Author: Christian

Thomson: ContentGuard and Verisign deals

Paris-based Thomson have been busy. They’ve done two deals that will have an impact.They have become a strategic investor in ContentGuard, a closely-held developer of Digital Rights Management (DRM) intellectual property. With this investment, Thomson enters into a partnership with current investors Microsoft and Time Warner Inc.

Digital Rights Management describes a wide range of technologies that have been developed to allow movies, music and other digital content to be accessed by consumers over the Internet while protecting that content from unauthorised copying and counterfeiting – a technology championed by Microsoft and its Windows Media Player software.

Thomson has agreed to purchase an aggregate 33 per cent voting stake in ContentGuard from Microsoft, Time Warner and Xerox, subject to customary closing conditions and regulatory approvals. The announcement follows Time Warner’s April 2004 purchase of most of Xerox’s stake in ContentGuard.

The three companies (Microsoft, Time Warner and Thomson) are using the announcement to promote the development of inter-operable DRM systems, accelerate the deployment of consumer devices that support Digital Rights Management, and encourage content owners to launch new distribution channels.

The move is also interesting because Thomson is a long-standing technology and services provider to content owners and network operators, thus bringing a unique perspective that should complement the interests of ContentGuard and its co-investors. Thomson also has a lot of experience in IP licensing, which should further help to support ContentGuard’s licensing activities and accelerate and broaden the acceptance of DRM and ContentGuard’s intellectual property.

“The development of Web services and new content distribution systems requires a complete ecosystem of participants. Thomson’s investment alongside Time Warner and Microsoft shows that media, software, devices and services companies are committed to developing the infrastructure for Web services to flourish”, said Bill Gates, chairman and chief software architect, Microsoft. “This partnership will help propel the licensing of DRM intellectual property. With the participation of Thomson, a recognised leader in IP licensing, we add a European headquartered partner that will make this important technology more accessible in other parts of the ecosystem, particularly services and devices.”

“Today’s announcement marks yet another important step in our work on DRM, and expands our collaboration with key partners on this strategic initiative,” said Ron Grant, senior vice president at Time Warner. “We look forward to working with Thomson, Microsoft and others on offering consumers exciting new digital media products and services while simultaneously protecting content.”

In another move, Thomson and VeriSign have joined forces to create an authentication and authorisation service for movies, music and games delivered over digital networks. The new service, which will likely debut next summer, will be used to process secure transactions and for other back-office functions. It is geared at the subscriber digital entertainment market over broadband networks, which is a fast growing industry.

VeriSign’s Internet transaction authentication and network infrastructure technologies will be used, while Thomson will capitalise on its experience in content security, management and distribution. Both companies also plan to develop proprietary technologies to authenticate and authorise digital content and to build an interface for home networking devices such as video recorders, mobile devices and computers. These features could help protect movies and other content from piracy.

Thomson
ContentGuard
VeriSign

Universal Music Group Creates Digital-Only Music Label

Another month, another digital music announcement. This time, however, a record label is actually thinking long term. Universal Music Group (UMG) are embracing online technology as part of its business model, rather than wasting its time, money and efforts suing a handful of consumers for downloading copyrighted material.

Universal, which like other record companies, has heavily relied on profits from sales of CDs, will this week promote eight relatively unknown acts on a digital-only label (UMe Digital) through online services including Apple Computer’s iTunes, RealNetworks’ Rhapsody and Microsoft’s MSN Music. Online promotion is an alternative marketing option that’s nowhere near as expensive as traditional forms, but has the potential to be highly effective.

It’s great news that Universal is taking these innovative steps, as it finally shows that music labels will have to adapt to online sales and marketing in order to survive, especially as sales of CDs have fallen over the last four years, record stores are moving from high streets, and more shelf space is being given to DVDs and video games.

The move is also great news for bands because they can get relatively large exposure without having to spend a fortune on recording, making a video and then going on the road to ‘develop’. However, bands do not receive an advance or even the cost of producing an album. Having said that, they do retain full ownership of their master recordings and licence them to Universal for a limited time.

Universal is paying the musicians around 25 per cent royalty on the retail price of the downloads, and if online sales of an artist’s music reach a certain point, say around 5000 copies of a particular song, the company has an option to pick up distribution of the CD to record stores.

It’s now only a matter of time before digital-only independent labels start promoting bands online by creating a low-risk way to market them without producing a physical album or underwriting a tour or music videos. For consumers, gone are the days of paying £15 for a CD – a digital world means more choice and better value.

Warner Music Group is developing a unit similar to Universal’s, initially to sign artists and finance recordings for online sales, with the potential for later CD releases.

Universal Music Group
Warner Music Group

JFK Reloaded Described as ‘Despicable’

JFK ReloadedOn the eve of the 41st anniversary of John F Kennedy’s murder, a dramatic new ‘docu-game’ brought the tragic assassination by Lee Harvey Oswald to life for a whole new generation. However, a spokesman for the president’s brother, Senator Edward Kennedy, called the game ‘despicable’, but has not commented on whether the family was taking any action to stop the game’s release.

JFKReloaded ($9.99, ~€7.70, ~£5.40), recreates the last few moments of the President’s life and challenges participants to help disprove any conspiracy theory by recreating the three shots that Lee Harvey Oswald made from the infamous sixth floor of the Dallas book depository.

The game promises to accurately recreate the surroundings and events of 22nd November 1963 in downtown Dallas, using information from the Warren Commission report, and has taken a ten-man team seven months to research and six months to program. The reconstruction enables players to examine the challenges that faced Oswald.

‘This new form of interactive entertainment brings history to life and will stimulate a younger generation of players to take an interest in this fascinating episode of American history,’ commented Kirk Ewing, managing director of Traffic and the creator of JFKReloaded. ‘We’ve created the game in the belief that Oswald was the only person that fired the shots on that day, although this recreation proves how immensely difficult his task was.’

Regardless of the continued passion in the US surrounding the death of one of America’s greatest heroes, Traffic is determined to promote the title respectfully whilst encouraging as many people to play the game as possible. The company has also offered an incentive of up to $100,000 (~€77,000 ~£54,000) for the first person to most accurately recreate the three shots made by Lee Harvey Oswald. A cash reward of this size is the first of its type for a game.

“We genuinely believe that if we get enough people playing the game we’ll be able to disprove once and for all any notion that someone else was involved in the assassination. The computer ballistics model says it’s possible, but players will discover just how hard it is to place those three bullets in exactly the same way that Oswald did.” The site goes live at midnight on the 22nd November 2004 and will run for 3 months.

It’s more than likely that this game will raise the issue in the press of video games containing violence, as was last seen with ‘Manhunt’. Last time the press got the wrong end of the stick and blamed a killer’s obsession with the violent computer game ‘Manhunt’ for the death of a schoolboy, although it actually turned out that the game was present in the victim’s home, not the killer’s. Some are wondering if the release of JFK game around the anniversary of the incident was a calculated move by the development company, Traffic, after watching the sales of Manhunt go through the roof during the last press frenzy.

FCC Approves First Software-Defined Radio (SDR)

The US Federal Communications Commission (FCC) has announced its approval of the first software-defined radio (SDR) device allowed in the United States. The new equipment will allow users to share limited airspace, increase flexibility, and reduce interference concerns. In a move that may prove to be a radio technology revolution, the industry is now beset with pioneering work to find more creative and efficient use of airwaves in order to offer benefits to consumers.

Software-defined radio, sometimes shortened to software radio (SR), refers to wireless communication in which the transmitter modulation is generated or defined by a computer, and the receiver uses a computer to recover the signal intelligence. To select the desired modulation type, the proper programs must be run by microcomputers that control the transmitter and receiver.

However, the most significant asset of SDR is versatility. For instance, wireless systems employ protocols that vary from one service to another – even in the same type of service – whereas a single SDR set with an all-inclusive software repertoire can be used in any mode, anywhere in the world. Software defined radios can change the frequency range, modulation type or output power of a radio device without making changes to hardware components. This programmable capacity permits radios to be highly adaptable to changing needs, protocols and environments.

The ultimate goal of SDR is to provide a single radio transceiver capable of playing the roles of the cordless telephone, mobile phone, wireless fax, wireless e-mail system, pager, wireless videoconferencing unit, wireless Web browser, Global Positioning System (GPS) unit, and other functions, operable from any location.

The FCC’s approval gives the go-ahead to Vanu, a software development company, for a cellular base station transmitter. Vanu’s Radio GSM Base Station, which is based on a HP ProLiant server running Linux coupled with ADC Telecommunications’ Digivance radio subsystem, can support multiple cellular technologies and frequencies at the same time and can be modified in the future without any hardware changes. The technology has the potential to lower costs and provide new flexibility in wireless networks, thereby changing the entire cost structure over time. The first users will be military and public safety officials.

FCC

Philips’ Tiny Chip Provides FM Radio In Mobile Devices

Royal Philips Electronics has showcased a series of chips that will add FM and AM tuner functionality to mobile phones, CD/MP3 players, PDAs, and other handset devices. The chips are not only the world’s smallest, but will also allow handset manufacturers to create ‘true’ multimedia devices that are capable of playing audio, video, games, and radio.

According to Philips, FM radio is one of the key features users are looking for as mobile phones are evolving into connected consumer devices. With listening figures as high as 20 hours per week, according to the company, Philips is hoping that consumers will appreciate the addition of easy-to-use FM radio on their mobile phones. This, of course, is very likely, as for most people it will probably mean one less item to carry in their pockets. Today, only some 15 per cent of mobile phones sold worldwide have FM radio, although the market is set to continue to grow towards 50 per cent, asserts Philips.

Each new chip has its own peculiarities. For example, the TEA5767 requires low power whilst the TEA5777 supports the AM range. The smallest in the series, the TEA5761, is made using WL-CSP (Wafer Level – Chip Scale Packaging) and is a wafer of silicon crystal plates. As the I/O connections were redesigned and some of them removed, TEA5761-based solutions require considerably less PCB space. Some of TEA5764 are also shipped in WL-CSP package, but they primarily stand out with RDS (Radio Data System) support (provides various information like station name, current track, news, ads, and so on). RDS also helps to simplify tuning by ensuring that the radio always tunes to the strongest signal available. The technology also offers benefits for telecom operators by increasing average revenue per user (APRU).

‘Mobile phones are becoming the ultimate portable device and consumers are placing great value on the multimedia features that differentiate their phone from others in the market. Already established as a proven technology with a large user base all over the world, FM radio is a valuable addition to any handset,’ said Peter Baumgartner, senior vice president of Philips Semiconductors’ Communications business. ‘As the leader in this market for FM radio on mobile devices, Philips enables everyone to enjoy radio entertainment, everywhere and anytime they want.’

Philips’ FM TEA5761 is available now, while the FM+RDS TEA5764 and the AM/FM TEA5777 will be available in January 2005.

Royal Philips Electronics

Microsoft TV Attracts Older People To The Web

Microsoft is hoping its Web-based TV service will attract ageing users to surf the Internet, read e-mail and view digital photos – all without a computer. In what initially seems like a shot in the foot, Microsoft’s research indicates that the untapped market potential for older users is in excess of 40 million – a sizable figure even for the king of software.

As well as the older generation, Microsoft is also targeting first-time Web users, particularly in developing economies where the Internet is out of many people’s reach because of the cost of a PC. The major benefit of being able to view photos and read e-mail on your TV is that most people already own a TV, thus eliminating the prohibitive cost of a PC, as well as the hassle of installing and learning how to use it. Sitting in front of a TV is also usually a heck of a lot more comfortable than a computer.

“Our average user is 57 years old,” said Andy Sheldon, senior director of product marketing for MSN TV. “These people are getting to the age where they don’t want to deal with complicated ways of connecting to the Web.”

The service comes via a MSN TV 2 unit set-top box, bringing e-mail and the Internet to the TV. It includes a wireless keyboard and remote control and costs $199, in addition to a subscription fee, which costs around $22 per month. MSN TV 2 also includes a 56Kbit/s phone modem, as well as an Ethernet jack for connecting to an existing network or broadband connection. Of course, there’s also e-mail and instant messaging accounts and access to 200 radio stations and video clips. Viewers can also browse Web pages or even digital photos stored on memory cards.

MSN TV 2 is probably ideal for those who have yet to take their first step onto the Internet, but anyone interested in a home networking device can get more for their money
.

Utilities Switch On Broadband Over Powerlines

Broadband over Powerline (BPL) is an emerging technology that may shake up the competitive world of broadband Internet and Voice over Internet Protocol (VoIP) services. It offers high-speed access to your home through the most unlikely path, a common electrical outlet, allowing you to plug your computer into any electrical outlet in your home and instantly have access to high-speed Internet.

Combining the technological principles of radio, wireless networking and modems, the technology can be used to send data over power lines and into homes at speeds equivalent to DSL and cable. In Singapore, Pacific Internet is one of two ISPs trialling the technology in conjunction with Singapore Power. The Singapore trial is currently sustaining connection speeds of 2.2Mbit/s – faster than Telstra ADSL. Elsewhere in the world, power lines are running at 4.5Mbit/s, and ultimately the technology supports speeds of up to 10Mbit/s. It also allows utilities to tap existing infrastructure cheaply, fill market gaps in underserved regions and benefit from plummeting equipment costs.

For instance, the city of Manassas in Virginia has signed a deal with local utility Communication Technologies to extend broadband services across the city’s powerlines to 15,000 residential and commercial locations for less than $30 (£16) a month. Revenue is then shared between the city and the utility, as long as they adhere to powerline radiation-emission restrictions and follow consistent and repeatable measurement guidelines set out by the Federal Communications Commission (FCC).

It’s not all been going smoothly for the new technology though. The two test plants near Rochester, NY, both pulled the plug on their setups when the cost analysis came in. There was a major interference issue on BPL also, but the final argument was decided due to the money.

New UK VOD Gets All Clear from EU

European regulators have approved a joint venture between The Walt Disney Company, Columbia Pictures (a division of Japanese electronics giant Sony), and the UK’s ON Demand Group to provide a video-on-demand service in Britain and Ireland. The new venture will be called MovieCo and will give UK cable network operators an alternative to procure video content other than BSkyB, which is currently the dominant player on this market.

The MovieCo joint venture will offer films to customers of Britain and Ireland’s two biggest cable companies, Telewest and NTL. According to the EU statement, it ‘will provide an open platform to which movie content providers will have access on a non-discriminatory basis, therefore enabling them to make films available by way of video-on-demand directly to customers.’ The deal is also likely to help improve Hollywood’s leverage with BSkyB, as the satellite TV company renegotiates with individual studios over the rights to films for its stable of movie channels. Sky offers its movie channels to cable customers as well as its own satellite subscribers.

The new service will allow viewers to pick from a wide selection of movies to watch whenever they want. The technology is expected to be a key weapon for cable and telecommunications providers in their battle against satellite firms. Companies including BT Group and France Telecom’s Wanadoo also have video-on-demand platforms in the works. Video Networks’ HomeChoice already offers video-on-demand to areas of London.

More importantly, MovieCo will add legitimacy to the concept of on-demand movie downloads to PCs. The business has been in a state of flux because of piracy on popular peer-to-peer networks (P2P) and concerns over the quality of digital movies. To boot, the sector is also under constant scrutiny of the Recording Industry Association of America (RIAA), which is making good on its threat to sue file-swappers. The trade association has been busy in the US issuing subpoenas to ISPs demanding the identities of subscribers using P2P applications to upload and download copyrighted works.

The Walt Disney Company
Columbia Pictures (Sony)
ON Demand Group

Jupiter Find Media Becoming More Digital at Home

mirra personal serverBy 2009, consumers will require at least a 57Mbit/s Internet connection speed – up from today’s 3Mbit/s – to meet the demands of an ever-growing collection of always-on home media devices, according to research carried out by Jupiter Research. For tech-savvy consumers, the bandwidth requirement will likely be even higher, as much as 84Mbit/s.

Fuelled by the uptake of home wireless networks, the report, “A Portrait of the Wireless Home in 2009,” tackles a number of key issues; what the average and tech-savvy digital home will look like in 2009; comparing wireless bandwidth requirement of the average home today with 2009. It also poses questions such as with the implementation of compression standards such as H.264, will consumers need 100Mbit/s or 802.11n at home?

The report comes following the four complete and 30 partial proposals that were submitted to the IEEE for consideration for the 802.11n standard in August 2004, which will increase wireless throughput to 100Mbit/s. The 802.11n standard should be ratified in 2006, although pre-standard products are already out on the market.

The study finds a growing reliance on digital media. Home media servers, such as Mirra’s Personal Server (from $399), are growing in popularity because they allow you to access files stored on their hard disk from any Web browser, allowing you to playback video and audio files to a laptop or Wi-Fi enabled TV in your living room, or access family photos at your desk at work.

With the increasing uptake of both on-demand video and audio playback, it’s looking more likely that consumers will access media files stored on a central server in their backroom from multiple-connected devices – especially as the number of consumer electronics devices using a wireless network in the home will explode over the next five years, as people move away from traditionally separate devices, such as PCs and stereos.

802.11g has a theoretical maximum speed of 54Mbit/s, you only tend to get on average about half of that. Although this is still over twice as fast as 802.11b, the original WiFi, home media networks which transmit TV shows and music as well as Internet connectivity to multiple devices will require far more speed and bandwidth than standard Wi-Fi can provide. Standards like 802.11n and Ultra Wide Band (UWB) move closer in the right direction.

Jupiter Research Mirra’s Personal Server