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.
In report to FCC, NCTA said CableLabs released specifications for digital TV set that would allow interactive services. Set won’t require set-top box for compatibility. NCTA also said consumers with current generation DTV sets could receive broadcast digital or HDTV programming over their cable systems where cable companies and broadcasters had reached carriage agreements. In those cases, cable operators provide set-top boxes to subscribers. This was NCTA’s 3rd progress report on compatibility between cable systems and consumer electronics equipment. Report was filed in response to FCC order asking for progress reports on DTV compatibility issues every 6 months until Oct. 2002.
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.
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.”
Federal court ruled Mon. that AOL probably committed copyright infringement by using and distributing computer software owned by PlayMedia Systems without latter’s audio player “WINAMP.” In Oct. 29 order granting preliminary injunction against AOL, U.S. Dist. Judge Howard Matz, L.A., said PlayMedia was likely to succeed in proving that: (1) AOL exceeded terms of license given by PlayMedia to Nullsoft -- company later acquired by AOL -- for AMP software that decoded digital audio files compressed in MP3 format. (2) AOL, even if it were using AMP source code in conjunction with WINAMP, violated licensing agreement by sublicensing AMP in object code form other than for use in conjunction with WINAMP only. (3) PlayMedia had suffered irreparable injury and was entitled to injunctive relief. AOL reportedly has said it will seek stay of injunction and appeal it.
Image Entertainment set Nov. 27 release of 2 I Spy: The Robert Culp Collection DVDs featuring episodes written by and featuring star of TV series that debuted in 1965. Culp will contribute audio commentaries to discs, which include final 7 programs in 82-episode series.
R.C. Willey opened 130,000-sq.-ft. store in Henderson, Nev., marking entry into Las Vegas market. Salt Lake City-based chain, which plans up to 3 stores in Las Vegas area, is likely to open 2nd outlet in Summerlin, Nev., in 2003, Vp Steve Child said.
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.