Troy Wolverton reports the "digital living room" is emerging as a major theme of this year's extravaganza in Las Vegas.

Hustler's Larry Flynt and "Girls Gone Wild" creator Joe Francis are asking for a $5 billion federal bailout of adult entertainment because "the economy has made America's appetite for sex go limp," Jane Wells reports. Adult DVD sales are down 22%, reports TMZ.

Hard Rock Park, which opened in Myrtle Beach, S.C., earlier this year on some songs and a prayer, asked a Delaware bankruptcy court Friday to convert its bankruptcy from a Chapter 11 to Chapter 7. That means that its current owners have given up hope of operating and will sell off its assets (though its Web site http://www.hardrockpark.com/ has yet to reflect that reality: "Closed for the Season: Reopening 2009," it says). When the 55-acre, $400 million theme park opened in April, management was relying on "buzz" to attract visitors, according to reporter Lisa Fleisher. "Local tourism officials …

Best lede of the year so far in marketing journalism: "Gatorade is looking to jump-start sales by keeping its mouth shut." I don't know whether it was Suzanne Vranica or Betsy McKay who wrote it, but they collaboratively inform us that the inaugural campaign from TBWAChiatDay that we first re-reported on last week is "using a familiar ad tactic: trying to build buzz by holding back details so that consumers will hunt for information and clues online." The effort -- which includes a currently running TV spot featuring the voice of rapper Lil Wayne and, a source …

Apple yesterday unveiled a three-tiered pricing strategy for music sold through its iTunes store and announced that it was removing anti-copying technology from the downloads, allowing them to be played on devices other than Apple's own products. Apple svp Phil Schiller says most songs in the iTunes catalog will sell for 69 cents. The second tier is 99 cents. The third, $1.29, is probably reserved for hits. Apple also unveiled a 17-inch laptop with a non-replaceable battery that it says can run up to eight hours between charges. Also, a new version of Apple's iLife suite of …

General Motors told its dealers yesterday that Pontiac G8 Sport Truck, the car-pickup slated to hit the market later this year, is kaput. Its design recalled the Chevrolet El Camino, which GM killed in 1988 after tighter fuel rules for cars made small pickups more competitive. Susan Docherty, Buick-Pontiac-GMC vp, notes that GM's long-term viability plan given to Congress calls for the Pontiac brand to become more focused. "It needs to be about youthful, sporty passenger cars," Docherty tells Tim Higgens. "When we took a look at that vehicle as an entry, the G8 Sport Truck, it didn't necessarily …

While denying any wrongdoing, Leo Burnett has agreed to pay $15.5 million to settle allegations that it overbilled the U.S. Army for work on its "Army of One" campaign, Jeremy Mullman reports. In doing so, Burnett avoids the risk of being barred from future government contracts. Two whistleblowers from inside Leo Burnett claimed the agency treated the work of its own Internet unit as if it was performed by a third-party contractor, and that it inflated the costs of subcontractors it worked with, in order to increase its profits. They will receive a $2.79 million share of the settlement. …