In Demand signed deal with AtomFilms to offer some of latter’s short films to digital cable operators and subscribers on video-on-demand (VoD) basis, starting in March. Companies said AtomFilms would make available 10 movie titles, as well as compilations of 5 comedy and action shorts, TV series episodes and other programming. Deal comes after In Demand signed several VoD licensing agreements with Comedy Central and Court TV.
WorldGate Communications said it would introduce upgraded version of its interactive TV (ITV) service to cable operators and subscribers in first quarter. Company said new ITV service would feature improved Web browser, greater TV commerce capability, various image enhancements and Spanish-language chat. WorldGate said it would deploy new ITV features in both U.S. and Latin America.
Interim step toward making rival XM Satellite and Sirius Satellite Radio digital audio radio services (DARS) systems interoperable could be achieved by early next year, although full- scale integration won’t occur for 4-5 years, Sirius CEO David Margolese told us. In interview at C.E. Unterberg, Towbin conference in N.Y.C., he said vehicles would be prewired for DARS reception and device would be installed in trunk to accept either Sirius or XM receiver. Interim step, which moves companies part way toward satisfying FCC mandate that competing DARS service be interoperable, is required under OEM agreements with Audi, Honda, Nissan and Toyota, Margolese said. However, XM spokeswoman said interim step wasn’t part of OEM pacts, but rather was “solution” companies were developing as bridge to integrated product. Full integration will require dual chipset, industry sources said.
LAS VEGAS -- It’s “increasingly likely” that NAACP will start boycott soon against one of Big 4 TV networks (unnamed) and its advertisers because of what Assn. Pres. Kweisi Mfume called networks’ “snail’s pace” in their diversity efforts after they all signed agreements last year to increase those efforts (CD Jan 10/00 p1). At appearance before NATPE convention here Mon. afternoon, he also called for return of financial syndication (finsyn) rule that prohibited networks from having financial interests in syndicating programming, and for legislation requiring networks to air 3 hours weekly of programs written, starring and produced by minorities. As justification for latter, he cited FCC’s 3-hour kid TV rule.
“We need to move the process of Sec. 271 into high gear,” new House Commerce Committee Chmn. Tauzin (R-La.) told us in Wed. interview on his priorities for House session that begins Jan. 30. On none of his core issues was Tauzin ready to propose specific legislation. He said panel would explore several options for getting Bell companies into long distance, depending on FCC cooperation. Tauzin also said he still was unsure how much legislation would be required to reform FCC and how much new agency Chmn. Powell could accomplish on his own. He said he would ask Committee “literally to do a top-down review of the digital [TV] transition,” which he said was “really off track now.”
OpenTV signed deal with Bell ExpressVu to offer interactive TV services to Canadian DBS subscribers, starting in summer. OpenTV said services would include interactive weather and TV commerce. Bell ExpressVu will add 725,000 subscribers to OpenTV’s potential reach of more than 30 million TV viewers worldwide.
AOL Time Warner announced plans to lay off some 2,000 employees -- 3% of its total staff -- as part of its general postmerger restructuring. The cutbacks encompass 725 at AOL, including 300 in Washington area, and 1,300 at Time Warner in N.Y., L.A., Washington and elsewhere. Company also said it intended to sell or close its 130 Warner Bros. retail stores, affecting another 3,800 employees. AOL Time Warner said it would consolidate some of Warner Bros.’ Web sites and freeze hiring at its cable systems, cable programming networks and WB network. Moves come on top of restructuring CNN announced last week that will eliminate another 400 jobs. Although they don’t expect latest restructuring to generate big cost savings, company officials said AOL Time Warner was on track to meet its revenue growth targets of 12%-15% for year.
FCC ruling on 700 MHz spectrum auction (CD Jan 24 p6) will “demonstrate to shareholders the value of the television spectrum,” Pax TV said. Chmn. Lowell Paxson said new rules would allow market to determine adequate compensation for broadcasters to vacate spectrum early. He said company, which owns 18 TV stations in band, plans to “take a leadership position and set the tone for negotiations with the wireless telecom winners in the upcoming auction in an effort to speed the transition to digital television and monetize the value of our spectrum.”
Faced with loss of $1.02 billion in first fiscal quarter ending Dec. 31, Lucent Technologies announced restructuring plan Wed. that called for reducing its cost structure by more than $2 billion, taking up to $1.6 billion in restructuring charges, cutting 10,000 employees through layoffs and attrition. “Our problems are fixable,” Lucent CEO Henry Schacht said. He called fiscal 2001 “a transition year, when we are rebuilding for the future.” Company also plans to eliminate some product lines and outsource more work to contract manufacturers. Lucent had profit of $1.08 billion in same quarter year ago.
WideOpenWest signed deal with DemandVideo to offer latter’s video-on-demand (VoD) service in markets where it’s building competitive cable systems. Using DemandVideo’s VoD technology and service, WideOpenWest said it would offer subscribers choice of recent Hollywood movies, classic films, children’s and family programming and instructional shows. Customers will have 24 hours of unlimited viewing of any title they select and will be able to pause, play, rewind, fast-forward or restart titles. Cable overbuilder announced deal Wed., day after concluding 3-year pact with Source Media to use latter’s interactive program guide and local programming service. WideOpenWest said it planned to start offering 2 services first in Denver area in March.