Archive for February 16th, 2008

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British-based Play.com, a privately-based retailer, has launched a new download store in direct competition with Apple Inc.’s (NASDAQ: AAPL) iTunes Store in the United Kingdom. PlayDigitial will offer tracks without digital rights management (DRM) technology from privately-held EMI Group and independent labels, in a move that looks similar to iTunes current offering of DRM-free tracks at lower prices. The store will still offer DRM tracks at higher prices than the DRM-free tracks and is in talks with other labels to bring more DRM-free tracks into the store.

Play.com’s new store comes in advance of Amazon.com Inc.’s (NASDAQ: AMZN) sister store in the UK, Amazon.co.uk, opening a similar store with DRM-free tracks. The U.S. store recently opened its own MP3 store in full with DRM-free tracks from all the major labels, not simply limited to one major and independents. According to Billboard, the UK version of iTunes controls 70% of the market there and the store is also being forced to bring prices down to common prices with other European nations. PlayDigital and the eventual Amazon download store in the UK will work against that control and price drops.

It seems odd that the “fight” against digital rights management continues, taking into account that it has essentially been over in the United Says since last month when Amazon’s MP3 store gained access to tracks from all the major labels without the technology. Obviously different laws exist for agreements with companies in different countries, but until DRM is dropped totally, moves like this are going to continue to occur. Unfortunately for Apple and the iTunes Store, the drive against DRM technology that was started about a year ago is no longer under the company’s control, with stores like Play.com and Amazon.com taking the lead and gaining superior deals with the music labels.

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Germany frets for economic model after tax scandal
Forbes - Finance Minister Peer Steinbrueck told reporters Zumwinkel had admitted evading taxes. Zumwinkel himself wasn’t available for comment. Robert Zollitsch, the new chair of Germany’s Catholic bishops’ conference, said anyone suspected of evading

Ferris offers victims millions
Baltimore Sun - Dadante pleaded guilty last year to using proceeds from the fund to finance a luxury home and gambling junkets to Las Vegas. He also admitted to using accounts at Ferris and other firms to artificially inflate the stock of Georgia-based Innotrac Corp

How to profit from the banks’ pain
Times Online - In early 2001, when interest rates were at 5.25%, Intelligent Finance led the field with its nonotice account paying 5.50%. Now, West Bromwich pays 6.55%, while Anglo Irish offers the next ideal available at 6.30%. Rachel Thrussell at Moneyfacts, a

Obama wears Iraqi soldier’s bracelet
Miami Herald - Personal Finance Barack Obama is wearing a wristband in memory of a soldier killed in Iraq, given to him by a mom who stated she wants

No. 24 Vanderbilt beats Florida
Miami Herald - Business Monday | National | International | Personal Finance | Technology | Small Business | Friday Business Report Food | Health | Home Vanderbilt guard Alex Gordon (3) makes the final point of the game against Florida on a free throw with 13.8 seconds left

Northern Rock: prepare for another Alistair Darling cockup
Times On the internet - It is well financed, has a solid chairman in Sir Brian Pitman and Virgin has promised a top-drawer finance director, whose name has yet to be revealed. But shareholders don’t like the dilution or the terms of the deal. Some of them have already

Phillip Bennett, boss of collapsed futures trader Refco, admits $2.4bn
Times On the internet - Two colleagues, former Refco finance chief Robert Trosten and former president Tone Grant, will go on trial on March 17. The government claims that Bennett, Grant and Trosten moved losses and certain expenses off Refco’s books to Refco Group

Editorial: Bioscience campus should win support
Minneapolis Star Tribune - It’s the same arrangement used to finance the new stadium. But it’s a change from previous versions of the biosciences campus proposal, and it’s crucial to winning over previously skeptical Home members. With this change, the biosciences buildings

Mortgages for the bonus kings
Times Online - Eventually, his broker, Savills Private Finance, found a deal with Intelligent Finance. Bruun, 40, said: ‘Because I’m self-employed, my income varies, and this can make things more complicated. ‘I’ve really noticed a change in the past six

In Kosovo, it’s ‘Independence Eve’
Miami Herald - Business Monday | National | International | Personal Finance | Technology | Small Business | Friday Business Report Food | Health | Home Ethnic Albanians walk on a bridge lined with Albanian flags, outside the village of Kacanik, in the south of the province

Bush Pledges to Help Resolve Turmoil in Africa Trouble Spots
FOX News - The 2006 elections were nearly derailed when the government ran out of funds to finance its election machinery. Voters stepped in, raising cash, lending computers and using motorcycle headlights to illuminate ballot-counting centers. Thomas Boni Yayi

Citigroup bails out CSO hedge fund following bond sale dispute
Times Online - Citigroup has been forced to bail out one of its best-known hedge funds with a $100 million (£51 million) capital Also in Banking & Finance

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NASCAR may be a good place to test engines, but the three U.S. car-makers all maintain budgets for the wild races which top $100 million each. A Chrysler executive quoted by Reuters explained the love affair by saying that “there are still 75 (million) to 80 million NASCAR fans out there … and being in the vehicle business, this is exactly the types of folks we want to be speaking to.”

For companies like General Motors Corp. (NYSE: GM) and Ford Motor Co. (NYSE: F) who count on middle America and pickup buyers for most of their sales, the venue is probably priceless. It is notable the the more successful Japanese manufacturers tend to keep a lower profile. While GM’s U.S. market share is 25% overall in the domestic market, the automobile company says that number is closer to 40% among NASCAR fans.

It is, in almost every way, an example of what’s wrong with Detroit. The companies love marketing to themselves. With their market shares at the lowest level in years, they’re probably already down to their core customers bases. Rolling out pickups for the “good old boy”segment of the market doesn’t do them much good.

They should be trying to win over people who own a Prius.

Douglas A. McIntyre is an editor at 247wallst.com.

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