Cable online boost
Launch Media bows music mag on Internet
The Launch deal is believed to be the first of many such content deals to be offered exclusively to customers of cable-owned Internet services like @Home and Roadrunner, highlighting the dramatically bigger capacity of their Internet services over Internet access delivered by phone lines.
@Home is owned by cable operators like Tele-Communications Inc. while Roadrunner is jointly owned by Time Warner, MediaOne (formerly known as US West Media Group) and Advance/Newhouse. Time Warner chairman Gerald Levin noted Wednesday at a press briefing that "creating content that is new media-specific" was one of the objectives for Roadrunner in the future.
Sophisticated content
So far the cablers have promoted their Internet services only for their speed over regular or high-speed phone lines. But the huge capacity of cable systems means @Home and Roadrunner can offer more dramatically enhanced content than existing Internet offerings, which tend to be more text information-oriented than video and music entertainment, industry execs say.
Right now Launch sells its interactive magazine via CD-ROM, said Launch CEO Dave Goldberg. The mag, which features video interviews and concert clips from musicians, has a paid circulation of 285,000.
Goldberg said Launch could not offer the magazine over the Internet because of the Web's capacity constraints, although Launch does have a Website.
Enabling software
That will change as a result of Launch's deal with software developer Arepa, which in turn has agreed to provide exclusive content to @Home and Roadrunner. Arepa, which is partly owned by @Home and MediaOne, has developed software enabling content stored on its servers to be accessible to customers using cable modems.
"Having a lead interactive content player like Launch Media aboard enriches what we can offer subscribers," said Arepa CEO Ric Fulop.
Encryption technology in Arepa's software will prevent customers downloading the magazine onto their computers, Goldberg said, but subscribers will be able to call up the mag whenever they want.
Goldberg said Launch will be able to offer more content through cable modems than through a CD-ROM, enabling, for example, the magazine to increase the number of music clips it plays. Distributing the magazine through cable modems is clearly cheaper than through CD-ROMS and Goldberg said Launch will eventually phase out the CD-ROM version.
The Launch deal is expected to be the first of many announced by the cablers' Internet services in the next few months, as @Home and Roadrunner attempt to beef up their offerings. Other entertainment services to be offered will likely include games and educational entertainment, sources said.
