UK Households Buying Second Digital TV, Ofcom

In Ofcom’s morning release of its third quarter figures for digital TV (dTV) penetration in the UK, they’re reporting an estimated 55.9% of UK households now have dTV in some form.

The dominant provider of dTV in the UK is still Sky, with over 7m subscribers, although they have only added 53,000 more in the quarter.

With just short of 4m households is Freeview (the UK Free-To-Air Digital Terrestrial Television service), which exceeds the combined analogue and digital services of UK cable TV providers NTL & Telewest. Pure digital cable is running at 2.5m subscribers.

One of the big concerns with digital switch off has been going beyond the first dTV set in the house. It was fine to say that over 50% of UK households had digital TV, _but_ given that the UK average is 2.5 sets per household, what was going to happen to the analogue sets that were left? There might be a lot of unhappy people not able to watch TV the day after analogue switch off.

The latest figures bring good news to those worried about this. Around a quarter of new sales of Freeview went to homes that already have one digital TV. With the pricing of the Freeview Set Top Boxes (STB) starting from as little as £49 (~$95, ~€71), households must be finding the content on Freeview compelling enough to want also have it in the kitchen, bedroom or child’s room.

What isn’t clear from the figures, is if the original dTV set was Freeview, Sky or cable. We contacted Ofcom to dig a little deeper, only to find that they “don’t dig that deep” into the figures. One thing that did become clear during the chat, was that Sky household’s that purchase a second box are not broken out at all, but are just added to their overall subscriber base numbers.

Full Ofcom Digital Television Update – Q3 2004

Google Suggest – Search Innovation

Google Suggest BetaTwo Google stories in a day! They’re testing a new interface for their search engine that they’re calling Google Suggest.

One of the problems for many users of Google has been the huge number of results returned including ones that apparently had nothing to do with the original request. Other search engines have taken the approach of gathering what they feel are related results together to try and assist the searcher. Google Suggest is Google’s shot at it.

The interface looks the same as it does currently – simple, stripped down and functional – but as you type in your search term, a drop-down box shows a number of suggestions based on what you have entered. It also lists the number of search results would be returned, giving a further guide to searchers.

As an example of how it works we entered “digital”. This bring up the predictable “digital camera”, but helpfully for novice users, it also lists “digital camera review”, which might be more what they are looking for. There are ten suggestions lists in total, which in this case included “Digital radio” and possibly just for a little variety, “digital blasphemy“, not something we’ve come across before, but as it turns out a site selling computer rendered wallpapers that is well worth a look.

Selecting the term bring up the expected list of Google results, but with the Google Suggest feature persisting in the search box.

As ever, Google are innovating in their own way, and given their skill in improving upon innovation, we see no reasons the suggested search terms shouldn’t also list of the audio/video/photo results making searching quicker.

More importantly it’s key to remember that this is helping Google raise revenue. The more precise the search term, the better the match for displayed TextAds, the more likely the searcher is to click on them and in turn, the more income Google will make.

Before you rush to the site to test the ‘rude’ words, don’t get too excited, many don’t bring up suggestions. Although we can well see that testing of the limits of this will become a strand of postings on boingboing.net. Google Suggest beta

Google File Pay Model Retrieval Patent

We’ve been slightly slow on the uptake of this one – Susan Kuchinskas at InternetNews has picked up a US patent filing by Larry Page, co-founder of Google, and it makes interesting reading.

Google News is great for users – we’ve been a news source of theirs for a considerable amount of time and often use its search facilities for research. For Google it’s less great, as they’ve yet to find a way to make money out of it – thank goodness they took the automation path, by throwing tech at it, not people.

The patent, 20040122811, titled “Method for searching media” was originally filed in September 2003 and its core function is summarised by Susan,

to enable search of printed material, offer pay-per-view documents, scanned documents with clickable ads and even the ability for print publishers to swap out ads in digital copies of their printed pages.

There are two key elements of the patent: a method for executing a permission protocol so that the publisher could authorize Google to display more text from the relevant publication; and storing scanned versions of printed documents along with data sets representing the ads that went with them.

It’s not just online text that is covered. CDs, DVDs, audio books, hard copy magazines, newspapers and journals could all be included.

So how could Google make money from this? We find the most interesting idea the ability for them to act as the gateway to the content, charging a predetermined fee for access to the information that they would share with the publisher. Micropayment systems like BitPass and BT Click&Buy have been providing the charging mechanism to information publishers for a long time, and to a lesser degree, the ability to locate information you might be interested in. Google already own the search side, the additional income they could gain for collecting payments for content could be considerable.

Susan covers the innovative ways potential income from the advertising could be raised,

The patent claims a method for updating advertisement information for the printed documents. For example, it would allow the publisher of a hot news story to resell the ad space to a rotating series of advertisers or let advertisers keep the ad but update prices and product information. One of the claims, covers storing information about products in the ads. This might allow the advertiser to create a special landing page associated with the ad, working like a Web banner ad.

Internet News
BitPass
BT Click&Buy

UK Film Council Launches “Film Theft in the UK” report

This morning the UK Film council launched a 94-page report containing 30 measures they feel will help defeat the spread of unauthorised film copying in the UK.

Compiled by the Anti-Piracy Taskforce convened by the UK Film Council, it contains suggestions of short, medium and long-term actions aimed at the UK Government, the UK film industry and, what they call, “Government-backed and other film sector stakeholders”. Started in Summer 2003, it has taken nearly 18-months to complete.

The report is being forwarded to The Creative Industries Forum on Intellectual Property, which was launched by the UK Government in July this year. Headed by the Department for Culture, Media and Sport, Department of Trade and Industry and Patent Office, the group contains Ministers from eight Government Departments including the Treasury and Home Office.

There is clearly a large problem with DVD’s being commercially copied and offered for sale in the UK. We’ve been surprised in the past, when offered copied DVD’s of many feature films. A while back one of the writers at Digital Lifestyles was offered the then unreleased Incredibles, a Pixar film, by an Oriental lady with a bulging bag of DVD’s with colour photo copied covers. The price for this unreleased film? Just five pounds. This was made all the more cheeky by us being a stones throw from the centre of the UK film industry.

For research we bought one, and found the audio quality to be terrible at the start of the film. Persisting, we were later amused to see the classic “Bloke off to the toilet” head raise up and pass in front of the screen, only to return 10 mins later. From the size of the mystery person, it was clear that this has been shot in a small private screening room, probably during a preview, possibly from within the projector room. The likelihood was that this wasn’t shot by a member of the public, but by someone within the industry.

When discussing the availability of commercially copied DVDs with others, we heard that there are regularly stalls on the high street in Kilburn, London that are openly selling copied DVDs, with the police walking past not taking any notice.

Based on figures from Federation Against Copyright Theft (FACT), the report estimates the value of black market in pirate DVDs in the UK to be £400-£500 million in 2003 and they expected it to exceed £1 billion within three years, based on their retail price. In the full report (yes, we read it) they list the main sources of copied DVD’s to be Pakistan (36%), Malaysia (31%) and China (14%).

We found it very confusing that the authorities or the film companies didn’t appear to be taking, or even publicly threatening, actions against commercial copiers, when there was considerable noise being made about the imminent death of the film industry being caused by file sharing networks. It’s more than obvious that the current installed base of DVD players is significantly bigger than those with computers and a broadband connection.

Down to their suggested actions. They felt that trading standards don’t have enough powers to combat trading in copied films and would like them to have more. There are a couple of suggestions to clamp down on car boot fairs (public markets where individuals turn up, pay a fee and sell their goods) including; ensuring that people registering to sell be over 18 (they say that currently children under 14 are being registered as the stall holders, and legal action cannot be taken against a child under 14); making the registration of car boot fairs compulsary; and there being powers to close down car boot sales where pirate DVDs are persistently sold, which they told us would be a “last resort measure.”

Some of the points mimicked ideas running in the USA, such as making the act of camcording in a cinema a clear criminal offence (it is currently a civil offence) and providing incentives for cinema staff to look for unauthorised camcorder usage.

It was encouraging that some of the problems that are normally glossed over were addressed. To this end, one of their short-term suggestions is to conduct a thorough review of security risks in the film making process, looking to develop improved security procedures for the handling of film prints and digital materials.

Despite a whole chapter in the reports appendix “Learning from the music industry”, we were disappointed to see that “Developing clear commercial strategies in relation to Internet Film Distribution” was only listed as a medium-term goal. Indeed, when we spoke to the UK Film Council, we were further disappointed to hear the same old delaying arguments of “when the technology is in place and the broadband market is significant” being rolled out. It’s clear to all who pay any attention to this area that this point has already been reached otherwise, people wouldn’t be swapping films online, was met with a blanket, non-committal response.

UK Film Council

LG opens European RandD Centre in Paris

The march of LG continues West with them setting up an R&D office in Paris (Reg.Req.), France. The advantages to them are plentiful; a stronger understanding of the needs of the European market; the forging of closer relationships with European network operators; having the cellular standards bodies on their door steps – ETSI (European Telecommunications Standards Institute) and 3GPP (Third Generation Partnership Project) are both based in Paris.

This will be their fifth R&D centre, following San Diego, Beijing, Bangalore, and Moscow.

LG profile has grown tremendously in recent years, and their handsets have been doing well. They hope the opening of this R&D centre takes them one step closer to being a ‘global top 3’ in handsets by 2006. On past performance it looks highly achievable – rival companies must be getting worried.

LG

Amazon UK Launches DVD Rental Service

Amazon has launched its anticipated DVD rental service in the UK.

Other similar services have been available for a considerable period of time, with Netflix being the most popular example in the US. Customers pay a fixed monthly fee and can have DVD films for as long as they like. When they’ve finished viewing it, they simply return it in the post and receive their next DVD by return.

Amazon.co.uk is the first country to launch for Amazon. It is offering two services, £7.95 giving two disks at home and a £9.95 for four. Its offering differs slightly in that there’s a limit to the number of disks that can be viewed in each month, 4 for the cheaper price and 6 for the other. They say this is based on industry data that shows that people generally rent five or fewer films per month. Competitive services don’t impose this limit.

They’ve made no bones about their desire to dominate the area, “Amazon is determined to be the best place to rent DVDs.” Amazon Chief Executive Jeff Bezos said in a statement.

The market in the UK is pretty busy with long established companies like Movietrak and more recent entrants like retailing giants Tesco, among the many. Back in July in what was generally seen as a defensive move against the plans of Netflix to open in the UK, Movietrak and Qflicks merged. They were not immediately available for comment when we tried to contact them.

The Amazon offering is a powerful play. The new rental service is fully integrated into Amazon.co.uk’s existing DVD store, allowing DVD shoppers to rent or buy in the same area of the site and receive recommendations. They also have the advantages for current Amazon users not needing to sign up new accounts and enter credit card details as Robin Terrell, Amazon.co.uk’s Country Manager, pointed out, “Since we already have their payment and billing information, the millions of existing Amazon.co.uk customers can sign up for the programme with just one click.”

The larger companies can offer additional incentives; Tesco offers clubcard points and Amazon will be offering a 10% discount on the purchase of DVD’s.

When Amazon opens a service in the country you operate, you are bound to be worried. Expect further consolidation within the market or special offers. We understand that Netflix have delayed their plans to launch in the UK to assess the impact of Amazon’s launch.

The cost of delivering films over an Internet connection has been one of the things that has held back online film rental. DVD’s in the post are just about the most bandwidth efficient way to distribute information. 28 pence to deliver 4.7GB – you don’t get much cheaper than that … until the release of the next gen DVD formats.

Amazon DVD rental

Blu-Ray gets Disney support

The battle between Blu-ray and HD-DVD is heating up. Reuters carries the story of Disney pledging support for Sony’s Blue-ray. Disney will make films available on the release of Blu-ray players, which are first expected in 2006 in North America.

At the end of November Warner, Paramount, Universal and New Line Cinema pledged their support for HD-DVD.

Blu-Ray uses a blue-violet laser with a very fine focus. This enables it to store 25GB of data on a single-layer disk, sufficient for 2 hours of HDTV, or 13 of standard-definition TV. The dual-layer versions of the discs that can hold 50GB. HD-DVD holds 20Gb on a single-layer disk.

“Everyone is looking for the right format … to release their content. That is a combination of consumer adoption of the players and the platform, content protection, and adequate capacity. We think Blu-ray is there,” Murphy told Reuters in a phone interview.

Having said they’re supporting Blu-ray, Disney isn’t saying that they won’t support the rival HD-DVD. At least they’ve has gone one step further than 20th Century Fox, who, despite being founding members, haven’t committed to publish on the format as yet.

There’s been a trickle of announcements over the past months giving support to Blue-ray, from HP on 15 Nov saying they’ll ship computers with drives next year and in their laptops in 2006; Sharp on 11.Nov saying they’ll ship the BD-HD100, a combined HDTV tuner, 160GB hard disk and Blu-ray recorder (25GB) in December this year;

Dell strong EPS, SG Cowen

Kevin Rollins, CEO at Dell, impressed a Boston’s investor lunch meeting organised by SG Cowan yesterday. So much so that they’re now seeing Dell providing 20%+/Annum Earning Per Share growth over the next two years.

They report strong current demand and a lowering of component pricing. While thinking Dell’s shares are fully valued near term, they are buoyant long term, rating them as “attractive.”

Most growth will be in the Enterprise space, and they are a little wary of the Consumer space, as margins are so thin.

They see Dell continuing to disrupt the printer market, recognising that it is a “step-by-step” multi-year process.

SG Cowen

The Mobile Music Summit: Maximising The Potential & Profits Of Advanced Mobile Music Services

Music distribution & retailing is changing rapidly. Online music distribution is already revolutionising the music industry, and mobile music distribution may have the same impact. Mobile ringtone sales, by many analyst’s estimates, already account for 10% of the global music market. With the recent introduction of real tones and ring back tones, the ringtone share of the total global music market may continue to rise dramatically in the near future. However, it is the rise of full track mobile music download and streaming services that may have most commercial impact on the music industry, and on the uptake of mobile data services. The Mobile Music Summit will analyse this emergent mobile music market in depth, providing expert insight into the key trends, challenges and opportunities within the current and future mobile music market. The Mobile Music Summit will feature over 20 presentations from leading experts and practitioners in the field of mobile music. One Whitehall Place, London http://events.ibctelecoms.com/NASApp/cs/ContentServer?pagename=marlin/home&siteid=20001000401&marketingid=20001227556&MarlinViewType=MARKT_EFFORT&proceed=true&MarEntityId=1072247504748&entHash=e916ce5572&UType=true

Napster More Recognisable Than iTunes, Survey

In a recent US survey by Ipsos-Insight, Napster has come out as the most recognised pay-for music download service. When presented with a list of services, Napster scored 79% recognition over iTunes, which hit 46%. More details are in the press release, but RealPlayer Music Store and MusicMatch weren’t that far behind around the 40% level.

We think that Napster has a huge debt of gratitude to pay to the RIAA and the US recording industry for their original barrage of anti-Napster press. What is surprising is iTunes wasn’t higher, we suspect there’s some confusion in the mind of the consumer with so much noise being made about iPod, iTunes becomes eclipsed.

Apple workers at 1 Infinite Loop can breathe a sign of relief about the quality of their offering. When asked which was the “best” fee-based service, 31% of the respondents rated iTunes the tops, leaving Napster trailing at 23%.

IPSOS research