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Hackers have succeeded in defeating the Digital Versatile Disc's copy-protection encryption, according to several reports that popped up in late October and early November. Source code for decrypting entire movies is now circulating on the Internet, and an underground trade in illicit copies has arisen.

The world's largest Internet service provider is teaming up with the world's largest video rental chain to deliver movies and as-yet-unspecified content over broadband connections. <A HREF="http://www.aol.com/">America Online</A> is pumping $30 million into a three-year joint venture with <A HREF="http://www.blockbuster.com/">Blockbuster Video</A>, with the intent of leveraging the two companies' huge customer bases for mutual benefit. AOL members will have access to Blockbuster's enormous library of discs and tapes, and Blockbuster will promote AOL by giving away CD-ROMs of AOL version 5.0 at its more than 4000 outlets in the US.

Last week, <A HREF="http://www.ti.com/dlp">Texas Instruments</A> announced that its Digital Light Processing (DLP) technology has received the "Golden Note" award from <A HREF="http://www.avacademy.com">The Academy for Advancing High Performance Audio & Video</A>. The award recognizes DLP as "The Most Innovative Video Technology," and was received at the Academy's Award Banquet at the Indianapolis Westin Hotel.

One of Silicon Valley's most aggressive semiconductor companies has surrendered to the siren song of merger and acquisition. On October 27, Milpitas, California-based <A HREF="http://www.c-cube.com/">C-Cube Microsystems</A> announced that it has entered into an agreement to combine its <A HREF="http://www.divi.com/">DiviCom</A> digital television subsidiary with <A HREF="http://www.harmonicinc.com/">Harmonic</A>, a Sunnyvale designer and maker of digital and fiber-optic systems that deliver video, voice, and data via cable, satellite, telephone lines, and wireless networks. DiviCom products enable digital video broadcasting over the same variety of networks. Blending the two companies may be a good fit for the coming age of digital TV and Internet-based "infotainment."