As other dot-coms have folded around it, Netflix continues to increase its subscriber base and number of strategic relationships, while competing online DVD rental companies have failed to provide significant challenge, according to Netflix.
DVD player shipments to dealers have broken 10-million-deck mark in single year for first time, according to CEA video equipment sales report for week ending Nov. 9 (see State of the Industry, this issue). Shipments through year’s 45th week reached 10,028,069 decks, up 49.3% from 6,715,039 sold to dealers in same period year earlier.
When 10 of world’s biggest movie studios, broadcasting and cable networks banded together late last month to sue SonicBlue (CED Nov 2 p1), their goal wasn’t simply to stop potential copyright infringement. They also are seeking to stop SonicBlue and its new personal video recorder (PVR), ReplayTV 4000, from reshaping entertainment industry as it’s known today. In legal filings and interviews, plaintiffs said they feared that ReplayTV 4000 could undermine advertising that’s foundation of their businesses. PVR has 2 features that have brought wrath down upon corporate parent SonicBlue: (1) It can skip commercials. (2) It allows users to transmit broadcasts and movies to up to 15 other people through broadband connection.
Despite claims that DVD players capable of online connection were poised to enter market in big way in 2001, it now looks like this year will see only limited introduction of Internet-enabled DVD machines, with more planned for 2002. But future of players viewed by some as key to “wired living room” still remains somewhat cloudy, with DVD Forum now not expected to approve internet DVD standard until mid-2002 at earliest.
Boombox with MiniDisc recorder, MP3 and Windows Media Audio (WMA) playback was unveiled for Japan market by Kenwood. Rampage MDX-J5WM ($289) also has cassette, radio and CD that can play CD- R/RW discs. Portable is among first that supports WMA as well as MP3 music compression format.
Palm and Handspring shares surged in latest round of speculation that either or both handheld PC makers might be bought. Handspring shares rose 42% to $5.68 and Palm 12% to $3.87. Earlier, Wall St. Journal reported on investor hope that companies could merge. Latest speculation was touched off by departure earlier this month of Palm CEO Carl Yankowski. Handspring spokeswoman denied Palm-Handspring merger was being discussed, while Palm officials weren’t available for comment. Year ago, Palm was reported to be target of Dell Computer and Gateway. Meanwhile, Handspring filed shelf registration with SEC for offering of up to $60 million in securities. Registration will allow Handspring to issue various types of securities including preferred stock, common stock, warrants. Palm also has cut more than dozen jobs related to software project in Cambridge, Mass., CNET News.com reported. Cambridge was site of Anyday.com, online calendar company Palm acquired in cash and stock deal valued at $80 million when it was announced in May 2000. Palm has largely folded that company into its MyPalm portal. Palm laid off 500 employees in 2 rounds of cuts earlier this year.
CD Warehouse investor has filed suit alleging that CEO Christopher Salyer cut “sweetheart deals” with board, including moving chain’s hq to building he owns.
Jevin Eagle, partner in McKinsey & Co. consulting firm, joins Staples Jan. 7 as senior vp-strategy.
Acclaim Entertainment said its Acclaim Max Sports shipped its first Game Boy Advance title, Dave Mirra BMX 2. Versions also are available for PlayStation 2 and GameCube and will be available later this month for Xbox.
Online retailer DeepDiscountDVD.com is challenging Amazon.com on DVD pricing. Deep said if consumer found lower price for DVD at Amazon, it would offer disc at Amazon’s price and discount next purchase at twice difference. In other words, if DVD at Amazon is $2 cheaper than one at Deep, customer gets $4 off next purchase. For calculating difference, Deep includes Amazon’s shipping and handling charges. They are free at Deep.