TVN Adds a Digital Tuner

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Westwood, Calif. -- Pay-per-view provider TVN EntertainmentCorp. said last week that it plans a new digital music and entertainment venture with NewMedia Network, a company it recently acquired.

TVN bought a majority stake in NMN with the idea of addinga digitally downloaded music service to the roster of digital products and services TVNprovides via broadband and the Internet.

The new music and entertainment venture will be calledeGroove, and its founder, former Virgin Entertainment Group CEO Ian Duffell, will overseeit.

The companies said eGroove retail stores will featurefreestanding multimedia stations to provide music products on-demand, complemented by anInternet site selling digitally downloaded music and media products.

Customers will log in to the multimedia station throughtouch-screen monitors and keyboards at stores, or at home via the Internet. A securecustomer database will keep track of individual tastes and interests, allowing each userto access their individual profiles in any of the stores or via the Web.

Once logged on, they will be able to preview an extensivemusic database offering search capability by artist, title and genre, as well as musicsamples, interviews, reviews, gift registries, chat rooms and more.

Customers will be offered several purchase options,including traditional physical inventory, product stored digitally and manufactured fromthe local server and the ability to ship directly to the address of the customer's choice.

TVN chairman Stuart Levin noted last week that the companydistributes the Digital Music Express streamed music service to cable affiliates, addingthat eGroove is not aimed at competing against DMX or other cable offerings.

"I think our plan is very different," he said,emphasizing compact discs on-demand and digital downloading. "We see the retail twistas being a real positive view"

The eGroove system offers the latest in security, digitalcompression and distribution. Using standards being adopted by the record and filmindustries, the system uses state-of-the-art software to ensure secure delivery ofproduct, while maintaining the highest audio quality.

The eGroove stores will be interconnected via a privatecommunications network provided by TVN's broadband, satellite and cable network.

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