NBC Programs Will Be Removed From I-Tunes

Apple Inc. escalated a dispute with NBC Universal over the pricing of television shows by announcing Friday it would not sell any of NBC's programs for this fall season on iTunes.

Earlier, NBC had told Apple that it would no longer allow its programs to be sold via iTunes at the end of the year. NBC Universal-controlled television programming accounts for an estimated 40 percent of the video downloads on iTunes.

"We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase," said Eddy Cue, Apple's vice president of iTunes. "We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers."

Rather than cut off NBC programs in the middle of the season, Apple decided to stop before the new fall episodes premiere next month, he said. NBC did not release any comments to the media.

ABC, CBS, Fox and the CW, and 50 other cable networks, have deals in place to sell fall shows at iTunes' current price of $1.99 per episode, Apple said. NBC wanted Apple to pay more than double its wholesale price for the material, which would have resulted in the retail price increasing to $4.99, Apple said.

Dunkin' Doughnuts Eliminating Many Trans Fats

Dunkin' Donuts, the food-on-the-go chain whose name celebrates a treat that's symbolic of unhealthy eating, is trying to refresh its image by largely eliminating trans fat across its menu, Homer Simpson be damned.

Dunkin' planned to announce Monday that it has developed an alternative cooking oil and reformulated more than 50 menu items - doughnuts included. The Canton, Mass.-based chain says its menu will be "zero grams trans fat" by Oct. 15 across its 5,400 U.S. restaurants in 34 states.

About 400 locations nationwide that took part in a four-month test already have made the switch to a new blend of palm, soybean and cottonseed oils. That includes all restaurants in New York City and Philadelphia, which are forcing restaurants to phase out their use of artery-clogging trans fat.

The ice cream chain Baskin-Robbins, another unit of Dunkin' Brands Inc., plans to be zero grams trans fat by Jan. 1.

Dunkin' isn't claiming it will become "trans fat free," but does say any trans fat in foods including doughnuts, croissants, muffins and cookies will fall below half a gram per serving. Federal regulations allow food labels to say they've got zero grams of trans fat, provided levels fall below the half-gram threshold.

A nutrition advocacy group welcomed Dunkin's addition to the list of restaurant chains that have recently shifted away from trans fat.

"It's good news that they're dropping most, if not quite all, trans fat," said Jeff Cronin, spokesman for the Center for Science in the Public Interest, a Washington-based nonprofit. "If Dunkin' Donuts can do that, anyone can."

But Cronin cautioned that when it comes to Dunkin's doughnuts, "we're still talking about a food that's mostly white flour, sugar, and fat."

Dunkin' isn't positioning its namesake product as health food - a shift that would involve more disbelief suspension than might be possible for a treat synonymous with portly, doughnut-gobbling Homer from television's "The Simpsons."

"The goal was not to make a healthy doughnut, it was really to create a doughnut that was better," said Joe Scafido, Dunkin's chief creative and innovation officer. "Certainly, we did not create a healthy doughnut."

Although its coffees are by far a bigger seller, the New England-bred, 57-year-old chain was founded on the reputation of its doughnuts. Now, Dunkin' claims to be the first major chain to introduce a zero grams trans fat doughnut, although smaller doughnut makers have already done so. Mainstream doughnut makers' products can have around 5 grams of trans fat apiece.

The main source of trans fats is partially hydrogenated oils, formed when hydrogen is added to liquid vegetable oils to harden them. Evidence suggests that artificial trans fats boost "bad" cholesterol and lower "good" cholesterol, increasing the risk of heart disease and stroke.

Dunkin' is ahead of Krispy Kreme Doughnuts Inc., which has yet to roll out a zero gram trans fat doughnut but hopes to do so. Brian Little, a spokesman for the North Carolina-based chain, said, "We continue to work aggressively with outside supply partners, and our goal is to get to zero trans fatty acids while maintaining great Krispy Kreme taste."

Dunkin's 1,900 locations outside the U.S. are expected to begin using the new oil over the next couple years,

Hawaii Ferry Starts Amid Controversy

Loaded with people paying a discount fare of just $5, the $95 million Hawaii Superferry made its maiden run Sunday with a rushed launch for a three-hour voyage to Maui — the first passenger ferry service between the islands.

Legal problems threatened to beach the giant catamaran like one of the whales that environmentalists fear it will run over, so the company moved up the debut by two days.

More than 500 passengers and crew, and 150 cars, were aboard when the four-deck, blue-and-white vessel emblazoned with manta rays pulled away from the dock to a chorus of cheers.

"It's beautiful," exclaimed Stephen Imamoto of Honolulu, who was traveling with his wife and 6-year-old daughter. "I don't like to fly ... You can't beat the price."

Imamoto said he wanted to try the first voyage to see if he gets seasick. Choppy water and strong wind between the islands have scuttled previous attempts at interisland ferry services with much smaller ships.

Inside the 349-foot Alakai built by Austal USA in Mobile, Ala., passengers browsed the gift shop, played cards and ordered breakfast while watching live NFL Sunday football games on high-definition TV screens as the ferry sailed past Aloha Tower.

Alan and Terry Kahanu, of Kailua, arrived to board the ferry at 4:20 a.m. They and their four children sat in the first-class cabin, eating doughnuts and sushi. "It's spectacular," said Alan Kahanu. "It's so nice to be able to walk around instead of having to be buckled in."

Before Sunday, the only way to travel among the Hawaiian Islands was with highly competitive local airlines now engaged in a fare war.

Superferry sold out its first voyage in 30 minutes Saturday, offering $5 one-way fares for passengers and the same for cars. More than 400 of those aboard got right back on the Alakai for the voyage back to Honolulu.

Superferry Chief Executive John Garibaldi, who mingled among passengers, said one reason for the service was to avoid a repeat of the effect of the nation's grounded airplanes after the Sept. 11, 2001, terrorist attacks. Then, island residents and tourists dependent on air travel were stranded for several days.

Garibaldi said the voyage "went very, very well and the response was phenomenal from passengers."

The launch, originally set for Tuesday with fares 10 times that much, was moved up after the Hawaii Supreme Court ruled unanimously Thursday that the state should have required an environmental review before the Superferry started service. Three environmental groups have sued, concerned that the vessel could collide with humpback whales, spread invasive species and create long traffic delays.

A dozen protesters greeted the hundreds of enthusiastic passengers after the ferry docked at Maui's port.

Among the protesters on Maui was Joyclynn Costa of Haiku, who held a sign, "Respect our home." She said the company didn't consult with Maui residents about the service, which she said will pollute island waters.

The environmentalists' attorney, Isaac Hall, said he will seek an injunction Monday to prevent the Superferry from doing business until environmental studies are completed. Environmental reviews are typically required of projects that use state money and land, such as harbors, and they can take months or even years to complete.

Superferry supporters say it is being treated unfairly because other harbor users like cruise ships didn't have to go through extensive environmental reviews.

"These standards should apply to all players, not just the newest, the smallest and the most popular," said David Cole, the chairman, president and CEO of Maui Land & Pineapple Co., which invested $1 million in the ferry.

Superferry officials also say the ship's water jet propulsion system means there are no exposed propellers to strike aquatic animals. State transportation officials had allowed the Superferry to start service, noting that the Supreme Court didn't explicitly say the ship couldn't run.

However, environmentalists pointed out that state law prohibits projects from operating during formal environmental studies.

Environmentalists said the company acted in bad faith by launching early and trying to build public support with steep discounts.

"This is really a slap in the face to the residents of Hawaii and to the state Supreme Court," said Jeff Mikulina, executive director of the Sierra Club Hawaii Chapter.

More than 19,000 people have signed up to take advantage of the $5 fare through Sept. 5. After that, round trips to Maui or Kauai, with taxes and a fuel surcharge, will cost more than $240 for one passenger and a car_ if the courts don't stop it. A second ferry being built in Mobile, Ala., is scheduled to serve the Big Island starting in 2009.

Starz Free Preview

Dish Network subscribers will receive a free preview of the Starz movie channels August 23 through 26. Direct TV and some cable operators may also participate, but check with your provider if you are interested.

Starz offers movie titles such as Pirates of the Caribbean, Cars, The Davinci Code, The Prestige, and Chicken Little. Check with your provider for any special offers that may only be offered during the free preview.

Support Dropped For Blu-Ray Format

Paramount Pictures and DreamWorks Animation SKG Inc. will offer next-generation DVDs in the HD DVD format and drop support for Blu-ray, further complicating the race between the competing technologies.

Monday's announcement affects the upcoming DVD releases of the blockbusters "Shrek the Third" and "Transformers," along with movies distributed by Paramount Pictures, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV Films.

Movies directed by Steven Spielberg, however, will continue to be released in both formats.

Paramount, which owns DreamWorks Pictures and handles home sales for the separate company DreamWorks Animation, previously released movies in both Blu-ray and HD DVD.

"Part of our vision is to aggressively extend our movies beyond the theater, and deliver the quality and features that appeal to our audience," said Brad Grey, chairman and CEO of Paramount Pictures, a unit of Viacom Inc.

"I believe HD DVD is not only the affordable high-quality choice for consumers, but also the smart choice for Paramount," he said.

The competition between Blu-ray and HD DVD has kept confused consumers from rushing to buy new DVD players until they can determine which format will dominate the market.

Until recently, many consumers were able to defer the choice because players have been so expensive. But prices have been slashed by about half - Sony Corp.'s Blu-ray player now sells for $499, and Toshiba Corp.'s cheapest HD DVD player sells for $299, with both likely to include as many as five free movies as an incentive.

Jeffrey Katzenberg, CEO of DreamWorks Animation, said consumers seeking to switch to high-definition DVDs will be enticed by the movies available for HD-DVD players. He added the lower price for the Toshiba devices will appeal to the family market.

"It's a game-changer, what they're doing, and it's why we decided to throw in with them," Katzenberg said.

Standalone HD DVD players have a bigger slice of the market than Blu-ray players. But when you count Sony's PlayStation 3 game console, which comes with a Blu-ray drive, there are more Blu-ray players in U.S. homes.

Rob Moore, president of Paramount Worldwide Distribution, said market data shows that people who own gaming consoles buy fewer movies than those who invest in a movie-only player.

The Blu-ray Disc Association trade group did not immediately return an e-mail seeking comment. Blu-ray discs can hold more data - 50 gigabytes compared with HD DVD's 30 GB - but the technology requires new manufacturing techniques and factories, boosting initial costs.

HD DVDs, on the other hand, are essentially DVDs on steroids, meaning movie studios can turn to existing assembly lines to produce them in mass.

Studios and retailers have been choosing sides in recent months. With Paramount dropping Blu-ray support, Time Warner Inc.'s Warner Bros. remains the only major studio releasing movies in both formats.

"Spider-Man 3" will only be available in the Blu-ray DVD format when it is released by Sony Pictures, while people with Blu-ray players won't be able to enjoy the action-thriller "The Bourne Ultimatum," which Universal Pictures will release only in HD DVD.

The Blu-ray format recently got a big boost as Blockbuster Inc. announced it would stock only Blu-ray titles when it expands its high-def DVD offerings this year.

Target Inc., the nation's second-largest retailer, said it will only sell Blu-ray DVD players in its stores in the fourth quarter.

Sony Corp.'s Sony Pictures, News Corp.'s Twentieth Century Fox, The Walt Disney Co., and Metro-Goldwyn-Mayer are releasing only in Blu-ray.

Universal, owned by General Electric Co., backs HD DVD exclusively

New Coin To Enter US Circulation

The US Mint is hoping to find success with their new Presidential coins that will feature images of Thomas Jefferson and John Adams. They are hoping the series will spur interest in collecting and history, similar to the US Mint's series on the 50 states that has been ongoing with the quarter. The Mint's 50-state quarter program, the most popular coin series in history, has gotten 150 million Americans involved in collecting the quarters that are honoring the states in the order they were admitted to the Union.

The Jefferson coin will go into circulation nationwide on Thursday, the day that people will be able to visit their banks to purchase it. It will also go on sale on the Mint's Web site at noon EDT.

The Jefferson dollar follows the Washington coin, which was introduced in February, and the John Adams coin, introduced in May. The coin honoring James Madison will go into circulation in November, and four more of the nation's presidents will be honored every year in the order they served in the White House.

By having a rotating design on the new dollar coins, the Mint is hoping to keep interest high and avoid the famous flops of two previous dollar coins - the Susan B. Anthony, introduced in 1979, and the Sacagawea, introduced in 2000.

The presidential coins are the same size as the Sacagawea, slightly larger than a quarter, and also golden in color.

Starbucks Adding New Chocolate Products

Starbucks Corp. will start selling packages of premium "drinking chocolate" nuggets in U.S. grocery stores and other retail outlets this fall, hoping consumers like making the treat at home better than they took to an exorbitantly rich drink the company wiped off its menu two years ago.

Starbucks, which has teamed up with Hershey Co., also plans to roll out a line of chocolate candies next spring that will include a coffee-infused premium dark chocolate bar, milk chocolate squares with flecks of chai tea, and an espresso truffle.

For starters, the cubes of drinking chocolate will come in three flavors: one that's a blend of dark and European-style milk chocolates, one with a marshmallow nestled in the middle and a third that's infused with peppermint.

Packages of Double Delish, Marshmallow Memories and Peppermint Merriment will come with microwave and stovetop instructions, which executives said are similar to those for most premium hot chocolates.

Starbucks, the world's largest specialty coffee retailer, and Hershey, the nation's largest candy maker, are still developing other confections and have not yet decided exactly how many will be sold at first, said Traci Gentry, director of global chocolate innovation at Hershey.

Peter Pan Peanut Butter Coming Back To Stores

Con Agra Foods announced that Peter Pan peanut butter is returning to the shelves after being recalled and off the market for about six months. Peter Pan and Great Value peanut butter were recalled back in February. The company is offering a 100-percent satisfaction guarantee to reassure consumers it has fixed the problems that caused the salmonella contamination.