`Exhibit 1230
`
`4,789,863
`[11] Patent Number:
`[19]
`United States Patent
`
`Bush
`[45] Date of Patent:
`Dec. 6, 1988
`
`[54]
`[76]
`
`PAY PER VIEW ENTERTAINMENT SYSTEM
`Inventor:
`Thomas A. Bush, 310 E. 8th St, New
`York, N.Y. 10028
`
`.
`[21] APP" NO" 145,645
`[22] Filed:
`Jan. 13, 1988
`
`[63]
`
`Related U 5 Application Data
`Continuation of Ser. No. 783,094, Oct. 2, 1985, aban-
`doned.
`Int. cu ........................ H04N 7/167; H04Q 9/00
`[51]
`[52] US. Cl. ............................... 340/825.3SD; 380/10;
`358/86; 340/825.030; 340/825.250
`[58] Field of Search
`..
`340/825.35 825 03
`340/825.25; 358/85, 86; 455/2, 4; 380/10, 20;
`379/101
`
`[56]
`
`References Cited
`U S PATENT DOCUMENTS
`'
`'
`_
`7/1934 N}°h015°“
`Re‘ 31,63:
`----------- 3528/86
`
`21%;4 $2333 11531013341
`34028852;
`
`4:272:791
`6/1982 Rifldn
`358/86
`
`4,300,040 11/1981 Gould et a1.
`.
`340/825.35
`
`4,359,631 11/1982 Lockwood
`235/381
`
`4,433,207 2/1384 gest .....................
`178/2209
`4,471,379
`9/1 84
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`3/1935 Will'tef‘n...
`358/86
`
`4/1985 Dekker .....
`4,513,315
`358/86
`
`8/1935 Narajima et al.
`4,538,176
`358/86
`1/1986 Abraham .....
`4,567,512
`358/86
`
`5/1986 Abraham ..
`4,590,516
`358/86
`4,685,131
`8/1987 Horne
`358/86
`
`4,700,386 10/1987 Kohn .......................... 358/86
`OTHER PUBLICATIONS
`Microcomputer Dictionary, 2nd Edition 1981, by
`Charles J- Sippl (pp. 10, 322, 328,329).
`P .
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`Ar’mm 2mm” F. (“EM ‘
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`[57]
`ABSTRACT
`In a pay per view entertainment system, prerecorded
`entertainment such as musical works are distributed to
`subscribers over a cable network. The subscribers are
`able to listen to edited versions or previews of the com-
`plete musical works and to select desired musical works
`for recording. Before the musical work is recorded on a
`special receiver, the subscriber is billed for the service.
`
`18 Claims, 8 Drawing Sheets
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`Page 00001
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`Page 00001
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`

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`

`

`US. Patent
`
`Dec. 6, 1988
`
`Sheet 4 of 7
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`4,789,863
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`Page 00005
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`Page 00005
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`

`

`US. Patent
`
`Dec. 6, 1988
`
`Sheet 5 of 7
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`4,789,863
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`

`

`US. Patent
`
`Dec. 6, 1988
`
`Sheet 6 of 7
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`4,789,863
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`Page 00007
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`

`

`US. Patent
`
`Dec. 6,1988
`
`Sheet 7 of 7
`
`4,789,863
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`Page 00008
`
`

`

`1
`
`4,789,863
`
`PAY PER VIEW ENTERTAINMENT SYSTEM
`
`This is a continuation of co-pending application Ser.
`No. 783,094, filed on Oct. 2, 1985 and now abandoned.
`
`5
`
`15
`
`20
`
`BACKGROUND OF THE INVENTION
`1. Field of the Invention
`The present invention relates to a pay per view enter-
`tainment system, and more specifically, to a pay per 10
`view cable system in which subscribers are able to se-
`lect, record, and pay for audio entertainment in their
`homes.
`2. Description of the Prior Art
`The recording industry produces an enormous
`amount of recorded material for distribution to the
`public. The rather archaic distribution and promotion
`system of the recording industry enables the consuming
`public to hear only a small portion of recorded material
`prior to purchase. The industry’s distribution system
`enables only a relatively small number of recorded
`works to be packaed in cellophane and sent to retail
`outlets for purchase by the consumer. Unless the con—
`sumer is familiar with artists or has heard the recording
`on the radio or television, the consumer has no knowl-
`edge of what is in the cellophane wrapped package and
`has no opportunity to listen to the recording. Conse-
`quently, large amounts of commercial quality music go
`unpurchased.
`The advent of cable television has made it possible for
`prerecorded films and other television programs to be
`distributed to the public on a pay per view basis. These
`pay per view systems enable a rather large audience of
`viewers to tune in to the selected programs at a prede-
`termined time. Such a pay per view system does not
`presently exist for prerecorded music, because there is
`no way to economically distribute the rather wide vari-
`ety of prerecorded music to the large number of con-
`sumers that might be interested in paying for such enter-
`tainment on a pay per View basis.
`Accordingly, there is a need for a pay per view sys-
`tem to distribute prerecorded music to the consuming
`public.
`
`25
`
`30
`
`35
`
`SUMMARY OF THE INVENTION
`
`The present invention relates to a system for distrib-
`uting prerecorded entertainment to the consuming pub-
`lie. The system includes a source of prerecorded enter-
`tainment that is in the form of complete musical works
`and highlighted selections or previews of these com-
`plete musical works. The source uses compact disc
`mastering equipment or cart duplication equipment to
`make the prerecorded musical entertainment available
`to an operator. The operator possesses playback equip-
`ment that is connected to a network of coaxial cable.
`The coaxial cable connects the operator to each individ-
`ual subscriber. Each individual subscriber possesses a
`receiver which is capable of receiving the previews of
`the complete musical works. If the subscriber is desirous
`of making a recording of the complete musical work, he
`enters data into a keyboard and the receiver records the
`desired selection. The service charge associated with
`the recording of the selected musical work is automati-
`cally charged to the subscriber.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`FIG. 1 is a block diagram of the pay per View enter-
`tainment system of the present invention;
`
`45
`
`50
`
`55
`
`60
`
`65
`
`2
`FIG. 2 is a flow diagram of the distribution of prere-
`corded entertainment between the system source and
`system operators;
`FIG. 3 is a flow diagram of the distribution of prere-
`corded entertainment from the system operator to sub-
`scribers and the payment of subscribers for such ser-
`vices;
`FIG. 4 is a block diagram of the equipment of the
`system operators for distributing the prerecorded enter-
`tainment;
`FIG. 5 is a block diagram of a receiver used by sub-
`scribers to receive the prerecorded entertainment;
`FIG. 6 is a plan view of the receiver for subscribers;
`FIG. 7 is a side View of the receiver of FIG. 6; and
`FIG. 8 is a rear View of the receiver illustrated in
`FIG. 6.
`
`DETAILED DESCRIPTION OF INVENTION
`
`Referring now to FIG. 1, a block diagram illustrates
`the pay per view entertainment system of the present
`invention. The system is controlled by a source 10. The
`source 10 is a corporation or qroup of people who ob-
`tain prerecorded entertainment which in the preferred
`embodiment of the present
`invention is prerecorded
`musical works. It should be understood, however, that
`the entertainment is not solely limited to musical works
`but could include video recordings or computer soft-
`ware. The source 10 obtains the prerecorded entertain-
`ment and distributes it to an operator 11.
`The source 10 obtains the prerecorded entertainment
`from record companies in the form of equalized master
`recordings, which can be in analog or digital formats.
`From these master recordings, compact disc (CD) mas-
`ters and carts are prepared. Preview carts are prepared,
`which include highlighted segments from the master
`recordings. The source is responsible for obtaining the
`master recordings, quality control of their duplication,
`and distribution of the duplicated master recordings.
`The complete works and previews are distributed to the
`system operator 11 or multi-system operator 12. The
`multi-system operators 12 are simply sub-operators who
`operate in geographical locations different from that of
`the operator 11.
`The source 10 is also responsible for the advertising
`of the system,
`the programming of the prerecorded
`entertainment,
`legal services, customer service, and
`customer billing.
`The operator 11 and multi-systems operators 12 dis-
`tribute the prerecorded entertainment on a coaxial cable
`network connected to subscribers. The cable network is
`preferably the same cable network presently used to
`distribute television programs. The prerecorded enter-
`tainment is applied to a cable controller 13 at the loca-
`tion of the subscriber and to a specially designed re-
`ceiver 14, hereinafter described in greater detail. The
`cable controller 13 is also connected to the subscriber’s
`television 15 to provide the subscriber with video infor-
`mation regarding the prerecorded entertainment. The
`receiver 14 is also connected by a modem and telephone
`lines to a financial service organization, such as a na-
`tional credit network 16 and a bank 17. The financial
`service organizations enable the source 10 to paid be a
`service fee for the subscriber’s use of the system.
`Referring now to FIG. 2, a flow diagram illustrates
`the flow of prerecorded entertainment from the source
`10. The input 20 to the system is the master recordings
`from the record companies. The source 10 as explained
`above is responsible for &he CD mastering 21 of the
`
`Page 00009
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`Page 00009
`
`

`

`3
`complete work or program and the cart duplication 22
`of the previews. These CD masters and cart duplica—
`tions are the output 23 which are distributed by source
`10. The source 10 in turn distributes the CD masters and
`preview carts to operator 11.
`Referring now to FIG. 3, a block diagram illustrates
`the distribution of the recorded entertainment and the
`payment of subscribers for such services. Coaxial cable
`connects the M80 12 to the cable controller 13 which
`is present at the location of each subscriber. The coaxial
`cable is capable of carrying two data channels, 6 mono
`channels, and six stereo channels. The cable controller
`13 applies the video channels to the subscriber’s televi-
`sion 15. A special receiver 100 which includes an inter-
`nal modem receives the mono and stereo channels and
`two data channels. The receiver 100 is described herein-
`after in greater detail. The internal modem is connected
`by telephone lines to a clearing house 200. The clearing
`house 200 is capable of checking the subscriber’s credit
`or account at bank 201. The clearing house 200 per-
`forms a billing function by transferring funds to source
`10.
`Referring now to FIG. 4, a block diagram illustrates
`the eguipment 30 of the system operator 11 for distribut-
`ing the prerecorded entertainment. The equipment 30
`includes CADA transceiver 40. The transceiver 40 is
`preferably of a type manufactured by Sony Corporation
`which is capable of transmitting digital audio and data
`transmissions within existing cable systems. The system,
`transmits within a 6 MHz wide channel a total of 32
`monaural or data channels, 8 eight bit stereo channels, 4
`sixteen bit digital stereo channels, or 128 digital chan-
`nels or any combination thereof. The equipment also
`includes a plurality of cart machines 31—36 which play
`the previews of the recorded entertainment. The output
`of the cart machines 31—36 is a mono audio output
`which is applied to the CADA (trademark of Sony
`Corporation) transceiver 40. The 40 also receives the
`input from compact disc machines 41-46, in the form of
`stereo audio signals. These stereo audio signals include
`the complete works of prerecorded entertainment
`which are distributed to the subscribers for recording.
`The compact disc machines 41—46 are responsive to a
`time code generator 50 and comparators 51—52 which
`control the playing of sides 1 and 2 every thirty minutes.
`The receiver 100 is responsive to a clock 53. The re-
`ceiver 100 is also responsive to a time code generator 54
`and comparators 55,56 which are capable of providing
`forwarding and reversing data to the CADA trans-
`ceiver. The output of the CADA transceiver 40 is sup-
`plied to the MSO’s 12. A video menu 60 is transmitted
`to TV 15.
`Optionally, a second CADA transceiver may be em-
`ployed for transmitting additional data, if necessary.
`Referring now to FIG. 5, a block diagram illustrates
`the receiver 100 of the present invention. The receiver
`100 includes two main sections, i.e., a program and logic
`control section 101 and a audio/video routing section
`102. The cable controller 13 is coupled between the
`coaxial cable network and the subscriber’s television set
`15.
`
`The input from the cable network is applied to an
`addressable cable converter box 103 and a rf video
`decoder 104 which separate the selected signals from
`the plurality of input signals. The video portion of the
`selected signals is applied to the subscriber’s television
`15. A trap may be necessary to insure that only the
`desired video signal is applied to the television 15. The
`
`lo
`
`15
`
`20
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`65
`
`4,789,863
`
`4
`selected complete work or preview signals are applied
`to power amplifiers 105, 106 which drive stereo speak-
`ers 107, 108. The speakers enable the subscriber to hear
`the selected audio signals. The selected audio signals are
`also applied to a level indicator 110 which allows the
`subscriber to monitor the quality of the audio signals to
`be recorded. The audio signals are recorded on a cas-
`sette recording unit which includes cassette electronics
`111 and cassette transport 112. The cassette electronics
`111 are controlled by the program and logic control
`section 101.
`The program and logic control section 101 receives
`input signals from the CADA unit in the form of a
`clock/data signal and a trigger signal. The program and
`logic control section 101 is also responsive to input
`signals from the program/preview selection assignor 91
`which are applied to a PIA (Peripheral Interface Adap~
`tor) 113. The PIA 113 is connected to a bus 110 that
`couples the input signals to a microprocessor 114.
`The microprocessor 114 controls the program and
`logic control section 101. The microprocessor 114 is
`connected to a programmable read only memory 115,
`which contains a program, and to random access mem-
`ory 116 which stores data. The microprocessor 114
`controls displays 117, 118, 119, 120 in order to provide
`visual indications of various activities associated with
`
`the operation of the receiver 100. The displays are
`driven and controlled by controller 124 and by drivers
`121, 122, 123.
`The system control program required to control the
`operation of the system will be readily apparent to the
`skilled artisan based on the following description.
`Therefore, the following will not provide an unneces-
`sarily lengthy description of the operation of such a
`program as is contained in ROM 115.
`When data is input on preview keypad 137, the se-
`lected work is output via through the power amplifiers
`105, 106 to the stereo speakers 107, 108. The preview
`function may be reset by pressing the reset switches 132.
`When data is input on the program keypad, the pro—
`gram determines which of the date, selection, or PIN
`keys has been depressed and thereafter accepts the ap-
`propriate input data. When a credit car is in slot 169 and
`the purchase bar is pressed, the program checks the
`lockout, dials the billing service, and transfers the data
`previously input by the operator via the modem. Dur—
`ing this period the PIN key is flashed.
`On receipt of a positive response from the billing
`service, the “Thank You” light 111a is activated along
`with Record and Pause indicators 116 and lllc. If a
`negative response is received from the billing service,
`the “Change Needed” light 111d is activated and the
`user will be unable to record his selection.
`When the date from clock 53 corresponds to the date
`previously input by the operator, at the hour digital
`signal the recording of the first side of the cassette be-
`gins. At the ; hour digital signal, the cassette is reversed
`and the second side recorded.
`Input data to the microprocessor 114 is applied
`through a PIA 125 and a switching multiplexer 126.
`The subscriber inputs data by activating one of switches
`131—136 or the keypads 137—138.
`The microprocessor 114 also controls the output of
`data for billing purposes. An acia (asynchronous com-
`munication interface adapter) 141 is connected to the
`bus 110 and transfers data to an autodial modern 140 via
`a key type lockout switch 199 and a data selector 198. A
`credit card reader 142 or other suitable device is used to
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`input financial data regarding the subscriber. This infor«
`mation is transmitted by the modem 140 over telephone
`lines to the national credit network 16.
`Referring now to FIG. 6, a plan view illustrates the
`console 150 for the receiver 100. The console 150 im 5
`cludes keypads 137, 138 for entering preview and pro-
`gram data. The program reset switches 131 are part of
`keypad 128, and the preview reset switches 132 are part
`of keypad 137, The speakers 107, 108 and cassette trans-
`port 112 are disposed within the console 150. The con-
`sole 150 also includes controls and indicator lights 111
`for the cassette, the purchase switch 136, the pin switch
`135, the select switch 134, and the date switch 132.
`Displays 117, 118, and 119 are disposed on the console
`150 for easy viewing.
`Referring now to FIGS. 7 and 8, side and rear views
`of the console are provided. On the side of console 150
`there is a lock 151 which prevents the unauthorized use
`of the modem. On the rear of the console 150, there are
`two standard telephone connectors 152, 153, a power
`cord 154, a master reset button 197, video in connector
`196, optional video output connector 155 (for video
`trap) and preview output connector 156.
`In the operation of the present invention, a minimum
`of 4 stereo pairs (8 mono) of digital audio are simulta-
`neously transmitted via coaxial cable on a designated
`channel and are independently selected and recorded
`on an audio cassette or CD at the subscriber’s receiver
`100. The digital signal is integrated with the video sig-
`nal so that when the pay per view channel is selected, a
`selection menu and/or advertising will appear on the
`screen of television 15. The complete musical work is
`supplied from record companies in the form of digital
`tape, CD disc or analog masters. All forms are trans-
`ferred to %” digital cassette or CD for transmission. A
`digital signal is transmitted every hour on the hour to
`give the “Forward Roll Command” and every 1% hour
`on the % hour to give the “Reverse Roll Command” or
`“continue” command for the audio cassette or CD at
`the subscribers receivers 100. Side “A” selections are
`transmitted 10 seconds after ,the hour and Side “B” 10
`seconds after the % hour to give the cassette or CD
`associated with receiver 100 enough time for leader
`clearance or first groove out. Analog cart machines
`continuously play a three minute preview or loop of 45
`highlighted material from each album selection. The
`consumer is, therefore, able to preview a selection be-
`fore purchase. The record companies will supply the
`three minutes of edited material to be used for each cart.
`The preview transmission for each cart is transmitted
`digitally on the same video signal as the main digital
`transmission.
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`keypad. Once a selection has been chosen, the speaker
`switch 149 is switched to “Program” and a 60 minute
`minimum audio cassette or CD is inserted into the slot
`119 marked with the arrow pointing downward. The
`cassette automatically rewinds to the head of the leader.
`Once the cassette has rewound, the appropriate EQ is
`automatically selected for the type of cassette being
`used, e.g., Norm, Cr02, Metal. The subscriber presses
`the date key and enters the month and day using the
`program keypad 138. The date appears in the window
`118. The subscriber then presses the select key 124 and
`enters the selection number he wishes to record using
`the program keypad 138. The selection number appears
`in the window 119. At this point, the subscriber can
`double check to make sure that the correct date and
`selection number appear in the windows 118, 119. Once
`the purchase key 136 is pressed, the date and selection
`number cannot be changed, unless the master react
`button is pressed, and the subscriber is then billed for
`that selection. By referring to the television menu or
`guide, the subscriber can double check his selection.
`The subscriber presses the PIN (personal identifica-
`tion number) key and enters his PIN using the program
`keypad 138. The PIN number appears in the window
`118 for 15 seconds. The subscriber then puts his credit
`card into the slot 169 at the bottom of the receiver 100.
`The subscriber then presses the purchase key 136. The
`subscriber waits approximately 10—15 seconds. During
`this period a red light within the PIN key 135 will flash
`indicating that the subscriber cannot use his telephone
`without interrupting the purchase. If appropriate funds
`are available in the subscriber’s checking account, the
`amount of the selection will be withdrawn and the
`“Thank You” 1110 light will activate simultaneously
`with the Record and Pause indicators 111b, 111C. The
`subscriber at this point will not be able to make another
`selection or withdraw his cassette or CD from the re-
`ceiver 100 until after the recording has been completed.
`The subscriber will also not be able to preview during
`recording. If sufficient
`funds are not available,
`the
`“Change Needed” light 111d will be activated, and the
`subscriber will be unable to record a selection until
`appropriate funds are deposited into his account. Each
`subscriber receives his own PIN. Each subscriber is
`obliged to have a credit or checking account and must
`be willing to disclose its number for electronic access.
`The purchased selection appears in the customer’s
`monthly credit or checking account statement.
`Funds deposited into the central receiving account
`will also carry the following information for monthly
`customer receipts and record company profits: price
`per transaction, type of transaction (i.e., savings ac-
`count, checking account, credit card), account or card
`number, terminal identification number, date of transac-
`tion, time of transaction, transaction referral number
`and approval number of the bank or credit card com-
`pany. Each record will receive the date and selection
`number as a code number for accounting and process-
`ing. If a record is rebroadcast at a later date, it should
`not be listed under the same selection number as previ-
`ously offered to avoid accounting and code number
`confusion. Monies due via subscriber selections will be
`sent to the appropriate record companies and publish-
`ers. At the first of each month the subscriber will re-
`ceive their service and/or receiver leasing bill for the
`up-coming month and last month’s purchase statement
`with the subscriber account number, date, selection
`number and title, price per selection and total monthly
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`The controller 13 receives a split feed of the main
`coaxial cable feeding the subscriber’s main channel
`selector or cable ready television. The controller 13 and
`receiver 100 are internally set by rf‘video decoder 104
`to the appropriate channel transmitting the digital audio
`signal. All vulnerable electronics of the receiver 100 are
`sealed to prevent disclosure or unauthorized tampering.
`The subscriber operates the invention by turning the
`television 15 on and switching the main cable selector to
`the pay per view channel. A menu of record selections
`appears on the television screen. The subscriber turns
`the speaker switch 149 to “Preview” making sure the
`speaker volume 139 is on. He previews the selections on
`the television menu by pressing the appropriate number
`for each selection on the preview keypa—d 137.- The
`selection number appears in a window 117 above the
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`billing to cross reference with their checking account
`Statement.
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`While the invention has been described in its pre-
`ferred embodiments,
`it
`is to be understood that the
`words which have been used are words of description,
`rather than limitation, and that changes may be made
`within the purview of the appended claims without
`departing from the true scope and spirit of the invention
`in its broader aspects.
`I claim:
`1. A system for distributing prerecorded audio enter-
`tainment or computer software to subscribers which
`comprises:
`(a) a source of prerecorded entertainment that in-
`cludes both complete works of entertainment and
`previews of the entertainment;
`(b) a transmitter for converting the prerecorded
`audio entertainment or computer software and
`previews into an electronic format suitable for
`transmission;
`(0) a network for transmitting the electronically for-
`matted prerecorded entertainment, computer soft-
`ware and previews, which comprise digital audio;
`analog audio and computer data to subscribers
`through a system which transmits within a single
`transmission channel a plurality of auido subchan-
`nels, data subchannels, or a combination thereof,
`selected ones of said plurality of subchannels trans-
`mitting previews on a substantially continuous 30
`basis and selected other ones of said plurality of
`subchannels transmitting complete works of audio
`entertainment or computer software on a periodic
`basis;
`(d) a plurality of receivers disposed at the location of 35
`each subscriber and connected to said transmitting
`network for receiving the complete works of audio
`entertainment or computer software and previews,
`said receivers including:
`1. means for the subscriber to monitor the previews
`transmitted to said receiver;
`2. means for selecting ‘a subchannel which is trans~
`mitting a complete work of entertainment or
`computer software;
`3. means for recording the electronically formatted
`prerecorded audio entertainment or computer
`software selected by the subscriber; and
`4. payment means coupled to said receiver which is
`operative to communicate payment data to a
`financial system which is separated from said
`source and in an interactive relationship with
`said receiver, said payment means being respon-
`sive to said financial system such that when a
`subscriber gives data to said payment means, the
`payment means communicates said data to the
`financial system which verifies said data and
`transmits a positive response to the recording
`means to allow it to record the selected subchan-
`nel transmission such that the subscriber obtains
`a first generation physical copy of the transmis-
`sion per recording means associated with each
`receiver,
`said recording means also having
`means for preventing said subscriber from ob-
`taining more than one first generation physical
`copy of the transmission per positive response.
`2. A system according to claim 1 wherein said net-
`work includes a plurality of coaxial cables.
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`3. A system according to claim 1 wherein said net-
`work includes a plurality of FM transmitting means and
`FM . receiving means.
`4. A system according to claim 1 wherein said means
`for converting the prerecorded entertainment into an
`electronic format includes a plurality of cart machines
`and a plurality of compact disc machines coupled to a
`CADA transceiver.
`5. A system according to claim 1 wherein the receiv-
`ing means at the subscriber‘s location includes a CADA
`receiver.
`6. A system according to claim 5 wherein the record-
`ing means includes an audio cassette recorder.
`7. A system according to claim 5 wherein the record-
`ing means includes an audio compact disc recorder,
`8. A system according to claim 6 wherein the means
`for entering data includes a plurality of keys.
`9. A system according to claim 7 wherein the means
`for entering data includes a plurality of keys.
`10. A system according to claim 8 whrein the pay-
`ment means includes a modem for connecting the re-
`ceiving means to an electronic banking system.
`11. A system according to claim 9 wherein the pay-
`ment means includes a modem for connecting the re-
`ceiving means to an electronic banking system.
`12. In a system for distributing prerecorded audio
`entertainment or computer software to subscribers
`which comprises:
`(a) a source of prerecorded entertainment that in-
`cludes both complete works of entertainment and
`previews of the entertainment;
`(b) transmitter means for converting the prerecorded
`audio entertainment or computer software and
`previews into an electronic format suitable for
`transmission;
`(c) a network for transmitting the electronically for-
`matted prerecorded entertainment, computer soft-
`ware and previews, which comprise digital audio,
`analog audio and computer data to subscribers
`through a system which transmits within a single
`transmission channel a plurality of audio subchan—
`nels, data subchannels, or a combination thereof,
`selected ones of said plurality of subchannels trans-
`mitting previews on a substantially continuous
`basis and selected other ones of said plurality of
`subchannels transmitting complete works of audio
`entertainment or computer software on a periodic
`basis; a receiver comprising:
`(1) means for selecting a subchannel which is trans-
`mitting a preview of the prerecorded entertain-
`ment or computer software distrubuted on the
`system;
`(2) means for selecting a subchannel which is trans-
`mitting a complete work of entertainment or
`computer software;
`(3) means for recording the electronically format-
`ted prerecorded entertainment or computer soft-
`ware selected by the subscriber; and
`(4) payment means associated with the receiver
`which is operative to communicate payment
`data to a financial system which is in an interac-
`tive relationship with