Digital Media

(Credit: ZillionTV)

A new company called ZillionTV says it will soon introduce a new service that will enable cable and satellite subscribers to cut the cord and get subscription-free movies and TV shows right on their TVs from the Internet.

The company, which officially launched on Wednesday, has struck deals with some major Hollywood movie studios and TV networks, including Disney, 20th Century Fox Television, NBC Universal, Sony Pictures, and Warner Bros. Digital Distribution.

The plan is to offer streaming movies and TV shows directly to TVs using a broadband connection. The company has created a small piece of hardware it calls a Z-bar, which provides the connection between the TV and the Internet via an Ethernet cable or Wi-Fi. The Z-bar also acts as a receiver for the company's unique remote control, which works a lot like a laser pointer and uses sensing technology to navigate through the content menu on the TV screen.

The back side of the Z-bar shows the connections to the TV and the Internet.

(Credit: Marguerite Reardon/CNET )

The ZillionTV service, which is currently being beta tested, will only be offered through an Internet service provider. It will be commercially available starting in the fourth quarter of 2009.

Unlike some other Internet-to-TV services, such as Netflix's movie rental service, ZillionTV does not require a subscription. It also doesn't require users to buy an expensive box, such as Microsoft's Xbox 360, Apple's AppleTV, or even Roku's $99 digital video player. Instead, for a nominal activation fee of less than $50, users will get the Z-bar and remote. And then they will be able to view up to 15,000 titles of TV shows and movies through the service without having to sign up for a monthly subscription.

Troubled Sirius XM Radio announced Tuesday, following reports, that it will accept an investment from cable giant Liberty Media.

The investment, which will save the satellite radio company from bankruptcy or a hostile takeover, will take the form of $530 million in loans in exchange for an equity stake.

The first phase of the investment will consist of a $280 million loan, $250 million of which will be funded immediately on Tuesday, a statement from Sirius XM noted. The second phase, a $150 million loan, will be aimed specifically at the company's XM Satellite Radio subsidiary. Liberty, which owns a big stake in satellite television provider DirecTV, will also offer to purchase up to $100 million worth of XM's outstanding loans.

"We are pleased to have come to this agreement with Liberty Media, particularly in light of today's challenging credit markets," said Sirius XM CEO Mel Karmazin, whom creditors had been threatening to oust if the company chose bankruptcy over an investment deal. "Liberty's investment is an important validation of what Sirius XM has already achieved and a vote of confidence in what we will achieve. This agreement enables Sirius XM to continue to develop the opportunities first outlined in the merger of Sirius and XM."

Sirius XM was formed in July when longstanding merger agreements between two rival satellite radio companies, Sirius Satellite Radio and XM Satellite Radio, closed following FCC approval.

In October, Karmazin took the stage at a New York business-media conference and insisted that the company was on a firm path to profitability despite the fact that the credit crunch--then in its first throes--had hit Sirius XM particularly hard.

This post was expanded at 6:20 a.m. PST.

Sirius XM Radio's chief executive may lose his job if the company chooses to file for bankruptcy protection.

A group of creditors tells The Wall Street Journal that it will seek the removal of CEO Mel Karmazin if the company chooses bankruptcy over a deal with an investor that would allow it to remain solvent.

"Creditors will act quickly and definitively if they perceive that management is acting in their own interest and not in the best interest of the estate," Edward Weisfelner, a partner with Brown Rudnick, the law firm representing the creditor group, told the newspaper. "The board of directors should carefully consider the ramifications."

The company is reportedly meeting this weekend to determine a course of action, with a final decision expected as early as Monday.

Sirius is staring at a significant debt crisis. According to a story that appeared on Yahoo Finance, financial research firm Moody's "thinks there's a 'high likelihood' that Sirius will fail to repay or refinance its debt in 2009." And that debt is reportedly coming due Tuesday.

If the company does file for bankruptcy, the creditors could petition the court to have Sirius' management removed and have the company placed under the stewardship of an independent trustee.

Sirius has been rumored to be seeking some sort of an investment from Liberty Media, which controls DirecTV, according to several media reports quoting anonymous sources close to the matter. A deal between the satellite radio giant and the largest U.S. satellite-TV provider could help Sirius fend off bankruptcy and an unsolicited takeover attempt from satellite company EchoStar, which has bought up Sirius' debt.

The company is also rumored to be mulling a bankruptcy filing to pressure Charles Ergen, the satellite-TV magnate who recently bought up most of Sirius' debt, to make a formal offer for the company.

Sirius XM Satellite Radio, the financially troubled radio service, is busy preparing for a possible bankruptcy filing, according to a published report.

Sirius, home of shock-jock Howard Stern, has been working with advisers on the bankruptcy documents that could be filed within days, according to The New York Times.

Sirius is staring at a significant debt crisis. According to a story that appeared on Yahoo finance, financial research firm, Moody's, "thinks there's a 'high likelihood' that Sirius will fail to repay or refinance its debt in 2009."

Sirius' debt comes due on Tuesday, according to the Times' story. The company may file for Chapter 11 bankruptcy to pressure Charles Ergen, the satellite-TV magnate who recently bought up most of Sirius' debt, to make a formal offer for the company, the Times reported.

If Ergen chooses to wait and Sirius files for bankruptcy, it might force him to obtain the company through an auction or bankruptcy court. Another alternative for Ergen is to convert his debt into an ownership stake, according to the report.

Phone companies around the world offering IPTV are expected to see a 32 percent increase in subscribers by 2014, according to a new report published by market research firm ABI Research.

ABI's report notes that while traditional satellite and cable TV platforms will likely continue to retain a foothold in most markets, new IPTV services that provide interactive television will grow to nearly 79 million subscribers over the next five years.

"(IPTV) usage will initially be concentrated in countries with established high-speed Internet technologies, such as France, the Netherlands, South Korea, and Hong Kong," Serene Fong, an industry analyst at ABI Research, said in a statement. "But as technology progresses and matures, developing countries such as China will rapidly catch up in subscription numbers."

Earlier this week, Microsoft announced that its Mediaroom IPTV software is being used by a Chinese TV provider called Guangzhou Digital Media Group. The deal marks two firsts for the company--its first IPTV deal in China as well as the first time its software has been used to power TV over a traditional cable network.

Phone companies around the world are using IP technology to provide TV services that compete with satellite and cable operators. Here in the U.S., AT&T is the largest phone company to use the technology to offer TV services. Verizon Communications uses a combination of IPTV technology and traditional cable and broadcast technology to deliver its Fios TV service.

The value of offering TV service over an Internet-enabled data pipe is that it can provide more interactive programming. Viewers can select movies on demand and will one day be able to interact with advertisers to find out more information about a particular product or even buy items right from their TVs.

Today most cable and satellite operators around the world use traditional infrastructure to deliver services. But even these companies are exploring ways to use IP technology to make their services more interactive.

Massachusetts police used cell phone tracing via GPS and Google Maps to track down a 9-year-old girl who was allegedly kidnapped by her grandmother, the Worcester Telegram & Gazette reported on Wednesday.

Police arrested the 52-year-old grandmother at a motel in Natural Bridge, Va., on Tuesday after she allegedly failed to return her granddaughter to the home of her legal guardians in Athol, Mass., the report said. The grandmother had picked up the child for a weekend visit on Saturday and allegedly threatened to not return her, according to the report.

With help from the cell phone provider, authorities were able to trace the location of the child's cell phone and followed the journey of the grandmother and granddaughter by using GPS coordinates that updated every time the phone was used.

They were able to track the phone to an intersection on Virginia Route 11 in Natural Bridge and then used Google Street View to view the intersection, where they saw a building with a red roof that looked like a motel. Then they searched on Google maps for motels in the town and located the Budget Inn-Natural Bridge and confirmed the location using Google's satellite view on the map, the report said.

The case is "an interesting first (at least as far as we're aware)," Pablo Chavez, Google senior policy counsel, wrote in a blog post.

The Google Street View of the Virginia motel where a missing Massachusetts girl was found with her grandmother.

(Credit: Google)

NEW YORK--He made it past the Federal Communications Commission. But Sirius XM Radio CEO Mel Karmazin now has to deal with Wall Street.

In his keynote interview Tuesday at the Media & Money Conference, a joint production of Dow Jones and Nielsen, Karmazin wasn't in humility mode. "We're probably one of the top 25 media companies today," he said of the newly merged Sirius XM, which brought together the world's only two satellite radio companies. "I think it's very clear that we will be the most successful company in the audio entertainment industry. I know certainly, as ranked by revenue, we'll be there soon. Now we just need to grow our free cash flow and demonstrate that."

As so many have argued in recent weeks, Karmazin's mantra was that Wall Street is misguided, myopic even. "You need to make money, and in this particular environment, with Wall Street being what it is today, I think the companies that get rewarded today are companies that have an awful lot of cash flow, that make a great balance sheet. And that's not us today."

Sirius XM is in a tight spot. The merger was long and costly, both companies have shelled out extraordinary amounts of money to secure personalities like Howard Stern (who cost $500 million alone), and the credit crunch has dealt a blow to the most lucrative base of new satellite radio subscribers--car buyers. Sirius XM also has to refinance about $1 billion in debt, something else that won't be easy considering the volatile market.

Karmazin, a veteran of Viacom and CBS (which publishes CNET News), joined Sirius pre-merger in 2004, and acknowledged that he was brought onboard to accomplish a very difficult task of making the company profitable. "Before Sirius got its first dollar of revenue, which was in 2002, we had billions of dollars invested in the company," he said, explaining that the company had to launch three satellites before a single subscriber could sign up. That was a billion-dollar project.

"The day I joined the company, we had revenues of $67 million, and with revenues of $67 million the company had announced five months before that it had signed Howard Stern for $500 million," he said.

Today, Sirius XM has 19.5 million subscribers, which Karmazin said makes it the second-biggest subscriber base in the cable-satellite space behind Comcast, and is slated to keep growing. Sirius cut back its net losses last quarter, its final quarter before the merger. But the downturn in car sales is making Wall Street and the rest of the world less confident about Sirius' growth projections.

Karmazin said that if the auto market does poorly, there will still be millions of new satellite radio subscribers. "(Let's say) in 2009 there were only 12 million cars sold. That could happen, but no one has forecast that number as low," he speculated. "Of the 12 million, 6 million will leave the assembly line with satellite radio installed. So that would get us 6 million gross adds, and then there's a conversion rate. About 50 percent of those people choose to keep satellite radio...That would mean we're going to add about 3 million new subscribers just from that OEM (original equipment manufacturer) platform.

It was an optimistic pitch to the suit-clad audience, especially considering the widespread belief that satellite radio has been an overpriced, failed experiment.

But the good-ish news? The coming advertising downturn won't shoot down satellite radio. Karmazin said that between 94 percent and 96 percent of Sirius XM's revenue comes from monthly subscription fees, not advertising.

A typo was corrected: Sirius first pulled in revenue in 2002, not 2022.

This shot of Kutztown University in Pennsylvania is the first image from the GeoEye-1 satellite. Google is a commercial customer for the satellite's imagery. Click for a larger view.

(Credit: GeoEye)

Golden Bears fans, take note: The first high-resolution photos from GeoEye's newest satellite, GeoEye-1, have begun arriving, and Kutztown University in Pennsylvania is the first subject of scrutiny.

These are the shots that eventually will show up on Google Maps and Google Earth; Google has an exclusive partnership to use the GeoEye-1 imagery for online services. The satellite's camera can capture image details as small as 41 centimeters, though commercial customers only get 50-centimeter resolution because of U.S. regulations.

The Kutztown University image was taken at noon EDT Tuesday while the satellite was moving south at an altitude of 423 miles at a speed of 4.5 miles per second relative to the Earth's surface, GeoEye said.

GeoEye launched the satellite on September 6; GeoEye-2 is slated for a launch in 2011 or 2012. It has a 25-centimeter resolution.

The GeoEye-1 satellite that launched into orbit Saturday is on a mission from Google.

Well, not just Google. The GeoEye-1 is part of the NextView program of the U.S. National Geospatial-Intelligence Agency, a dot-mil organization that, odd as it may seem, wants access to commercial satellite imagery to support its national security mission. GeoEye, the company, won its $500 million NextView contract four years ago.

Google's rocket-borne logo.

(Credit: GeoEye/ULA)

But the search titan does have the exclusive rights among online mapping sites to the GeoEye-1 images, which it will use in its Google Earth and Google Maps offerings. It even got its corporate logo emblazoned on the launch rocket, right below Boeing's.

Google co-founders Sergey Brin and Larry Page were on hand at Vandenberg Air Force Base in California for Saturday morning's launch, according to the Reuters news agency.

GeoEye said Saturday afternoon that the satellite had separated from the second stage of the Delta II rocket and was initializing its onboard systems.

The GeoEye-1 will zip around the Earth at about 4.5 miles per second, taking both color and black-and-white images from a distance of 423 miles. Its camera can distinguish objects on the ground as small as 16 inches in size, according to GeoEye. Because of U.S. licensing restrictions, Google's resolutions won't be quite that sharp.

High-resolution color images are expected later in the fall.

A GeoEye-2 satellite is scheduled for launch in 2011.