products group has started offering products to serve home health care. It has scored hits with a portable defibrillator for heart patients and easy-to-use devices for monitoring heart rate and blood pressure. The lighting group is working with consumer electronics to create "ambient" illumination systems that enhance TV-watching. Kleisterlee is also accelerating development -- and beating rivals to market with products such as MP3 players and digital camera pendants. A flat-panel TV that doubles as a mirror when not in use went from lab to stores in just over a year. "Philips is much fleeter of foot than it used to be," says O'Donovan.
The company's latest push is wireless. The goal is to enable products to communicate over the air via technologies such as Wi-Fi. To make it fly, the company has to collaborate with rivals on standards. That's why Philips is backing joint efforts such as the creation of an ultralow-power radio technology called ZigBee, which can connect coffeemakers, security systems, and even lightbulbs. "It's better to team up than to fight," says Kleisterlee.
Philips has staged apparent turnarounds before, only to see them flame out. Steady businesses such as lightbulbs help keep the ship afloat, but prices for flat panels are already falling, and the chip business will invariably cycle down again. Still, Kleisterlee is determined to break the pattern for good. If he succeeds, Philips' old demons could be knocked out cold.
By Andy Reinhardt in Paris
RetailVision: DivXNetworks Demonstrates DivX Certified DVD Players, HD Playback, and DivX Encoding Software
INDIAN WELLS, Calif.--(BUSINESS WIRE)--April 26, 2004--
DivX Video Powers Secure Video-on-Demand on DVD Players, Offers Higher Visual Quality and Compression Than Windows Media 9
Providing North American retailers with a first-hand look at the most popular video technology since the introduction of DVDs, DivXNetworks, Inc., the company that created the revolutionary, patent-pending DivX(R) video compression technology, will demonstrate a range of DivX video software and consumer electronics solutions at RetailVision North America, held April 26-29 at the Hyatt Grand Champion in Indian Wells, Calif.
DivXNetworks will showcase a number of technologies to top retailers at RetailVision, including secure playback of DivX video-on-demand content on DivX Certified DVD Players; DivX video playback on handheld and portable devices; High-Definition DivX video playback at a fraction of the file size of broadcast HD files; conversion of DV home video footage into DivX using Dr. DivX(TM) video software for nearly 20 times better compression, and more.
DivX technology, often called the "MP3 of video," is among the world's most popular video technologies with over 120 million global users. DivX provides 7-10 times better compression that MPEG-2, the DVD standard, with no loss in quality, enabling users to save a full-length film on a single data CD for playback on DivX Certified devices or easy distribution online. The standard for highly compressed, high-quality video, DivX achieves better performance and visual quality than any other video codec on the market, including Windows Media 9 and MPEG-4, and it is estimated that over a billion DivX files exist today.
With the DivX(R) Certification program for consumer electronics devices, DivXNetworks is leading the way to PC-to-TV convergence by ensuring that DVD Players, portable devices, set-top boxes and other devices from major OEMs can seamlessly playback high-quality DivX video created on the PC on televisions and home theatre systems. DivX Certified DVD players from major manufacturers such as Philips and KISS Technologies are currently on sale at retail stores everywhere, with millions of additional devices expected to ship this year.
"DivX video is a global phenomenon that is powering an entire ecosystem of consumer technology products, from millions of next-generation DivX Certified devices to video editing and creation software from companies like Roxio and Intervideo," said Kevin Hell, chief marketing officer and managing director of DivXNetworks, Inc. (www.divxnetworks.com). "We're excited to provide retailers with an overview of how the DivX video experience can add real value to their customers across a range of products and devices."
For more information on RetailVision North America, visit www.retailvision.com. To learn more about DivXNetworks, go to www.divxnetworks.com.
About DivXNetworks
DivXNetworks is a consumer-focused video technology company positioned at the center of multimedia convergence. The company's core offering is the DivX (R) video codec, among the world's most popular video compression technologies with over 120 million users worldwide. Often called "the MP3 of video," the patent-pending DivX video technology offers DVD-quality at 10 times greater compression than MPEG-2 files, enabling full length films to easily fit on a CD or be delivered over broadband connections. DivX video technology powers a range of applications that span the convergence value chain, from a secure IP-based video-on-demand solution to next-generation consumer electronics products and video software applications. DivXNetworks is headquartered in San Diego, California, with satellite offices in Los Angeles and San Jose, CA, Taipei, Taiwan, Guildford, England and Dortmund, Germany.
CNET launches free music download service
Reuters, 04.26.04, 9:00 AM ET
LOS ANGELES, April 26 (Reuters) - Online technology company CNET Networks Inc. (nasdaq: CNET - news - people) on Monday launched a free digital music service, allowing users to search and download what it said were thousands of songs contributed by independent and unsigned artists.
The service, based on CNET's Download.com Web site (http://music.download.com), has been collecting music for the past few weeks, encouraging musicians to register on the site and upload their songs.
The music download service will be separate from the MP3.com Web site, which CNET has said it will relaunch soon as a music information site.
The former MP3.com, which CNET acquired late last year, offered similar functions to those in the new music download platform. Many artists and fans of the site complained when CNET closed it down, fearing that hundreds of thousands of songs would be lost permanently.
CNET said it plans to add new technology and community features to its download service, which it intends to be the largest free music download platform. over the course of the year.
Pay-for-download services have become the hottest trend in digital music, with one, Apple Computer Inc.'s (nasdaq: AAPL - news - people) iTunes music store, having sold 50 million downloads in less than a year.
Copyright 2004, Reuters News Service
COULD THIS BE US???????????
DivXNetworks Demonstrates DivX Certified DVD Players, HD Playback, and DivX Encoding Software at RetailVision
INDIAN WELLS, Calif.--(BUSINESS WIRE)--April 26, 2004--
DivX Video Powers Secure Video-on-Demand on DVD Players, Offers Higher Visual Quality and Compression Than Windows Media 9
Providing North American retailers with a first-hand look at the most popular video technology since the introduction of DVDs, DivXNetworks, Inc., the company that created the revolutionary, patent-pending DivX(R) video compression technology, will demonstrate a range of DivX video software and consumer electronics solutions at RetailVision North America, held April 26-29 at the Hyatt Grand Champion in Indian Wells, Calif.
DivXNetworks will showcase a number of technologies to top retailers at RetailVision, including secure playback of DivX video-on-demand content on DivX Certified DVD Players; DivX video playback on handheld and portable devices; High-Definition DivX video playback at a fraction of the file size of broadcast HD files; conversion of DV home video footage into DivX using Dr. DivX(TM) video software for nearly 20 times better compression, and more.
DivX technology, often called the "MP3 of video," is among the world's most popular video technologies with over 120 million global users. DivX provides 7-10 times better compression that MPEG-2, the DVD standard, with no loss in quality, enabling users to save a full-length film on a single data CD for playback on DivX Certified devices or easy distribution online. The standard for highly compressed, high-quality video, DivX achieves better performance and visual quality than any other video codec on the market, including Windows Media 9 and MPEG-4, and it is estimated that over a billion DivX files exist today.
With the DivX(R) Certification program for consumer electronics devices, DivXNetworks is leading the way to PC-to-TV convergence by ensuring that DVD Players, portable devices, set-top boxes and other devices from major OEMs can seamlessly playback high-quality DivX video created on the PC on televisions and home theatre systems. DivX Certified DVD players from major manufacturers such as Philips and KISS Technologies are currently on sale at retail stores everywhere, with millions of additional devices expected to ship this year.
"DivX video is a global phenomenon that is powering an entire ecosystem of consumer technology products, from millions of next-generation DivX Certified devices to video editing and creation software from companies like Roxio and Intervideo," said Kevin Hell, chief marketing officer and managing director of DivXNetworks, Inc. (www.divxnetworks.com). "We're excited to provide retailers with an overview of how the DivX video experience can add real value to their customers across a range of products and devices."
For more information on RetailVision North America, visit www.retailvision.com. To learn more about DivXNetworks, go to www.divxnetworks.com.
About DivXNetworks
DivXNetworks is a consumer-focused video technology company positioned at the center of multimedia convergence. The company's core offering is the DivX (R) video codec, among the world's most popular video compression technologies with over 120 million users worldwide. Often called "the MP3 of video," the patent-pending DivX video technology offers DVD-quality at 10 times greater compression than MPEG-2 files, enabling full length films to easily fit on a CD or be delivered over broadband connections. DivX video technology powers a range of applications that span the convergence value chain, from a secure IP-based video-on-demand solution to next-generation consumer electronics products and video software applications. DivXNetworks is headquartered in San Diego, California, with satellite offices in Los Angeles and San Jose, CA, Taipei, Taiwan, Guildford, England and Dortmund, Germany.
Digital Mind Corp. and MultiChannel Labs Announce Strategic Partnership Agreement; Digital Mind To Manufacture the DMC Xclef 500 80 GB Portable Music Player and Storage Device
CARLSBAD, Calif.--(BUSINESS WIRE)--April 26, 2004--Digital Mind Corp. (DMC) today announced that it will manufacture, distribute and provide support for the DMC Xclef 500 portable music player and storage device in the United States under special agreement with MultiChannel Labs (MCL), one of the leading MP3 makers in Korea. The Xclef HD-500 has been available from MCL in Europe, and has received critical acclaim for its sleek design, high end technical features, superb quality and performance.
"We are very pleased to have Digital Mind as a strategic partner, and also expect that our partnership with Digital Mind will guarantee business success of our products in the U.S.," stated Jong-Su Kim, president and CEO of MultiChannel Labs. "Digital Mind's technical, operations and marketing expertise will allow U.S. consumers to purchase locally manufactured products which incorporate the technical excellence of MCL's designs and functionalities."
"The DMC Xclef 500 is one of the most sophisticated, full-featured, portable storage/music players available anywhere," said Jim Collier, Digital Mind's president and CEO. "Its massive 40GB and 80GB storage capacities, 20+ hour battery life, studio-quality direct encoding, voice recording, FM Radio (and FM recording), PC and Mac compatibility without special software, and world class quality make this the "must have" device for tech savvy users. With 80GB of storage, the Xclef 500 is capable of storing up to 20,000 music files, or can be used to backup the entire hard drive on a laptop computer. Since it is recognized as a USB mass storage device, files can be moved easily between PCs and Macs. Its intuitive user interface allows the user to start navigating through files and playlists almost immediately. We are also very proud that it is now manufactured and fully supported in the U.S."
Prices start at $349, and a full list of specifications and reviews can be found at the Digital Mind Web site at www.digmind.com.
About Digital Mind Corp.
DMC is a value-added innovator dedicated to bringing advanced technology products to technically demanding consumers. DMC is partnered with a number of design centers developing a wide range of technically advanced products that will be made available to sophisticated users. Visit our Web site at www.digmind.com.
About MultiChannel Labs
MultiChannel Labs is a leader in our expanding information society. We are focused on convergence of technical expertise on advanced hardware and software, information integration and exchange, and human resources excellence. We offer the very latest technology innovations and stylish world class designs to the global market. We will enhance our business partnership with Digital Mind by releasing the cutting-edge Multimedia technology to U.S. customers. Visit our Web site at ehttp://www.xclef.com.
Contacts
Digital Mind Corp., Carlsbad
James Collier, 760-603-9100
Jupiter Research Calls iPods "Measure for Success"; Mini Best Capacity For Most
by Brad Gibson
The iPod and iPod mini portable digital-music players are "a measure for success" for the rest of the MP3 player industry, and consumers believe the iPod mini's 1,000 song capacity is the right size for most people, according to a survey by technology analysis company Jupiter Research.
The entire research report, obtained by The Mac Observer, shows that consumers want a portable music player that ends up having the same features and attributes of today's existing Apple iPod and iPod mini. In an online survey of 2,300 invited consumers, 55% said a portable music device with a rechargeable battery of four to eight hours playing time life was the most important concern when considering what to buy. Second most important was pocketable size at 52%, and synchronization with their personal computer was third at 49%.
"These core attributes, embodied by the iPod, are attributes that should be considered and emulated by every vendor of portable music devices," the report stated.
Mini's 1,000 song capacity hits a chord
Of significant importance to Apple will be the results of song capacity preference among consumers surveyed. Of the 1,301 people in the US who said they were currently interested in buying a portable music player, 77% said they would need more than 1,000 songs on a play at any given time, which is the exact size of the iPod mini, now selling for US$249.
Further backing up the claim that 1,000 song capacity is the highest consumer preference was evidence that the majority of people have small music collections. "75 percent of consumers who have music on their PCs have 200 or fewer songs," the report said. "Of the same group on consumers, less than five percent have more than 3,500 songs on their PC.
"Vendors such as Creative, Archos, Dell and Apple have all created hard drive music players that can hold up to and beyond 5,000 songs," the report stated. "Hard drive players with such large capacity for content go above and beyond not only the music that most consumers want on their portable music player, but also beyond the digital music that they own."
Missing from the survey was any consumer questioning of how much they would be willing to pay for a portable music player based on the number of songs the device holds. Although the report said the price range of an Apple iPod - between $249 and $499 - is "justifiable to many consumers," it based that assumption totally on Apple's dominate portable music player market share of 30%.
Music format a consumer concern
The Jupiter survey found that 20% of consumers said playing MP3 files is important, versus 7% who would prefer files in Microsoft's WMA format and fewer than 1% who prefer the Advanced Audio Coding (AAC) format, an open standard that was developed by the Moving Picture Experts Group, and is supported on Apple's iTunes music store.
Jupiter Research surmised the survey results clearly show interoperability could become a confusing issue for consumers. "There is enormous potential for confusion on support for DRM (digital rights management)-protected online stores. Consumers may not realize that content purchased at Napster will not play on (an) iPod or in iTunes--or that content from Apple's store will not play on a Creative player.
"The digital music market is becoming polarized between the AAC camp on one hand and the WMA camp on the other. Microsoft may hold the larger hand of cards (particularly widespread use of WMA and WDRM) but Apple holds the aces with the iPod and iTunes."
Jupiter Gives iPod High Marks
Based on its market share, and results from the survey that showed the Apple iPod had many of the traits in a portable music player that consumers desire, Jupiter Research heralded Apple's two devices as a "measure for success" for its competitors to emulate.
"Apple Computer has done an exemplary job of building the iPod and iPod mini with both style and optimal functionality, " the report stated. "Jupiter Research believes (the 4 GB iPod mini) has the right content capacity, size, battery life, and synchronization features to tap into exactly what consumers desire."
Other highlights
Among the reports other interesting conclusions were:
Portable music players will overtake MP3 flash players in sales by the end of this year, but won't overtake portable CD player sales until 2006.
Final numbers on shipments of MP3 players for 2003 will show an almost doubling to more than 3.5 million, and will continue to grow more than 50% this year.
At present, only two percent of consumer households surveyed own hard drive-based portable music players, compared to three percent owning flash-based players. The report concluded that based on these numbers, the market for portable music players remains very much "untapped."
Adoption of portable video devices will be a long time coming. Current poor device sizes, poor battery life, long transfer times and the lack of available legal video content are all factors that will slow video adoption on portable devices for some time.
Latest music video hits on your mobile phone
Posted Friday, April 23, 2004
Mobile users on the 3 network will be able to buy and watch the latest music video hits, downloading and saving full-length releases on their phones for $3 a clip.
The latest videos from the likes of Delta Goodrem, Linkin Park and Missy Elliott are part of the line-up at a fledgling content service being tweaked by the carrier and expected to be launched this week.
The concept has been unveiled in Hong Kong, where record labels Universal, EMI, Warner and Gold Label Entertainment agreed to support a service launched by 3 in January. It provides subscribers with music video downloads and streaming video from mainly local artists.
In Australia, Sony Music and Warner Music have signed up, allowing videos of their artists to be bought and downloaded on mobiles (not streamed), an industry insider says. Hutchison Telecoms, which owns the 3 network, was also showing the service to other record companies, an independent label confirmed.
The carrier has declined to comment. However, music videos could tempt its customers to start using its data services. Many have already been wooed by cheap voice calls.
About 30 video clips and 30 high-quality audio clips are anticipated for the launch. These will be the same new-release clips that viewers see on music TV shows, encoded in MPEG4-AAC (advanced audio coding) compression format. The audio tracks, using the same encoding, will have a slightly higher sound quality than the video clips.
A four-minute video clip, available as a 3MB downloadable file, is expected to take a little more than a minute to download over 3's mobile network - a 3G or "third-generation" network, which offers mobile-to-mobile video calling as its main claim to fame.
Once downloaded, the music video clips will not expire - but there is a catch. They cannot be transferred from the phone to any other device. In fact, they can't even be stored on the phone's removable memory cards, another industry insider says.
"Forward lock DRM (digital rights management) is the stock-standard way of protecting mobile content. It can't be forwarded to anything - not the memory card on the phone, not email. You can't send it by infra-red, transfer by USB or use Bluetooth," the insider says.
The recording industry, still fighting internet piracy and file-sharing networks, is wary of giving mobile users the slightest chance to infringe on copyright. As a result, record labels won't support mobile technologies that allow any such transfer to take place.
Downloaded songs are limited to the onboard memory of a handset, which varies greatly. Motorola A835, for example, has 64MB of internal memory, while the teardrop-shaped Nokia 7600 has 29MB and limits download sizes.
Upcoming standards in digital rights management may eventually give the record labels more confidence in allowing users more freedom in storing music purchased wirelessly. When that happens, mobile phones may begin to look more like mobile video jukeboxes - or at least encroach on the personal player space that MP3 players such as the Apple iPod enjoy.
For now, however, customers of 3 will have to be choosy about which songs they decide to delete or keep, depending on their handsets.
"The songs are supposed to be disposable," one of the insiders says. "People are consuming this content differently. It's not forever." The disposable nature is reflected in the price tag. "People are paying more than $3 for polyphonic ringtones and logos."
In February, Sony Music signed a global agreement with T-Mobile to provide mobile content including "real tones" from its key artists.
Source http://www.smh.com.au
Paul Allen, Antelope, OQO Have Big Hopes For Very Tiny Laptops
BY JULIE VALLONE
FOR INVESTOR'S BUSINESS DAILY
To PC users on the go, little things mean a lot. That's why laptops, handhelds, mobile phones and other devices have grown smaller.
As these devices have continued to shrink, mobile users have had to make some compromises. Those who want ultra-portable handhelds sacrifice PC power and functionality, while those who won't settle for anything less than a fully equipped PC have to lug around a few extra pounds of laptop each day.
Three companies are trying to change that — OQO in San Francisco, Vulcan in Seattle and Antelope Technologies in Highlands Ranch, Colo. They all make or are making — only Antelope's product is for sale — tiny computers, so tiny you can carry them around in your pocket. They're all less than 6 inches wide and weigh less than a pound, but pack all the punch of a big PC.
These products fill a niche, says Simon Yates, an analyst with Boston-based Forrester Research.
"There's been a form factor gap between the handheld and the notebook," said Yates.
Handheld screens usually cover four total inches, and laptops 10 to 14 inches, he says. These mini-laptops fall in between.
"What's interesting about these new devices is that they carry the full version of the Windows operating system," he said. That, he says, is unusual for handhelds and will boost their appeal.
The uPC, or ultra personal computer, is OQO's product. The 4.9-by-3.4-by-0.9-inch, 14-ounce PC has a screen that slides up to reveal a regular keyboard, designed to be used with your thumbs.
The OQO screen is transflective. That is, it's designed to work as well in sunlight as it does in the office.
Helped On IBM, Apple Laptops
Operating on Windows XP, it also comes with a 1-gigahertz Transmeta (TMTA) Crusoe processor, a 20-gigabyte, shock-mounted hard drive and 256 megabytes of RAM memory. It also has a digital pen for screen navigation, wireless networking support, Bluetooth and FireWire technology, and a desktop stand with docking cable to easily move data between it and your desktop PC.
Jory Bell, OQO's co-founder, has built his career designing laptops. He's helped on IBM's (IBM) ThinkPads, and Apple Computer's (AAPL) G3 line and Titanium PowerBooks. Bell says OQO didn't want users to make any trade-offs in function. So the company equipped the uPC with plenty of features. "We combine the best of all worlds," he said.
Bell says the uPC is aimed at people who do a lot of work on the road. The product is scheduled to go on sale this fall for less than $2,000.
Vulcan, owned by Microsoft (MSFT) co-founder Paul Allen, is developing the FlipStart PC. The device measures 5.8 by 4.1 inches, and weighs in at a just under a pound. FlipStart engineering director Rod Fleck says that while the unit is 20% bigger than OQO's, the size should give business and other enterprise users a richer experience.
The FlipStart has a clamshell design, like most regular laptops. It comes with many of the features offered by OQO's uPC, as well as some others. These include an HDTV-quality display screen, designed just for FlipStart, that lets users view business software applications without scrolling. Optional features include the ability of users to link into corporate networks, and a "lid module." This lets users check e-mail, calendar and contacts, and play MP3 music without even opening the device. Vulcan hopes to start selling the FlipStart before Christmas.
The company hasn't yet released prices. Fleck says the basic unit will probably be priced competitively with the uPC and other laptops.
The folks at Antelope have a similar idea about mobile computing, but have taken a different approach. In November, they released their modular computing platform. It's built around a 3-by-5-by-0.75-inch modular computing core, or MCC, device that contains standard features of a desktop PC. But the MCC can be removed from its PC docking station and used in a variety of shell units. Antelope plans to offer car docks in the future.
Targets Military, Petroleum
"With our device, there's no syncing (configuring to get the handheld to work with the desktop PC), as long as you have your shells," said Thomas Scott, Antelope co-founder and chief financial officer. "Wherever you go, you always have your entire computer with you."
Antelope has set its sights on specific markets, such as the military and petroleum industries. The company offers its MCC and all peripherals for $3,780. Components such as docking stations, shells and batteries are also sold individually, though. The core unit with the handheld shell costs about $2,750.
Marketing Director Marya Kokaska says Antelope likely will have consumer products out next year. She says the company is working with partners to build compatible peripherals.
While it costs more than most handheld devices, Antelope's advantage at the moment is that it's actually available.
"We've been waiting for these (other products) for quite a while," said Forrester's Yates. "I've seen lots of slides, but these companies have got to start shipping some products
iRiver New Products
Date : April 24, 2004
Author : Abbas Jaffarali
http://www.tbreak.com/reviews/article.php?id=294
iRiver has definitely made a name for itself in the MP3 market with its sleek designs and feature-loaded models. They held a press conference in Dubai on the 20th of April to demonstrate some of their upcoming models. The event was organized by Space Distribution- the official distributors of iRiver products in the UAE while it was presented by Marilyn Chen from iRiver Hong Kong.
After briefly explaining the history of iRiver as well as their current standing and where they’re headed, we were given a presentation on some of their upcoming players. Now iRiver has traditionally been a pure MP3 player manufacturer, however, we see some convergence in their upcoming products. After the conference, we got a chance to play with four of their upcoming models. These were all pre-production samples and were only made available to us for a couple of hours. We decided to play with them and let you know about our experience.
Starting off, we have the iFP-1000 which looks almost identical to the recently reviewed iFP-700 MP3 player. The additions that iRiver has made include a 1.2” LCD color screen and a 0.3 MP (640x480 resolution) digital camera. We must say that the color screen adds a great touch to the unit while the digital camera improves the “wow” factor. Like some of the Samsung mobile phones, the camera can be rotated so you can take your own picture.
The next model that we got a chance to test out is the iMP-1100 which is a CD based player with a twist. Unlike previous iRiver CD-MP3 players, this model features a 2.0 inch color screen and can play MPEG4/DivX encoded movies! We weren’t able to play all of the movies we tested (five out of six worked) but that could just be a pre-production problem.
The player has also lets you listen to the FM and standard/MP3 CDs. We wish that iRiver had equipped the unit with a DVD drive and allowed DVD playback as that would’ve been a pretty cool option and allowed you to carry more storage per disc. The unit has an A/V output jack, however, we weren’t provided with a cable to test this functionality. A slider at the back of the unit allows you to switch between the onboard LCD and TV modes. It automatically recognizes between an audio and video file so you can have a combination of files on a single CD. One thing that’s very cool is that while you’re watching a video and try to access any setting, the video fades but continues in the background while you make your selection.
The third model that we got a chance to play with was the PMC-100 which is based on Microsoft’s Operating System for portable video that looks almost identical to the Media Center Edition of Windows. The unit looks very sleek and has a 4-way pad on both the sides of the 3.5 inch TFT screen allowing you to navigate and select things.
Unfortunately, the device wasn’t recognized when connected to a PC (USB 2.0) and thus we could not transfer any files to it to test it out. We’re not sure if a driver will be needed or if the retail model will work driver-less. It came preloaded with one funny video clip along with some pictures and audio files stored on it which worked and played fine. Since we couldnt do much with the PMC-100, we took a couple of short movies- one for the startup of the device and the other for its navigation/operation. According to iRiver, the PMC-100 should be available in a couple of months with 20-40GB drives.
The last unit that we looked at was the most impressive one- features wise. The PMP-100 is somewhat similar to the PMC-100 except that its powered by Linux and plays DivX encoded videos. Although we couldn’t get it to play everything we tried, it did play most of the things without any problem. This is much better than the Archos Jukebox we reviewed some time back as on that unit, you had to re-encode files to watch it on the LCD screen. No such problems with the PMP-100.
The screen is 3.5 inches and gorgeous. We did face some problems with audio/video synchronization during DivX playback- but again, that is simply because the unit is in pre-production. Besides the Audio and Video modes, the unit will also feature an FM radio and a voice recorder although the later option was not implemented as of yet. The unit also features USB-OTG (On the Go) which means that you can directly connect USB devices with OTG options to it and transfer files- for example, pictures from your digital camera.
What we didn’t like is that the unit doesn’t look/feel upto iRiver standards. The buttons are very flimsy and scattered all over and the device does not look as classy as other iRiver models. Thats about all we have for now and hope you enjoyed the preview of these upcoming exciting products from iRiver. We'll have an in-depth review once these devices hit the retail channel and before we sign out, we would like to thank iRiver/Space Distribution for letting us check these deives out.
OT: Theater's Front-Row Seat to Digital Future
The Pacific Hollywood, built to debut the breakthrough technology of its day -- talkies -- now has a new role: showcase and lab for the high-tech replacement of film at cinemas.
By Alex Pham, Times Staff Writer
It is said that the ghost of Sam Warner haunts the musty spaces of the Pacific Hollywood theater, snatching cellphones and pagers and Palm Pilots when their owners look away.
The forlorn movie palace, locked behind metal security gates in the heart of Hollywood, was Warner's dream, the first theater built expressly for talking pictures. The second-youngest of the four Warner brothers died at 42, never to see what the Los Angeles Times called the theater's "dazzling" opening in 1928 — or its long, slow slide into dereliction in the decades that followed.
Charles S. Swartz takes comfort in believing that Sam Warner's spirit, at least, may be watching over the theater's rebirth as a sophisticated test center for the next generation of movie technology.
"The idea that we are now on the cutting edge of giving movies their next life into the 21st century would absolutely thrill him," said Swartz, executive director of USC's Entertainment Technology Center, a research group backed by the major studios as they gird for the advent of digital cinema.
If cinema's tomorrow is taking shape in a relic of its past, it's happening without a lot of glitz. Unlike the other movie palaces along Hollywood Boulevard that have undergone costly face-lifts — notably the El Capitan — the theater is to most eyes not ready for its close-up.
Its now-dowdy Spanish Renaissance auditorium looks just as it did when the theater shut in 1994, with faux stars flickering in the ceiling, faded red velvet seat covers worn thin with age and garnet curtains framing the screen. It smells vaguely dusty and damp.
On the roof, though, is the future: a battery of satellite dishes. And along the back wall of the Hollywood's projection booth, a bank of 12 powerful computer servers blink furiously. Peering out at the five-story screen are three projectors: A high-end model by Kinoton able to handle 35-millimeter and 70-millimeter film and two high-resolution digital projectors, all cooled with a dedicated air conditioning system.
The $1 million worth of equipment represents a fraction of the $1 billion the seven major studios believe they can save annually by embracing a future without film, when movies shown in theaters will be the result of streams of 0s and 1s flowing either from a high-speed Internet connection or from optical discs.
That's years away. Many aspects of Hollywood production have already been digitized, from editing to special effects. Capturing and exhibiting the work remain almost exclusively film, though more and more productions are replacing film with digital cameras because it's easier and cheaper.
Converting theaters to digital remains the latest frontier for movies. By doing so, studios could save hundreds of millions of dollars currently spent on printing and distributing film. Plus, picture quality would remain perfect, unlike film, which degrades over successive trips through a projector.
Still years away, that transition is projected to be as significant for the movie industry as "The Jazz Singer" and the introduction of talkies was in 1927.
It was for "The Jazz Singer" that Sam Warner persuaded his brothers to spend their last $1.25 million to build the Warner Hollywood Theater. Sam was fascinated by technology and worked personally with Bell Laboratories to develop the sound technology for movies, technology for which Warner Bros. Pictures held exclusive rights.
The Warner Hollywood Theater was intended to showcase it, and Warner personally oversaw construction. But it became clear in 1927 that the movie palace wouldn't be ready for the premiere of "The Jazz Singer," which instead opened that October in New York.
The night before the premiere, Warner died of a brain hemorrhage. Six months later, when "Jazz Singer" star Al Jolson spoke at the opening of the theater, a plaque remembering Warner was unveiled in the lobby. Over the years, Marlene Dietrich and other Hollywood A-listers strolled past that plaque on their way to countless premieres.
Some of those films are now being premiered anew on the cinema's digital projectors.
"At Christmas last year, we screened 'The Adventures of Robin Hood,' " Swartz recalled. "In 1938, 65 years ago, that movie had its premiere in that theater, shot in Technicolor. Now we're showing the same movie digitally restored and digitally projected."
These days, the theater's patrons are more geek than glam. Instead of bearing diamonds the size of marbles, they bring tiny computer chips that drive $100,000 digital projectors.
Under the faux sky painted on the ceiling of the cavernous auditorium, Paul K. Miller, technical go-to guy for the USC center's digital cinema lab at the theater, held up one such chip recently. Packed on a 2-inch-square piece of silicon were 1.3 million mirrors that pivot on command to reflect light. The mirrors are so minute, and the spaces between them even tinier, that together they appear to be a single, smooth surface.
A single projector has three such chips, each reflecting either red, green or blue light, the three primary colors from which a rainbow of hues is possible. In the fast-moving digital age, though, the chip in Miller's hand has already been eclipsed by a chip that packs 2 million individual mirrors in the same 2 square inches.
One crisp Tuesday evening, the chips were the stars that 100 or so producers, cinematographers, motion picture engineers and directors came to gawk at. The occasion was the screening of test footage created specifically to push both film and digital technology to the limit.
Many in the audience still saw film as the gold standard for high-quality viewing. It has a familiar look and has been around long enough that people are comfortable using it. Still, digital technology is catching up fast enough to begin weighing the cost and benefits of both.
"Film is very good, but it's also expensive," said Swartz of the USC Entertainment Technology Center, which runs the lab. "They're easily scratched, they wear down over time, and they degrade when you make copies."
With digital technology, studios can make exact copies without compromising quality. And, unlike film, each showing doesn't degrade the quality of the movie, Swartz said. "The big question is how we can embrace this new technology and at the same time preserve the heritage of the past?"
On that Tuesday night, the screen was split into two, with film shown on the left and digital on the right. The images were identical, allowing viewers to compare the highest-quality film possible against the digital version.
At times, the digital version seemed sharper. Other times the film version appeared better. One viewer turned to his neighbor mid-screening and whispered, "Which one's digital?"
To the untrained eye, the shots would have been unremarkable — a tree swaying gently in the wind against a clear blue sky, confetti blowing out of a window, rain pelting cobblestone at night, a bride's face. There was no sound, no dialogue and no plot.
And yet the audience was riveted. The pictures were "crisp" and "snappy," some remarked later during a question and answer session. The colors were "saturated" and "lively," they said.
The event was sponsored by the Digital Cinema Initiative, or DCI, a consortium of seven movie studios: Walt Disney Co., 20th Century Fox, MGM, Paramount Pictures, Sony Pictures Entertainment, Universal Pictures and Warner Bros.
The studios formed DCI in 2002 to develop a common standard for distributing movies in digital form. Although the consortium is scheduled to release its minimum requirements this fall, it will be years before digital projection hits theaters. Converting from film to digital projection would cost U.S. theater owners billions of dollars, depending on the technology used.
Among the companies whose technologies are being tested for the DCI project are Microsoft Corp., Texas Instruments Inc., Boeing Co., and Sony Corp. With so much money at stake, involving some of the heaviest hitters in film and technology, the DCI project is being closely followed.
Roy Wagner, cinematographer for the television show "CSI: Crime Scene Investigation," is among those keenly interested in the digital distribution of entertainment. "CSI" is among the network television shows shot and broadcast in high-definition digital video.
Sitting in the theater, Wagner said he was feeling a wave of nostalgia: He had been a projectionist there decades ago. Wagner, 57, remembers the first day he worked at the theater in 1970. He came in two hours early to explore the nooks and crannies.
"I found that the ceiling had these beautiful clouds that looked like they were built to move and stars with little lights in them that could twinkle," Wagner said. "It was a magnificent theater, and it really conveys what old Hollywood must have been like. You think of all the films and all the laughter, happiness and the tears shed by people in that theater. It's a pretty organic environment."
He nearly missed his first shift because he was so enchanted "that I nearly forgot why I was there."
Carol Burnett worked at the theater in the summer of 1951 as an 18-year-old usherette, dressed in an ill-fitting black satin outfit and a fez. She was fired from the 65-cent-an-hour job when she tried to persuade a couple against being seated during the last 10 minutes of "Strangers on a Train."
"It had this terrific surprise ending, and seeing it would just ruin the movie for them," Burnett said. "But the manager came along, and he fired me on the spot. So years later, when they asked me where I wanted my star on Hollywood Boulevard, I said, 'Right in front of the Warner theater!' " And that's where it went.
Shortly after Burnett's tenure, a curved Cinerama screen was installed. In the 1970s, new owner Pacific Theatres Corp. blocked off and divided the balcony to make the theater a triplex and replaced the Warner name with its own on the marquee. The theater was shut to the public after the Northridge earthquake and subway tunneling were blamed for making parts of the building unstable.
In 1999, USC leased the movie house from Pacific Theatres for an undisclosed amount. Pacific, which shut the theater in 1994 after the earthquake left the upper balcony unstable, had been using it for storing old seats, projectors and sundry equipment.
USC spent three days cleaning out the dust but did little else to change its aesthetics. Instead, the school focused its resources on creating a state-of-the-art projection room with the wiring necessary to accommodate the flow of computers and equipment that are brought in for testing, removed and replaced.
Although restoring the theater to its original glory would be too costly for USC, the school does plan to continue its high-tech work as long as there's a demand for such services from the movie industry. Given the controversial nature of digital cinema, that's likely to amount to years of work for the school.
"Technology has always been a part of cinema," Swartz said. "And it always will be."
It's a dictum Sam Warner certainly believed as he worked to develop and install the sound system in his theater, a system he never got to see work because of his death. As the decades rolled by, the tale of Warner's unsettled ghost haunting the theater circulated.
Miller — a no-nonsense, stout man of 59 who speaks in short, direct sentences, acknowledges that strange things have happened there.
"You're standing there alone, and you know no one else is in the building, but you hear your name called," Miller said. "You put a tool down, and it winds up missing. You lose stuff. Lights flash on and off. Doors open and close.
"It hasn't happened in a while, but when we've had screenings for the public, we'd lose gadgets," Miller said. "We think he likes technology."
OT: Troubleshooting the iPod and iPod mini
Friday, April 23 2004 @ 06:45 AM PDT
Data loss
Distorted iPod mini sound
iSight interference
iPod not showing up in iTunes
iPod batteries
Mac freezes when going to sleep with iPod connected
iPod mini audiobook issues
iTunes crash on iPod connection; solutions
Resetting a frozen iPod
AppleCare for iPods
iPod preferences not sticking
Cracked LCD Screens
Repair difficult, replacement often cheaper
Warning about Windows DRM and the iPod
Complaints about iPod earbud quality
Extracting files from the iPod
iPod Remote Control Protocol
Data loss
There is a fairly widespread problem where the iPod mini loses access to all data stored on its internal hard drive - though the storage space still appears to be occupied.
Joe Paolino's case is typical of the reports we've received so far "After charging my mini overnight, I found that the next morning all of my songs and playlists were missing. I went to the About setting in my iPod and found that the available capacity was the same as it had been the previous day. After connecting to iTunes, the capacity indicator at the bottom of the screen also showed that something was still on my iPod. However, iTunes detected no music or playlists either. Out of curiosity, I loaded one song on the iPod to see if it would show up in iTunes list. The song loaded fine, but then did not appear in iTunes when I had the iPod selected or when I disconnected it and scrolled through the iPod directly.
"I also noticed one more interesting thing. I opened the iPod in the finder to see folders for contacts, notes, etc. As I clicked on each folder to look their respective contents, the folders disappeared."
Third party devices involved? One report of iPod mini data loss concerned a reader whose songs were lost while an iTrip (an FM transmitter manufactured by Griffin Technolgy) was attached. There are a handful of other data loss (or data becoming invisible) reports indicating that a third party device - the iTrip in two separate cases - was attached when the problem occurred, though a firm connection hasn't been established.
David Calica writes "I had a similar problem. I leave my Itrip attached to my Ipod and leave it in the dock. One day I tried use my Ipod. All of my playlists and music were gone and I was not able to access the unit via Itunes. I reloaded the Ipod software and was able to use the iPod."
Matt Fusfield adds "I've had the same problem once, while I was using the iTrip as well. Removing the iTrip and then resetting the iPod restored all my music. I didn't think much of it at the time, it has only occurred once thus far but it is interesting to hear I'm not the only one who has had the problem."
Manual reset Aside from formatting the iPod mini and reloading all songs (which some readers have been forced to do), resetting the iPod mini seems to be the only successful workaround we've discovered so far:
MacFixIt reader Mike O'Neil "I had an experience with my iPod Mini losing all of its songs. I turned it on and noticed none of my browse categories had anything in them. I went to the info area of the iPod interface and it said '0 songs' and Volume Format 'Unknown' almost as if the hard disk had died, but I suppose the interface wouldn't work at all if that were the case. Anyways, before I completely panicked I did the "menu+select" reset option and all of my music was magically back."
Instructions for resetting the iPod mini (from Apple) are as follows:
Connect iPod mini to the iPod Power Adapter and plug the power adapter into an electrical outlet.
Toggle the Hold switch on and off. (Set it to hold, then turn it off again.)
Press and hold the Menu and Select buttons until the Apple logo appears, about 6 seconds.
Robert Goulet was one of the unfortunate readers who had to format and re-establish all data on his iPod mini:
"I had a similar problem when I was downloading an audio book and connected my iPod mini. It didn't show any music and as I would push on the right button it would look like it was spinning to my on the go playlist but would just continue to read on the go without showing the music. When I connected to the computer it would show how much storage but wouldn't show songs. Resetting did nothing. The only source was to download ipod mini restore and place all my music and references back in. Since then it's worked better than before."
The iPod one-year limited warranty states, "Apple is not liable for any damage to or loss of any programs, data, or other information stored on any media contained within the iPod or iSight product, or any non-Apple product or part not covered by this warranty. Recovery or reinstallation of programs, data or other information is not covered under this Limited Warranty.
Distorted iPod mini sound
After as little as two weeks of use some iPod minis develop heavily distorted sound with extreme sensitivity to touch.
Irakli Loladze thinks he has found the reason behind the problem:
"My silver iPOD mini after two weeks of gentle use started to make horrible static noises. Any pressure, as small as thumb pressure anywhere on iPod mini, would make horrific sounds to come back. Resetting iPod did not help.
"I was just curious what caused such unbelievable distortion. I carefully disassembled by iPod. Then I started to play the iPod and disconnected the wheel, then the hard drive, but my iPod was still playing (out of 25 min flash memory) and still distorting sound.
"Eventually, I narrowed the problem to a small little part that contains the headphone jack and the hold switch.
"This small part attaches to the main iPod board only via a small black connector. This is an Apple oversight!
"The small part with the headphone jack attaches via screws to the aluminium case, but does not screw to the main board. Because of this any pressure on iPOD case, dock connector, or simply plugging in and out headphones, creates tension between the small part and the main board.
"Since only the black connector sits between these two parts, it wears out. What is even worse is that the black connector is attached to the main board via ten very fragile copper pins that stick out of the main board. With regular use, contacts get loose and slightest pressure on iPod creates nasty squeaky static type noises killing all the joy the iPod brings. [...]
"To rely on ten tiny fragile pins is just plain silly. Using inflexible black connector is puzzling, because in the current design the battery, hard drive, wheal, and screen all use flexible cables.
"Apple needs to change iPod mini's design ASAP and attach 'the headphone jack/hold switch part' to the Main Board via a flexible cable.
NOTE: You should never take apart your iPod mini. Doing so will void the one-year limited warranty.
Some users have found that minimizing the number of times they plug in/out headphones and not pushing harsh pressure on the mini's case reduces the incidence of sound distortion.
iSight interference
There is a relatively widespread issue where Apple's iSight interferes with the operation of other FireWire devices. One of the devices most susceptible to this problem is the iPod. For some users, when the iSight is connected and capturing video, their iPod disappears from the Desktop and from the iTunes playlist, while the iPod status screen cycles from the Apple logo to a "Do not Disconnect" message over and over.
The problems also include a slowdown of transfer rates. One reader writes "With the iSight connected, it takes forever to update files on my iPod (30+ mins for 70 tracks) and the whole system runs slowly. [The problem is solved] by disconnecting the iSight; iTunes update now takes seconds."
Bruce Nofrey has a particularly bad case of iPod/iSight interference "Like other users, I have also had problems updating my iPod with the iSight camera connected. The iPod would continue to have the "do not disconnect" sign displayed - then the iPod would freeze ( clock not being updated) and finally my G4 tower would freeze. I have replaced one iPod and have talked to tech support when the second one did the same thing. We could not get the RESTORE function of the iPod Updater to recognize the iPod. Unplugging the iSight firewire cable from the computer will allow the iPod to be updated correctly.
Meanwhile, MacFixIt reader Richard has two interesting theories on what might be causing the iSight interference issue:
"Different Mac models have different power availability on their firewire ports: current portables around 7 W peak, iMac LCD around 8 W shared over all ports and PowerMac cases around 15 W shared over all ports, thus limiting particular models to ability to support numerous bus powered devices and certainly restricting the length of any attached chain to significantly less than the theoretical 63 devices, where a bus powered device is attached (in my experience). So available bus power could be an issue for some FireWire device users."
"The iSight could well be using up all the bandwidth on the bus. Apple describe its as a 640 x 480, 30 FPS (frames per second), 24 bit color device conforming to the IIDC/DCAM specification. Checking this table suggests that up to 96% of the bandwidth on a 400 MBps (megabits per second) FireWire connection would be consumed, if running at full specification."
Workarounds For those who are having serious system problems when FireWire drives and the iSight are in use simultaneously, simply disconnecting FireWire drives during iSight usage is a hassling but complete workaround.
And for a number of users, updating to version 1.0.2 of the iSight software alleviates major issues:
Tom Schuman "Prior to the iSight 1.0.2 updater my three daisy-chained external firewire hard drives (plugged into one of the firewire ports on a dual 1.42 GHz Power Mac G4) disappeared when an iSight camera was plugged into a firewire hub that is plugged into the other firewire port on the Power Mac G4. After some hassle I was able to mount the drives again with the iSight unplugged; I did not lose any data on the hard drives. The only way to avoid the drives from disappearing when the iSight was plugged in was to dismount each firewire drive and disconnect the drives from the firewire port on the Power Mac G4 prior to plugging in the iSight camera. After installing the iSight 1.0.2 updater the problem did not occur again. However the first time I plugged in the iSight camera after I upgraded to 10.3.3 one of the three hard drives (the oldest, about 4 years old) disappeared. I was able to remount it and no data was lost. Until a new fix is released, I'm back to my prior procedure of dismounting and unplugging the external firewire drives before I plug in the iSight camera."
As documented by Knowledge Base article #93705, the iSight 1.0.2 software is highly recommended "if you also use iPod mini, or more than one FireWire drive, including an iPod."
One solution that has worked for a number of users is the addition a new FireWire interface PCI card, which allows the user to connect the iSight to its own separate bridge.
Some users have also had success attaching an externally powered FireWire hub, reinforcing the notion that the iSight/FireWire 400 drive conflict is somehow power (lack thereof) related.
iPod not showing up in iTunes
Several users have reported a problem with the iPod not being visible to iTunes after the Mac OS X 10.3.3 update, for which we have since received confirmation from several users.
MacFixIt reader Glyn suggests a twelve step process that resolved the situation in his case:
Download Cocktail and set invisible items ( found under interface->finder tabs within Cocktail) to be visible
Navigate to the top level of the iPod.
Copy the contents of the iPod_Control folder to your local desktop
Trash the iPodPrefs and the contents of the iTunes folder but not the folder itself. Also I think I may have trashed the device/preferences file but I am not sure
Trash the contents of the Music folder which should be already be copied to your local drive.
Unmount and unplug the iPod
Reset the iPod by Toggling the Hold switch on and off. (Set it to Hold, then turn it off again.), Press and hold the Play/Pause and Menu buttons until the Apple/iPod logo appears. as per Apple Knowledge Base article #61705)
Mount the iPod on the desktop.
Startup iTunes. The iPod should appear now
copy the individual folder contents of the Music folder you copied earlier onto your iPod.
The music is back and you can start iTuning again
Do not forget to reset the finder with invisible items turned off using Cocktail.
iPod batteries
Several users have experienced a problem where the iPod's battery becomes drained while the host Mac (charger) is sleeping. The fact that batteries are routinely being completely discharged then recharged (a full, or "deep" cycle) in this manner may have something to do with the large number of short-lived (16-18 months) iPod battery complaints.
Some precursors regarding this issue:
As previously mentioned, Apple's documentation merely states that the iPod will not charge while the connected Mac is sleeping, not that the unit will discharge during this period of time. Knowledge Base article #61127 says "To charge iPod's battery, simply connect iPod to your Macintosh. The computer must be turned on, and iPod won't charge if the computer goes into sleep mode."
Most readers report that the iPod drains more quickly when it is connected to an off or sleeping Mac than if it is not connected and sitting idle (however, these measurements may be inaccurate - see below). Some have noticed that the iPod's hard drive sometimes spins while connected to a sleeping Mac. Thus it would appear that the iPod remains active while connected to a sleeping Mac, and is perhaps using more power to stay active than is being drawn from the FireWire port.
What's odd is that some readers have reported that the drain occurs even while an iPod is dock-connected to a Mac that is turned off. This would appear to indicate that the iPod is constantly "listening" for a signal from the Dock, depleting its battery in the process. This notion is reinforced by the fact that it is not necessary to turn the iPod on when docking it for an update; even if the "hold" switch is active and the iPod is off, placing the unit in the dock will cause an automatic transfer.
For most, the discharge problem is not persistent, occurring once every few sleep sessions.
Some older models not affected Several readers have reported an absence of this problem with older (first and second generation) iPods connected via a FireWire cable; not the dock.
Ryan La Riviere writes: "I have a second generation (non-dock-based) 10GB iPod. I have, on several occasions, actually used my sleeping (and plugged into an outlet) TiBook to charge my iPod via Firewire. If I wanted to charge the iPod while the TiBook was not plugged into an outlet, the TiBook would have to be awake."
John Merritt writes "I have this problem with my wife's newer 10 GB iPod, but not with my older 10 GB, (pre-dock) iPod."
Another reader writes "I have noticed the same problem with my latest generation iPod but not my second generation iPod."
Using an external FireWire hub allows sleep charging Aside from simply using the AC adapter, the only way to continue charging some iPods while your Mac sleeps is to use an externally powered FireWire hub. This way you can still use a single connection for power and data transfer.
MacFixIt reader Eric Westby writes "I ended up using a powered FireWire hub to solve the problem -- since the hub continues to send power to the iPod/dock even when my G4 is asleep, the iPod is fully charged in the morning even though my G4 has spent the night asleep."
AC adaptor may more fully charge iPod batteries Besides not discharging, the iPod AC adaptor may be able to more fully charge an iPod battery relative to the dock in some cases.
"I have a 10GB second generation iPod. I normally charge by hooking the iPod to my laptop or desktop. Around early Jan of this year it would appear that my iPod would not hold a charge. When hooked up to a computer it would seem like it could never reach full charge on the display. If it did, then it wouldn't hold its charge for more than a couple of hours. I thought the battery was toast. On a fluke, I connected it to the wall charger. After it reached full charge, I was again able to get about 8 hours of playing time. Its like having a new iPod!"
Setting startup time to three hours prior for maximum charge Knowledge Base article #61127 also notes that the iPod is "80 percent charged in about an hour, and fully charged in about 3 hours."
If you want to keep your iPod docked overnight (or for another long, unattended period of time), you can use a utility like iBeeZz to automatically wake your Mac up three hours before you'd like to begin using the iPod. This will provide a full charge - based on Apple's claims - in spite of discharging.
Slow charging because of other devices Several users have noticed slow charging when other FireWire devices are connected. Bob Sutryk writes:
"One other issue that frustrated me for months: Shortly after I put Mac OS X 10.3 on my computer the iPod seemed outrageously slow to charge. After months of dealing with this and sending the iPod in to be fixed, a sharp Apple tech finally discovered that my iSight camera was pulling too much power for both Firewire appliances to handle. Once I unhooked the iSight, the iPod ran like new."
Some iPods display an inaccurate battery measurement, though MacFixIt Jed and points out that this phenomenon is common with other devices as well:
"The battery meter is often inaccurate. I've found this to be true on my Palm as well: after charging, the battery meter continues to show low charge for a while, gradually increasing over time.’
Meanwhile, Ron Skinner notes that, typical of Li-Ion batteries, inaccuracy may increase with time and the constant use of "shallow charges" :
"Devices equipped with Li-Ion charge indicators--such as the iPod--become increasingly inaccurate when they are shallow charged. All that is required to re-calibrate the gauges is to fully discharge the battery before recharging. However, routinely fully discharging these batteries should be avoided. Their useful life is greatest when subjected to shallow charge cycles."
Apple explains how to extend battery life Apple has updated its Knowledge Base article (#61434) explaining how to extend the life of your iPod's battery to the maximum. Among the tips:
Pause iPod when unattended If you leave iPod unattended, press Play/Pause to pause the song. If left playing, iPod will continue to play songs until the battery is drained--particularly if the repeat setting is set to One or All.
Backlighting Backlighting can use a lot of battery power. If you don't need to use backlighting, turn it off. Choose: Settings > Backlight Timer > Off.
Mac freezes when going to sleep with iPod connected
A problem with charging from the dock, noted in Apple Knowledge Base article #60929, is that "your computer may stop responding ('freeze') if it goes to sleep with an iPod connected to it."
The only suggested resolutions for this issue are:
Restart your Mac
Turn off sleep in Energy Saver
"Do not put your Mac to sleep when the iPod is connected"
iPod mini audiobook issues
There are some reports of minor problems with Apple's newly shipping iPod mini.
MacFixIt reader Craig Spirko writes "Bought a silver iPod mini on Friday and while I love it, I’ve found two software bugs: When listening to a book-on-tape ('The da Vinci Code' bought from iTunes) I’ve found that if you’re more than 35 minutes into the track and press the FF button (and hold) the iPod rewinds instead of fast forwarding. On four other books I had the same problem.
"The bug seems to only happen on long tracks (more than an hour) and only on AAC files. AIFF files play normally, and one of the guys on the Apple discussion board reports his copy of 'The da Vinci Code' worked properly, but he downloaded it directly from Audible.com and I’m guessing they provide mp3s. The nice people at “The Grove” Apple Store traded me for another brand-new iPod and I’ve got the same problem.
"The other bug is that when the iPod is shut off (or goes off automatically) on an audiobook, it automatically rewinds a minute when you press “play” and then it begins to play. This may be a “feature” but it means you have to listen to the same part of the book twice, and since the FF isn’t working it’s kind of a pain."
iTunes crash on iPod connection; solutions
Several users are affected by an issue where iTunes 4.2 crashes shortly after connecting an iPod (under Mac OS X 10.3.x)
MacFixIt reader Rory Cooney summarizes the problem:
"Longtime users of iPods of various pedigree and size, after upgrading to Panther, are finding that attempting to synch their iPod to iTunes crashes iTunes. The crash results both in the iPod not getting updated and a force-quit required to iTunes. I myself spent 3 hours on the phone with Apple support yesterday, and after troubleshooting every aspect of iTunes, I was told to do an archive and install. Today, the problem persists."
Some users have had success disconnecting all other external peripherals - particularly FireWire devices other than the iPod (and USB components), but for others the problem persists under the same conditions.
In some cases, users are able to transfer only a few songs - usually less than 10 - before iTunes hangs.
So far, reverting to Mac OS X 10.2.x seems to be the only thorough solution for users experiencing this problem.
The crash generally results both in the iPod not getting updated and a force-quit required for iTunes.
Some users have had success disconnecting all other external peripherals - particularly FireWire devices other than the iPod (and USB components), but for others the problem persists under the same conditions. Reverting to Mac OS X 10.2.x also alleviates the problem.
In some cases, users are able to transfer only a few songs - usually less than 10 - before iTunes hangs.
Now MacFixIt reader Doug Mitchell offers a different solution that involves deleting streaming references in the iPod master library (streaming references include iTunes' radio stations and other streaming source files):
"I just bought a new 20 gig iPod and initially I suffered the same disasters others are referring to. I solved my problems through a variety of steps. First I plugged my dock for the iPod directly into one of the firewire ports in my G4. Secondly I noticed that there were a number of streaming references in the master library for iTunes. When I deleted these items from the library all music transfers went smoothly. I have had no problems since. I am running OS 10.3.2 and iPod software 2.1 as well as iTunes 4.2."
Resetting a frozen iPod
Generally when your iPod becomes "frozen," (the iPod either stops responding or will not wake from sleep), Apple recommends a few simple procedures including leaving the unit unplugged for 24 hours. For some users, however, none of the suggested solutions restore normal functionality, and units are sent in for repair.
MacFixIt reader Robert Snell, however, found that temporarily opening the case and disconnecting the battery for a short period of time worked:
"Before sending it back for service, I decided to try resetting the unit by opening the case and disconnecting the battery for a short period of time. After reconnecting the battery, the Apple logo appeared and operation was returned to normal. Measuring the battery voltage revealed it to be fully charged.
"Also, be very careful NOT to accidently short out the battery when disconnecting it. Since the "off" battery discharge time is about one month, I would have waited a long time for the power down reset to occur."
"This occurred after returning from a trip where my iPod had been through several X-Ray inspection machines and it was fully charged before I left."
AppleCare for iPods
Apple's highly recommended AppleCare premium warranty service is available for the iPod. The plan is priced at US$59 for two years of protection.
One caveat, however: "The AppleCare Protection Plan cannot be sold to consumers residing in Florida. 'Consumers' are persons who use their computers primarily for personal, family, or household purposes."
iPod preferences not sticking
Several users upgrading to Mac OS X 10.3.x have found that their iPods are no longer capable of remembering preferences set through iPod, such as which playlists to synchronize.
MacFixIt reader Brian Romanchuk writes "Ever since upgrading to Panther, I've noticed that I can't change my iPod preferences. When my iPod has mounted and finished syncing, I choose the preferences and try and deselect a playlist that I have set to synchronize. It deselects and the dialog box hangs there for about 10 -20 seconds and then disappears. No updating takes place. When I bring the iPod preferences back up again nothing was changed. Same holds true for trying to switch on the Firewire Disk option. I've tried trashing all the preferences related to iTunes and ipod and nothing works."
One workaround for this issue that appears to be working for some is as follows:
Perform a "Restore" process (erases the iPod's hard disk and restores the device to its original factory condition) using the iPod Software Updater application.
Go to iTunes and access the iPod preference pane. Check the box marked "Enable Firewire Disk Use" (not check by default) and leave it check.
Synchronization should now occur normally until you uncheck the "Enable FireWire Disk Use" option.
Note that without performing a "Restore" process, no preferences - including the FireWire Disk Use option - will stick. It seems that after a "Restore," the iPod preferences will be recognized for one synchronization, giving you a chance to enable the FireWire Disk Use option and leave it on.
Also, note that while the FireWire Disk Use option is in effect, your iPod will mount like any other volume, and be subject to a "Device improperly removed" error message if disconnected on the fly.
Cracked LCD Screens
iPodhead.com has some rather gruesome photos of an iPod mini with cracked LCD.
The owner of the broken iPod mini said "My son just got an ipod mini last week. (He) had it in his pocket, sat down and cracked the display. I took it to the Apple store in Houston. They told me it would cost less to buy a new one ($249)!"
She went on to say that "This is going to be happening all the time because the minis are much thinner and relatively flexible."
As stated in Apple's iPod one-year limited warranty, coverage does not include "damage caused by accident, abuse, misuse, misapplication, or non-Apple products"
Another MacFixIt reader writes:
"I bought a 15Gig IPod for my son a month ago. He loved it! But yesterday it got banged in his bag and the screen was damaged, so it won't work now. When I asked how to get it repaired, I was told it would be a $249 charge. I fully expected to pay for the repair, but Apple is essentially saying that they will not support the product and to just buy a new one. At these prices, Apple should provide reasonable repair service and support their products."
Repair difficult, replacement often cheaper
As evidenced by the "Cracked LCD Screens" section of this report, iPod's are difficult and expensive to repair. Most authorized repair centers will recommend a replacement if your iPod is not turning on due to an electrical problem, the screen is broken, or a variety of other problems occur.
As such, many users have chosen to enroll in the US$59 iPod AppleCare protection program, which provides a greater umbrella of repair/replacement options, and also provides a quicker turnaround than the standard Apple warranty.
Meanwhile, MacResQ offers a flat-fee repair service for Apple iPods. The service will purportedly offer 24-hour turnaround on repairs and nationwide, as well as overnight pickup and delivery at the user's location. The cost of the iPodResQ 24-Hour Repair Service is US$29 This includes the 3-way overnight shipping, the initial diagnostic service, and the iBox, which the customer may keep for future use. The "iQ" Battery Replacement priced at US $79. More.
Warning about Windows DRM and the iPod
A Stereophile Magazine article notes the potential problems caused for iPod users by recording companies' use of digital rights management technology from Microsoft on some new CDs:
"One major drawback of the restricted disks, however, is non-compatibility with the Apple iPod. Since the new discs are based on SunnComm's MediaMax, which itself is rooted in Microsoft's Digital Rights Management (DRM) applications, the brochure leaves it up to iPod owners to read between the lines, explaining only, "It will play on any device that supports Windows Media DRM. These include Creative Labs Nomad players, Compaq iPAQ personal audio players, RCA personal audio players, Sanyo personal audio players, RIO personal audio players, and eDigital personal audio players."
Complaints about iPod earbud quality
Simone Manganelli describes a problem with making his iPod's earbud headphones that developed over time and eventually ruined their functionality:
"I've had a perpetual issue with my iPod earbuds, and I'd like to see if anyone else has had this problem.
"I've had 3 pairs of iPod headphones (the original version that came with the original 5 GB iPod, and 2 pairs of the new version that came in the $30 box with the remote). All three pairs have now gone down the same path -- where the 2 wires that go to the separate earbuds converge into one wire, the plastic comes out of the little plastic (part) that holds the two wires together. The result is that the actual wires that go to the earbuds get exposed, and after a while get frayed, and then the earbuds stop working and I have to get a new set.
"I really like the iPod earbuds, and I can't possibly carry around regular headphones. I talked to a genius at the Palo Alto Apple Store a few days ago, and he said that the headphones are 'accidental damage' and so are not covered under warranty. It seems to me that they haven't really made the earbuds that well if they keep fraying for me. Today I talked to a second tier Apple specialist through Apple's technical support line (1-800-275-2273), and they basically said the same thing."
A Wall Street Journal article [paid subscription required] notes some users' dissatisfaction with the earbuds, and offers a variety of alternative headphones with prices ranging up to US$500.
Extracting files from the iPod
There are several shareware and freeware utilities that are for the purpose of extracting music and other files from an iPod to your Mac. They include:
Escape Pod 1.0
Ollie's iPod Extractor 2.1
Pod Manager 2.0
Podpourri 0.2
While some of these tools offer extra features like Podpourri's ability to generate XML and PDF files that can contain clickable URLs linked to the songs on your iPod, there are two other basic ways of directly accessing these files:.
First you can use the Terminal and type:
cd /Volumes/(id of iPod)/iPod_Control
then type:
cp -r music /Users/(userid)/desktop
This will directly copy the files. Alternatively, you can continue navigating in the Terminal to select specific files.
MacFixIt reader James Reffner reports another method:
"Run an FTP server (I use CrushFTP) and set it up to allow access to your iPod (put the iPod in disk mode). Then use an FTP client (I use Transmit) that can utilize Rendezvous to connect to the FTP server app and then access the ipod from within your FTP client. That's it. Copy the files you want from your iPod over to your Mac.
"I realize that there are many applications to extract he music, but this method will also allow you to get your iTunes database file, contacts, calendar, notes, many different preferences, etc. You'll also notice that the audio files are not structured as they are on your drive, but a least you can get them back if you loose the ones on your Mac."
Using invisible file tools We previously noted several solutions for extracting files from an iPod, including the array of shareware offerings, setting up an FTP Server, and others. One MacFixIt reader writes:
"Why bother with Terminal or FTP or anything like that ... when there is a simpler and more Mac-like user-friendly solution? All you need to do is use a utility that temporarily makes invisible files visible in the Finder (such as Invisibles or TinkerTool). You can then navigate directly to the iPod_Control folder on the iPod volume. From here, you can copy whatever you want - from a single music file to everything - just as you would with any other external volume mounted in the Finder."
Invisible Finder is one such tool.
iPod Remote Control Protocol
MacFixIt reader John has posted a reverse engineering document of the second-generation iPod remote (the version that has the touch-sensitive scroll wheel). "The remote probably works exactly as-is with the first generation iPod (with the mechanical scroll wheel). The newest ipods (thinner, rounder, and with 4 buttons in-line) has a similar remote, but with a different square 4-pin remote connector -- I don't know the new pinout, and suspect that it has microphone-in and/or line-in capabilities." More.