Monday, July 10, 2000
04:47 PM ET
Digital Payloads Offers Promo-Embedded
MP3s
Digital media promotions company
Digital Payloads is marketing an application
through which record labels and artists may be able to
generate revenue from free MP3 files. Ads may be
embedded into licensed MP3 files, thereby generating
revenue for content owners and Digital Payloads alike.
Embedded files display promotions as the music plays,
and listeners are linked to artist or label web sites.
The files are designed to work with MP3 players
including Winamp, MusicMatch, Sonique and the Windows
Media Player. One potential competitor is EverAd, which
uses its proprietary PlayJ player to insert ads into
legally downloadable music; the company has deals in
place with more than three dozen labels, including CMC
International, Tuff Gong and New Albion Records. Digital
Payloads is negotiating with interested labels, and
expects to begin distributing its first embedded MP3s by
the fall, according to a Digital Payloads spokesman.
03:15 PM ET
Senate Hearing to Feature Digital Music
Execs
On Tuesday, the U.S. Senate Judiciary
Committee will host an informational hearing on
digital music, featuring some notable witnesses: Hank
Barry, CEO of Napster; Michael Robertson,
chairman and CEO of MP3.com; drummer Lars Ulrich
of Metallica, which filed a copyright infringement
lawsuit against Napster earlier this year; and
Jonathan Potter, executive director of the
Digital Media Association (DiMA). The hearing is being
convened by committee Chairman Orrin Hatch (R-Utah).
Other witnesses include Gene Kan, the software engineer
who developed the Gnutella file-sharing application;
Fred Ehrlich, president of new technology of Sony
Entertainment; artist Roger McGuinn; and Jim Griffin,
founder and CEO of Cherry Lane Digital. The Senate
committee will be the second congressional panel to
gather information about digital music; in May, the U.S.
House Committee on Small Business held a similar hearing
featuring artist Chuck D. and EMusic executive Peter
Harter. There are currently no plans to webcast the
hearing, the spokeswoman said.
01:39 PM ET
Web
Publishing Vets Form New Venture
Internet
portal developer Lycos has taken a 25% equity
stake in Automatic Media, a new company formed by
the founders of Feed magazine (feedmag.com) and
Advance.net, the Internet strategy arm of Advance
Publications. Automatic plans to acquire web content and
develop an online editorial and ecommerce network,
building on a base that includes well-established
ventures Feed and Suck.com (a Lycos property), as well
as new Automatic acquisition Alt.Culture. The new
publishing venture said it has attracted financing in
the "$4 million range" from Lycos Ventures, Advance.net
and London-based venture capital company Paladin. The
pairing could help Feed and Suck avoid the fate of
fellow online publications APB Online, which recently
filed for bankruptcy, and Salon.com, another early web
publishing innovator that recently laid off workers and
cut its operating budget. Lycos will distribute
Automatic's content through its online network, which
includes Lycos.com, Wired.com, HotWired, Gamesville and
Tripod.
01:06 PM ET
Rapstation.com Debuts File-Sharing
Section
Public Enemy frontman Chuck D. is an
unabashed supporter of digital file-sharing, so it's no
surprise that the hip-hop site he founded,
Rapstation.com, has introduced a section devoted
to the technology. The section includes links to
download software from Napster, Scour, Gnutella and
FURI, and features reviews of each type of software.
12:14 PM ET
StarGuide Digital Networks, DG Systems To
Merge
StarGuide Digital Networks --
operator of video webcast site CoolCast.com -- has
agreed to an all-stock merger with broadcast
distribution company Digital Generation Systems
(DG Systems). Publicly traded DG Systems will issue
approximately 41.3 million shares for each outstanding
share of privately-held StarGuide, valuing the deal at
approximately $281 million based on DG's Friday closing
price. DG Systems maintains a digital distribution
network through which more than 700 advertising agencies
send clients' ads to 7,000 radio stations and 725 TV
stations. CoolCast provides live streaming entertainment
and information video and audio to broadband Internet
users. StarGuide owns patents covering digital audio
distribution. The combined companies generated $62
million in sales for fiscal 1999. At press time, DG
Systems' shares were off 8.26% at $6.25.
11:08 AM ET
XM
Satellite Radio Raises Another $235M
A week
after its chief rival beat the company into orbit with
the launch of its first satellite, XM Satellite
Radio said it has secured commitments for $235
million in institutional funding. The investment
provides XM with sufficient funding through the
scheduled launch next year of its nationwide satellite
radio service, according to the company. XM plans to
launch the first of its two satellites by mid-November.
Among the companies pledging to purchase newly issued
XM stock is American Honda Motor, which will contribute
$50 million. The U.S.-based sales and marketing arm of
Japan's Honda joins fellow automaker General Motors as
an XM investor. XM rival Sirius Satellite Radio, which
last week launched its first satellite, counts Ford
Motor and DaimlerChrysler among its investors. Sirius
also recently received more funding -- $150 million in credit from Lehman
Commercial Paper, a subsidiary of Lehman Brothers. Other
new XM backers are AEA Investors, Madison Dearborn
Partners, Baron Asset Fund, DIRECTV and Columbia
Capital.
10:04 AM ET
ChickClick Launches Online
Radio
ChickClick.com, a network of web
sites for young women, has launched a syndicated radio
program. ChickClick Radio features Top 40 music,
celebrity interviews and lifestyle features. The program
is hosted by L.A.-based radio talents Michelle Madden
and Juliet Zacarias. Listeners can customize their
ChickClick stations, controlling how often they hear a
particular song, adding favorite tracks and finding
information about the artists. The show is also
syndicated to more than two dozen terrestrial radio
stations in more than 20 states.
07:55 AM ET
Borders Webcasting In-Store
Events
Entertainment retailer Borders
has begun webcasting in-store events featuring authors,
musicians and actors. The Borders Vision area of the
site offers regularly scheduled programming that is also
available on-demand. The service was created in
conjunction with broadband entertainment company
Centerseat, and is part of Borders' commitment to a
retail convergence strategy mixing online and off-line
components.
