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AOL to offer free music, video to gain ad revenue

Compiled from staff and wire reports
Published June 20, 2005


Free music and video will be the centerpiece of America Online Inc.'s new strategy to boost advertising revenues by moving most of its content outside its well-manicured walled gardens. Features that will remain available exclusively to AOL's diminishing base of subscribers, who pay up to $23.90 a month for an all-you-can-eat package, mostly involve software and support: parental controls, special sections for kids and teens, antivirus and other security programs, and customer support hotlines operating 24 hours a day. Internal studies have shown that subscribers weren't staying on AOL simply for its content, so the company decided to make that available to a wider audience for free in hopes of gaining more online real estate to sell to advertisers, said James Bankoff, AOL's executive vice president for programming and products. AOL plans a formal launch next month.

"Podcast' market to grow, expert predicts

While 40 percent of the Internet-delivered audio shows, better known as "podcasts," focus on music, science, technology and comedy, the most popular category for users is erotica, according to Alex Nesbitt, president of Bella Ventures Inc. "The supply is not yet meeting market demands," he wrote in a just-released analysis titled, The Podcast Value Chain Report. Nesbitt predicts the market for podcasting tools and services will reach $400-million in the near future. The business consultant also said podcasts of "enduring content" like ITConversations.com are likely to become valuable as archives. Capturing university lectures and speeches will drive growth, he added. "Narrowly focused, but very high-value content that is similar to high-priced subscription newsletters, such as investment research, should also have strong commercial appeal," he said.

Make way for TVs that sport new looks

Imagine owning a television set that looks and feels like a baseball, a cello or even the horse-drawn coach that whisked Cinderella to the ball. Hannspree Inc., a Taiwan-based TV maker, is preparing to offer such designs as it launches U.S. operations this summer. As electronics companies flood the market with new plasma and LCD TV sets, Hannspree wants to stand out by offering appliances that appeal on the basis of style or just plain wackiness. Among the more than 100 designs are sets that look like a golf ball. Even the TV's stand looks like a tee. Hannspree hired four design firms to help construct its flat-screen LCD sets, which will retail for $449 to $1,399.

Make Internet safer, survey respondents say

Most Americans believe the government should do more to make the Internet safe, but they don't trust the federal institutions that are largely responsible for creating and enforcing laws online, according to a new industry survey. People who were questioned expressed concerns over threats from identity theft, computer viruses and unwanted "spam" e-mails. But they held low opinions toward Congress and the Federal Trade Commission, which protects consumers against Internet fraud. The telephone survey of 1,003 likely voters was funded by the Washington-based Cyber Security Industry Alliance, a trade group that has lobbied the Bush administration to pay greater attention to Internet security.

Service allows mobile phones to download music

Wireless equipment maker LM Ericsson and online music distributor Napster Inc. will offer a digital music service on mobile phones. The service will let users download Napster's music files to their handsets, or other mobile devices, the companies said. It is set to go live in Europe in the next 12 months and initially will be offered to operators in selected markets in Europe, Asia, Latin America and North America.

Gamers running illegal programs on Sony PSP

Gaming enthusiasts have figured out how to run unauthorized programs and games on the U.S. version of Sony Corp.'s new handheld game console. Like its rivals, Sony had tried to keep its new PlayStation Portable on a tight leash, installing controls so it couldn't run programs and games not vetted and licensed by the company. But the PSP, released in the United States in March, has been the target of fervent attempts to unlock its capabilities, which go beyond any previous handheld game machine. Sony's restrictions were defeated by a program disseminated on the Internet last week. It requires two memory cards, which are switched while the PSP is working.

20 percent favor newspaper Web sites over print

One in five Web users who rely on newspapers for news go primarily to their online editions rather than read articles in print, a new survey finds. Most, 72 percent, still primarily use the print editions, while 7 percent split their time evenly, according to a survey by Nielsen/NetRatings. Men are more likely to read news primarily online. The survey excluded people who got their news from other sources such as broadcast and people without Internet access. The random survey of 9,000 people was conducted from January through March. It has a margin of sampling error of 1 percentage point.

Wireless security camera extends battery life

Inventor Scott Jezierski says he has come up with a better way to keep tabs on children, homes and other property: a wireless security camera that can go months without a change of batteries. Similar security cameras need to be plugged into a power outlet or run continuously on batteries that last less than a day. The Mailbox Cam - at $199.95, more expensive than many security cameras - extends the life of its three AA batteries by letting users control the device remotely, turning it off and on at will. A built-in timer also ensures that the camera is not accidentally left on for extended periods.

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