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102 Convergence
Computing, News, Content Intel Joins Bertelsmann to Develop
Technology
• •
"One of the major environmental
changes in the electronics industry is this convergence: a
combination of computing, communications and content," Intel
Chief Executive Craig Barrett said Wednesday. "This thing we
call the digital home really is the combination of all three
of those things."
• •
The deal represents a surprising
alliance between two of the largest players in the media and
technology industries, which have clashed in recent years
because consumers have used cutting-edge products to copy
billions of movies and songs without paying for them. The
products will be used to download and share music, films and
games online.
• •
Chip maker Intel Corp. and media
conglomerate Bertelsmann plan to cooperate in developing
technology for downloading and sharing films, music clips
and games from the Internet.
• •
Intel will make chips for PCs,
notebooks and mobile phones that are compatible with a new
online media file-sharing platform from Bertelsmann's
services and technology arm, Arvato, capitalizing on the
huge and growing public appetite for accessing music and
other media online.
• •
"One of the major environmental
changes in the electronics industry is this convergence: a
combination of computing, communications and content," Intel
Chief Executive Craig Barrett said Wednesday. "This thing we
call the digital home really is the combination of all three
of those things."
• •
The deal represents a surprising
alliance between two of the largest players in the media and
technology industries, which have clashed in recent years
because consumers have used cutting-edge products to copy
billions of movies and songs without paying for them.
• •
On Tuesday, the U.S. Supreme Court
heard arguments on whether peer-to-peer software makers
should be held liable for the millions of copyrighted files
their users download each day.
• •
Through a trade group, Bertelsmann's
music company has pressed to shut down software makers such
as Grokster and Morpheus, while Intel has sided with other
technology companies that fear anti-piracy efforts could
deter the next generation of innovative products such as
Apple Computer Inc.'s iPod music player.
• •
But Bertelsmann also has shown more
flexibility and daring than its peers.
• •
The company struck an alliance with
file-trading network Napster in 2000 at a time when its own
record company, BMG, was seeking to shut it down, and said
in November that it was in talks with Grokster to develop a
legitimate peer-to-peer service.
• •
Santa Clara, Calif.-based Intel has
for decades been closely and almost exclusively associated
with the personal computer, but it is beginning to expand
beyond the slow-growing PC market into the $200-billion
consumer electronics industry.
• •
Bertelsmann's Arvato unit announced
the launch last week of a new Internet platform, which it
planned to sell to mobile phone operators, Internet
providers and TV stations.
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Convergence Computing, News, Content Intel Joins
Bertelsmann to Develop
Technology
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