Ronald Unkefer relinquishes Good Guys CEO post to Pres. Kenneth Weller but will remain chmn… Ron Richie, Pixtech board member, named interim CEO, replacing Dieter Metzger, who died earlier this year of heart attack… Appointed at Palm’s new Solutions Group: Glenn Cross, ex-Sun Microsystems, joins as vp- sales and enterprise business development; Steve Manser, ex- Propel Software, joins as vp-worldwide product engineering.
Sales and mktg. business development company Sales in Action (SiA) has been started by former Codemasters N. American Sales Vp Howard Horowitz. SiA said its goal was “to assist consumer electronic and game publishing companies in the North American market” sell and market their products to retailers. Horowitz said: “Given the predicted and past growth of the North American interactive entertainment market -- probably somewhere around $18 billion by 2004 for combined console and PC software sales -- foreign publishers, developers and distributors could add 40% to their gross revenue by getting in this market.” SiA said it could “reduce costs by outsourcing and shortening the time it takes to put together an effective sales, marketing and logistics plan and team,” adding that “outsourcing these functions allows companies to focus on their core competencies -- product development.” New company said it was composed of “entertainment industry veterans with over 15 years’ experience.”
KB Toys circular this week is geared exclusively at videogame category. Among promotions is GBA accessory pack on front page that’s being offered free by chain to consumers who buy GBA handheld system KB has been selling at $89.99 -- $10 less than Nintendo’s SRP -- since system started shipping in June. Accessory pack includes folding light, power adapter, rechargeable battery pack, travel bag. KB also is offering free “mini treasure chest” to consumers who reserve copy of GBA game WarioLand 4, shipping Nov. 20. Meanwhile, customers who buy PS one at $99.99 get free $20 gift card. Prominent among other promotions is $5 discount on all Dreamcast titles.
Rentrak turned $398,114 profit in 3rd quarter, reversing year earlier $9.6 million loss despite sharp decline in revenue at 3PF e-commerce fulfillment subsidiary. Year-ago figure included $6.1 million write-off to shut down retailer loan program that included bankrupt Video Update chain. Rentrak said revenue declined 5% to $23.7 million. In core pay-per- transaction (PPT) business which supplies VHS titles to rental and retail chains revenue was up 9% to $19 million as shipments of videocassettes increased 28% to 668,252 in year. PPT posted $1.8 million profit in quarter. However, 3PF revenue plunged 47% to $2.5 million as subsidiary had $775,696 loss and parent was faced with “significant overcapacity” at its warehouses in Wilmington (102,400 and 121,600 sq. ft.) and Columbus, O. (389,264 sq. ft.), CEO Paul Rosenbaum said. First of warehouse leases expires in June. Among 3PF’s customers were BigStar Entertainment and Cyberian Outpost, with latter being acquired by Fry’s Electronics. Rosenbaum has sought to boost value of 3PF since taking over as CEO year ago after winning proxy battle with management. But he also has said 3PF’s technology was “worth an awful lot of money,” leading some to speculate that Rentrak would seek to sell subsidiary’s assets. Rentrak will “pursue all available options to improve” 3PF’s finances,” Rosenbaum said. Meanwhile, Rentrak signed DVD revenue-sharing agreement with MGM Entertainment, joining Blockbuster and Hollywood Entertainment in reaching agreements with studio. First 2 titles, What’s the Worst That Could Happen? and Jeepers Creepers, will ship under agreement in first quarter, Rosenbaum said. Rentrak signed pact with MGM in 2000 for distribution of DVD titles under PPT, but not revenue-sharing, program. Rentrak also is in discussions with 5 studios on use of its FasTrack auditing and reporting software for video-on-demand (VoD) services, Rosenbaum said. FasTrack is at core of Rentrak’s PPT program.
Breakaway group from Replitech trade show and conference is to emerge today (Fri.) as Media-Tech Assn. (MTA), registered entity that plans to establish rival events for prerecorded replication industry. Group of 10 companies is spearheading split on complaint that Replitech shows, produced by trade publisher PBI Media and sponsored by International Recording Media Assn. (IRMA), had become too frequent and too expensive for exhibitors. All of MTA founders are European companies and 6 are IRMA members. They plan single Media Tech Expo yearly, with venue switching between Europe and N. America, compared with 3 Replitech shows each year in Asia, Europe and N. America. First Media Tech Expo is scheduled for Frankfurt, Germany, May 6-8 -- following Replitech in L.A. in Feb. and Amsterdam in June. PBI and IRMA contend that upstart organization and show are disservice to industry and have appealed to their attendees and members to shun MTA. They argued that industry needed multiple yearly events and said they would stick to that format. But in response to exhibitor grievances about Replitech, PBI and IRMA announced changes, including: Reduced cost for exhibit space and frequency discounts for participants in multiple shows and for IRMA members, IRMA will be solely responsible for developing all conference events such as speaking session. Name of show also has been changed to M3Replitech, to reflect show’s broader constituency in media manufacturing, distribution, storage.
HDTV-resolution 30” widescreen LCD will be highlight of exhibit by LG.Philips LCD at Comdex in Las Vegas next week. Seoul-based joint venture of LG Electronics and Philips will show line of TFT-LCDs from 10.4” to 30W. Latter display has 1,268x768 pixel WXGA resolution, partners said. Exhibit is at Venetian Hotel, Marco Polo Room 801 -- www.lgphilips-lcd.com.
Cable reluctance to allow freer access to set-top boxes “has channeled the transition to the Digital Age into yet another instrument for retention of monopolistic control of revenue” from new digital services, Consumer Electronics Retailers Coalition said in report to FCC on cable-DTV compatibility (CED Nov 8 p2). Coalition accused cable of refusing to allow more open standards and box mobility, meaning retailers “have not been allowed to bring their competitiveness and ingenuity to the world’s biggest broadband system, saying NCTA’s retail set-top initiative “promises to freeze this mold for the foreseeable future.” Cable is worried that truly opening boxes would mean cable would “lose monopoly control of new service revenues,” report said. It said cable had given no assurances that persons buying set-tops at retail would be treated equally and had set unreasonably low price for buying boxes back from customers. It asked FCC to mandate more open set-top environment.
Kopin Corp. filed universal shelf registration Thurs. with SEC to issue $150 million in senior and subordinated debt. Taunton, Mass., company said once statement is effective, it will offer stock to finance working capital and production of products including microdisplays that have been used as viewfinders in camcorders marketed by JVC, Matsushita and Samsung.
Consumer Electronics Daily will observe Veterans Day holiday Mon., Nov. 12. Next issue will be Tues., Nov. 13.
Sponsors of upcoming D.I.C.E. summit Feb. 28-March 1 at Hard Rock Hotel in Las Vegas include Electronic Arts, Insomniac Games, Infogrames, Nintendo, Sony. Summit, run by Academy of Interactive Arts & Sciences (AIAS), now is home of Interactive Achievement Awards show.