CNM Short Takes

PhotoChannel products offered at 7-Eleven storesPhotoChannel and DataWave have launched a private label online photofinishing store in 500 7-Eleven stores across Canada. The service uses back-end technology PhotoChannel and DataWave to enable the sale of in-house branded prepaid cards. Consumers upload photos to 7-Eleven’s web site, place their order and check out using their prepaid card, and the pictures are delivered to their door. Peter Fitzgerald, chairman, president and CEO of PhotoChannel said that retailers "such as 7-Eleven endorse the PhotoChannel, and DataWave prepaid print product is a significant sign of how printing digital images has reached the mainstream," and added "prepaid digital printing can help them reach new and untapped markets, all without any inventory carrying costs." Sony adds software accessory onto LocationFree TVSony of Canada Ltd. added a new software accessory for its LocationFree television. "Following last year’s successful launch of the LocationFree TV, we wanted to expand the availability of LocationFree technology by introducing an accessory for customers who wish to watch their favourite personal (audio-visual) content from their notebook or desktop PC," said Toshi Matsuo, general manager, consumer display products, consumer audio visual/information technology group, Sony of Canada. Matsuo also said, "the PC software accessory further expands," the nature of LocationFree television. CMA asks feds to reject harsh changes to Competition ActThe Canadian Marketing Association (CMA) asked the federal government to reject amendments to the Competition Act (Bill C-19) that could destroy many businesses that engage in traditional forms of comparative advertising. Civil penalties for deceptive marketing practices would be increased to a maximum fine of $10 million for corporations for the initial contravention and $15 million for each subsequent order, $750,000 for individuals and $1 million for each subsequent order. CMA’s submission to Parliament points out that the proposed maximums are out of proportion to criminal penalties under the existing act. Also, the CMA notes that the Competition Bureau has sufficient resources to effectively enforce its responsibilities under the act. CPCC asks Copyright Board of Canada to maintain tariffs The Canadian Private Copying Collective (CPCC) has asked the Copyright Board of Canada to maintain the levies on blank audio recording media at existing levels in the 2006 private copying tariff. The interim tariff was to remain in effect pending the Federal Court of Appeal (FCA) ruling on three applications for judicial review of the Copyright Board’s December 2003 decision on the 2003-2004 tariff. However, the 2004 FCA decision resulted in two applications for leave to appeal to the Supreme Court of Canada. CPCC’s executive director, Anna Bucci said, "The request to maintain the status quo for 2006 was considered prudent at this time, pending results from the appeals to the Supreme Court, which will affect music rights holders significantly in the long-term." The Retail Council of Canada has filed a request for leave to appeal the part of the decision. 'American Baby" hit single delivered by Musicrypt DMDSRCA Records has chosen Musicrypt Inc.’s Digital Media Distribution System (DMDS) to deliver the new Dave Matthews single, "American Baby" to radio stations in the United States. The song was electronically distributed to stations using Musicrypt’s technology, which the company touts as secure and easy-to-use. TELUS and Intrawest sign $30-million dealTELUS Corp. entered an eight-year, $30- million agreement with Intrawest Corporation to be the exclusive supplier of next generation Internet protocol and telecommunications services to all Intrawest resorts across Canada. The contract covers Intrawest in major resort properties of Whistler Blackcomb and Panorama Mountain in B.C., Tremblant in Quebec, and Blue Mountain Resort in Ontario. TELUS will provide data, IP voice and wireless services. RIM and AOL introduce text messaging on BlackBerry Research In Motion Ltd. (RIM) has joined America Online Inc.’s AOL Mobile Developer Program (MDP) in order to support the popular AOL Instant Messenger (AIM) and ICQ services on the BlackBerry wireless platform. With AIM or ICQ on BlackBerry, users will be able to have access to their contact, and send instant messages. The Globe and Mail offers news through favourite RSSThe Globe and Mail is the first Canadian newspaper to allow news followers from across Canada and around the world to read content via their favourite RSS news reader. The Globe and Mail publisher and CEO Phillip Crawley said, "Our goal is to deliver the The Globe’s renowned reporting, insight, and analysis to readers in the media that suit them best." Industry Minister replies to CCTA’s requestIndustry Canada minister David Emerson has replied to the Canadian Cable Telecommunications Association’s (CCTA) request that the Standing Committee on Industry, Science and Technology examine potential copyright reform legislation. In a March 2 letter to the CCTA, the minister writes: "please be assured that the government remains committed to a balanced approach to copyright reform that takes into account the interests of all stakeholders, including those of ISPs." Emerson also added, "I encourage you to inform the Chair, Mr. Brent St. Denis, M.P., as well as members of this committee, of your strong interest in this regard," and "please be assured that your comments are very much are appreciated as a significant contribution to this process." AOL Canada buys back shares from Royal BankAOL Inc. now has 100% ownership of its stake in AOL Canada Inc., where they had previously owned an 80/20 joint venture with Royal Bank of Canada. This follows AOL’s historic business model, where they’ve always entered countries through joint ventures because of lower risk and quick access to local marketing expertise. Jon Zeitler, an AOL vice-president, said about the buyback: "I really think this (buyback) is a vote of confidence in a couple of ways: one is the company itself, AOL Canada, and the job Craig (Wallace) and his team has done and obviously we’ve been watching closely and feel like they’ve done a great job at positioning themselves for future growth in the market." AOL Canada’s president and CEO Craig Wallace said, "Canadians building services that meet the needs of Canadians with the benefit of global resources are now available," and added, "that translates into enhancing the scope of what people do while they are online." Retailers ask court to deny CPCC leave to appeal motionLawyers acting for the Retail Council of Canada have urged the Supreme Court of Canada to deny an application by the Canadian Private Copying Collective to re-hear the private copying decision. In a response to the leave to appeal application, the retailers write that the Federal Court of Appeal was correct to remove private copying levies from devices such as Apple Corp.’s iPod (CNM, Feb. 17/05). The retailers write: "To blur the distinction between a medium and a device would be tantamount to saying that a blank piece of paper is the same thing as a photocopier, or that a blank CD is the same as a computer. This would stretch the legislation beyond any reasonable interpretation or intention." The lower court ruled that private copying levies can only be charged on blank media, not devices. DVD recorders driving non-PC DVD market: In-StatDVD recorders are starting to drive the market for non-PC DVD hardware – a trend that is keeping the overall global DVD hardware market on the rise, states research firm In-Stat. The DVD market, excluding those connected to PCs, doubled in size in 2004 and is expected to grow by 87% in 2005, according to In-Stat. The research firm predicts that worldwide DVD recorder unit shipments will grow from 9.4 million in 2004 to 67.7 million in 2009. IPTV to grow to 25.3 million users by 2008: analystsThe number of users of Internet television (IPTV) will grow to 25.3 million by 2008 from 1.9 million last year, according to a study by the California Multimedia Research Group. The report forecasts that IPTV subscriber revenue will grow to US$7.2 billion in 2008 from US$635 million in 2004. The growth predictions are in line with recent research from Strategy Analysts and Jupiter Research that said by 2008, 41% of European homes will subscribe to broadband, according to a C-21 article. It notes that Sweden, Switzerland and Belgium will lead the way penetration rates of between 55% and 60%.

CNM Short Takes

Broadcast | March 22, 2005

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