New online ad campaign was begun by Activision and its ad agency, Ignited Minds. Campaign promotes game maker’s new Xbox exclusive action driving title, Wreckers: The Yakuza Missions. Companies said game was first to take advantage of GameSpy’s new streaming video ad programs at latter’s Web sites -- www.GameSpy.com and www.FilePlanet.com. GameSpy CEO Mark Surfas said 70% of his company’s Web site users had broadband connection, which made new video ads “ideal platform for advertisers.”
Coverage of satellite radio industry was begun by Deutsche Banc Alex. Brown, which predicted satellite would do for radio industry what DBS did for video in mid-1990s. Shares of XM, which started rolling out regionally in Sept. and now is said to be available nationally, were started with “buy” rating and 12- month price target of $20. Shares of Sirius, which has delayed commercial introduction to 2-market launch Feb. 14 and won’t be available nationally until 3rd-quarter 2002, were given “market perform” rating and 12-month price target of $9. Firm said satellite radio would succeed because it addressed 3 most commonly cited “shortcomings” of traditional terrestrial radio -- too many commercials, too little variety, too limited coverage. It projected that industry would reach 8.4 million subscribers by 2005, ramping up to 26 million by 2010. Analyst Karim Zia said that while “funding risks” remained critical factor, “we believe the strong sponsorship from strategic and financial players provides a solid backstop” against limited access to new capital. It said XM was “the better positioned” of the 2 rivals, “having largely executed on its business plan to date, thus minimizing future business risk.”
First pirate DVDs of Harry Potter and the Sorcerer’s Stone to emerge in U.K. were seized Sun. in London, Federation Against Copyright Theft (FACT) reported Mon. Group said police and FACT investigators impounded 20 remaining counterfeit copies of hit Warner movie from Chinese stall owner in open air market, along with ?500 (about $715) in proceeds from bootleg sales through 10 a.m. Quality and other details of pirate disc were being assessed Mon. -- such as how 3-hour-plus movie is made to fit on nominally 2-hour DVD. MPEG-1 Video CD counterfeits of Potter movie have been sold on 2 discs, with ending cut short owing to CD’s 74 min. capacity.
Sharp has unveiled Zaurus Linux/Java-based handheld for professional applications as it seeks to regain foothold in market. Sharp, which has marketed handhelds based on Microsoft’s Windows CE and Apple’s Newton operating systems in past, will make new push with device with 206 MHz Intel processor, 64 MB RAM, 16 MB ROM, mono display with 320x240 resolution and CompactFlash and Secure Digital card slots that will allow for optional 802.11b or Bluetooth wireless connectivity. Device will ship early next year. Sharp is among few companies that have adopted Linux platform for handheld PCs. Both Royal Consumer Business Products and Vtech have weighed Linux-based products in past.
Copy-protected CD title from Universal Music also will be available on analog cassette. Label is making available tape of More Music from Fast & Furious to accommodate customers whose audio equipment is unable to play copy-protected CD. First copy- protected title from Universal will be released Dec. 18 and is believed to use Cactus Data Shield system from Tel Aviv’s Midbar Tech, as BMG does on problem-prone White Lilies Island CD by Natalie Imbruglia. Universal has said Fast & Furious CD will have label advising that disc is copy protected. Label has advised retailers that disc won’t play in some CD players, DVD players, videogame consoles or Apple Macintosh PCs -- effects already encountered with Cactus-encoded Imbruglia CD. Universal has changed its policy and authorized retailers to accept returns of opened CDs from customers.
L.A.-based V Global Media (VGM) said appointments of game industry veterans Harvey Lee and Kelly Zmak to its advisory board would “be instrumental” in creating gaming capabilities of multiplatform interactive entertainment initiatives it was developing. VGM said it was developing entertainment for computer, console, handheld and online game platforms. Lee spent 20 years in computer industry and most recently managed action titles as vp-senior exec. producer for Sierra On-Line’s U.S. division. Zmak has more than 15 years of experience in console and online gaming. He last was Flipside.com vp-gen. mgr., where he was responsible for development and implementation of new games and technologies for online gaming for Web site’s various product lines. He previously worked in executive development positions at Hasbro Interactive, Panasonic Interactive Media, Acclaim division Sculptured Software. Zmak started his career at Activision. VGM is simultaneously developing properties based on one continuing storyline across variety of media. Company said its first project -- The Vision Quest -- would combine traditional theatrical and TV distribution and episodic mini games. First of 10 pre-release for The Vision Quest property will be Rite of Passage, scheduled to be available online in spring and follow on-air in summer. Vision Quest concept has been project of VGM Pres. Deborah Pratt for almost 20 years, company said.
HQ began shipping game MX 2002 featuring Ricky Carmichael for Xbox. Title was developed for Calabasas Hills, Cal., game maker by its Pacific Coast Power & Light subsidiary.
DVD-RW recorder to be priced at $833 has been developed jointly by Pioneer and Sharp. New lower-priced model is to go on sale in Japan in Jan., Japan press report said. Companies developed key components together, and Sharp will build 30,000 decks monthly for sale under 2 brands. Pioneer now OEMs DVD-RW for Sharp. Current DVR7000 recorder from Pioneer just became available in U.S. at $2,000 MSRP, $1,800 street price. Panasonic’s DVD-RAM format DRM-E20 has $1,500 MSRP but sells for $1,000.
Buoyed by National Radio Systems Committee (NRSC) endorsement last week to FCC of his company’s in-band, on-channel (IBOC) FM system, iBiquity Digital CEO Robert Struble said timeline still supported commercial introduction of IBOC broadcast equipment at April NAB convention and formal introduction of first consumer receivers in Han. 2003.
If, in future, TV viewers get everything they want, whenever they want it, as some predict, cable’s rights and responsibilities may become much more complicated, panelists said at Western Cable Show in Anaheim.