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It said the authorities in the United States, where the content distributor is based, were investigating.
However, Grusd is already excited about a content distributor that many in the west have still not heard of, China's WeChat, which delivers news to 600m mobile phones.
"Social media will play a huge role," says Dipesh Morjaria, head of digital media sales at sports rights and content distributor IMG Media.
Jonathan Tasini, president of the National Writers Unionn, and Steven D. Brill, chief executive of Contentville, a new online content distributor, both said yesterday that they had reached an agreement.
The survey by Princeton Research Associates for the Web content distributor ScreamingMedia.com, found that 89percentt of the 1,232 respondents had never paid for news or information on the Web, and 83percentt were not willing to pay.
In September, Spark Capital, a mainstream venture capital firm, led a $12.5 million round of financing for Waat, but changed the company's name to Twistbox Entertainment and packaged the company as a mobile content distributor.
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It is used by digital content distributors that include BSkyB, Movielink, RealNetworks and MTV's Urge music subscription service.
"They don't want to be just utilities providing Internet access, but premium content distributors as well".
Some analysts argue, however, that while the Internet might force content distributors to jettison their traditional business models, the current controversy over music piracy does not present an ultimate threat to intellectual property in the digital era.
Google, according to several people with direct knowledge of its efforts, will give away its software to hand-set makers and then use the Google Phone's openness as an invitation for software developers and content distributors to design applications for it.
Since then, more than a dozen other content distributors, from the Fox television network to Globosat in Brazil, have joined the program, with brands including Heineken and AT&T promoting clips from major sports events like the U.S. Open tennis tournament and NCAA basketball games and live events like MTV's Video Music Awards.
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