800.com kicked off 2nd annual national holiday promotion with Heineken USA offering shoppers $20 off purchases of $150 or more at CE e-tailer 800.com’s Web site. Through Dec. 6, promotion is being featured at point-of-purchase displays at 20,000 brick-and-mortar retailers, where consumers can obtain discount card revealing code to collect discount online. Two million cards are being provided nationwide, companies said. 800.com Chief Mktg. Officer Timothy Zuckert said “success of last year’s promotion demonstrated” that 800.com and Heineken core customers shared same demographics. Through promotion, he said, both brands can “see significant gains in visibility.”

TiVo formed new technology business unit and laid off 40 employees as it sharpens focus on licensing and continues to lessen reliance on hardware sales. Technology business unit, which is charged with seeking licensing deals for TiVo’s personal video recorder (PVR) technology, will be headed by Senior Engineering Vp Tai-Wei Chien. As part of new strategy, TiVo recently signed 7-year agreement with Sony that gave CE giant greater access to its PVR patent portfolio and expand technology to other products. Sony also supplies MPEG-2 encoder for TiVo PVRs. TiVo is said to have had discussions with Philips on new licensing pact.

Advertised $999.99 price for new Panasonic DVD-RAM deck is decision by retailers and doesn’t reflect change by vendor, Panasonic executive told us. DMR-E20 recorder made debut at Best Buy and elsewhere last weekend at $999.99 -- about $500 lower than Panasonic’s MSRP (CED Oct 30 p6). “The original MSRP was $1499 and it still is,” said Rudy Vitti, mgr., digital recorder category: “Retailers decide the price. Obviously they have to make some money on them, and there’s the possibility they can sell for $999. But there’s been no suggested price drop from Panasonic.”

Infogrames’ Atari brand returns to market this week via PS2 game MXrider shipping in Europe and U.S. Company said title was first game to ship under new Atari banner. Splashdown, also sporting Atari name, will follow next week. Infogrames said that “in a rare move,” it was providing both games with global rollout, releasing them to 15,000 U.S. stores and 23,800 international stores as part of what CEO Bruno Bonnell called “no-holds-barred release” designed to raise awareness of Atari brand’s return.

DVD titles jumped to 20% of Hollywood Entertainment (HE) revenue in 3rd quarter as video dealer reported net income rose to $25.6 million from $18.6 million. Revenue increased to $344.9 million from $306.5 million on 11% gain in same-store sales. DVD accounted for 16% of sales in 2nd quarter and chain now carries 2,000 titles compared with 10,000 VHS releases. Rental revenue was up to $288.3 million from $262 million year, and product sales to $56.5 million from $44.4 million. In conference call with analysts, CEO Mark Wattles again said Hollywood wouldn’t rush to sign DVD revenue-sharing agreements with studios, citing $17 cost for DVD title vs. $65 for VHS. HE has DVD revenue- sharing pact with MGM and Wattles said earlier this fall that chain would have agreements with most studios by year-end 2002. Company raised target for 4th quarter same-store sales to 6-7% from previous 4-5% and pro forma net income to 26-28? from 24- 26?. It opened one store and closed 7 in quarter to end with 1,809. Hollywood has no plans to add new stores in 2002, largely because it’s required to reduce debt below $100 million from $445.8 million at quarter’s end. It also is working to reduce annual sales gap between stores one to 3 years old and its older outlets. While HE’s average annual per store sales are $750,000, those less than 3 years old (716) are at $633,000, Wattles said. Newer stores were “underserved” by previous HE management in “last couple of years,” said Wattles, who co-founded chain, but left it in late 1990s and returned as CEO last Aug. HE has no immediate plans to join rival Blockbuster in offering services outside rental/sales business such as pay-per-view movies but Wattles said it was capable of providing other services without “cannibalizing” its existing business, although such plans were “2003 issue.”

DVD+RW group is weighing response to statement by DVD Forum’s DVD Format/Logo Licensing Corp. (DVD FLLC) disavowing responsibility for recording format, senior executive at DVD+RW backer Philips told us. “Important Notice” from DVD FLLC was posted on its Web site that distanced itself and DVD Forum’s DVD- RAM and DVD-RW standards from proprietary DVD+RW recording system (CED Oct 19 p1). “We were a little bit amazed by such an extensive message. Is it possible the DVD FLLC gets inquiries from the public?” asked Chris Buma, Philips program mgr.-A/V disc recording, raising question about intended audience for DVD FLLC’s advisory.

Lawsuit over copy-protected CD has been filed against BMG Entertainment in Germany, source there told us. Details were scant at our deadline, but suit concerns CD compilation Just the Best 04/2001 that’s said to be copy protected but not labeled as such. Suit is said to charge BMG with fraud, computer fraud and copyright misuse. Computer fraud claim is based on violation of CD Red Book standard under German law, which prohibits damage to “the property of someone by affecting the result of a data processing proceeding, by incorrect design of a program or use of false and incomplete data.”

Prima Games secured exclusive rights to create, publish and distribute official strategy guides for 4 titles from id Software, Sega of America, 3DO. Company said titles were Heroes of Might & Magic IV, Might & Magic IX, Return to Castle Wolfenstein, Virtua Fighter 4.

Double-digit first-half profit declines were reported Wed. by Pioneer and Sharp. But reports were more upbeat than those of other Japanese majors in that, despite dire economic conditions, both expected to complete fiscal year in black.

Rainbow Rentals said 3rd-quarter profit fell 32% to $394,000 (7? per share) from year-earlier $579,000 (10?) on 3.7% lower revenue to $22.7 million and 5.4% decline in same-store sales. Chain said profit was hurt by lower margins, higher ad spending and impact of 4 new store openings. Company said it was pleased with results thus far of “You're the Boss” ad campaign. It also said it expected new pricing structure to “favorably impact” revenue and margins starting early next year.