Rhapsody is Betting on Napster Purchase to Grow Subscriber Base

  • Subscription-based music service Rhapsody has acquired Napster from Best Buy in a deal expected to be finalized the end of November.
  • “There’s substantial value in bringing Napster’s subscribers and robust IP portfolio to Rhapsody as we execute on our strategy to expand our business via direct acquisition of members and distribution deals,” said Rhapsody president Jon Irwin.
  • Rhapsody and Napster have the two largest music service subscriber bases and the acquisition could impact other music services such as Rdio, Spotify and MOG.
  • Irwin emphasized the importance of a strong subscription base: “This is a ‘go big or go home’ business, so our focus is on sustainably growing the company.”
  • “Apparently it takes more than Facebook sharing to win the subscription war,” comments Gizmodo. “Too bad I haven’t seen a Rhapsody or Napster song actually shared on Facebook.”

Rovi Provides Security and New Features for DivX Streams

  • Rovi has announced DivX Plus Streaming that allows cloud-based movie services, such as Best Buy’s CinemaNow and other sites integrated with the Rovi Entertainment Store, to stream movies securely to DivX-compatible devices.
  • New features include being able to pause on one device and seamlessly resume on another, improved video quality, and support for multiple language tracks and subtitles.
  • “Other content-protection companies, such as Google’s Widevine subsidiary, offer some similar capabilities to service providers, so Rovi is playing catch-up to a degree. And not every Hollywood studio allows its movies to be distributed in the DivX format,” reports the Los Angeles Times. “Rovi executives insist, however, that they’ve leapfrogged the competition with some features, including the near-Blu-ray-quality images and the ability to support multiple alternate-language soundtracks and subtitles in the same stream.”
  • Although integration into specific products has yet to be announced, Rovi explained the technology will be available to many existing devices through a firmware update.

New Insignia Connected TV with TiVo Interface Draws Praise

  • Gizmodo, a noted cynic when it comes to connected TVs, praises the interface and general functionality of the new Insignia Connected TV.
  • Through a partnership with TiVo, the Insignia Connected TV will be available on BestBuy.com and at Best Buy stores. The 32-inch model will be priced at $499 and the 42-inch model will cost $699.
  • “TiVo has evolved from its roots as the DVR that changed the way consumers interact with entertainment, allowing us to customize and deliver solutions that best meet the needs of our partners like Insignia,” said Jim Denney, general manager and VP of Product Marketing at TiVo.
  • Features include 1080p LCD, 120Hz and Audyssey sound processing. Entertainment options include Netflix, CinemaNow, YouTube, Pandora and Napster — plus apps from the chumby content network such as Facebook, Twitter, Photobucket, Accuweather, Reuters News and more.
  • Gizmodo comments: “The set’s interface is refreshingly simple, responsive, and natural…the real pull is the TiVo blood inside. No, there’s no DVR integrated — but for the first time, I looked at an ‘app TV’ that didn’t make me want to light it on fire. TiVo knows software. It shows.”

Microsoft to Expand Retail Presence with 75 New Stores

  • Microsoft plans to add at least 75 new stores in the next two-three years, part of an aggressive strategy to beef up its competition with Apple.
  • At the company’s Worldwide Partner Conference in Los Angeles on July 13, COO Kevin Turner said the plans also include international locations.
  • Microsoft currently operates 11 brick-and-mortar stores in the U.S., while Apple has more than 320 worldwide.
  • Executives at Microsoft have reportedly been debating the bold and potentially risky move, since most of the company’s stores are not making money and most of their products are also available at traditional retailers such as Best Buy.
  • The seattlepi.com post includes a U.S. map of planned store locations.