From: <Saved by Microsoft Internet Explorer 5>
Subject: UpsideToday Newsroom:
Date: Fri, 14 Jul 2000 13:38:42 -0700
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    <TD align=3Dmiddle vAlign=3Dtop width=3D"100%">
      <TABLE border=3D0 cellPadding=3D0 cellSpacing=3D0 width=3D"100%">
        <TBODY>
        <TR>
          <TD><FONT face=3D"Arial, Helvetica" size=3D4><B>Does VCR on =
the Internet=20
            spell trouble?</B></FONT><BR><FONT face=3D"Arial, Helvetica" =

            size=3D2><B>May 17, 2000</B></FONT><BR><FONT face=3D"Arial, =
Helvetica"=20
            size=3D2><B>by Rex =
Crum</B></FONT><BR><SMALL><BR></SMALL><FONT=20
            face=3D"Times, Serif" size=3D3>The Internet is used for =
sending email,=20
            making phone calls and buying just about everything =
imaginable.=20
            <P>But can the Internet be used as a substitute for the VCR? =
That's=20
            the premise of Los Angeles-based <B>RecordTV.com</B>. The =
barely=20
            6-month-old startup is trying to lure TV couch potatoes to =
the Web=20
            with a service that lets you set up an account, record =
television=20
            programs and watch them online at a later time.=20
            <P>Media watchers say that television broadcasters and the =
motion=20
            picture industry might not like the idea of an outside party =
acting=20
            like a gateway and controlling the flow of their copyrighted =

            programming online.=20
            <P>"The debate is not really about what it is now, but about =
what it=20
            could become," said Malcolm Maclachlan, media analyst with=20
            <B>International Data Corp.</B>=20
            <P><B>Easy to execute</B><BR>The concept behind RecordTV is =
rather=20
            simple. A person goes to the site, registers for free and =
then can=20
            pick and choose programs to record. RecordTV does not stream =
the=20
            programming as it is being broadcast. If you want to watch =
the=20
            season finale of "Friends," for instance, you would have to =
record=20
            the show and then watch it after it aired.=20
            <P>David Simon started the site in November 1999 and now =
claims to=20
            have about 50,000 users. Officials with RecordTV could not =
be=20
            reached to comment, but notices on the website attempt to =
dissuade=20
            viewers from engaging in illegal distribution of programs.=20
            <P>"This site is intended to be used just as your own =
personal home=20
            video recorder is currently used. ... These shows may not be =
copied,=20
            sold or rebroadcast," reads the site.=20
            <P>Those disclaimers may not be enough to keep RecordTV out =
of the=20
            sights of the broadcast industry's lawyers, however.=20
            <P>"It sounds like they want to apply the personal use =
criteria that=20
            allows recording with a VCR to be exempt from licensing =
fees," said=20
            Jim Renhune, an analyst with <B>The Yankee Group</B>. "If =
they're=20
            making money, it's probably from advertising revenue and I =
think the=20
            issue broadcasters have is they don't want someone reselling =
their=20
            advertising."=20
            <P><B>Similar case?</B><BR>There is precedence, should =
broadcasters=20
            go after RecordTV.=20
            <P>Earlier this year, <B>iCraveTV</B>, a Canadian-based =
website,=20
            shut down after the <B>Motion Picture Association of America =

            (MPAA)</B>, U.S. television and professional sports leagues =
filed=20
            injunctions to keep the site from streaming television =
programming=20
            into the United States. The broadcasters argued that =
iCraveTV was=20
            illegally taking television signals and streaming the =
programming=20
            over its website.=20
            <P>At that time, the MPAA said it wasn't trying to attack =
Internet=20
            companies, but that the organization would use "every =
resource at=20
            our disposal to defend our intellectual property."=20
            <P>"I suspect they're (RecordTV) going to run into =
something,=20
            especially if they end up making revenue," said Jeremy =
Schwartz of=20
            <B>Forrester Research Inc.</B>=20
            <P>Analysts say that the idea behind recording and later =
watching=20
            television shows online is an interesting one, but question =
whether=20
            the technology is good enough to keep someone from just =
recording a=20
            program with their VCR.=20
            <P>"So much is being done online just because you can do it, =
not=20
            because it makes a lot of sense," said Renhune of The Yankee =

            Group.</FONT><BR><SMALL><BR></SMALL>
            <TABLE border=3D0 cellPadding=3D5 width=3D"100%">
              <TBODY>
              <TR>
                <H2>Timeout</H2>Your request exceeded the time limit. =
Please try=20
                again.=20
      <!-- 000 /mvm/story:487: Timeout =
--></TR></TBODY></P></TR></TBODY></TABLE></TR></TBODY></TABLE></BODY></HT=
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