paidContent.org

Registration Open For EconAds Seminar: June 3rd NYC; Confirmed Speakers

Rafat Ali — Fri, 09 May 2008 02:18:10 -0500

Ticket sales are now open for our upcoming EconAds seminar on June 3rd in NYC. As we have done with our previous seminars, this will be a smaller, more intimate experience. The in-progress program is here.
The seminar will focus on key sectors in the online advertising market. We will look broadly at the marketplace to see what disruptions lie ahead and where the investors are focused and where VC and M&A activity is heating up. The program is specifically targeted towards leading media, advertising and investment executives and is designed to promote knowledge sharing and encourage networking.

Confirmed Speakers

Doug Anmuth Analyst, Lehman Brothers
Samir Arora, Co-founder, Chairman & CEO, Glam Media
Lynda Clarizio, President, Platform-A, AOL
Peter C. Horan: CEO, IAC (NSDQ: IACI) Media and Advertising
Lance Maerov, SVP, Corporate Development, WPP
Dave Morgan, Founder, Tacoda
Nancy Peretsman, EVP, Managing Director, Allen & Co
Mike Walrath, SVP, Yahoo (NSDQ: YHOO) Advertiser Marketplace Group; Former CEO, Right Media

Sponsors: Platinum: IAC. Gold: Wall Street Journal Digital Network. For underwriting the event, e-mail our business side at advertising AT contentnext.com.

Thanks to Digital Hollywood for helping us co-locate our event there along with the bigger Advertising 2.0 conference on June 4th and 5th. This is part of the Internet Week.

Earnings: Journal Register Q1 Online Revs Up 22.8 Percent; Company Swings To Loss, Total Revs Drop

David Kaplan — Fri, 09 May 2008 16:43:58 -0500

While the Journal Register (NYSE: JRC) Company posted a net loss of $72.2 million ($1.84 per diluted share) for Q1, the publisher's online revenues grew by 22.8 percent year-over-year. All of the Journal Register's regions experienced online growth, with the Greater Cleveland cluster gaining more than 84 percent during the period. Online revenues accounted for 6.4 percent of total advertising revenue in Q1, versus to 4.6 percent in the prior year.

The rest of of the company's Q1 earnings were not so positive, as the Journal Register, buffeted by a darkening economy and plagued by industrywide circ and advertiser pullback saw declines elsewhere. Classified ad revenues fell 14.4 percent, while national ad dollars dropped 16.9 percent. Meanwhile, the net loss - compared to income from continuing operations of $1.5 million ($0.04 per diluted share) Q107 - included a $95.4 million non-cash charge for the "impairment of assets" relating to a write-down of the carrying value of mastheads and goodwill for the Michigan and New York clusters. Total revenues for the publisher of the New Haven Register and other regional papers were down 10.3 percent to $102.4 million from $114.1 million last year. Release

Top Headlines Of The Week From paidContent:UK, mocoNews And contentSutra

Amanda Natividad — Fri, 09 May 2008 15:06:48 -0500

Top headlines of the week from our sister sites paidContent:UK, mocoNews and contentSutra:

paidContent:UK:
-- @ PPA: Times Gets Closer To WSJ, Preps Web Archive
-- Reuters Media Shake-Up: Clearer Picture, 'Not A Revolution'
-- YHOO Gains, MSFT Wobbles In Europe; Antitrust Hurdles Remain
-- WPP Expected To Bid Higher For TNS; Sorrell: Rejection Was 'Cavalier'; TNS: Offer Was 'Derisory'
-- Updated: BBC Commits iPlayer To Kontiki
-- Blinkx Rises And Falls On Mystical Google/News Corp Market Chatter

mocoNews:
-- Sprint-Clearwire: Google's Role Too Big? Pay-For-Access Deal Raises Net Neutrality-Like Concerns
-- Sprint-Clearwire: Interview: Ben Wolff, CEO, Clearwire: Deal Is "Locked And Loaded"
-- Virgin Mobile USA In Merger Talks With Helio; Other Options Still Being Considered
-- @ Digital Hollywood: iPhone, LBS And Foreign Markets Influencing Mobile Landscape
-- Updated: Qwest Inks Deal With Verizon Wireless; Sprint Is Likely Out Of The Picture
-- Updated: T-Mobile USA Turns On 3G Today In NYC; Most Major Markets By Year-End

contentSutra:
-- @NDTV NMC: Mainstream Digital Media; Display Beats Search Advertising?
-- Yahoo India Adds Content To Search Results With Glue Page
-- YouTube India Goes Live
-- Vodafone To Launch iPhone In India This Year
-- Bharti Airtel Bids $22 Per Share For South African Telco MTN: Report
-- Web18 Reorganization: Khiani Appointed COO For Content, Thomas COO For Financial Properties

Earnings: Jupitermedia Misses on Revenues; Losses Increase

Rafat Ali — Fri, 09 May 2008 13:27:07 -0500

Jupitermedia (NSDQ: JUPM), the images and online media company, has reported its Q108 earnings, and revenues for the quarter were down slightly, to $34.5 million, compared to revenues of $34.8 million for the year ago quarter. The net losses increased to about $1.1 million, from losses of about $728K in the year-ago quarter. Its revenues on the online media side (which includes Mediabistro now) increased to $8.4 million for the quarter, compared to $6.85 million in the year-ago quarter. Revenues for its images business decreased to $26.14 million, compared to $27.9 million in the year-ago quarter. More details in release here.

Related

10-Q Watch: Yahoo: Lawsuits; Severance; Growth Ex-Acqs.; Maven

Joseph Weisenthal — Fri, 09 May 2008 13:10:48 -0500

No blockbusters, but a few worthwhile nuggets from Yahoo's (NSDQ: YHOO) latest 10-Q

-- Lawsuits: Now that Microsoft's (NSDQ: MSFT) bid is done for, Yahoo will keep getting fresh lawsuits, but through the end of the first quarter, there were already ten. Five were filed on the day of the Microsoft announcement, February 1, and another five were filed on February 11.

-- Growth ex-Acqs: Yahoo's revenue grew by 8.7 percent in the current quarter, but last year's revenue did have the benefit of three acquisitions: Zimbra, Blue Lithium and Right Media. Excluding those, the top-line would have only grown 6.6 percent.

-- Layoffs: The cost of laying off those Yahoos: "As of March 31, 2008, the Company incurred total pre-tax cash charges of approximately $29 million in severance pay expenses and related cash expenses in connection with the workforce realignment." For the current quarter, Yahoo expects to pay another $15 million.

-- Maven: The exact price of Yahoo's purchase of Maven was $163 million (it had previously said it was approximately $160 million). $141 million of that is upfront, with the rest to vest over the next four years. For the entire quarter, the company spent $166 million on acquisitions, though the rest came from asset purchases that didn't count as business combinations.

Top Jobs Of The Week In Digital Media

Amanda Natividad — Fri, 09 May 2008 13:24:37 -0500

Some choice jobs in digital media posted this week:

MySpace Music: VP of Sales
MTV Networks: Director, Vh1, Ad Sales Research
Time Inc: Business Development Director, CNNMoney.com
Dow Jones (NYSE: NWS) & Co.: Director of Marketing Operations and Analytics
Dailymotion: VP of Media Ad Sales
Entrepreneur.com: Business Development Director

Tons more with MySpace and on our job board.

Hachette Cuts Online Editorial Staff; Possible Plans Include Outsourcing Web Video Production

David Kaplan — Fri, 09 May 2008 15:55:22 -0500

Hachette Filipacchi U.S., the U.S. magazine arm which is part of Lagardere, has laid off over a dozen staffers from its online division, Gawker reported. Among the casualties are senior exec Matthew Rothenberg and ElleGirl.com fashion editor Joyann King; ElleGirl.com senior editor Holly Seigal and Dei Lewison, producer of the Elle websites, were let go too. Premiere.com film critic Glenn Kenny also got pink-slipped, which he mentions in a post on the official Premiere blog. One reason behind the decision to ~~gut~~ slash part of the online staff could have been due to Lagardere's flat Q1 revenues in the U.S. Gawker offered another factor, saying even Hachette's most successful online properties have the reach of a mid-sized blog.

Meanwhile, WWD says that 15 staffers were laid off in the 100-person online unit. A rep for Hachette told WWD that the positions will all be filled by hires who will bring in a "new skill set," though what sort of skills the company is looking for were not specified. The firings were handed down by Todd Anderman, the former Maxim Digital exec who took over as SVP of digital media at Hachette in January. In the wake of the firings, the company is considering third-party deal to produce web video. The company also revealed that it recently slashed half a dozen positions at Woman's Day.

KIT Digital Raises Another $15 Million: Says It's The Last One

Joseph Weisenthal — Fri, 09 May 2008 13:14:00 -0500

Internet video company KIT Digital (fka Roo Group) has raised another $15 million from accredited institutional investors, including, but not limited to major shareholder KIT Capital—which controls the company. The investors bought in at a price of $.20 per KIT Digital share. Funding will go towards financing some of its recent deals, including interactive ad agency Sputnik and Swedish mobile video firm Kamera. This isn't the first time KIT has raised cash, but it says it will be the last time it goes to the well, as it expects the funding to last through profitability. Release.

Related

YHOO-MSFT Breakdown 'A Shame For Advertising': WPP's Sorrell

Robert Andrews — Fri, 09 May 2008 12:23:26 -0500

The apparent end of acquisition talks between Microsoft (NSDQ: MSFT) and Yahoo (NSDQ: YHOO) is "a shame" for the advertising industry, according to Sir Martin Sorrell, CEO of the WPP ad group. He told CNBC (via Reuters): "It was a shame ... that those negotiations failed. Maybe they'll come back again. To have a balanced marketplace in the online search (market) I think is important."

Google (NSDQ: GOOG) has previously spoken up about the concentration of advertising inventory in Google's hands, including its DoubleClick acquisition - a fact he reckons could keep prices high. Adding a view from an industry much talked about during YHOO/MSFT talks, but little talked to, he said today: "What we're looking for on behalf of our clients is more balance. WPP is currently investing in digital and China.

Blinkx Rises And Falls On Mystical Google-News Corp Acquisition Chatter

Robert Andrews — Fri, 09 May 2008 12:27:59 -0500

Market speculation from an Investec analyst (via Bloomberg) that Google (NSDQ: GOOG) or News Corp (NYSE: NWS) may buy voice recognition-based video search index Blinkx did wonders for the company today - then petered out a little. FT.com casually noted the company may seek a Nasdaq listing, adding to its listing on London's AIM market. Blinkx shares jumped by 50 percent in the morning to a seventh-month high, valuing it at £102 million ($204 million).

But they fell back after lunch to settle at a valuation of around £80 million ($160 million) an hour before the close. Perhaps because the company just issued a statement to the market saying the board "notes" the price rise but "is not aware of any external bids or bid-related reason for the movement". Curious…

Blinkx has been adding services and video partners at a rate of knots - tied in to its speech recognition, it has its revenue share-based Ad Hoc ad platform and it recently launched its Blinkx TV platform. Being fundamentally a video search platform (with ads tied in), one can imagine interest from Google (and that colorful logo does nothing if not pay homage to Mountain View. FT.com also linked the London/San Francisco-based site to News Corp back in 2005 and Blinkx has been linked to Google since as far back as 2004. As I wrote last month, though Blinkx has an impressive catalog of video content behind it, it's not yet pulling it together as a portal in its own right.

Related

Scripps Gets Board Approval To Spinoff Interactive And Local Media Divisions

David Kaplan — Fri, 09 May 2008 11:46:10 -0500

E. W. Scripps' (NYSE: SSP) board has approved executives' plan to separate Scripps into two public companies, effective July 1. The board's vote follows Scripps decision in October to split into two companies, one focused on interactive services and the other on local media businesses, including newspapers and TV stations. The separation will take the form of a tax-free distribution of stock to Scripps shareholders in a new company called Scripps Networks Interactive Inc. The E.W. Scripps name will remain in place for the local media company. Post-transaction, Scripps shareholders will continue to own stock in both companies.

But the split is not complete. Scripps' move still has to pass regulatory muster with the Securities and Exchange Commission. Secondly, the transaction also requires the approval of Scripps' controlling class of shareholders, who will vote on the issue at the company's annual shareholders meeting on June 13. The board also approved a one-for-three reverse stock split for shares in The E. W. Scripps Company that will take affect on July 16, pending shareholder approval. Release

Related

Circuit City Opens Door To Blockbuster; Icahn May Buy Chain Himself

Joseph Weisenthal — Fri, 09 May 2008 12:28:50 -0500

The awkward pairing of Circuit City and Blockbuster is past the spitball phase and into the handholding phase. The struggling electronics giant says it will allow Blockbuster and its investor Carl Icahn to conduct due diligence into the company, and it says it has hired Goldman Sachs to help it explore strategic alternatives. But it notes that no agreement has been made yet, and you can assume that it would like to know what else is out there before going with Blockbuster (NYSE: BBI). In its initial announcement, Blockbuster said that its purchase offer could include shares and cash, in the (off) chance that CC shareholders wanted to keep a stake in the new company. Most likely, they just want cash.

One of Circuit City's concerns had been financing. How would Blockbuster pay for the buy which comes to over $1 billion? The answer it got from Blockbuster is that Carl Icahn could conceivably buy Circuit City himself (and merge it with Blockbuster) if Blockbuster couldn't obtain financing directly.Release.

Not much new from Blockbuster's end. It's "pleased". Release.

Blockbuster first announced in mid-April that it was interested in acquiring Circuit City, for a premium of at least 54 percent over its then closing price. Analysts investors pretty much hated it off the bat, not really getting the vision, or understanding how the two made sense together.

Separately, Circuit City said that it had averted a proxy fight with investor Wattles Capital Management, giving the group three seats on its board. WCM had attacked the company for its intransigence. Release.

Related

Earnings: Tribune Q1 Revs Fall 7.8 Percent; Interactive Flat

Joseph Weisenthal — Fri, 09 May 2008 08:17:39 -0500

For the benefit of its investors who aren't named Sam Zell, Tribune announced Q1 revenue of $1.11 billion, a 7.8 percent decline from last year. Net income ballooned, but that's just on a technicality relating to taxes an its new structure. Op profit declined by over 21 percent to $143.3 million from $181.9 million. The overall declines are nothing out of the ordinary, as ad revenue dropped by 15 percent in the quarter. More alarming: Interactive revenue was flat, as classified weakness offset strength in retail and national advertising. This fits with a number of other publishers that have seen their interactive growth drop precipitously. Media and broadcasting revenue was up 3 percent to $292 million. A conference call will be held on May 29.

Release | Tables (.pdf)

Earnings: Clear Channel Q1 Revs Up 4 Percent; Radio Down

Joseph Weisenthal — Fri, 09 May 2008 12:28:57 -0500

The long slog in the courts continues, but in the meantime, Clear Channel (NYSE: CCU) reported Q1 revenue of $1.6 billion, a 4 percent increase over $1.5 billion in the year-ago quarter. Excluding a sale gain and various discontinued ops, income was $94.2 million ($.19 per share), a subtle dip from $95.1 ($.19 per share) million in the year-ago quarter. Radio broadcasting fell 4 percent to $769.6 million, while outdoor advertising grew 12 percent to $775.5, meaning it's the largest business unit at the company. The filing notes a trial date of June 2nd for its merger, and offers no timetable for when that will conclude. Seems likely this won't be Clear Channel's last quarterly.

Release | No call

Inside The Deals: Forget Yahoo—Microsoft Needs To Go On The Ultimate Corporate Diet

Steve Rosenbush — Fri, 09 May 2008 13:11:00 -0500

Several years ago, I had the memorable experience of listening to Bill Gates defend the structure of the company that he built. It was during the height of Microsoft's (NSDQ: MSFT) war with the Justice Department. Gates, facing a roomful of skeptics, argued forcefully that breaking up the company made no business sense. But having watched the failure of the company's $47.5 billion bid for Yahoo (NSDQ: YHOO), it's hard not to wonder: maybe the government had a point.

Microsoft is struggling to regain the initiative against Google (NSDQ: GOOG). Size is relative, but Google is the smaller and faster moving of the two giants. Google revenue soared 41 percent during the latest quarter, while Microsoft sales were nearly flat. Microsoft's answer to this dilemma: get even larger. Maybe it would make more sense to wage this battle by slimming down.

A Microsoft breakup might seem shocking, but it would be consistent with a broad movement toward corporate consolidation. More after the jump...

Time Warner (NYSE: TWX) is shedding its cable systems, and Barry Diller's IAC (NSDQ: IACI) is breaking into five pieces. There were calls in April for the breakup of GE, because the king of all conglomerates had a bad first quarter. And the calls for a breakup of the sprawling Yahoo empire, which go back years, have grown only louder since Microsoft's withdrawal.

Even after a breakup, Microsoft's enterprise software business would still be more than large enough to serve its clients. Oracle is just one third the size of Microsoft. SAP is less than one fourth of Microsoft's size. The big companies that buy Microsoft software don't really benefit from the fact that Microsoft sells the Xbox. And Zune users aren't about to download the latest SQL server.

Following the lines of the company's financial reporting structure, one could break the company into five units: operating systems, servers, business applications, online and entertainment and devices. Some of the pieces could be combined. All the software units have a similar financial profile, with strong cash flow and revenue growth in the mid-teens. And the online and entertainment units have (mostly) solid cash flow, but big operating losses tied to the investment cycle.

Breaking up the company would unlock a lot of value. The company lost $24 billion during the Yahoo episode, and has a current market cap of $272 billion, or $29 a share. Lehman Brothers expects the price to move to $34 over the next year. That's still well below Lehman's previous Microsoft target of $39, which implied a market cap of $319 billion. An uncertain online strategy—and the risk of huge deals—is depressing the stock. Nothing short of a breakup is likely to remove that overhang. It's far better to take action now, than to wait until the shareholder activists are at their door.

Inside The Deals is a weekly column about M&A in the media written by veteran business journalist Steve Rosenbush. Steve is based in New York, and previously was the finance writer for BusinessWeek.com, responsible for coverage of M&A. His interests include the evolving business of media. He can be reached at steve AT paidcontent.org.

Ad Services Supplier DG Fastchannel Buys Digital Marketer Enliven For $98 Million

David Kaplan — Fri, 09 May 2008 00:36:06 -0500

Ad services provider DG FastChannel has purchased Enliven Marketing Technologies for about $98 million in a stock-for-stock transaction. Under the terms of the deal, DG Fastchannel's payout covered Enliven's $4.5 million debt. The merger combines Dallas-based DG FastChannel's traditional ad and digital distribution services with New York-based Enliven's online marketing technology, which covers mobile and in-game advertising as well. Enliven is also the parent of Austin, TX.-based interactive shop Springbox, which is included in the merger. Enliven, formerly known as Viewpoint, bought Springbox back in November.

DG Fastchannel is fairly new to the digital side of the ad business, getting access to its first online services last May when it paid $4.3 million for 12 percent stake in Enliven (then Viewpoint). By buying the company outright, DG Fastchannel now has a fuller set of digital offerings. The deal is set to close in Q3. Release

@ Needham Digital Media Con: Tom Clarke: TheStreet.com To Rebrand Itself?; Going Hard After Bankrate

Joseph Weisenthal — Fri, 09 May 2008 00:37:11 -0500

At the Needham Internet and Digital Media Conference, Thomas Clarke, CEO of TheStreet.com (NSDQ: TSCM), gave an almost identical presentation to one he gave at a Jefferies conference earlier this year. The basic gist: TheStreet.com isn't a financial news company anymore, as its various acquisitions and organic launches demonstrate. But this time he went further, and actually opened the door to the idea that TheStreet.com could do a total rebrand to reflect this reality, perhaps more revolving around the company's recently launched Mainstreet, personal finance site..

-- Rebranding: At first it seemed as though he was just musing on the idea of a rebranding, but when asked head on, it was clear that serious thought is being given to the idea: "I don't know that I'm a believe in a dual-brand… the real question is the branding of the entity itself. I think that decision carries a lot of weight… there's a lot of equity in (the current name), however it's not reflective of where the company really is going. I don't think it will be a TheStreet.com-Mainstreet brand. I've a believer that each of the sites should stay independent. Number one, users like it that way and I think advertisers like it… So I think it'll be a single brand, I just don't know that ultimately it will be TheStreet.com brand."

-- Bankrate: The acquisition of BankingMyWay last year put the company into competition with dominant financial lead-gen site Bankrate: "I think there is always opportunity for a second player in the category… Bankrate (NSDQ: RATE) is a formidable competitor." But, he believes their data is better, that they offer more local content, and that the company can offer a better proposition to advertisers. He also explained how the recent investment in (and likely acquisition of) social finance site Geezeo had a lead-gen component to it. For example, the site can tell users when their credit card is about to expire and at the moment present them with alternatives.

Related

10-Q Watch: The Knot: $1.4 Million For The Bump; Higher Costs

Joseph Weisenthal — Thu, 08 May 2008 18:24:41 -0500

The Knot's acquisition of pregnancy media company The Bump was just a baby step: the total purchase price, according to the company's 10-Q filing, was $1.4 million in cash—$1.7 million if related costs are factored in. The deal was a component of CEO Janet Scardino's plan to move beyond just wedding content.

-- Costs: On the higher costs that dinged earnings: "Product and content development expenses increased to $5.0 million for the three months ended March 31, 2008, as compared to $3.1 million for the three months ended March 31, 2007, as a result of increasing investments in our information technology platforms and related information technology and project management staff. The increase is also the result of additions to our editorial staff."

Related

Google Annual Meeting: Shareholder Proposals Fail, But Brin Abstains; Board Re-Elected

Joseph Weisenthal — Thu, 08 May 2008 17:26:21 -0500

Two non-shockers from the Google (NSDQ: GOOG) annual shareholder meeting: The entire board slate has been re-elected, and two shareholder proposals (doing business in China, board on human rights) failed to pass. But there was one interesting wrinkle: Co-founder and director Sergei Brin abstained from the vote, saying he agreed with the spirit of the proposals, just not the wording and the implementation. Brin: "I say at the outset that I'm pretty proud of what we've been able to accomplish in China...Google has a far superior track record than other internet or internet search companies in China." He added that some of Google's anti-censorship innovations, like offering users a warning when their queries are being truncated, have been adopted by chief competitor Baidu.

Following the official votes, the Q&A session with shareholders was the kind of mixed bag you typically get at these things. An intellectual property lawyer complained that companies weren't coming up first in the organic search listings on a search for their name. Another questioned complained that his emails to investor relations went unanswered (Schmidt promised to deal with the issue). And yet another shareholder, who seemed like he was mainly there to plug his podcast, wondered why Google hadn't done much in the podcasting space.

Schmidt was asked why Google's revenue outside of the UK and US was only 30 percent, but 80 percent of global internet usage was outside of those markets: "The different of course is monetization." He noted that this past quarter was the first where international surpasses US revenue, and he said that disparity could grow to a 65/35 split.

Related

Earnings: Activision FY08, Revs Up 92 Percent, Income Quadruples

James Quintana Pearce — Thu, 08 May 2008 17:07:59 -0500

Activision (NSDQ: ATVI) has reported its full year results, as well as its results for the first three months of this year. For the 12 months ending March 31st net revenues were $2.90 billion, almost double the $1.51 billion earned in the previous year. Net income was $344.9 million ($1.10 per diluted share) compared to $85.8 million ($0.28 per diluted share). Not including the increase due to the merger with Vivendi (EPA: VIV), Activision predicts net revenues of $2.75 billion and earnings per diluted share of $0.72 for the next fiscal year. The Nth American market grew 134 percent for the year to $1.762 billion (increasing from 50 percent of the total revenue to 61 percent), while the International market grew 50 percent to $1.136 billion.

During the year Activision had two game franchises cross the $1 billion lifetime sales mark: More in extended entry…

Guitar Hero and Call of Duty. Other good figures include Guitar Hero III: Legends of Rock being the best-selling game in the US and Europe in dollar terms, and Call of Duty 4: Modern Warfare was the second best-selling game worldwide in units, selling more than 9 million—the PC version was the best-selling PC title. During the year Activision grew its US marketshare by 7.2 percent to 17.3 percent.

First Quarter

For the three months ending March 31st 2008 Activision had net revenues of $602.5 million, compared to $312.5 million for the same period a year ago. Net income for the quarter was $44.2 million ($0.14 per diluted share), compared to a net loss of $14.4 million (-$0.05 per diluted share) a year ago. Last quarter was "the largest and most profitable non-holiday quarter, even though we did not release any new titles," said Robert Kotick, Chairman and CEO of Activision. That's pretty significant considering that a weak product release schedule normally corresponds to poor sales.

Much of the growth in the quarter came from a jump in Nth American sales, which grew from $116 million (37 percent of total revenue) to $367 million (61 percent of total revenue). International revenues grew by 20 percent.

Conference Call

Activision sees downloadable content as a new distribution platform that lets them extend the lifetime of their products. 15 million individual songs have been downloaded for Guitar Hero, and Call of Duty saw more than 1 million related downloads on Xbox Live in the first 9 days.

Activision is also planning online functionality in the final quarter of this year, and expects to defer a lot of net revenues, operating revenues and cost of sales to the following fiscal year. The company is keen on learning from Blizzard (which it will join after the merger with Vivendi), and thinks that Blizzard's brand and experience will help it address online markets, as well as the Korean and Chinese markets.

Release