Industry Roundup

MPAA lawsuits: Online movie pirates could soon be receiving subpoenas if they don't cease and desist, according to a November 4 announcement from the Motion Picture Association of America (MPAA).

The trade organization plans to begin filing suits November 16 against as many as 250 defendants who made movie uploads available from their computers via peer-to-peer file-trading s as Kazaa and eDonkey. The lawsuits are a pre-emptive strike by the film industry, which hopes to prevent an epidemic of file sharing like the Napster-initiated phenomenon that blind-sided the music industry.

"If we don't act now, the consequences will be devastating to the entire film industry," said MPAA president and CEO Dan Glickman. "This is about protecting some things that all Americans hold dear: consumer choice, artistic creativity, and economic growth." Supporters of the lawsuit campaign include MGM, Sony Corporation, the Walt Disney Company, Warner Brothers, many other MPAA members, and film industry trade unions such as the Directors Guild of America, the Writers Guild of America, and the Screen Actors Guild. Film star and California Governor Arnold Schwarzenegger also backs the litigation campaign because the film industry generates about $30 billion in annual revenue for the state. Should any defendants be found guilty, they could face fines as high as $30,000 per infringement.

Blockbuster's blues: The world's top video chain has posted a loss for its third fiscal quarter, including a $1.5 billion charge related to its split from Viacom. Blockbuster reported $1.41 billion in revenue, above analysts' estimates, with income figured at $3.4 million. The company is reeling from competition from online rental services such as Netflix, and from the public's growing urge to buy rather than rent DVDs. Blockbuster is trying to leverage this trend by selling used titles at deep discounts, but perhaps not deep enough to compete with retailers like Target stores, where top titles can be had for well under $10 each.

Scientific-Atlanta soars: The swelling popularity digital video recorders (DVRs) lifted the Atlanta-based technology company's financial by 31% for the first fiscal quarter ended October 1. Earnings were $55.9 million compared to $42.7 million in the same period last year. Sales increased 14% percent to $452.7 million from $395.6 million a year earlier. The company shipped 397,000 DVRs and 416,000 cable modems during the quarter. Both figures exceeded any previous quarter.

Denon and HQV: Denon will use Silicon Optix's "Realta" chip with Hollywood Quality Video (HQV) technology in its new European model DVD-A1XV DVD player, to be marketed as the DVD-5910 in the US. "We quickly realized that there really was no other solution that could match the incredible picture quality that the Realta HQV chip delivers," stated Denon UK product manager Roger Batchelor. "No other technology enables a level of image quality that comes close to HQV, when converting standard DVD video and film to high definition" The Realta chip was first used in Teranex's $60,000 broadcast and post-production platforms, using software algorithms capable of a, trillion operations per second, according to a press release from San Jose, CA–based .

DTS High-def: Agoura Hills, CA – based DTS (Digital Theater Systems, Inc.) has announced "DTS-HD," the new trademarked brand name for its lossless technology. Previously known as "DTS++," the DTS-HD mark will denote media, source players and decoders that are compliant with the next generation high definition disc formats, Blu-ray Disc and High Definition DVD (HD-DVD). "DTS-HD is a set of extensions to the Coherent Acoustics audio coding system, which also encompasses DTS Digital Surround, DTS-ES, and DTS 96/24. The introduction of DTS-HD will provide manufacturers and content providers with a complete range of DTS-branded technologies, incorporating lossless technology for next generation formats," stated an October 27 press release.

The company has also completed the acquisition of QDesign Corporation, a Canadian audio delivery technology company, now formally designated as DTS Canada ULC. Based in Vancouver, BC and already integrated into DTS' ongoing activities, the DTS Canada ULC team will focus exclusively on product development, IP creation and Research & Development.

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