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OT Boxed out..How Intel lost its place in the Xbox
Dean Takahashi, illustration by Daniel Guidera -- Electronic Business, 5/1/2002
Rick Thompson didn't realize he had a shadow in the fall of 1999. The Microsoft Corp. vice president was scouting in Japan for someone to manufacture the Xbox video game console.
But at the same time, a small crew of Intel Corp. employees secretly was meeting with the same manufacturers, asking if they wanted to partner with Intel on a video game console instead. The Santa Clara, CA-based chipmaker would make this box and it would use the Linux operating system, not Microsoft software. This bold proposal came from Intel Vice President Pat Gelsinger's desktop products group and had no formal approval. For a while, it seemed as if the Wintel partnership might unravel, with Intel and Redmond, WA-based Microsoft both putting their own competing products into the entertainment market.
But the Intel box never happened. It was a lost opportunity for the computing giant to extend its sphere of influence into entertainment.
The Xbox itself began as a renegade idea within Microsoft in the spring of 1999. Four Microsoft employees, fearful of Sony's PlayStation 2 (PS 2), schemed to challenge Sony Corp. for the throne of entertainment in the living room. The Xbox team pitched the idea to Gelsinger's group on May 6, 1999—a day after Bill Gates first listened to an Xbox proposal.
In those early days, the Xbox was a two-fold product. As specified, it would run a version of Windows tailored for entertainment, hook up to the TV set, but run both PC and console games. It would use the PC architecture to take advantage of low-cost components such as Santa Clara, CA-based Nvidia Corp.'s graphics chips. And if Intel wouldn't meet Microsoft's price points, it would likely use a microprocessor from Sunnyvale, CA-based Advanced Micro Devices Inc. instead.
Gelsinger's group returned to headquarters wondering whether the Microsoft renegades really were serious. There was internal division within Microsoft, particularly among the WebTV Internet appliance division, about how Microsoft should build the console. Should it include a hard-disk drive and be more like a PC with Intel's architecture, or should it be focused on low-cost, non-PC hardware such as a MIPS-based microprocessor?
Gelsinger met with David Cole, the head of the consumer Windows division at Microsoft. Among other things, they discussed the possibility of jointly making a video game console. Intel and Microsoft couldn't just sit by and do nothing. Sony, Tokyo, had sold nearly 80 million units because consoles were inexpensive and easy to use, in contrast to the crash-prone PC. The PS 2 would be capable of cruising the Internet, making it a possible Trojan Horse, by getting into the living room as a game machine and then morphing into a device that usurped the role of the PC.
Between May and July, Microsoft debated the merits of the Xbox and WebTV game console proposals. The Xbox won. Thompson was appointed to lead the Xbox effort on July 21, 1999, and he hit the streets to canvass manufacturers. Michael Dell told him that he had no interest in making money-losing hardware; since the model for the games industry was to lose money on the hardware in hopes of making profits on game sales. Thompson (who left Microsoft in April 2000) heard the same "you gotta be nuts" answer from Panasonic, NEC, Sharp, Casio, Toshiba and Mitsubishi.
Gelsinger's group floated their proposal up the Intel management chain. They wanted Intel to be an equal partner with Microsoft, co-branding the Xbox with the Intel name and having Intel assemble the box as well as supply parts. Intel also could supply the network connectivity for the Xbox's online games network through Intel Online Services, a start-up web hosting business on which Intel planned to spend $1 billion. Locking up Microsoft's online gamers would generate considerable traffic for Intel Online Services. But Microsoft was lukewarm to Intel's network proposal.
It was around this time that Gelsinger's desktop products group also explored the idea of Intel launching its own Linux console without Microsoft. John Riccitiello, president of Electronic Arts Inc. (EA) in San Mateo, CA, mused openly about whether EA and Intel could jointly launch a game console built around EA's sports brands. But the discussion never proceeded and Intel's interest began to wane. Intel saw the hardware business as risky. It might not make money, and in contrast to Microsoft, it had no software division to make games for the Xbox. Thus, it had no sure way to make profits on a console.
Gelsinger, who currently is Intel's chief technology officer, confronted Microsoft executives at a joint meeting of the Intel and Microsoft management teams in the late summer of 1999. Microsoft was saying the console would cost $303 to manufacture, but Gelsinger's estimates pushed it to $340 or $350. Steve Ballmer, then president of Microsoft, was visibly angry with his own team. "Then why the hell are we doing this," he thundered. That meeting raised doubts among Intel's top management about whether Microsoft really understood what it was getting into.
"We laughed at the idea they would blow a few billion dollars on this," said an Intel source.
The Xbox also went through a metamorphosis. Microsoft decided that the focus on gaming meant that it had to take out most of the Windows operating system. Gone were the ambitions to run browsers and other PC-related software. Now the Xbox would just run console games; it wouldn't even run games created for the PC. Once again, the Intel representatives didn't like these new developments. Finally, the proposal to partner with Microsoft went to Intel CEO Craig Barrett, who opted not to participate as an equal partner with the software giant. After all, Intel had $10 billion in cash, a considerable sum; but it needed much of that to continue financing its chip factories. It also was investing billions of dollars in communications chips and Intel Online Services. Barrett didn't need another multibillion-dollar expense. So he backed off. Intel would supply parts to the Xbox, but that was all.
Did Intel make the right bet? Today, the Xbox is expected to sell 10 million units in 2002. San Jose, CA-based Flextronics International Ltd., which is making the Xbox for Microsoft, reports that the Xbox is helping its profits, though there's definitely more profit in the software than the hardware. By contrast, Intel is losing hundreds of millions of dollars in communications and it has stopped investing in Intel Online Services. If Intel had invested in making a video game console, it might have avoided some of the dot-com tidal wave that swamped its fledgling new businesses. Video games are expected to grow 25% this year, while it isn't clear when communications is going to recover. But it's hard to be too harsh on Intel in hindsight. In 1999, who would have thought that the video game business in 2002 would be sexier than communications?
Compiled from interviews with Intel, Microsoft and other industry sources. Dean Takahashi is author of Opening the Xbox: Inside Microsoft's Plan to Create an Entertainment Revolution, published by Prima Publishing in May 2002. He can be reached at dean.takahashi@redherring.com.
Senate Bill Would Strengthen Counterfeiting Laws to Include Movies, Music
Washington -- A new bill introduced into the U.S. Senate on Tuesday by
Sen. Joseph Biden (D-Del.) would strengthen U.S. counterfeit laws to
include the counterfeiting of authentication features, such as holograms
and watermarks embedded into the packaging of CDs, software and motion
pictures. "The rising theft of American intellectual property, through
piracy and counterfeiting, has cost hundreds of thousands of American
jobs. It has cost the U.S. government tax revenues and U.S. corporations
billions of dollars," said Senator Biden, in a statement. "The criminal
code has not kept up with the counterfeiting operations of today's
high-tech pirates, and it's time to make sure that it does." In addition
to giving movies and music the same anti-counterfeiting protection enjoyed
by the software industry, the bill would increase penalties for convicted
pirates. Sen. Biden's bill is one of several of late to address
intellectual property theft. Sen. Fritz Hollings (D-S.C.) recently
introduced a bill that would put government-mandated copy control
technologies into most consumer electronics devices.
http://biden.senate.gov/pressapp/record.cfm?id=182528
http://thomas.loc.gov/cgi-bin/query/D?r107:35:./temp/~r107bcjPnk:e0:
http://news.com.com/2100-1023-896676.html?tag=cd_mh
OT E-mail shows Microsoft combined Windows with media player to frustrate rival
By D. Ian Hopper
The Associated Press
WASHINGTON — Microsoft planned in 1999 to bundle its
media player and operating system in a bid to attack rival
RealNetworks, according to a Microsoft e-mail, just as a
federal court was about to punish the company for similar
efforts in the Web browser market.
At the time, RealNetworks had a huge lead over Microsoft’s media player products. The e-mail, sent
to Microsoft chairman Bill Gates, shows a new strategy to meld streaming media — audio and video
sent over the Internet — into Windows.
Lawyers for nine states suing Microsoft released the e-mail today.
"We position streaming as a natural and native feature of our client and server operating systems,"
a Microsoft executive wrote in the January 1999 document. "This is a standard feature of our
platform, not an added cost item."
Soon afterward, Microsoft made its media player part of the Windows operating system.
RealNetworks’ player is still a stand-alone program.
Faced with the e-mail, Microsoft executive Will Poole said today that the company "needed to
communicate the entire breadth of Windows technology available."
Microsoft is now under fire for the tactic. A federal appeals court ruled that Microsoft was
anticompetitive when it "commingled" software in the operating system and added features like the
Web browser — mixing them together so that they cannot be removed.
At the time, the court was primarily talking about Microsoft’s Internet Explorer, which was in a battle
with the competing Netscape Navigator Web browser.
Competing software developers say that Microsoft has an unfair advantage when it binds new
features into Windows.
Microsoft argues, and the federal government agreed, that removing icons and other similar ways to
access those features would be enough to level the playing field.
Nine states disagree, and have asked a court to force Microsoft to release a modular version of its
Windows operating system in which some features, like the Web browser and media player, could be
removed and replaced with competitors’ products.
Other penalties sought by the states would require Microsoft to license its Office business software
for use on competing operating systems and distribute the blueprints of its Internet Explorer browser
for no charge.
The federal government and nine other states settled their antitrust case against Microsoft last year
for lesser penalties.
The original judge in the antitrust case, Thomas Penfield Jackson, ordered Microsoft broken into two
companies after concluding that it illegally stifled competitors. An appeals court upheld many of the
violations but reversed the breakup order and appointed U.S. District Judge Colleen Kollar-Kotelly to
determine a new punishment.
Microsoft and RealNetworks also debated today whether RealNetworks’ media player would function
if Microsoft excised its own media player from Windows.
Poole, who oversees Microsoft’s digital media and anti-piracy divisions, testified that RealOne, the
latest digital media program from RealNetworks, relies on key features in Windows.
"As a result, RealOne Player would not run on a version of Windows from which all of the multimedia
(interfaces) have been removed," Poole testified. That might occur if computer manufacturers were
allowed to remove Microsoft’s Windows Media Player.
RealNetworks vice president Dan Sheeran disputed Microsoft’s assertion. Sheeran said RealOne
relies on operating system functions, not portions of Windows Media Player.
Microsoft is "clearly trying to mislead the court," Sheeran said in an interview.
The two companies differ, both in the courtroom and out, on what the state proposal requires
Microsoft to remove. The states and RealNetworks say that basic sound and CD playback functions
would be allowed to remain in Windows, as they existed before Windows Media Player was
introduced.
Microsoft says that the proposals are written so broadly that those functions would have to go.
"We’d be happy to teach Microsoft how to remove Windows Media Player from Windows if they need
to," Sheeran said.
States that rejected the government’s settlement with Microsoft last fall and are pressing for tougher
penalties are Iowa, Utah, Massachusetts, Connecticut, California, Kansas, Florida, Minnesota and
West Virginia, along with the District of Columbia.
Copyright © 2002 The Seattle Times Company
Summing up RB..a classic..By: luxmundi0 $$$$$
02 May 2002, 01:53 PM EDT Msg. 966040 of 966440
The parable of the beautiful tree...........................
There once was a tree in the forest, that was unique in all the world, it was a strong and
lovely tree,its branches were filled with honey nests, and the bears of the forest came to
live near the tree, so they could eat the sweet honey. The stronger the tree grew,the
more bees would come, and build their nests, and the bears were happy and contented,
and rich by bear standards,imagining how much happier they would be, when the tree
grew even bigger, and there were more and more bee's nests,and more and more
honey. One night, there was a terrible storm, and all the bees nests were blown from the
tree, and there was no more honey. The bears were dazed, and confused, and one
foolish bear, decided that it was the trees fault,and he took a squat, and crapped on the
tree, because he was so angry there was no more honey. The other foolish bears,
decided that they too, would crap on the tree, and only the wise bears refrained, knowing
that the bees would not return, if they smelled the bear crap. Soon, there was an
enormous, stinking pile of bear crap, surrounding the tree, and the wise bears warned
the foolish bears to stop, the tree was beginning to wilt, the crap was so acrid. The
foolish bears continued, after all, there was no more honey, and they were still angry.
Finally, just when the last leaf had fallen, the foolish bears wandered off,happy that they
had finally killed the tree. The wise bears,stayed behind, and waited....patiently ....they
had seen this before.....and just like magic, a gentle rain began to fall, the acrid crap
softened and sweetened the earth around the tree, and nourished the roots, and
fertilized the tree, which grew larger and larger, stronger than before, the bees came
back in droves, there were nests on every branch, overflowing with honey. Of course, the
foolish bears came back, demanding their share of the honey, it was their tree too. That
night, the bears joined together in a great honey orgy, and as the nests were emptied,
more and more nests appeared, the bees loved the great tree, and more came every
day to build their nests in its bountiful branches. One of the foolish bears, stuffed with
honey, stood up and out of habit, started to take a crap at the base of HIS tree,it was
his after all, and he could do as he liked...The wise bears stopped him...taking him into
the forest, deep and far away. They knew if the bees smelled the bear crap, they would
stop coming to the tree to build their nests, and they would have no more honey. They
began to take care of the tree, and it grew strong and tall and sturdy, because its roots
were deep in the earth , and as long as they cared for the tree, and took care not to crap
on it, out of habit, there would be honey enough for all of the bears.
STBs...Cable industry offers DTV compromise
By George Leopold
EE Times
May 1, 2002 (5:39 p.m. EST)
WASHINGTON — The 10 largest U.S. cable operators would begin carrying up to five channels of digital broadcasts by as early as Jan. 1, 2003, under a plan announced Wednesday (May 1) in response to government calls to speed the transition to digital TV in the United States.
In a letter to Federal Communications Commission chairman Michael Powell, a cable industry group also pledged to begin deploying high-definition set-top boxes with digital interfaces over the next 18 months. The set-tops along with digital inputs on DTV receivers and recorders would help boost sales of digital TV equipment, encouraging broadcasters to offer more digital broadcasts.
The initiative by the National Cable & Telecommunications Association (NCTA), based here, came in response to Powell's voluntary plan unveiled on April 4 to speed up the stalled transition to digital broadcasting.
"Central to these actions is our belief that the availability of high-definition television is key to creating the market incentive for American consumers to purchase HD-ready digital television receivers," said NCTA president Robert Sachs.
By Jan. 1, Sachs said, top cable operators would offer to carry signals from up to five digital TV stations or cable networks in order to meet Powell's goal of at least 50 percent of prime time broadcasts in high definition in the next TV season. The cable pledge leaves some wiggle room for cable operators to use digital signals from carriers other than broadcasters.
Companies agreeing to the plan are AT&T Broadband, AOL- Time Warner, Comcast, Charter Communications, Cox Communications, Adelphi Communications, Cablevision Systems, Mediacom Communications, Insight Communications and CableOne.
Set-top push
NCTA said the cable industry expects manufacturers to begin delivering digital set-tops with digital interfaces like IEEE 1394, the Digital Visual Interface and the High-bandwidth Digital Content Protection in quantity by the end of 2003.
Hence, operators pledged to immediately order integrated HD set-tops with digital interfaces and provide them to customers as soon as they are delivered. Cable companies would also lease digital set-tops to consumers and offer them for sale through consumer electronics retailers.
Equipment makers have long complained that the cable industry has a stranglehold on the set-top box market and wants to be able to sell digital set-tops direct to consumers.
In an April 30 filing to the FCC, the Consumer Electronics Association (Arlington, Va.) called for "regulatory intervention" to speed up compatibility between cable systems and consumer electronics products. The group wants digital cable-ready products with "plug and play" capability.
Powell welcomed the cable industry's overture. "I am pleased that the cable companies have embraced my challenge with solid commitments and I look forward to similar strides by the other industries in the coming weeks," Powell said in a statement.
Broadcasters reacted cautiously. "We're pleased the cable industry is moving toward carriage of digital broadcast signals," said Edward Fritts, president of the National Association of Broadcasters. "We look forward to the day when cable operators carry all digital broadcast signals in their entirety."
New Sony notebook makes some noise
By John G. Spooner
Special to ZDNet News
May 1, 2002, 1:15 PM PT
Sony plans to play a different tune for PCs this summer, with the
introduction of a notebook that can act as a music studio on the go.
The company's Vaio PCG-NV170 includes a recordable CD drive and pre-loaded music
editing and management software, as well as a subwoofer--a device that is designed
to enhance tones in the lower range of music--small enough to fit into the floppy drive.
The package is geared for music enthusiasts who want to create CDs or listen to
music, but are looking for a machine that is less bulky than a typical desktop.
"We think that these units are going to be used as desktop replacements at people's
homes," said Mark Hanson, vice president and general manager of VAIO PC marketing for
Sony Electronics. "So...why not enhance the audio quality, so they don't have to go out
and buy extra speakers?"
Music has been one of the
driving forces behind the
convergence of
entertainment and PC
technology. Recordable CD
drives, MP3 files and
music download sites have
effectively made the PC an
integral component of
home stereo systems.
Computer makers are
trying to capitalize on the
trend in different ways.
Gateway, for instance, is
promoting legally
downloaded music and is
talking to recording labels
and artists about future
collaboration. Sony has
been slowly crafting a
grand strategy of working its entertainment division into its consumer electronics and
PC divisions to create unique products smaller companies can't replicate.
The notebook, slated to hit stories in mid-May and cost $2,200, incorporates a
three-spindle design, meaning it comes with a hard drive, an optical drive and a bay
that can accomodate either the subwoofer, a small keyboard or a floppy drive. All three
of these devices will ship with the notebook.
The base NV170 will include a 15-inch display, a 1.6GHz Intel Pentium 4-M, 256MB of
RAM and a 30GB hard drive. Other models, some of which will be available direct from
Sony, will offer faster processors, more memory and built-in wireless networking.
Granted, a more powerful desktop fitted with expensive speakers might produce better
audio quality. But with the subwoofer, the computer allows customers to get "pretty
decent quality audio," Hanson said. At least one other PC maker has offered a notebook
with a subwoofer, but Sony appears is the only brand-name vendor offering a
subwoofer that fits inside a notebook chassis.
The NV170 "is really the first notebook I've seen or heard before that delivers home
stereo quality audio," said Alan Promisel, notebook analyst with IDC. "In theory this is
a significant step toward making the notebooks your home personal theater or stereo."
While the NV170 is not exactly the thinnest or lightest notebook available--weighing
between 8.2 and 8.6 pounds--it fits in very well with what most consumers are buying
right now, Promisel said. While thin notebooks remain the product of choice for the
corporate market, larger, all-in-one portables have been surprisingly strong in the
retail market.
Making a design statement
With its new look and feel, the NV170 as a design helps set Sony apart from other PC
makers, Hanson said.
"People sort of expect this from Sony," he said.
Indeed, the company has gone to great lengths to make its notebooks stand apart from
the pack. Last March, the company introduced the Vaio GRX, a notebook that includes a
large 16.1-inch screen. Most other PC makers, including Dell Computer and Gateway,
offer notebooks with 15.7-inch screens.
So far the strategy has reaped the company rewards. Sony gained an 8.8 percent share
of the overall notebook PC market in the United States during the fourth quarter of
2001, putting it in fifth place behind IBM. Should such a performance continue, Sony
has a good chance of passing IBM for the No. 4 spot, Promisel said. Dell Computer,
Compaq Computer and Toshiba currently hold the top three spots, in this order.
Digital radio developer raises $45 million
By George Leopold
EE Times
April 30, 2002 (1:20 p.m. EST)
WASHINGTON—Digital radio developer iBiquity Digital Corp. said it has raised $45 million in private equity financing to launch its AM and FM broadcast technology.
IBiquity (Columbia, Md.) is preparing to launch a digital radio service based on its in-band, on-channel (IBOC) broadcast technology. The technology has been endorsed as a U.S. digital radio standard by the National Radio Systems Committee, an industry group.
IBiquity said that 14 of the 20 largest U.S. radio broadcasters, radio equipment and automobile manufacturers, along with financial institutions, have invested in the planned service.
Regulators also have endorsed IBOC because it can use existing broadcast spectrum.
The company said it expects to launch the IBOC system in early 2003. Receivers are expected to be ready in time for the Consumer Electronics Show in January 2003.
The private equity financing was the largest ever for iBiquity. Robert Struble, president and chief executive officer, said the funding should see the company through the commercialization stage.
With the latest investor, Susquehanna Radio, Struble said that the nation's top 11 radio broadcasters are now owners of iBiquity. Other investors include Grotech, JP Morgan Partners, New Venture Partners and Pequot Capital.
Additional strategic partners include Ford Motor, Harris, Lucent Technologies, Texas Instruments and Visteon.
Qdesign partners..e.Digital but no DataPlay hmmmm...
Seems we may be in the IRiver DP player after all...
QDesign Partners
Apple Computer, Inc
Associated Press
C-Cube Microsystems
Central Media [spottaxi.com]
Digidesign
eDigital
EZ Automation
Hardata
InterTrust
Iomega
RadioMan - Jutel Oy
Pinnacle Systems, Inc
PortalPlayer
Rocket Network
RioPort
Sony Worldwide Networks
Sorenson
Terran
Texas Instruments
Tonos
Vortex Communications
April 29, 2002
Interesting..iRiver Wading Into Branded Portable Market
(see bottom w. QDX mention)
By Joseph Palenchar
TWICE
4/29/2002
San Jose, Calif.— iRiver, an OEM manufacturer of MP3-CD headphone portables to major CE suppliers in the United States and other countries, has begun marketing its first iRiver-branded portable audio products in the U.S. and will expand its branded selection to include portable video devices.
iRiver claims No. 1 worldwide unit share in MP3-CD portable manufacturing in 2000 and 2001 when its branded and OEM production is combined. In Korea, iRiver-branded MP3-CD portables have been available for two years and account for more than 60 percent of retail-level market share in MP3-CD portables there, the company said.
iRiver is a division of Reigncom, a privately held Korean company founded in January 1999, and is said to have generated $100 million in calendar-2001 revenues. About 65 percent came from the manufacturing of MP3-CD portables, according to iRiver America president John Kim. Reigncom also distributes chips in Korea, markets test equipment to measure the performance of optical-disc hardware, and develops software for optical data encoding, decoding, and servo control.
The company, which is preparing for a public offering in Korea, builds its portable audio products in its own factory near Shenzhen city in Guandong Province.
In the United States, the company began December shipments of its first branded product, the multicodec $199-suggested SlimX, said to be the thinnest MP3-CD portable on the market at 0.66-inches, or 44 percent thinner than other models.
The company's next products, said Kim and iRiver Korea president Joon Yang, include the following:
the ChromeX muticodec, codec-upgradable headphone-CD portable due late April at a suggested $99.
the $369-suggested iDP-100 headphone portable, which plays quarter-size write-once 500MB DataPlay discs. It's due June 15.
a flash-memory portable due September.
portable video late this year or early next. Products will include a portable DVD player and a DataPlay-enabled portable that plays MPEG4 videos, not just audio.
a 3-inch MP3-CD portable and a hard-drive portable in 2003.
Although the market size for 3-inch MP3-CD portables and hard-drive portables is small, said Joon, iRiver will offer them to fill out its line for retailers. The company's largest opportunity is MP3-CD portables, which retailers will push more aggressively than flash-memory portables this year, Kim noted.
Here's what iRiver had to say about the three products it has announced to date:
SlimX: The device plays CDs encoded with MP3, Windows Media Audio (WMA), and ASF files. ASF is the audio codec for Microsoft's Windows Media Video format.
The device's programmable processor with built-in flash memory permits upgrades to decode additional formats. To upgrade the device, consumers download a new decoding algorithm from iRiver, burn it to a disc, then play the disc in the portable. For now, iRiver is offering the AAC codec as an option.
Only SONICblue offers a codec-upgradable MP3-CD portable, Joon said. Other select manufacturers offer feature-upgradability but not codec-upgradability.
The SlimX is promoted as offering the longest battery life of current MP3-CD portables. It features conservatively rated 10-hour playback time on two internal rechargeable lithium-ion batteries. An external two-AA battery pack adds 13 more hours.
It's also said to offer the highest capacity anti-shock memory buffer of any MP3-CD portable: 64MB for storing 3 minutes of Redbook CD audio and 8 minutes of compressed 128kbps audio.
ChromeX: When it ships in late April, iRiver expects ChromeX to be the lowest priced multicodec CD portable on the market at a suggested $99. It will also be codec-upgradable. Included codecs are MP3, WMA, and ASF. An AAC upgrade will be available.
It's 1.2-inches-thick and features a 16MB anti-shock memory buffer to store 45 seconds of CD music or minutes of 128kbps compressed music.
It's conservatively rated to deliver 15 hours of playback time on two internal AA batteries. It comes with LCD-less remote and supports ID3 tags.DataPlay-enabled portable: The iDP-100, due June 15 at a suggested $369, is codec-upgradable through its USB port and is equipped with decoders for MP3, WMA, AAC, and Q Design's QDX. The latter is required by DataPlay. The iDP-100 ships with a DataPlay-developed DRM technology to copy-protect all files on prerecorded discs. At least one 500MB disc will be included in the price.Although the market size for 3-inch MP3-CD portables and hard-drive portables is small, said Joon, iRiver will offer them to fill out its line for retailers. The company's largest opportunity is MP3-CD portables, which retailers will push more aggressively than flash-memory portables this year, Kim noted.
Here's what iRiver had to say about the three products it has announced to date:
SlimX: The device plays CDs encoded with MP3, Windows Media Audio (WMA), and ASF files. ASF is the audio codec for Microsoft's Windows Media Video format.
The device's programmable processor with built-in flash memory permits upgrades to decode additional formats. To upgrade the device, consumers download a new decoding algorithm from iRiver, burn it to a disc, then play the disc in the portable. For now, iRiver is offering the AAC codec as an option.
Only SONICblue offers a codec-upgradable MP3-CD portable, Joon said. Other select manufacturers offer feature-upgradability but not codec-upgradability.
The SlimX is promoted as offering the longest battery life of current MP3-CD portables. It features conservatively rated 10-hour playback time on two internal rechargeable lithium-ion batteries. An external two-AA battery pack adds 13 more hours.
It's also said to offer the highest capacity anti-shock memory buffer of any MP3-CD portable: 64MB for storing 3 minutes of Redbook CD audio and 8 minutes of compressed 128kbps audio.
ChromeX: When it ships in late April, iRiver expects ChromeX to be the lowest priced multicodec CD portable on the market at a suggested $99. It will also be codec-upgradable. Included codecs are MP3, WMA, and ASF. An AAC upgrade will be available.
It's 1.2-inches-thick and features a 16MB anti-shock memory buffer to store 45 seconds of CD music or minutes of 128kbps compressed music.
It's conservatively rated to deliver 15 hours of playback time on two internal AA batteries. It comes with LCD-less remote and supports ID3 tags.
DataPlay-enabled portable: The iDP-100, due June 15 at a suggested $369, is codec-upgradable through its USB port and is equipped with decoders for MP3, WMA, AAC, and Q Design's QDX. The latter is required by DataPlay. The iDP-100 ships with a DataPlay-developed DRM technology to copy-protect all files on prerecorded discs. At least one 500MB disc will be included in the price.
Liquid Audio Hooks Up With Universal For Downloads
Staff
TWICE
4/29/2002
Redwood City, Calif.— The availability of music-company-authorized downloads will spread now that Liquid Audio finalized a nonexclusive agreement with Universal to act as a digital music service provider.
Liquid already provides authorized music from EMI, Warner and Zomba for downloading through Web sites operated by Best Buy, Musicland, CDNow and others. Liquid Audio provides the music companies and Web sites with end-to-end, secure digital distribution services, including encoding, hosting and clearinghouse services.
The three music companies' content is available in Windows Media Audio and in AAC wrapped in Liquid's DRM technology. Liquid wouldn't say which codec/DRM would be used for Universal music. Universal previously endorsed AAC wrapped in Intertrust's DRM, but Universal partners said the company has abandoned that technology. Universal didn't return calls.
Audio pirates and device makers still dancing
Michelle Howell, Associate Editor
The music industry and device manufacturers can't agree on a
single standard to prevent piracy. But would that be the best thing
anyway?
You mean I actually have to buy a CD now? Who would've believed
it would come back to this! While the traditionalist in me still reels
with excitement at the thrill of visiting my local record store to
purchase the latest CD, this may be the sentiment felt by those who choose to illegally
burn copyrighted music.
With regulatory and standardization committees teaming up with the music industry
and portable-device manufacturers, the future of music piracy may be shaking in its
boots. But with no overall sta ndard for what security measures portable designers
should take to ensure that copyrighted materials are protected, the shaking may still
include a little rattle and roll.
During the short-lived, but well-publicized reign of Napster, the music file-sharing
service that tested the security ability of every designer's system, groups began to form
to ensure this piracy couldn't continue. With portable MP3 music players fueling the
downloadable content fire, inviting portable-device makers to these meetings seemed
only natural. In 1999, the Secure Digital Music Initiative (SDMI) gathered the recording,
consumer electronics, and information technology industries together to develop an
open specification for protecting digital music distribution. In these meetings, the SDMI
developed the SDMI Portable Device Specification Part 1, Version 1.0, a voluntary set of
guidelines intended to provide a secure platform for the digital distribution of music
and related content that's offered for sale on-line or through other Web distribution
mediums. Although the over 200 members of the SDMI developed various ways of
protecting content, and slapped that SDMI-compliant logo on their products, this
specification eventually waned and other proprietary measures became the dominant
means.
So, what exactly happened to SDMI and its idea of creating content-protection
standards and specifications? Where did it all go wrong? Imagine, if you will, a room
full of music industry associates and content makers, PC manufacturers, and
portable-device makers trying to decide on a specification that works with everyone's
devices and capabilities. Looking for the punch line? This is no joke, just a key
impetus in the inactive status of SDMI. "The problem with SDMI was that it was made
up of groups with very different goals and interests," says Randy Cole, chief
technologist at Texas Instruments Internet Audio Group. "It was very hard to reach an
agreement because you couldn't satisfy everybody."
What to do?
Approaches to what portable-device manufacturers should do to protect content and
copyrighted materials vary widely among device manufacturers. Although there's no
standard-issue means of guaranteeing the security of content on the portable platform,
there are three key ways security can be applied: in storage technology, compression
technology, and the player itself.
The type of security solution really depends on the type of audio decoder a
manufacturer uses, the type of PC software, and the type of flash memory. Content
Key, a digital rights management scheme for the portable media from DataPlay will let
users download copyrighted materials from their PC to their device. But this content is
then frozen, so to speak, in the users device. The ability to share that content ceases
once it hits a device equipped with Content Key because of a zero copy rule. You can,
however, take the disc out and give it to a friend, but you wouldn't be able to copy the
content onto your friend's PC or another DataPlay disc. "If it's stolen or not is not
important to us," says Steven Volk, vice president of corporate development at
DataPlay. "We're just not going to let you take it to another space. You already have it
on your PC." Content Key is, however, flexible enough to adapt to other security
standards that come along.
Watermarking
Another approach is audio watermarking, which involves embedding a packet of digital
data directly into the content signal. It's basically an inaudible signal that can be added
to content, such as music. The watermarked data can contain rules, such as copy
usage rules for the content, owner, distributor, or recipient. While computers or devices
can read this signal, it's said to have no effect on listening quality. But if a user tries to
remove the watermark from the content, it will destroy the content, making it inaudible.
Verance's audio watermarks can contain detailed information associated with the
audio and audio-visual content through such means as monitoring and tracking its
distribution and use, as well as controlling access to and usage of the content. To
read this content, devices need to use a watermark detector, which filters through the
rules embedded on the watermark and determines if this content is allowed to be
legally played again or shared. In the same security aspect of Content Key, Verance's
audio watermark doesn't stop a user from getting music onto his device. But if an
illegal copy was made, of content that was both watermarked and encrypted, it would
no longer be encrypted, but it would be watermarked. This watermark will stop that
illegal copy from being sent to the device to start with.
Texas Instruments formed its Internet Audio Group specifically to focus on the portable
audio device market. Its flagship product, the TMS320DA250 DSP, was developed as a
platform for all potential audio protocols. Because the DSP is programmable, unlike
other hard-wired solutions, it can work with any codec, such as MP3, WMA (Windows
Media Audio), AAC, and numerous others. If a new protocol comes along, the DSP can
easily work with it. Other non-programmable options build all the protocols needed
into the hardware. But with new protocols popping up every day, this could potentially
exclude emerging technologies. With this in mind, designers need to think long and
hard about which protocols should be integrated in the hardware and which ones
should be left out.
Standardization
There are, of course, other standards and standardization committees out there
working to protect content. Content Protection for Recordable Media (CPRM) is a
technology developed jointly by IBM, Intel, Matsushita, and Toshiba (the 4C entity). It
was designed to meet the requirements of SDMI and extends CPRM and similar
content protection schemes to ATA devices. This technology is, as with most other,
completely optional. A group called the Copy Protection Technical Working Group
(CPTWG), which includes Hitachi, Intel, Matsushita, Sony, and Toshiba also produced
the Five Company (5C) Digital Transmission Content Protection (DTCP) specification.
This aims to give manufacturers an easy-to-implement standard with a higher level of
security than CPRM and moves into issues such as streaming digital movies and
other content from digital appliances such as set-top boxes, DVRs (digital video
recorders), DVD players, and satellite TV.
"One of the reasons why SDMI and 4C security hasn't been implemented yet is that the
industry moved a little bit faster than the standardization," says Hans Fleurkens,
marketing manager for portable devices at Philips Semiconductor. "You see a number
of players being executed on relatively short notice with their own types of standards.
For whatever standard is coming, it needs to have wide support within the industry,"
adds Fleurkens. But that may be further off than we think. Manufacturers have created
proprietary measures for protecting content on devices. These measures may vary as
widely as the content, but many are flexible enough to facilitate a universal standard, if
one should arise. Although a universal standard sounds like the best solution to
ensure interoperability and compliance throughout the market, the major downfall is
Public Enemy No. 1, the hacker.
If there's a universal standard and it gets broken, then all that standardization work has
been for nothing. The key to security in the portable realm right now will be a matter of
implementing several different standards on a player. This, however, may add to
development costs and implementation difficulties of devices. Once portable audio
device makers tackle the issues of protecting copyrighted content on their devices, the
security monster will rear its ugly head to streaming video and movies. But that's a
whole other topic.
Portable Design April, 2002
Integrated speech recognition and synthesis processor family
targets handheld market
Business Wire (April 29, 2002)
SANTA CLARA, Calif., Apr 29, 2002 (BUSINESS WIRE) -- Sensory, Inc., the leader in
embedded speech technologies, announced the introduction of the RSC-4x, a family of
highly integrated speech recognition and synthesis processors targeted at consumer,
handheld and automotive products.
"As our fourth generation processor, the RSC-4x builds on our industry leading
RSC-364 by offering higher accuracy and more features while still hitting aggressive
system cost targets," said Erik Soule, director of marketing for Sensory. "This family of
chips combines everything our customers have been requesting, including faster
recognition response time, improved noise robustness, low-data rate speech
synthesis, and more product control features."
Powerful Recognition, Synthesis and Control
The RSC-4x family has been optimized to work in concert with Sensory Speech 7 (SS7)
technology code, a software suite that enables advanced features such as multi-word
speaker-independent wordspotting, speech and music synthesis, and up to 100
speaker-dependent words in an active vocabulary. SS7 takes advantage of powerful
new on-chip hardware blocks, including a vector processor with twin-DMA units, 16-bit
ADC, 10-bit DAC, main oscillator PLL, microphone preamplifier with AGC, low-EMI
PWM speaker driver, 2 independent timers plus separate watchdog, 4 comparator
inputs, 2 low-power modes and 24 I/O lines.
One Chip, One Supplier
The RSC-4x enables exciting hands-free applications at very low system costs, with
little more than a low cost microphone, speaker, and crystal required for a complete
application. The chip also supports Sensory's SX synthesis -- a new high quality, low
data-rate proprietary LPC technology that enables products to contain over five minutes
of compressed audio, multiple speaker-independent and speaker-dependent
vocabularies, speaker verification, and all application code -- all on a single IC. And
unlike many competing solutions, all technology software is included in the chip price,
avoiding potential compatibility problems and negotiations with multiple vendors. To
speed time to market, an all-new tool chain is available (including in-circuit emulators,
a C-compiler, and low cost evaluation toolkits).
Price and Availability
The RSC-4x family consists of the RSC-4000, RSC-4128, and RSC-4256. The
RSC-4000 is a ROM-less version with address and data buses, while the other
versions contain 128 and 256 Kbytes of mask-programmable ROM, respectively.
Pricing for the RSC-4x line starts at less than $2 in 100k quantities, which includes all
required speech technology code.
Samples of the RSC-4128 and beta development tools are available immediately, with
production quantities of all versions scheduled for release in Q3 2002.
About Sensory, Inc.
Sensory, Inc. is the world leader in embedded speech technologies. Sensory's speech
technologies include speech recognition, speaker verification, speech synthesis, and
animated speech, and are used in consumer electronics, cell phones, PDAs, internet
appliances, interactive toys, automobiles, and other environmentally challenging
applications where low cost and high quality is essential. Sensory offers a complete
line of integrated circuit and embedded software solutions to customers such as Avon,
Fisher-Price, Hasbro, IDT, JVC, Kenwood, Matsushita, Mattel, MGA, Mitsubishi, Radica,
Sega, Sharper Image, Sony, Tektronix, Toshiba, Uniden, and VOS. Sensory was
founded in 1994 and is based in Santa Clara, Calif. More information is available from
Sensory's web site at www.sensoryinc.com.
CONTACT: Sensory, Inc.
Erik Soule, 408/240-1575
marcom@sensoryinc.com
URL: http://www.businesswire.com Today's News On The Net - Business Wire's full
file on the Internet with Hyperlinks to your home page.
Fullplay Media Systems, a developer of multimedia
merchandising systems, said on Monday that Trans World Entertainment,
which operates a chain of music retail stores, will install 16,000
Fullplay Listening and Viewing Stations in its 650 FYE (For Your
Entertainment) retail stores. The kiosks allow users to scan the barcode
of any CD or DVD in the store and hear or view samples of its contents,
streamed using Microsoft Windows Media 8.
http://biz.yahoo.com/bw/020429/290027_1.html
http://www.fullplaymedia.com
http://www.fye.com
White House Cool to Hollings' Act
By Declan McCullagh
Apr 27, 2002 02:00 a.m. PDT
WASHINGTON -- The Bush administration is lukewarm on a plan to embed copy-protection technology in software and consumer electronics.
James Rogan, the Commerce Department's undersecretary for intellectual property, has expressed mild skepticism about a bill championed by Senate Commerce chairman Fritz Hollings (D-South Carolina).
In a speech last week, Rogan said that "negotiations are presently underway among hardware manufacturers and content owners to develop improved means for protecting online content," and legislators should wait for results before voting on a proposal such as the Hollings bill.
"Before Congress rushes into the imposition of a legislative solution," Rogan said, "I hope its members will grant more time for the free market to find its own middle ground."
Hollings' Consumer Broadband and Digital Television Promotion Act is the entertainment industry's boldest attempt yet to compel the computer industry to adopt software and hardware standards aimed at reducing illicit copying. It requires that "any hardware or software" that could be used to copy digital content include anti-piracy technologies.
Rogan, who advises President Bush on copyright matters and runs the U.S. Patent and Trademark Office, is a big fan of the 1998 Digital Millennium Copyright Act (DMCA) -- a controversial law that's currently the subject of at least three lawsuits.
At a conference on Thursday, Rogan said: "The DMCA carefully balances the interests of all stakeholders to ensure that content owners would enjoy the protection they need to put their works on the Internet and to ensure that appropriate fair use is maintained for consumers, scientists and educators."
- - -
Interview with a congressman--part one
By Eliot Van Buskirk
Senior editor
(4/26/02)
When a regular reader of my column e-mailed me to say that he could set up an interview with Rep. Rick Boucher (D-Virginia), I admit that I was a bit skeptical. After all, this is the Internet, where people e-mail you with seemingly impossible opportunities everyday. But soon enough, I was on the phone for half an hour with Rep. Boucher, who called fresh from a vote on the House floor to talk with me about a variety of pressing online music issues--most specifically, our right to the fair use of the content that we buy. This constitutional right, which is closely related to free speech, has already been severely damaged by the DMCA (Digital Millennium Copyright Act) and could be obliterated by a new bill introduced by Sen. Ernest "Fritz" Hollings (D-South Carolina). Boucher thinks that you should be able to burn mix CDs, but due to the lobbying efforts by the record industry in Washington, many others in Congress don't see things in the same proconsumer light. Here's what Rep. Boucher had to say in this first of two installments.
Note: This first section of the interview can be downloaded for free as an MP3 file, under the EFF's Open Audio License. That means you can legally download this interview to a shared folder and distribute it on any file-sharing network, but you cannot alter the file itself or remove attribution.
Download and listen to the first half of MP3 Insider's interview with fair-use advocate Rep. Boucher.
MP3 Insider: So I really liked your article on CNET News.com, and it seems like we agree with each other on a lot of these issues.
Rep. Boucher: Yeah.
M: I'm wondering, just to start things off, do you use a computer to download or stream music?
I defend peoples' right to [download music from the Web] in a lawful manner, but I have not undertaken that practice myself.
B: I actually use a computer a lot. I have three computers that I use on a regular basis--one is on my desk top in my Washington office, another is at home, and I have my laptop that I use when I'm traveling. However, I'm not in the habit of downloading music from the Web. I defend peoples' right to do that in a lawful manner, but I have not undertaken that practice myself.
M: OK. So how long would you say that you've been online?
B: I have been online since the early '90s. The first legislation that I produced relating to the Internet was a bill to overturn a restriction inside of the law that prohibited the Internet backbone from being used for anything other than research and scientific and educational communication.
M: Interesting.
B: The effect of that restriction, which was known as the acceptable-use policy, prohibited electronic commerce, and the first Internet-related legislation that I sponsored, which was in 1992, repealed the acceptable-use policy and thereby enabled the Internet to be used for electronic commerce. So I have been involved in Internet-related policy for approximately one decade, and I have been using the Internet myself for almost that period of time.
M: Excellent, so you definitely know the area fairly well.
B: Yes.
M: OK, so now into some more specifics. You've gone on the record as a vocal opponent of the DMCA, the anticircumvention clause especially, and I remember Orrin Hatch, who's a Republican, making statements in support of file sharing back during the Napster hearing. I'm wondering if you could tell me, how do you think the two parties line up overall, in terms of consumers' digital rights in the Internet age?
B: Well, I think what you're seeing is that among the handful of members of Congress who are involved in intellectual-property policy today, House and Senate, you are seeing those members basically divide into two camps. One of those camps staunchly defends all of the provisions of the DMCA, staunchly defends the 20-year extension of copyright terms, staunchly defends the content community's copyright interests, against all efforts to enhance the rights of the users of intellectual property--that's one camp. The other camp is the other side of the equation, and that other camp is members who believe that the historical balance between the rights of copyright owners and the rights of the users of copyrighted material has been dramatically altered in favor of the owners of copyrights at the expense of the rights of the users of copyrighted material.
M: Right.
B: I am in that camp [the second one].
M: Good.
B: I think that the balance needs to be restored, and I would note that in the camp in which I am in, one finds libraries, universities, the Internet industry, the manufacturers of digital media, and consumers.
M: Speaking of the consumers, I know the MPAA and RIAA are fairly well organized in terms of their efforts. Are there any kind of consumer-advocacy groups getting involved? I mean, I sometimes get the feeling that people--consumers--don't know what's at stake here, really.
[The MPAA and RIAA], by virtue of their long-standing knowledge of Congress and relationships with many key members of Congress, would appear to have the upper hand.
B: Well I think that's true. I think this debate is just beginning, and in the early stages of any debate, oftentimes the external stakeholders appear to be somewhat lopsided in terms of their ability to influence the process, and I would grant you that at the present time, the Motion Picture Association [of America] and the Recording Industry Association of America, by virtue of their long-standing knowledge of Congress and relationships with many key members of Congress, would appear to have the upper hand. On the other hand, I think a lot has changed since 1998, when the DMCA was passed by Congress. We now have the formation of a number of groups that are dedicated to user rights. I would include among those the Digital Media Association (DiMA), which represents Webcasters. They were not a part of the debate in 1998. I would also include the Electronic Frontier Foundation (EFF), the Center for--what is it called, Electronic Democracy, something along that line? All of these groups have come to the scene since 1998 and are now here, expressing the concerns of people who are users of intellectual property.
M: Right.
B: I think there's also a growing body of scholarship that suggests that what I said previously is true, and that is that the balance, which we always respected in our law, between the rights of intellectual-property owners and the rights of the users of that property has now been dramatically shifted, and that the balance now lies on the side of the owners of copyright, and that that shift has occurred at the expense of the rights of copyright owners. It has certainly occurred at the expense of the fair-use rights, which underpins our right to speak freely in society. That growing body of scholarship includes a number of prominent law professors and writers on the West Coast.
M: Are you familiar with Lawrence Lessig and his work [Code & Other Laws of Cyberspace and The Future of Ideas ]?
B: Yes, I am. I've read his work, and I applaud it. I think he's exactly on target.
M: Right. I get letters from people all the time, I mean they read my column when I tell them what these laws say they can't do, and I think more people who have CD burners now, and the average person is starting to understand this a little more, maybe, we'll see...
Millions of Americans have now become accustomed to using their CD burners at home in order to perform a completely lawful act.
B: Well I think we will, and you're absolutely right in saying that the attempt by the labels to introduce copy-protected CDs into the U.S. market is going to have a profound effect on this debate. Millions of Americans have now become accustomed to using their CD burners at home in order to perform a completely lawful act. And that is to take music that they have purchased at the store and rearrange the tracks on those CDs on a CD they've compiled themselves, so that they have on that self-manufactured CD, exactly the music they want to hear in the order in which they want to hear it. And that is a classic exercise of Constitutionally protected fair-use rights.
M: Right.
B: And to the extent now that people are frustrated in being able to perform that legal act, I think you're going to see millions of Americans complain to their members of Congress that something is amiss when they go to the store, buy a CD, and then take it home and find that they can't space-shift from that CD onto another CD they want to create for their own personal use.
M: Right, do you think the Sony vs. Betamax case is going to stand up as sort of a precedent that reinforces our right to fair use?
B: Well, the Sony vs. Betamax decision is a very valuable decision. It was rendered 20 years ago. To a large extent it was reversed by the DMCA. What the Sony vs. Betamax decision held is that any time technology can be used for two purposes--a minimum of two, but two anyway, one of which is infringing, and another of which is noninfringing, that the technology is lawful technology as long as it has a substantial noninfringing use. I have very serious problems with punishing the technology. And that is precisely what the DMCA seeks to do. And the court analyzed the Betamax and found that because it allowed time-shifting, it had a substantial noninfringing use (time-shifting is fair use), and therefore Betamax was found to be lawful technology. That's a very valuable legal principle: The presence of a substantial noninfringing use renders the technology to be lawful. Now unfortunately, the DMCA essentially reversed that, because it says that if the technology, even though it has substantial noninfringing uses, was primarily intended by the manufacturer to be used for an infringing purpose, then the technology is unlawful. Now the problem is, nobody's going to know at the outset what a court is going to rule about the intent of the manufacturer. How do you determine that extent? How does a court subsequently determine what was in the manufacturer's mind at the time that he produced technology that could be used both for infringement and also had noninfringing purposes? And so the Sony vs. Betamax principle was severely weakened by that provision of the DMCA. And then, of course, anybody who traffics in a device which is declared to be an infringing technology--such as Mr. Sklyarov from Russia--can be arrested for criminal conduct.
M: Right.
B: And I have very serious problems with punishing the technology. And that is precisely what the DMCA seeks to do. We should punish people who engage in acts of piracy. We should not punish the technology which can be used for infringing purposes but also for substantial noninfringing purposes.
M: So along those lines, I just came across a very interesting quote from John Ippolito of the Guggenheim, and he's talking about Senator "Fritz" Hollings's bill, the CBDTPA, and Ippolito says about that bill, "To disable the Internet to save EMI and Disney is the moral equivalent of burning down the library of Alexandria to ensure the livelihood of monastic scribes."
B: (laughs) Well, it's artful...(laughs) Well, without being quite that eloquent, let me endorse the general idea that he expresses. I think that Senator Hollings's bill is wrongheaded. It is inappropriate for the government to establish technical standards to be applied to digital media. The government is not a very good standards-developing body.
M: Mmm-hmm.
B: I do agree that we need to take some steps to assure that material which is, for example, broadcast across digital-television equipment should be protected in such a way as to disallow unauthorized copying and disallow uploading to the Internet. I actually endorse the idea of doing that. But I think that should be done in a collaborative process that involves the manufacturers of equipment and also involves the motion- It is inappropriate for the government to establish technical standards to be applied to digital media. The government is not a very good standards-developing body.
picture studios. And that very process is underway. That group has already achieved an agreement that will protect television content--broadcast and digital format--and received in the home by either cable television or by satellite. What they have not achieved is an agreement in regard to material that is broadcast over the air for receipt by an antenna or by "rabbit ears." But they're working to do that, and we expect that within another six weeks there will be a private-sector agreement that produces a standard for protecting that content as well. Now, at the end of that process, after the equipment manufacturers are satisfied that the standard is workable, after the motion-picture studios are satisfied that it offers sufficient protection, after the various consumer groups that are also working in this process are content that the employment of that standard will enable people to continue to exercise their fair-use rights for appropriate home recording of the material--after all of those tests are met, there may be a role for Congress to require that equipment respond to that particular standard, and all of the external stakeholders will have endorsed the standard and say that this technology works, and that consumer rights are protected. Now, at that point, I would be willing to entertain a proposal that Congress act and require that equipment respond. The Senator Hollings's bill is way ahead of all of that. Senator Hollings's bill would require that all digital media immediately respond to a standard that the government would wind up setting. There would be no assurance that consumer rights would be protected. There would be no assurance that the fair-use right to home recording of digital content would be preserved. There would be no assurance that the technology as applied to consumer-electronics products and information-technology products would allow those products to function effectively. And I'm convinced that if his bill becomes law, which I don't think it will, but if it were to become law, I think it would probably inhibit the introduction of a lot of useful new technology.
M: Exactly. I mean it seems to me that in fact it would incent people to buy used computer equipment from before the legislation were enacted...
B: Absolutely.
M: ...which is ironic because it's called the promotion of broadband and digital television, promotion of sales [Editor's note: The law is actually called the Consumer Broadband and Digital Television Promotion Act], it seems to me that the exact opposite is true.
B: I think that's right.
M: Right. OK, so since the Internet is international, then there's the aspect of will the DMCA become the basis for worldwide copyright law, and do you think that's realistic?
B: Well, that's a big problem. You put your finger on a major concern there.
Note: Check back in two weeks for the second half of the MP3 Insider's interview with Rep. Boucher.
Philips Consumer Electronics North America CEO Warns Congress That Plan Will Raise Costs, Complexity, And Confusion For Millions Of Consumers In Digital TV Age
WASHINGTON -- Lawrence J. Blanford, the President and CEO of Philips Consumer Electronics North America, warned Congress today that if certain Hollywood studios get their way, millions of consumers will have to replace their DVD players to watch digital TV programs that they have recorded.
Testifying before the House Energy and Commerce Subcommittee on Telecommunications and the Internet, Blanford said that certain studios, working with a small group of hardware companies known as 5C, are devising a plan for controlling the content of digital broadcast TV that raises serious issues of cost, complexity, reliability and confusion for consumers. "This proposal," he said, "threatens the fair use rights of the consumer and introduces unnecessary levels of complexity and costs in consumer devices."
Blanford also expressed concern that consumers may have less control over what they see and record. The technology that supports the emerging plan is inherently powerful; it has the potential to remotely disable a device that is recording a movie or other program in a consumer's home.
In essence, through their private contractual relationships, this small group of studios and companies would control digital TV technology and how people use their TVs, DVDs, and other devices in the privacy of their homes.
"The current direction," Blanford said, "is not in the interest of sound public policy, is not in the interest of the affected industries and is certainly not in the interest of the consumer."
Blanford warned that Philips, which has been participating in the industry working group -- the Broadcast Protection Discussion Group (BPDG) -- that is pressing this plan, has "lost all confidence" that the group will achieve consensus, "or that it will allow for serious consideration or adoption of technology solutions of equal merit presented by other interested parties."
"Private industry should be given a chance to reach a consensus," he added, "but the process should be cleansed by the sunlight of government. Further discussion should be held in an open forum, with the involvement of those who are entrusted with the development of public policy."
As a result, Blanford called on Congress "to reassert its role in this critical public-private partnership by providing an appropriate, public forum to continue these industry discussions and to foster workable solutions on a timely basis." He said that Philips would offer "complete support to such an effort, including offering related Philips technologies to all comers, under open, fair and easily available terms." He also called on other companies to join this discussion to assure that "we get this right."
The issue at hand is how to develop a technology to protect the content of digital TV against unauthorized retransmissions over the Internet. Philips wholeheartedly supports the goal but believes that it must be achieved in a way that protects the "fair use" rights of consumers to the content that they enjoy through their TVs, DVDs, and other recording devices.
"This issue will affect consumers, studios, consumer electronics, and information technology companies for years to come," Blanford said. "We need an approach that will be fair to everyone."
The problems, he explained, arise from a faulty process. The BPDG was created to discuss approaches to address the challenge of preventing digital TV broadcasts from being re-transmitted over the Internet, and to do so in a way that allows technology to thrive and the consumer to be protected.
A group of companies within the BPDG, however, is pressing an approach through which all manufacturers of TVs, DVDs, and other devices will have to sign up for an overly broad, burdensome and private license, which will govern the encryption technologies that must be in these devices and the process to enforce copyright protection. This small group of companies will mandate the technologies, control the rules that govern the technologies, and change those rules whenever they desire.
Most alarming, the public, consumers, licensees, and public officials have not been part of the process that developed the 5C approach, and they would be shut out of its implementation.
"In short, private interests are taking control of the balance among consumer rights and commercial interests and, as a result, establishing public policy," Blanford said.
"Philips cannot, and will not, accept that. We believe other companies will not accept that. Congress should not accept it either."
Fox pulls out of Movies.com venture with Disney
Reuters, 04.26.02, 8:41 PM ET
(Adds detail, background, byline)
By Doug Young
LOS ANGELES, April 26 (Reuters) - Fox Entertainment Group (nyse: FOX - news - people) said on Friday it is pulling out of Movies.com, its movies-on-demand venture with The Walt Disney Co. (nyse: FOX - news - people), in another setback to plans by Hollywood studios to sell films directly to consumers over the Internet.
Los Angeles-based Fox, a unit of News Corp. Ltd. <NCP.AX> said it made its decision "after considering the potential regulatory process and logistical issues and carefully examining technological and marketplace developments."
The two companies, which had projected an audience of up to 10 million homes for video-on-demand, said they will pursue "alternative strategies" to distribute their films over the Internet and cable television lines.
Burbank, California-based Disney said it would continue to own and operate the existing Movies.com Web site, a movie information service offering movie reviews, trailers, listings and other content for cinema fans.
Disney did not say if it planned to go forward with development of Movies.com as a distribution site for movies over the Internet.
It said, however, it will continue with its own plans to license and offer feature films from multiple studios through on-demand services offered over the Internet and through cable and satellite TV services.
The venture's dissolution comes less than eight months after it was first announced amid a wave of optimism about the potential for digital distribution of movies and music directly into people's homes.
INTERNET MOVIE MARKET SLOW TO CATCH ON
Disney and Fox announced their initiative just weeks after five rival studios announced a separate Web venture, Movielink, to deliver movies to viewers at their convenience.
Those five include Metro-Goldwyn-Mayer Inc. (nyse: MGM - news - people), Viacom Inc.'s Paramount Pictures, Sony Corp.'s <6758.T> Sony Pictures Entertainment, Vivendi Universal <EAUG.PA> and Warner Bros., a unit of AOL Time Warner (nyse: MGM - news - people).
The major studios have recently embraced a number of initiatives to sell their movies over the Internet and cable TV lines, which offer faster and cheaper distribution than traditional retail channels.
Such distribution was considered unfeasible until recently because of slow modem speeds and analog cable technology that required hours and sometimes days to transfer a single film. But the advent of digital cable and broadband Internet have sped up the process.
By launching their own distribution channel, Disney and Fox had also hoped to capture a bigger share of the revenue than they now get from the cable viewing of movies, where fees are typically split with cable operators, or from video rentals.
But the market for movies across the Internet has been slow to catch on. Research firm GartnerG2 projects that the Web will only account for 2 percent of movie revenues by 2005.
Fox has indicated a willingness to license its films on a non-exclusive basis for any future Disney on-demand service, Disney said.
Movie studios and record labels were also concerned about piracy issues, but many of those are being addressed through new software innovations and work with computer and recording equipment makers.
Copyright 2002, Reuters News Service
IBM: What's in Store?
By Robyn Weisman
www.NewsFactor.com,
Part of the NewsFactor Network
April 25, 2002
IBM's Dykas said multimodal voice technology most likely will be implemented in a wide variety of
uses, although cell phones will be the most common method of accessing it.
IBM (NYSE: IBM) produced so many innovations during former CEO Lou Gerstner's
nine-year tenure that it seems inconceivable that just a decade ago, the company was
seen as a struggling PC maker.
One of the more groundbreaking advances the company is now introducing to the IT
marketplace is its "multimodal voice technology," which lets users interact with systems
and devices in a more intuitive fashion than in the past.
"Multimodal is the idea of delivering data and information to the user in a combination
of ways that are most suited for the delivery and interaction of that data by the user,"
IBM strategic alliances manager Bill Dykas told NewsFactor.
"There are ways of interacting with data that sometimes are more suited to being seen,
and sometimes better to be heard," Dykas said. "It is the converging of the voice and
data interface out there, and you'll see that in a number of different places."
Extending
Functionality
Multimodal voice
technology extends
the functionality of
existing applications
by combining the
Web's XML
(extensible markup
language) standard
with the Internet's
voice standards.
Together with other
companies, IBM has
developed protocols
for approval by the
World Wide Web
Consortium (W3C).
Late last year, the
W3C formed a group
to discuss workable
methodologies.
Humanistic
Technology
Dykas, who also heads the Voice XML Forum, referred to multimodal as a "humanistic"
technology.
Dykas cited a scenario in which someone using a wireless PDA (personal digital
assistant) needs to find out which flights are available from West Palm Beach, Florida, to
Newark, New Jersey, on a given afternoon. The user speaks into the PDA, because voice
is the fastest, most efficient way to input that type of information.
But the user probably doesn't relish the concept of hearing a list of 10 flights recited in
response to his query, because that would require him to jot down information by hand
and risk making a mistake. Instead, he would rather see the list of flights appear on his
PDA, then tap on the ones he wants to reserve.
With multimodal technology, such a scenario is becoming reality, Dykas said.
Ideal iPAQ
Giga Information Group vice president Elizabeth Herrell told NewsFactor that multimodal
devices are new to the marketplace.
She said IBM is supplying its technology to a new device in Compaq's (NYSE: CPQ)
iPAQ Pocket PC series, the H3800.
"IBM has been a supplier of speech recognition software for some time," Herrell noted.
"This is a new agreement for them to enter the multimodal space."
Pervasive Computing
IBM's Dykas said multimodal voice technology will most likely be implemented in a wide
variety of uses, though cell phones probably will be the most common method of
accessing this technology.
Dykas said so-called "cherry pickers" working on utility lines will be able to use cell
phones to receive detailed service information. In addition, sales forces will be able to
input orders into mobile phones, then receive a visual representation of their spoken
order to confirm its accuracy.
"We've put a large commitment into this space," Dykas said. "Our tag line is 'Anytime,
anywhere, any data.' It's pervasive computing."
No free launch for new Napster
By Rod Easdown
March 28 2002
Livewire
The new Napster went online in January, with 20,000 testers
trying it out. The limited public test will continue until the paid
service launches. The launch date has not yet been announced.
Millions of people who used Napster will find it dramatically
different. For one thing, the once-vast library of music available for
sharing has been gutted.
Napster doesn't have any popular music now and the 1500 songs
available for sharing come from a small cadre of independent
artists. Napster will eventually offer music from the major labels,
most likely through the licensing deal it made in June with
MusicNet.
The new Napster will remain a peer-to-peer service, meaning one
computer user can trade songs with another, but this time the
network architecture has been rebuilt to accommodate digital
rights-management technology.
Before a song can be swapped, Napster's acoustic-fingerprinting
technology identifies it and determines whether it's something the
service holds the rights to distribute.
Once it has been cleared for digital distribution, the record label
sets rules determining whether the file will be shared as an
unrestricted MP3 file or converted to a secure .nap format that
locks the content on the PC.
Napster says the new system corrects some of the bugs from
Napster's earlier days, automatically resuming the download of a
file from another source if the transfer is interrupted.
In the tests over the next couple of weeks, Napster is aiming to be
able to support between 5000 and 10,000 simultaneous users.
When it launches the paid service, prices will range from $US5
($A9.60) to $US7 a month for 50 downloads.
Pressplay's site is www.pressplay.com, MusicNet is at
www.musicnet.com, Napster is at www.napster.com. -- KRT
Lickily, Gateway (Poway, CA) is surely a natural partner for us in any kind of bundling deal I would think. A black and white Treo or MXP100 would be fine by me.
OT Air Canada Introduces Wireless Mobile Kiosks From IBM
First Technology Solution Resulting From Strategic Partnership Between IBM
And Air Canada
WHITE PLAINS, NY and TORONTO, CANADA--(INTERNET WIRE)--Apr 25, 2002 -- Air Canada has begun
using new wireless, mobile IBM self-service kiosks in a trial program to help expedite passenger check-in
at Toronto's Lester B. Pearson Airport. The mobile kiosks represent the first jointly developed solution
resulting from the strategic partnership recently formed by IBM and Air Canada.
Roving Air Canada agents are using the new mobile kiosks to assist in "line busting" during busy travel
periods, check-in passengers on close-to-departure flights and to facilitate large groups and passengers
with special needs.
The wireless mobile kiosks are based on the IBM self-service kiosk system that Air Canada has been
using since 1998. This system, which consists of 142 kiosks across eight Canadian airports, has served
as many as half the customers during peak periods and provides passengers with 80% reduction in
check-in time. "We see the mobile IBM self-service kiosks as an extremely flexible solution that allows us
to bring the convenience of quick check-in directly to the customer, while allowing us to leverage our
existing kiosk IT infrastructure," said Alice Keung, CIO, Air Canada.
To check-in passengers with the mobile kiosks Air Canada agents -- using a wearable computer and a
mobile printer attached to their belt -- simply swipe the passenger's credit card or Air Canada Aeroplan
frequent flier card through the printer to pull up the reservation. Alternatively the agent can input the
passenger name and flight number on the computer's touchscreen pad. Once the record is displayed on
the wearable computer -- an eight-inch touch screen display unit -- the agent can check the passenger in
and print a boarding pass allowing the customer to proceed directly to the gate. Additionally customers
can confirm upgrades or rebook for an earlier flight through the mobile kiosk.
(Editor's Note: Print quality photo of the wireless mobile IBM kiosk being used by Air Canada can be found
at: www-916.ibm.com/press/photo.nsf/photoview?OpenView&Start=1&Count=100&Expand=27#27).
"The mobile kiosk solution combines a face-to-face transaction with the convenience of automation," said
Marty Salfen, IBM's managing director for Air Canada. "In addition to enabling passengers to check-in in
less than 60 seconds, we've found that the mobile kiosk also acts as bridge to the regular self-service
kiosks," said Norbert Manger, vice president - airports, Air Canada. "People who may have steered clear
of kiosks in the past, are much less intimidated by them after having gone through the process with a live
agent. This bridging process is extremely beneficial since our goal is to achieve 75% automated check in
within the next three years, and free up personnel to handle complex transactions like ticket exchanges,"
he added.
In developing the mobile self-service kiosks, IBM ported the applications on Air Canada's existing kiosk
system directly to the hand held units. The existing architecture consists of an IBM eServer pSeries ,
which acts as a gateway between the kiosk server and the IBM Transaction Process Facility application
software, which holds the reservation data. The kiosk system is powered by IBM MQSeries, IBM Kiosk
Manager and IBM Consumer Device Services software. The mobile IBM kiosk operates on an 802.11b
wireless network and includes several additional authentication layers and security enhancements on top
of the standard Wired Equivalent Privacy encryption algorithm layer in the 802.11b network.
Air Canada plans to add additional mobile kiosk capabilities later this year, and as part of its strategic
partnership with IBM, is also exploring how wireless technology can bring similar benefits and efficiencies
to other operational areas such as maintenance and sales.
Montreal-based Air Canada provides scheduled and charter air transportation for passengers and cargo
to more than 160 destinations on five continents. Canada's flag carrier is the 12th largest commercial
airline in the world and serves more than 30 million customers annually with a fleet consisting of more
than 300 aircraft. Air Canada is a founding member of Star Alliance providing the world's most
comprehensive air transportation network.
IBM has been working with the airline industry since the early 1960's, and today is an information
technology supplier to virtually every major airline in the world. For more information on IBM's offerings in
the travel industry, including the seven-year, $908 million outsourcing agreement IBM and Air Canada
announced last July, visit www.ibm.com/industries/travel.
Contact:
Contact: Linda Hanson
Company: IBM Corp.
Voice: 914-642-5447
Email: hansonmu@us.ibm.com
The Coming Wireless Storm
By Brian McDonough
Wireless NewsFactor
April 24, 2002
'We see GPS services - together with graphics applications and push advertising - as opening
horizons for operators to promote value-added services,' Brian Rodrigues, product manager for
Qualcomm's CDMA technologies division, told Wireless NewsFactor.
After the long period of anticipation of next-gen wireless services was deflated by the
economic slowdown, many industry watchers acted as though the new technology would
sit on the back burner indefinitely.
But wireless hot spots are popping up all over, location services are materializing, and
Wi-Fi home networking applications are being readied for the next holiday sales
event. Is the wireless industry now bracing for the explosion that seemed like it would
never come?
Wi-Fi , the high-bandwidth, short-range wireless 802.11b protocol that has taken root
in corporate environments, shows promise for general consumers in two categories,
analysts say: home networking and public access hot spots.
Growing Like
Gangbusters
"I use Wi-Fi at home
with my laptop, and I
love it," Meta Group
(Nasdaq: METG)
senior analyst Jack
Gold told Wireless
NewsFactor. "Wi-Fi
home networking is
growing like
gangbusters."
He credited the low
cost of Wi-Fi hardware
and its clear value
proposition: Internet
access on an
untethered laptop
and/or simultaneously
on multiple computers
using the same
high-bandwidth cable
or DSL connection.
Down the line, 802.11
technology is expected to untether DVD players and other home entertainment systems,
as well, but such bandwidth requirements may obviate 802.11b, or Wi-Fi, in favor of the
faster, better and incompatible 802.11a, warned Aberdeen Group analyst Isaac Ro.
"Looking to the future, people might need 802.11a, which is still too expensive for
consumers," Ro told Wireless NewsFactor. He said consumers without a compelling data
need may want to wait until the entertainment apps emerge, and prices on 802.11a
hardware come down.
Industry Sticking Together
But that is an unnecessary caution, countered Brian Grimm, communications director for
the Wireless Ethernet Compatibility Alliance, which certifies Wi-Fi products. "802.11b won't
be obviated," he told Wireless NewsFactor. "It will be a superset of 802.11 options."
Grimm said dual-mode technology already is emerging that will allow existing 802.11b
systems to leap to 802.11a -- inexpensively -- when that becomes necessary. He said
there is a considerable push to make sure that option comes through, since it would be
to no one's advantage to fragment the industry.
"Yes, Wi-Fi doesn't have the throughput [for expected entertainment apps]," he said,
"but no, that doesn't mean you have to wait, if you have need for 802.11b connectivity
now."
Finding the Hot Spot
Outside the home, hot spots where people can take their enabled laptops -- or
eventually, PDAs -- and get high-speed access are starting to emerge. Some of the
services are free, while some are offered as part of a subcription service, but the hot
spots are few and far between.
"Eventually, this will be a very important market," Gold said. "There's still a build-out
problem, though."
Still, the hot spot providers tell you exactly where their access is offered, Ro observed,
allowing a consumer to decide whether current deployments suit their needs. In the San
Francisco Bay Area, where hot spots are springing up fast, now might be the time to jump
on that bandwagon. Residents of, say, an average Chicago suburb might not find much
access in their usual haunts. Yet.
Grimm points to WiFinder, a Web site that locates public and commercial hot spots.
In the Pipeline
Along with relatively good news about Wi-Fi, consumers are sorting through a lot of
promises, as U.S. carriers try to figure out a working business model.
"Right now, carriers and manufacturers are throwing a lot of things at the wall to see what
sticks," Gold said.
Qualcomm (Nasdaq: QCOM) , propagator of the CDMA2000 1X (code division multiple
access) technology now being deployed, which is seen as the first step into 3G , says
it has high hopes for consumer services.
Currently, the United States trails other markets, such as Japan and Korea, but
Qualcomm is releasing lines of chipsets designed to enable the much-promised data
functionality of 3G.
Waiting To Exhale
"We see GPS (global positioning system) services -- together with graphics
applications and push advertising -- as opening horizons for operators to promote
value-added services," Brian Rodrigues, product manager for Qualcomm's CDMA
technologies division, told Wireless NewsFactor.
"There's been some sanity check on the marketing [since the WAP debacle]," added
Ro, who predicts a lot of 3G devices -- and, one hopes, services that make good use of
them -- will hit the market by Christmas. "Right now is the calm before the storm."
Listen.com, provider of the Rhapsody digital music
subscription service, announced on Wednesday marketing agreements with
four consumer electronics manufacturers that design products enabling
streaming audio to be heard on home stereos. San Francisco-based
Listen.com will provide a free one-month membership to its Rhapsody
service to purchasers of certain products from Jensen/Recoton,
Stereo-link, TERK and U.S. Robotics that connect to a PC and then transmit
audio either wirelessly or via USB connection to a home stereo.
Listen.com's Rhapsody service offers unlimited on-demand streaming of
songs from a number of major and indie record labels.
http://www.listen.com
Sharman Networks Details Kazaa Operations, Planned Subscription Service
San Francisco -- Sharman Networks, the company that purchased the Kazaa
file-sharing software from its Dutch creators, plans to launch audio and
video ads on its service through a partnership with DoubleClick, as well
as a subscription service free of ads. In an interview with CNET, former
Virgin Interactive executive and current Sharman CEO Nicola Hemming also
revealed that the company is technically registered in Vanautu, an island
tax-free haven in the South Pacific. Hemming told CNET the company has had
no contact with any copyright agencies regarding Kazaa up to this point;
the software was recently declared legal in the outcome of a Dutch court
case initiated before Sharman bought the software. On the legal front,
Sharman is lobbying for an initiative called the Intellectual Property
User Fee (IPUF), which would add a fee to a user's ISP bill that would go
toward paying artists and record labels, among others, for media
downloaded over services such as Kazaa. The company also said it plans to
launch Altnet, a second network featuring secured content from third
parties and the ability for third parties to use Kazaa users' computers
for distributed computing, in about six weeks.
http://news.com.com/2008-1082-890072.html
http://www.wired.com/news/mp3/0,1285,52062,00.html
http://www.newsbytes.com/news/02/176092.html
http://www.kazaa.com
Report: Copyright Industry Leads GDP Contributions, Foreign Exports
Washington, DC -- The The International Intellectual Property Alliance
(IIPA), a group that represents copyright industries such as motion
pictures, recording, television, publishing and video games, said in a
recent report that the U.S. copyright industries were the leading
contributors to the U.S. Gross Domestic Product (GDP) and also led all
industries in foreign sales and exports. According to the report, in 2001
copyright industries accounted for $535.1 billion of the U.S.GDP, or 5.24
percent. It also indicates foreign sales and exports of $88.97 billion,
leading all major industry sectors, including: chemical products, motor
vehicles, equipment and parts, aircraft and the agricultural sector.
"Robust copyright protection and enforcement, in traditional markets and
in the world of the Internet, have become even more indispensable to
strong economic growth, both here and abroad, said IIPA president Eric H.
Smith. Motion Picture Association of America (MPAA) CEO Jack Valenti used
the report in a letter sent to Congress on Tuesday entitled "A Clear
Present and Future Danger: An Accounting of Movie Thievery in the Analog
and Digital Format, in the U.S. and Around the World." Valenti's letter
adds data indicating that over 350,000 movies are illegally downloaded
every day.
http://www.iipa.com/news.html
http://www.mpaa.org/jack/2002/2002_04_23b.htm
E-book as page turner
Reuters
(Seoul, April 24)
--------------------------------------------------------------------------------
A new paperback-sized computer screen that folds like a book will be ideal for Internet users reading online novels, its South Korean inventor said on Tuesday.
The 6.732 inch by 5.039 inch flat LCD screen folds along a central hinge and is much clearer than existing devices, display maker Samsung SDI said.
It spent $1.54 million developing the screen and plans to start producing it in the second-half of 2002. It expects its sister firm Samsung Electronics to build it into an "e-book" computer.
Samsung SDI says the new screen also consumes less power than existing screens.
"This product will enable us to expand our market share in the e-book computer display market whose growth potential is explosive", said Yang Hong-keun, who heads up the development.
Samsung sees potential sales of flat panels for electronic books at 24,973 units this year.
(Tel Aviv, Israel) Midbar Tech, a developer of CD copy-protection
technology, said on Tuesday that its product has been installed in the
five largest CD manufacturing plants in Japan. Israel-based Midbar
announced last month that its copy-protection technology had been included
on one million CDs released in the Japanese market. The company's
technology makes it difficult for music CDs to be copied onto a computer
and transferred on file-sharing services. Most major record labels are
currently experimenting with adding copy-protection to CDs in an effort to
limit the amount of new material available on file-sharing services.
http://www.midbartech.com
(San Francisco) Online magazine Salon.com on Tuesday featured an article
on Joseph Byrd, an obscure recording artist who wrote a letter to U.S.
District Court Judge Marilyn Hall Patel -- who presides in Napster's case
with the major record labels -- arguing that he is among thousands of
artists who are not properly represented by the labels. In his letter,
Byrd tells Patel that although he recorded two albums for Columbia Records
in the 1960's that continue to sell modestly, he has yet to receive any
artist royalty payments from the label. "The record companies'
representation that they are legitimate agents for their artists is
false," Byrd wrote. "The only payments they make are to those who have the
means to force them to be accountable; to the rest, a vast majority, they
pay nothing. Therefore, allowing them to collect fees in our behalf does
not serve the public interest. I personally would prefer to allow my music
to be freely shared, to the present situation, in which only the
corporations stand to gain."
http://www.salon.com/tech/feature/2002/04/23/copyright/index.html
SONICblue Announces Private Placement of Convertible Debentures and Warrants
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 23, 2002-- SONICblue(TM) Incorporated (Nasdaq:SBLU -
news) announced today that it has completed a private placement of $75 million in aggregate principal
amount of its 7 3/4% Secured Senior Subordinated Convertible Debentures due 2005 to three institutional
investors. SONICblue also issued warrants to purchase up to 7,500,000 shares of its common stock in the
transaction. The private placement resulted in gross proceeds to SONICblue, prior to the exercise of the
warrants, of approximately $62.25 million. The sale of the Debentures and the Warrants closed on April 22,
2002.
The Debentures are convertible into the Company's common stock at a conversion price of $19.22 per
share. The warrants are fully vested and exercisable at any time until April 22, 2007 at an exercise price of
$3.39 per share. The Company, at its option, may pay up to 50% of the interest payments on the Debentures
in shares of the Company's common stock.
SONICblue expects to use the net proceeds from the private placement for working capital and general
corporate purposes.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security. The
securities have not been registered under the Securities Act of 1933 and may not be offered or resold in the
United States absent registration or an applicable exemption from registration requirements.
Except for the historical information contained herein, the matters set forth in this press release, including the
company's expected use of proceeds of the offering, are forward-looking statements within the meaning of
the ``safe harbor''' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause actual results to differ materially, including,
but unlimited to, the Company's ability to introduce successfully new products, the impact of competitive
products and pricing, the Company's ability to continue to improve its gross margins, and other risks detailed
from time to time in the SEC reports of SONICblue Incorporated, including its annual report on Form 10-K for
the year ended December 31, 2001. These forward-looking statements speak only as of the date hereof.
SONICblue disclaims any intention or obligation to update or revise any forward-looking statements.
Contact:
SONICblue
Tracy Perry, 408/588-8086
tperry@SONICblue.com
Impressive..Start-up shrinks PC to palm size
By Michael Kanellos
Staff Writer, CNET News.com
April 16, 2002, 9:45 AM PT
First there was the pocket calculator. Then there was the pocket organizer. And if start-up OQO
gets its way, the next big thing will be the pocket PC.
The Seattle-based company is showing off a full-fledged "ultra personal" computer this week at
Microsoft's Windows Hardware Engineering Conference, or WinHEC 2002. The computer is slightly
thicker but roughly the same size as handhelds currently coming out from Palm or Hewlett-Packard.
The major difference is that the OQO device, which will come out in the second half of the year for
around $1,000, is a complete Windows XP computer. Along with Windows, it will come with a 5800
Crusoe processor from Transmeta, a 10GB hard drive, 256MB of memory, connection ports for
FireWire and USB (universal serial bus), and wireless networking connections through either WiFi or
Bluetooth.
The screen measures just four inches in diameter, roughly the same size as those on a Palm, but
the company will also sell docking stations so that it can be used like a normal desktop or laptop.
The device measures 3 inches by 5 inches, is 0.9-inches thick and weighs about half a pound.
"We see this as 'This is your only computer,'" said Colin Hunter, executive vice president of OQO. "It
isn't a PDA (personal digital assistant). With this device you can dock it in and it is your PC."
The hardware market is notoriously harsh on start-ups. Other companies, including a Taiwanese
manufacturer called Saint Song, have also tried to promote miniature PCs before. OQO executives
and partners, however, say that current market circumstances have opened opportunities for
super-small devices.
The technological foundation to make robust, miniature computers finally exists, for example. The
OQO uses the same tiny hard drive from Toshiba that Apple Computer incorporates into the latest
iPod. The company also worked with Micron to ensure that memory could be packed into the device
as densely as possible.
A lot of the design work at OQO, which was founded by engineers who worked on Apple's Titanium
PowerBook went toward reducing the size of the power supply and the overall integration of the
components, Hunter said.
Another factor at play supporting handhelds is that consumers and corporate America have become
acclimated to portability. The explosive growth, until recently, of handheld devices and cell phones
established the market for portable devices.
Once the infrastructure for wireless networking is established, ultra-portable PCs will become more
popular than PDAs because they can do more, said Dave Ditzel, chief technology officer of
Transmeta. Plus, it also gets rid of the data synchronization problem because everything moves to
one device.
"You can do full Web browsing with Internet Explorer. You can't do that on a PDA," he said. The
Crusoe processor inside the OQO, he noted, runs at 800MHz and contains 512KB of cache, a data
reservoir for quick data access. Current handheld processors max out at 206MHz and have much
smaller caches.
The OQO is actually the first of a wave of computers with nontraditional designs. The device weighs
250 grams, about half a pound, but there are other computers coming out that will weigh 800 grams.
PC manufacturers will also begin to show off tablets that can convert into notebooks, Ditzel said.
"This is a smaller form factor than Microsoft envisioned," he said. "There is a trend toward everything
getting smaller."
Despite the faster chip, the batteries on the OQO run about 9.5 hours, Ditzel and Hunter said.
Although the Crusoe processor runs on fairly low amounts of energy, the small screen size helps
enormously.
Two different docking stations will also be released with the device. One will allow the PC to be used
like a desktop. A second will look like a notebook with a 14-inch screen. However, except for an extra
battery and a CD or DVD drive, it will be empty. The OQO will slide into a slot.
The first version of the OQO measures 0.9-inches thick, but thinner versions will follow, Hunter
added.
PluggedIn: As devices proliferate, memory gets confusing
By Ben Berkowitz
LOS ANGELES, April 16 (Reuters) - Does your digital camera save its photos to a matchbook, a postage stamp, a stick
of gum or a big thumbnail?
Confused? It's not surprising. An ever-expanding number of portable devices need to store data -- from cameras to music players -- and product designers
have come up with a dizzying array of ways to handle the problem.
No fewer than five different portable flash memory formats -- SmartMedia (thumbnail),
CompactFlash (matchbook), Secure Digital and the compatible MultiMediaCard format
(postage stamp), and Memory Stick (gum) -- compete in what analysts have said is a
market quickly approaching a $1 billion a year.
While slots for ``flash'' memory, which holds onto users' data even when devices are
turned off, have in past been used mostly for digital cameras, MP3 music players and
personal digital assistants, they are increasingly appearing in camcorders, DVD players
and even television sets.
That growth is reflected in the total worldwide sales of 45.1 million units of portable
flash memory in 2001, generating $918.7 million in revenue, according to market
research firm IDC.
But this is not a one-size-fits-all business like computer storage. There is a need for a
wide variety of formats because the devices come in so many different sizes. The five
formats are all light as a few feathers, and most are no thicker than a couple of sheets of
paper.
Designers are also trying to be innovative to hold down the cost of their products in a
highly competitive market. One major West Coast technology retailer, in a newspaper ad
last Friday, offered 256 megabytes of off-brand memory in the most popular format,
Compact Flash, for only $70.
Those bargain-basement values stem from a 70 percent year-over-year decline in flash memory prices in 2001, driven by a glut of capacity. But prices
won't keep falling forever, say industry sources.
``We don't see that being the same this year,'' said Nelson Chan, the senior vice president of memory maker SanDisk Corp (NasdaqNM:SNDK - news)
and head of that company's retail unit.
His company has a suggested retail price of $139.99 on its Web site for a 256 megabyte CF card, and while Chan said he expected prices to come down
somewhat this year, the company is also hoping there will not be another sharp drop like 2001.
``Retail prices are generally stabilizing ... in fact, since last fall, retail prices have stayed very, very steady,'' said Tim Sullivan, vice president of sales for
Lexar Media Inc. (NasdaqNM:LEXR - news), another major flash memory maker.
CF DOMINATES, OTHER FORMATS GAIN
While there is little dispute that Compact Flash will remain the primary format of choice in coming years, if for no other reason than the widespread current
availability of compatible devices, some of the other formats are making their own gains.
``Compact Flash still I believe is the dominant standard out there. That's pretty clear,'' Chan said.
However, Chan added ``I think you're getting now to more of a mature market,'' noting an increasing tendency among consumers to actually pay attention
to the kind of flash memory a device uses before buying it, rather than the reverse, which had been the typical pattern in past years.
Among those growing in the market is Memory Stick, a format first developed by Sony Corp (6758.T) that is now common in most Sony electronics
devices and is beginning to find applications in devices from other manufacturers.
``Because of Sony's market strength Memory Stick is going to have 20-25 percent of the market,'' said Sullivan, whose company was one of the first
licensed by Sony to make their own Memory Sticks.
Also gaining is the Secure Digital format, largely backed by Panasonic and finding its way into cameras, MP3 players and PDAs from multiple
manufacturers. Slots for SD memory are largely compatible with MultiMediaCards, which are the same size but not designed with the same kinds of
content protection.
Retail availability of SD cards ``has increased pretty dramatically,'' Sullivan said, with cards as large as 1 gigabyte expected by year's end.
In fact, each memory format is thought to be gaining in the market with the exception of SmartMedia, which is currently limited to sizes no greater 128
megabytes and has seen its support by camera makers Olympus and Fuji wane in recent months in favor of Compact Flash, though they have not
abandoned it.
``We believe that strong companies like Olympus and Fuji will stick with it in the short-term,`` said Chris Chute, an IDC analyst who believes the format
will remain common for at least two to three years.
But whichever format ends up dominating, executives agree on one thing.
``At the end of the day all you care about is how many devices are out there that support a certain card form factor,'' SanDisk's Chan said.
And Lexar's Sullivan was mor succinct: ``In general, size matters.''
Hitachi And IBM Agree to Strategic Storage Alliance
Plans Call for Combined HDD Operations, Collaboration on Systems
Interoperability
TOKYO & ARMONK, N.Y.--(BUSINESS WIRE)--April 16, 2002--Hitachi, Ltd. (NYSE:HIT, TSE: 6501) and
IBM today announced plans to form a strategic business alliance designed to accelerate the delivery of
advanced storage technologies and products to market.
Under the terms of the preliminary agreement, the companies plan a multi-year alliance to research and
develop new open standards-based technologies for next-generation storage networks, systems and
solutions.
In addition to, and separate from, the systems alliance, the two companies intend to combine various
hard-disk drive (HDD) operations into a new standalone, joint venture company, integrating their
world-class research, development and manufacturing operations, as well as related sales and marketing
teams. Upon completion of negotiations, Hitachi is expected to hold 70 percent of the joint venture and
make a payment to IBM for its HDD assets.
``Strong hardware is essential to our company-wide efforts to enhance solutions operations,'' said
Yoshiro Kuwata, executive vice president and director, Hitachi, Ltd. ``Now, with the top-quality hard-disk
drive and RAID hardware made possible through this alliance with IBM, we will strive to be a world leader
in this increasingly competitive industry. Use of HDDs is expanding, not only in PCs, servers and RAID
systems, but also in a wide range of emerging digital appliances. As such, it is a critical component in a
broad range of important current and next-generation Hitachi products.''
``Our two companies believe that the evolving nature of the storage industry is creating tremendous
opportunity,'' said Nicholas Donofrio, IBM senior vice president, corporate technology and manufacturing.
``On the high end, customers of storage systems are increasingly demanding interoperability, ease of
storage management, and better cost/performance. Our commitment to promote open standards will
speed the pace of innovation and each company's ability to deliver powerful, cost-effective storage
systems and networking technology to the enterprise. Vendors that stay on the proprietary path risk being
left behind.
``On the other hand, the disk drive industry is extremely competitive and coping with many issues,'' said
Donofrio. ``There, the winners will be companies that can combine true technical leadership with global
economies of scale. That's what this joint venture is intended to accomplish.''
Central to the storage systems alliance, the two companies plan a common approach to virtualization,
based on IBM technology, that will allow users to more easily manage all their networked storage systems
as a single resource. In addition, Hitachi and IBM intend to jointly develop high-performance technologies
and functionality for next-generation high-end storage systems and solutions.
Hitachi and IBM will continue to drive interoperability and open standards for the management of
multi-vendor networks. In conjunction with existing standards body initiatives, the companies intend to
deploy the emerging Common Information Model (CIM) standard for better storage management.
Separately, and subject to the successful completion of negotiations and applicable regulatory processes,
the joint venture will combine selected Hitachi and IBM disk drive assets, including employees, facilities
and intellectual property. Both Hitachi and IBM expect to source a major portion of their HDD supply from
the joint venture. The joint venture will be based in San Jose, California. The new company's
management team is expected to include executives from both companies.
``By bringing together the world-class HDD research and development capabilities of Hitachi and IBM, the
joint venture should expand the market for new digital appliances and more quickly bring to market
advanced product offerings,'' said Mr. Kuwata. ``We also expect customers will benefit from the improved
efficiencies of our combined business operations.''
Hitachi and IBM expect to announce further details of the alliance at a later date.
Hitachi and IBM have an established history of business cooperation. Most recently, the two companies
have conducted joint development and manufacturing activities in server operations.
ADDITIONAL HITACHI PRESS CONTACTS:
Japan: Tsuyoshi Miyata, Hirotaka Ohno
Hitachi, Ltd.
Tel: +81-3-3258-2057
tsuyoshi_miyata@hdq.hitachi.co.jp
hirotaka_ohn@hdq.hitachi.co.jp
Singapore: Yuji Hoshino
Hitachi Asia Ltd.
Tel: +65-231-2522
yhoshino@has.hitachi.com.sg
US: Masahiro Takahashi
Hitachi America, Ltd.
Tel: +1-650-244-7902
masahiro.takahashi@hal.hitachi.com
Intel Software Enables Wireless Devices to Control Personal Home Networks Remotely
TOKYO--(BUSINESS WIRE)--April 16, 2002--Intel Corporation researchers have released new software
that allows developers to build wireless cell phones and personal digital assistants (PDAs) that can
control personal home networks with UPnP(1) technology from inside or outside the home.
UPnP networking technology enables personal computers and smart networked devices (such as
security systems, entertainment systems, and Internet gateways) to automatically connect with one
another and work together over the same network. The new software toolkit integrates UPnP technology
into wireless devices, allowing them to control all of the devices on a home network, manage multimedia
content throughout a home and create personal networks with other wireless devices.
``The number of mobile devices connected to the Internet is growing every day, as people require
anywhere, anytime access to personal data,'' said Shane Wall, director of Emerging Platforms Lab, a part
of Intel Labs. ``With UPnP technology, users will be able to easily access important data, music, video,
photos, and control home appliances via a home network and a variety of wireless devices.''
Intel Labs is offering the software at no cost to developers of Pocket PC wireless client devices. It will be
offered as a software development kit for the Intel Personal Internet Client Architecture (Intel PCA), a
development blueprint for building wireless handheld communications devices that combine voice
communications and Internet access capabilities. The toolkit and a white paper describing the technology
are available on the Intel PCA Developer Network Web site:
http://www.intel.com/pca/developernetwork/devsupport/index.htm.
Intel is one of the founding members of the UPnP Forum, an association of more than 340 consumer
electronics, computing, home automation and security, home appliance, computer networking and other
leading companies working together to develop standards that makes home networking invisible to a
consumer.
For more information about the UPnP software, please visit the Intel PCA Developer Network at
http://developer.intel.com/pca/developernetwork.
About IDF
The Intel Developer Forum is the technology industry's premier event for hardware and software
developers. Held worldwide throughout the year, IDF brings together key industry players to discuss
cutting-edge technology and products for PCs, servers, communications equipment, and handheld
clients. For more information on IDF and Intel technology, visit http://developer.intel.com.
Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and
communications products. Additional information about Intel is available at www.intel.com/pressroom.
(1) Other names and brands may be claimed as the property of others. Intel is a registered trademark of
Intel Corporation or its subsidiaries in the United States and other countries.
Contact:
Intel
Kevin Teixeira, 408/765-4512
kevin.d.teixeira@intel.com
OT Sagging sales hit Handspring
By Ian Fried
Staff Writer, CNET News.com
April 15, 2002, 3:25 PM PT
update Handspring on Monday posted a loss that was wider than analysts had expected as sales in the March quarter were less than half of those in the same quarter a year ago.
Handspring also estimated it will see a further drop in sales in the current quarter and said it won't reach profitability as it had previously predicted.
For the third quarter, ended March 30, the handheld device maker said it lost $23.7 million, or 18 cents a share, on revenue of $59.7 million. In the same quarter a year ago, Handspring lost $27.2 million, or 26 cents per share, on revenue of 123.8 million.
The company said it now expects to lose somewhere between 9 cents per share and 13 cents per share, excluding amortization, on revenue of $47 million to $57 million. The company also predicts it will reach profitability in the October-to-December quarter.
Handspring now expects to lose 25 cents to 35 cents for the calendar year, on revenue of $290 million to $300 million.
Excluding amortization of deferred stock compensation and intangibles, Mountain View, Calif.-based Handspring would have had a loss of $19.2 million, or 14 cents a share. On that basis, analysts were expecting a loss of 12 cents per share, according to First Call.
Executives still sounded an optimistic note. "Although we continue to experience weakness in our organizer business, we are pleased with our entry into the communicator market," Handspring CEO Donna Dubinsky said in a statement.
Handspring said it shipped 47,000 Treos in the quarter, ahead of its internal projections and some analyst estimates. The company said it estimates 13,000 sold through to customers, with half of those in North America and the rest split between Europe and Asia. The company said that later Monday it will announce its entry into the Australian market.
Thomas Sepenzis, an analyst at investment bank CIBC World Markets, said in a note to clients Monday morning that he was expecting Handspring to report revenue of $63.8 million and a loss of 11 cents per share.
"While we expect the Treo to ship at least 30,000 units in the quarter, the company's legacy products have not been strong," Sepenzis said.
Sepenzis also said he would not be surprised if the company were to cut its estimates for the June quarter, given that last week BlackBerry pager maker Research In Motion cut its outlook for the current quarter and year.
Late Monday, Sepenzis cut his rating on the stock from "buy" to "hold", citing Handspring's loss of market share to Palm and Sony as well as slow adoption of Treo by consumers and the fact that next generation cell phone networks are coming on slower than planned.
"While the new PDA, the color Treo and the Sprint launch may help create an environment of upside to our estimates, we recommend caution," Sepenzis said in a note to clients.
Handspring executives told analysts on the conference call that the company is having a particularly tough time predicting how it will do this quarter as it expects to introduce several new products in this quarter, including a color version of the Treo, a color version that runs on Sprint PCS' network as well as a new type of handheld.
Dubinsky would not elaborate on the last product, except to say it fits with the company's strategy of moving toward communicator products and away from disconnected organizers.
The company said it ended the quarter with $159.4 million in cash and investments, of which $108.7 million was unrestricted.
"It's a difficult transition," said Banc of Amercia Securities analyst Rob Sanderson. "The Treo shipments were very strong versus what I was expecting. But obviously the PDA business is pretty horrible."
Sanderson said it looks like Handspring might have actually had negative margins on its handheld business.
He said the company is on the road to transitioning into a communications-focused company. However, the transition may take longer than Wall Street would like.
"The mood of the Street is very short-sighted right now," Sanderson said.
CenterSpan Announces Availability of C-StarOne, the First Unified Delivery Platform for Enterprise and Media and Entertainment
Content Providers
HILLSBORO, Ore.--(BUSINESS WIRE)--April 15, 2002--CenterSpan
Communications Corp. (Nasdaq:CSCC - news) today announced
C-StarOne(TM), a powerful, unified content delivery platform that allows
companies and content providers to publish and securely deliver any type
of rich media. For the first time, one solution meets the delivery needs of
both content providers and the enterprise for cost savings, security and
efficiency.
CenterSpan's C-StarOne provides both high quality streams and
on-demand and scheduled downloads at less than one half the cost of
traditional content delivery models. A simple Web interface enables
companies that distribute rich media content to maintain complete control
over how their content is published, secured and delivered -- all without
installing any extra hardware, license management or digital rights
solutions. Users simply install a less than 1 MB plug-in to access content in
the network.
``C-StarOne elevates rich media delivery to performance and security
levels unequalled by other content delivery networks and services
providers,'' said Frank G. Hausmann, chairman and chief executive officer
of CenterSpan. ``Furthermore, the fact that we have been operating our
network for well over a year gives CenterSpan a significant advantage in
the enterprise and media and entertainment marketplace.''
As use of rich media has become more popular within the enterprise, IT
managers have been challenged by the cost of delivery and congestion in
the networks. The widespread solution has been to install additional layers
of hardware and software -- an approach that addresses these concerns,
but comes with high costs for upgrades, maintenance and overhead.
Similar problems exist in the media and entertainment industry where the
Internet is used to deliver files and streams to consumers. Here, content
providers have turned to content delivery service providers to mitigate
delivery costs and boost speed -- with the goal of enhancing the consumer
experience. Yet the challenges around high costs and content security still
prevail.
Then there are large companies that need to move rich media both
internally and externally. With C-StarOne, CenterSpan now provides one
solution and one platform to solve all of these problems for the enterprise
and media and entertainment content providers.
One Solution. One Platform.
C-StarOne offers the most comprehensive, high-value solution for secure and reliable digital content
distribution. C-StarOne is comprised of:
C-Star Multi-Source Delivery(TM) maximizes content delivery speed by pulling content from the
closest, best network locations. Richer content is delivered at half the cost of alternative solutions.
Every type of digital content is supported including audio, video, executables and documents.
C-Star Tiered Security(TM) provides the deepest security of any delivery solution. As files move
through the network, they are protected from being used illegally, altered or infected with viruses.
Security layers include file encryption, Digital Rights Management (DRM), file segmentation, digital
signatures, network protocol security, and on the desktop, content is secured in a patent-pending
encrypted cache.
C-Star Content Publishing: Authorized users have an easy Web-based means of publishing and
controlling content in the network. They may set and adjust parameters of content usage by defining
the business rules including: security and copyrights, the number of times the content can be used,
and dates for its availability and removal.
C-Star Analytics: The solution offers two levels of analytics. First, customers receive reports on
network activity. This data includes number of users, licenses issued, files transferred and amount of
data transferred. At the second level, CenterSpan can provide a Cognos(TM) data cube of the
customer's content network activity for in-depth trend analysis.
Availability
C-StarOne is available now through direct sales and partnerships in specific vertical markets.
About CenterSpan
CenterSpan Communications develops and markets next-generation, secure Internet and intranet content
delivery solutions for media and entertainment, communications service providers and the enterprise. The
company's C-StarOne solution enables low cost, efficient and secure distribution of all digital media. More
information is available at www.centerspan.com.
This news release includes forward-looking statements. CenterSpan is a venture stage company. C-Star,
the company's distributed network, is a new business in an emerging and rapidly evolving market.
Statements regarding the timely launch of content distribution services such as C-Star and Scour, new
customers, new products, content acquisition, number of registered users, new business opportunities, new
revenue model industry prospects, future results of operations or financial position and potential earnings
leverage are forward-looking statements. We cannot guarantee any of the forward-looking statements.
Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking statements. Investors are encouraged to
review the company's filings with the Securities and Exchange Commission, including the company's 2001
Form 10-K, for a more refined description of the risks and uncertainties relating to forward-looking
statements made by the company, as well as to other aspects of the company's business. The company
undertakes no obligation to update any forward-looking statements.
Contact:
CenterSpan Communications Corp.
Mark Conan, 503/615-3222
mark@centerspan.com
or
A&R Partners for CenterSpan Communications
Paul Lesinski, 503/293-8949 (Media)
plesinski@arpartners.com
or
PondelWilkinson -- Parham for CenterSpan Communications
Ron Parham, 503/297-0472 (Investor Relations)
rparham@pondel.com
Listen.com Adds CD Burning to Rhapsody Music Subscription Service
San Francisco -- Listen.com, provider of the Rhapsody digital music
subscription service, announced on Monday that it has partnered with
Irvine, Calif.-based NewTech Infosystems (NTI) to provide CD burning
capabilities for its service. The company also announced that it has
obtained a CD burning license from classical music label Naxos of America.
The agreement allows Naxos for Rhapsody subscribers to burn a limited
amount of songs from Naxos' catalog to CD each month. San Francisco-based
Listen.com said that CD burning capabilities will debut on Rhapsody in
May, along with the release of Rhapsody version 1.5.
http://www.listen.com
http://www.ntius.com/
http://www.naxos.com/
San Francisco -- Forty million Americans have downloaded or transferred
digital music in the past six months -- and do so an average of eleven
times per week -- according to market research firm Odyssey's recent
Breadbox study of e-commerce trends. The study showed that 31 percent of
U.S. online users over the age of 16, or 40 million users, have downloaded
music recently. A breakdown by age also showed that 53 percent of users
over 16 years old, 20 percent of users over 30, and 14 percent of those
over the age of 45 have downloaded or transferred music in the past six
months. San Francisco-based Odyssey's survey of 3,000 U.S. consumers
showed that 23 percent of households own a CD-RW drive, up from 16 percent
in January 2001. The firm argued that major label efforts to thwart piracy
with legitimate services such as MusicNet and Pressplay are "meant to
solve the industry's problems, not meet consumers' needs," said Odyssey's
Sean Baenen. "We're seeing a sea change and from the consumer perspective
it looks as if the industry is still out shopping for boats."
http://www.odysseylp.com
Microsoft Pushes Windows CE For Telematics
By Amy Gilroy
TWICE
4/15/2002
REDMOND, WASH.— MSN Automotive Business Unit, Microsoft's telematics
division, says that BMW and five other vehicle manufacturers will announce this
year that they will use Microsoft's Windows CE for automotive software in over a
dozen vehicles.
BMW was the first to use the software on its Series 7 iDrive system. The
software provides a basic operating system for Internet connection. "We provide
the software building blocks that make it easy to create telematics devices,"
said Ed Lansinger, technical marketing manager.
While Microsoft admits the telematics industry has been slow to get off the
ground, Lansinger says that the build-out of the digital cellular GPRS network in
the United States will help spur the market. This is expected to occur over the
next two years.
"You can do [telematics] on analog, but the data rate is so low it limits what you
can send. The Clarion Joyride has wireless messaging, but it can only send 80 to
100 character messages at a time. If you're talking about getting a whole list of
navigation directions, you'll need a higher bandwidth connection," Lansinger
said.
Microsoft sees direct Internet connection combined with location-based
information as the key to the future of telematics (vs. call-in center based
telematics).
Users will be able to find out the location of the nearest gas station or ATM, for
example. "You'll be able to have the car talk back to its manufacturer and give
information on how well it is operating and the automobile manufacturer can use
that information to offer services to the owner," Lansinger said. He continued, "I
think telematics has a lot of promise in the future. I think we'll see that as we
start to get these cars connected to the Internet."
While the BMW iDrive system currently provides general information about the
vehicle, Lansinger says he is unaware of any company providing a sophisticated
location-based system at present. "We see that coming up in the next two to
three years," he said.
Wingcast Service To Begin This Fall With Nissan
By Amy Gilroy
TWICE
4/15/2002
NEW YORK— With the opening of the New York Auto Show late last month, the
struggling telematics market got a boost as Wingcast announced it will deploy its
telematics service in four Nissan Infiniti vehicles, launching a rival to General
Motors' OnStar service.
Wingcast, a joint venture of Ford and Qualcomm, will also be offered in certain
Ford vehicles to be announced later this year, a Wingcast spokeswoman said.
Several other aftermarket/OEM related ventures were announced at the Auto
Show, including Volkswagen and Nissan's commitment to offer satellite radio
service and Pioneer's release of branded car audio systems in the newly
announced SCION Toyota line and in two Ford vehicles. (See stories below).
The debut of Wingcast's service comes about 18 months after the venture was
first announced. Wingcast will be the exclusive provider of telematics services
for the newly introduced Infiniti G35 coupe and M45 as well as the 2003 Infiniti
G35 sedan and Q45, with service starting this fall. Wingcast said it will provide
both emergency and concierge-operated assistance services including automatic
airbag deployment notification, emergency assistance and stolen vehicle
tracking. It will also allow hands-free voice-activated calling, call forwarding and
voice mail, and navigation and information services such as news, stocks, and
weather. Concierge services via live operator will also be provided allowing
users to inquire, for instance, where to get tickets to a show, and allowing the
user to order the tickets.
Wingcast will be carried over digital trimode service on the Verizon network with
pricing to be announced, the company said. The hardware for the system
includes a four-button interface, microphone and the car's audio system.
The Wingcast announcement follows recent reports that telematics is not
growing as rapidly as previously expected. GM's OnStar recently revealed a
higher churn rate than in previous years. A spokesman said only 50 percent of
subscribers are renewing subscriptions to OnStar, down from 70 percent in
1999, while published reports indicate OnStar's 2001 renewal rate may be as
low as 20 to 30 percent.
A spokeswoman for Wingcast claimed, "OnStar has done a great job of defining
the category but what it will take for telematics to take off is wider availability.
The average consumer doesn't know what it is. OnStar has GM and Acura but
there are a lot of other cars in the U.S. The pervasive thought is that once it is
in a variety of cars like Ford, Nissan and Toyota and once consumers realize the
functionality of it, it will take off."
She noted that hands-free calling legislation is being considered in 40 states and
that 70 percent of cellphone calls originate from the car so that the hands-free
dialing feature alone will help popularize the service.
OnStar is currently available on 36 GM vehicles and OnStar claimed to have 2
million subscribers at the end of 2001.
Industry analysts however, say that telematics in general is being hampered by
several factors including the lack of a "killer app" incentive. Many consumers do
not want to pay a monthly service charge for emergency services that they may
never need, industry members said.
"Telematics is not progressing as many would have liked it to for numerous
reasons," said Cindy Wolf, research analyst for Cahners In-Stat/MDR,
Scottsdale, Ariz. On the supply side, these include the lack of a single
interoperable standard for telematics equipment and the need for companies to
create partnerships in order to deliver a solution which involves semiconductors,
network service, hardware and software.
The products are also not entirely consumer-friendly. "Some companies are
developing products they can plug a phone into and some offer solutions that
are permanently affixed in the car and for some you have to use their particular
wireless carriers. So there are concerns about people having to pay multiple
service bills and not being able to transfer the system from one car to another,"
Wolf said.
Some industry members also claim that Internet-based telematics will not take
off until cellular GPRS networks are more widely deployed in the United States,
which is expected to occur in the next two years (see Microsoft article this
section). Others say voice recognition must also be improved.
While GM's OnStar claims 2 million subscribers, only 14,000 of those are
currently paying for a direct Internet telematics connection or for the company's
Personal Advisor plan, which allows users to access information via the Internet,
according to In-Stat.
OnStar's standard plan offers call-in center based assistance, but In-Stat, and
some industry members say that Internet-based connections, which serve up
info to consumers on demand, is the future of telematics.
In-Stat reports worldwide sales for embedded in-vehicle Internet telematics
service reached 27,000 subscribers in 2001, but is expected to grow to over 5
million subscribers in 2006 with worldwide revenues hitting nearly $12 billion in
2006. The growth rate for telematics will peak in 2004, says In-Stat, because it
will become widely available in new cars and consumer awareness will grow.
OT Take it away- Vendors prep PC-linked wireless tablets
Maury Wright, Editor-in-Chief -- CommVerge, 4/12/2002
Back at the Consumer Electronics Show (CES) in January, Bill Gates used his annual keynote speech to focus on a technology called Mira as the latest way to endear tablet-like computers to the masses. In the past, the tablet PC has taken the form of a standalone system with a full complement of components. Mira seeks to lower costs by wirelessly linking a relatively "dumb" tablet to a PC in the home office or den.
A Mira panel, connected by an 802.11 link, would not include the disk drive, memory, CPU, and other components found in a full tablet PC. Instead, it would rely fully on the remote PC for those functions, serving simply as a remote monitor with either touchscreen input or perhaps an optional keyboard. A user might take the Mira panel to the living room to, say, refine a work document during the evening or maybe play along with Who Wants to Be a Millionaire. The user would have full access to the capabilities of the host PC, including Internet access.
Now, mainstream monitor and PC manufacturers including Philips, Viewsonic, AboCom, and Tatung are ready to announce Mira products. And all plan to develop their products using the Intel StrongArm-based XScale processor family. Most demos at CES relied on National Semiconductor's Pentium-compatible Geode processor. The move toward StrongArm shows both that Mira doesn’t require PC functionality in the panel and that lower-cost, RISC-based processors might truly make Mira panels affordable.
But don’t write off Geode either, because National’s highly integrated processor includes the display controller that’s still necessary to drive the flat-panel; the Geode could match the XScale approach in terms of total system cost.
As for Intel, the company has developed a complete reference design for Mira products with a 10.4-inch, 800-by-600-pixel, 16-bit-color display. Intel’s design supports both dedicated Mira panels sold as add-ons to an existing PC, and panels that act as the PC monitor when the user is at the PC or as a remote Mira panel when carried to another room. Expect products on store shelves by the end of the year.