The “Lost” finale may not have set a ratings record, but pirates absolutely loved it.

TorrentFreak, a news site that covers the file sharing industry, reports the May 23 finale has broken all previous download records – with nearly 1 million people downloading the concluding chapters of the show in less than one day.  

Most of those downloads came from outside of the U.S., where the finale wouldn’t air for up to two days. The number’s expected to jump to between 4 million and 5 million by the end of the week.

“Lost” has been a perennial favorite among the BitTorrent crowd. Last year, it was the second most-pirated television show on the service. And given the expectations (and the certainty of Internet spoilers once it aired), the boost in downloaded copies isn’t a huge surprise.

It’s one that could cost ABC in ad impressions, though. The broadcast finale of the program was jam packed with ads. Entertainment Weekly did the math: 107 spots ran during the finale, eating up more than 45 minutes – 30 percent of the finale’s airtime.

Two of the most visible faces in Microsoft’s entertainment and devices division are leaving the company. Microsoft today announced the departure of president Robbie Bach and chief experience officer J Allard.  

Bach is retiring after 22 years with the company effective this fall. He has headed the entertainment and devices division since its inception five years ago and is a regular presence at major Microsoft press events. Allard, the driving force behind the Xbox and Zune media player, is leaving, but will remain as an advisor to CEO Steve Ballmer.

Allard’s departure had been rumored for several days. He has been on sabbatical since Microsoft ceased work on its Courier PC tablet, which Allard was spearheading. Bach, though, has been touted as a possible successor for Ballmer, and his departure has shocked the tech world.

“I have worked with Robbie during his entire tenure at Microsoft, and count him as both a friend and a great business partner and leader. Robbie has always had great timing, and is going out on a high note,” said Ballmer in a staff memo.

The division has been under fire lately, though, due to its failures to gain ground in the mobile space. Apple and Google have regularly taken market share away from Microsoft as smartphones have become more prevalent. That has reportedly caused some rancor within the company. The coming launch of Windows Mobile 7 is seen as the company’s most aggressive move yet to remain relevant in the mobile market in the coming years.

The Xbox unit, though, has shaped up nicely after losing billions in its early days. Now profitable, it has a firm lead over Sony’s PlayStation 3 in the gaming space. The coming launch of a motion sensor device dubbed “Project Natal” is widely expected to give the console another boost.

Don Mattrick, who heads the Xbox unit (formally known as Microsoft’s interactive entertainment business) and Andy Lees, head of the division’s mobile arm, will report directly to Ballmer effective July 1

Two years ago, Apple became the biggest retailer in the music industry, knocking Wal-Mart off its perch. Since then, there hasn’t been a lot of digging into how big the company has become.  

Billboard’s latest figures, however, show that Apple’s market share in the music industry now stands at 26.7 percent. That’s over 5 points better than two years ago and more than double where it stood in 2007. Wal-Mart, meanwhile, is seeing its share of the market dwindle – falling from 15 percent to 12.5 percent. Best Buy came in third, with 8.7 percent.

The big box retailers are reducing the floor space they dedicate to music, which is part of the reason for the decline. Both are showing a growing interest in the video game space these days (an interesting move, since a digital revolution is brewing in that category as well).

The growing dominance by Apple, though, continues to hobble the company as it tries to break into other entertainment fields – and is part of the reason networks and studios are taking such a hardline approach in their negotiations with the company. Once it has redistribution rights to the content under its terms, Apple grows at a tremendous rate. But as it grows, those content providers become increasingly dependent on it.

3D is coming to the living room – we all know that. TV manufacturers are making certain of it. But what do consumers want from it? Software company Roxio asked over 2,000 consumers about their interest in 3D programming and what they’d like to see.  

An impressive 84 percent of those surveyed said they were interested in viewing 3D movies at home. And nearly as many expressed interest in capturing their own memories using the technology – with 80 percent saying they believe they will film or photograph family events in 3D within 5 years. But price remains a factor.

90 percent of the people said they would buy a 3D camera if it was priced under $200. Only 50 percent were interested if that price was $500 or less. Nearly 76 percent of the people Roxio spoke with said they would be interested in converting their home movies to 3D as well – with vacation videos topping the list of things they’d convert first.

As far as content, “The Lord of the Rings” was the biggest request for conversion to 3D, taking 38 percent of the vote. “Titanic” was second at 21 percent. “Gladiator” and “Finding Nemo” were tied for third at 19 percent.

The soon-to-be departed “24” was the TV show people most wanted to see in 3D. “House,” “American Idol” and (somewhat surprisingly) “The Simpsons” followed.

And, as far as sporting events… no surprises there. The Olympics and the Super Bowl topped the wish list.

Find more of Roxio’s survey results here

When Wal-Mart purchased Vudu in February, it was really just a matter of time before other big box stores launched their own streaming media services. Now Best Buy is joining the race.  

The retailer will launch CinemaNow later this month, letting owners of LG’s Blu-Ray players rent (and buy) downloadable video. Rentals will run $3-$4 each – roughly the same as Vudu. They’ll be available the same day as film and TV DVD releases, which gives the service a slight let up on Netflix, which remains the top dog in the streaming video category.

CinemaNow will also be available on the PC and should roll onto other connected devices, including (presumably) products from Best Buy’s store-brand Insignia, later this year.

The service is a partnership between Best Buy and Sonic Solutions. 

Tivo’s March court victory over EchoStar may be short-lived.  

A U.S. Appeals Court has granted the parent company of Dish Network a rehearing on the battle over the long patent dispute between the companies. Tivo says it has a patent on the “time-warping” technology in DVRs, allowing viewers to watch one show while recording another.

Earlier this year, a Texas court agreed, ordering EchoStar to pay $74 million to Tivo (a figure that was later raised to $200 million). The appeals court initially agreed with the verdict, but now wants to reconsider – with all judges on the court present, rather than the panel of three that made the initial ruling.

It puts Tivo under an incredible amount of pressure (something the stock reflected Friday, falling nearly 42 percent). The company had hoped to use its earlier court victory as leverage in negotiations with cable companies that used the tech – which could be a cash windfall.

With the verdict in danger, that means Tivo remains unable to capitalize on its patents.

A court date for the hearing has not yet been set. 

Another broadcast outlet is adding a 3D channel – and this one’s big.  

Comcast has announced it will have ESPN 3D up and on the air in time for this year’s World Cup. It’s the first true cable company to carry the channel, although DirecTV will do so as well.

It’s a move that makes sense. Sports will be what moves 3D sets in the immediate future and the World Cup is premium content. While there aren’t many 3D sets in homes just yet, the folks who have them can be turned into loud evangelists.

It’s not the first time Comcast has dipped its toes in these waters. The company ran last month’s Masters Tournament in 3D. 

The Africa Channel, a five-year old cable channel that showcases Africa-centric and originated programming, is expanding its footprint.  

The cabler has announced plans to launch a high definition version of the network on Aug. 1 that will be carried in “select” markets. It’s a big step for a small channel – but one that could expand its audience.

Original programming for the high def version will span the gamut, including shows focusing on African Art, Egyptian sights and sounds and several musical programs. Don’t be surprised if programs featuring the country’s scenic beauty are put into the mix as well.

The channel is funded by a variety of private investors, including former U.N. ambassador Andrew Young, NBA players Dikembe Mutombo and Theo Ratliff and TV producer Weller-Grossman. It’s carried in the United States through national distribution deals with Comcast, Time Warner, Cox and Charter.

Amazon has one. Barnes & Noble has one. Now it’s Borders’ turn.  

The Kobo eReader, which has the full backing of the Borders book chain, has set a release date. The device will go on sale June 17, entering a market that was already crowded before Apple put itself in the ring a month ago. 

Kobo’s device comes with a pricing advantage, though. At only $149, it is the least expensive of the major eReaders. On the other hand, it’s a relatively bare-bones device, lacking several of the features that the nook or Kindle offer. It sports a six-inch screen, but doesn’t have a 3G connection, letting you download books on the fly, or WiFi. That could hurt it significantly. Audio playback, a less compelling feature, is also missing.

The device does come with 100 classic books preloaded, however. And it uses E Ink, which has generally been a much easier format with which to read eBooks, especially if you’re outside. (The iPad, for all its admirable qualities, is not a device that does well in non-shaded environments. And, technically, it's not exactly an eReader, despite the iBooks app.)

It’s a stab in the dark for Borders, but one that’s not likely to boost its customer base.