snapshot 8/7/07

Warner Music third-quarter loss widens
Warner Music Group Corp., one of the world's largest recording companies, said Tuesday its fiscal third-quarter loss widened as more people bought digital music, rather than CDs. The loss for the quarter ended in June was $17 million, or 12 cents per share, versus a prior-year loss of $14 million, or 10 cents per share.

Revenue declined 2 percent year over year to $804 million from $822 million. On a constant-currency basis, revenue fell 5 percent. The New York-based company said digital revenue increased to $119 million, or 15 percent of total revenue, in the quarter. That is up 29 percent from $92 million in the prior-year quarter and up 7 percent sequentially from $111 million in the second quarter of fiscal 2007.


Judge reverses $1.5B patent award against Microsoft
A federal judge Monday effectively reversed a $1.5 billion patent-infringement award against Microsoft in a case involving MP3 technology. Ruling on post-trial motions in a lawsuit by Alcatel-Lucent, Judge Rudi Brewster of the U.S. District Court for the Southern District of California in San Diego said one patent in the case wasn't infringed by Microsoft. On the other patent, the court couldn't didn't have jurisdiction because a co-owner of the patent didn't join in the suit.


AT&T's Anti-Online Piracy Effort Cheers Movie, Music Industries
In June AT&T said it would work with the entertainment industry to develop technology that, if implemented, might filter, identify and zap the lines of Internet pirates. "If we can find a reliable way to spot the pirated traffic, then it becomes a legal question," said Jim Ciccone, AT&T's general counsel. "Is the information reliable enough that we could get a legal sanction or a court order to take down or block those particular illegal transmissions?"


Hackers learn to download streaming Netflix movies/
You have to watch on Netflix's terms. The video player is browser based, and the movies are wrapped up in Windows Media DRM. If you want to want to copy a movie to a portable device for viewing on the go, you're out of luck.

Well, the smart folks over at the Rorta forums seem to have cracked the code, using Internet Explorer, Windows Media Player 11, FairUse4WM, and Notepad. The solution involves finding the URL of the video file, downloading it, acquiring the license key and then stripping the DRM. It's a bit involved, and will probably take longer than just sitting down and watching the movie. But hey, it's the principle of the thing, right?


Cisco Consumer Push Includes Content Download and Distribution Box/Service
We’ve been covering Cisco’s (Nasdaq:CSCO) consumer moves for the last couple of years, including its acquisition of Scientific Atlanta, Kiss DVD players, and Five Across, the social networking platform. An interview With Cisco CEO John Chambers in WSJ, ahead of its Q2 earnings this week, elaborates on the company’s consumer strategy. Among them, later this year, Cisco plans to release a box that will allow consumers to download content from the Internet and distribute that content to other computers or TV within the home. The device will also allow consumers to watch cable TV.


Dell Agrees to Acquire Audio-Technology Firm
Dell Inc. agreed to acquire Zing Systems Inc., a closely held developer of consumer software and services that focuses on audio and entertainment devices. Financial terms weren't disclosed. Dell, the Round Rock, Texas, computer maker, said it would use Zing's technology to "continue improving the entertainment experiences it provides its customers." Zing, of Mountain View, Calif., counts SanDisk Corp. and Sirius Satellite Radio Inc. among its customers.


Analyst: iPhone to get OTA downloads
The iPhone will have no choice but to embrace an over-the-air iTunes Store within the year, according to a new report from analyst group Pike & Fischer. The researchers argue that the growing independence of users from their computers and tethered Internet connections will lead many of them to expect the same level of features on their phone. This will leave Apple all but "forced" to open iTunes access through the iPhone just to remain on par with competitors that already offer online stores, says senior analyst Tim Deal.


Nokia Devices To Use PlayReady DRM
Mobile phone manufacturer Nokia unveiled plans to use Microsoft's PlayReady DRM technology for its upcoming mobile entertainment devices. The PlayReady technology allows mobile phone users to share content like music, games and videos in a protected fashion. Nokia will incorporate the software into its S60 mobile phone operating system, used not only in Nokia devices but also that made by LG Electronics and Samsung.