EDS and BSkyB Suing Each Other

BSkyB are suing EDS over a contract for a new IT system at the broadcaster’s Livingston and Dunfermline call centres, accusing them of negligent misrepresentation and breach of contract.

BSkyB hired EDS in 2000 to supply a new customer service platform for the 6000 staff in the centres, but ran into difficulties in the first twelve months. After redefining the project requirements, the system was handed over to BSkyB a year later in 2002, and the contract ended in December that year as BSkyB felt that EDS could not deliver the system in accordance with their contract. However, EDS claim that they ended the contract, not BSkyB.

A quick rummage in a filing cabinet should end that debate, though BSkyB claim to have consulted some 50,000 documents to come to the conclusion that EDS did not deliver what they signed up for.

The system has cost BSkyB about UK£170 million since 2000, and they are expected to fork out another UK£50 million to the two Scottish call centres until 2008. The broadcaster is now looking to sue for about UK£180 million to UK£240 million to get back lost revenue and effort.

EDS aren’t doing to well lately, having lost a number of high profile government contracts, notably with the Child Support Agency, NHS and Inland Revenue.

EDS have announced that they will be countersuing, as they claimed to be expecting this sort of behaviour from BSkyB. Given the size of the two companies and the nature of corporate litigation, this one will run and run.

EDS UK

BSkyB

Dan and Dusty – an Unlikely Example of TV Interactivity

Dan and Dusty is ITV1’s latest occupant for the post-pub Friday night slot – thirteen weeks of bands, interviews and stand up designed to appeal to young drunk people. This time however, ITV have fronted the show with two puppets rather than the usual talentless presenter. I suppose they’re cheaper and the headlines in 3AM Girls will be less embarrassing.

Anyway, what has this got to do with convergence? That’s right – ITV have realised that young, drunk people who like music and comedy also like mobile phones … and mobile phones equal money.

Viewers can interact with the programme with their mobile phone in a number of ways. They can send text messages to the show’s agony aunt for live advice on “In Confidence”, and enter competitions for prizes. It should come as no surprise to Digital Lifestyles readers that there are wallpapers and ringtones to download as well.

The mobile service is provided by Mobileway and Watertrace. Bernadette Lyons, the managing director Mobileway UK, said: “By providing mobile services to a show that looks set to have all the qualities of a cult success, Watertrace and Mobileway are helping ITV create a truly interactive proposition for viewers.”MobileWay

Dan and Dusty

EU Delays Microsoft DRM Decision

EU anti-trust regulators have decided to postpone their decision on whether or not to review Microsoft and Time Warner’s joint acquisition of ContentGuard, a digital rights management company.

Microsoft has invested in ContentGuard for some time now, and along with Time Warner have sought to strengthen their position in the DRM market. Time Warner, as one of the world’s leading content houses, also has a lot to gain from the acquisition.

The EU commission usually has a month to decide if it wants to investigate a deal like this further, and though in this case it has opted for a two week extension to 25th August. The extension has come about because the two companies have submitted remedies to some concerns raised by the commission.

ContentGuard, who developed the Extensible Rights Markup Language, holds a number of patents which are licensed to Sony, Microsoft and others. The patents were in turn developed at Xerox PARC and some of these patents have been adopted as standards by the Motion Picture Experts Group.

ContentGuard

Telstra’s i-mode Deal with Turner

In a further development for 3G services, Telstra have completed a deal with Turner Broadcasting to bring rich content to their i-mode subscribers. Later this year, mobile users will be able to watch local and international news on their mobile phones, along with some choice cuts from The Cartoon Network.

In addition to news, the content will cover sports weather and entertainment news from CNN, as well as games and video based on the Cartoon Network’s popular intellectual properties like Tom and Jerry, Powerpuff Girls and Dexter’s Laboratory.

Holly Kramer, Telstra’s managing director for wireless and mobility products said: “In the months ahead we will be announcing some great content deals to provide i-mode subscribers with a premium wireless experience, delivered over a range of innovative, multifunctional handsets.”

3G phone adoption has been very slow since launch – hardly surprising since the first phones have been poor and there has been no content to speak off (comedy sock puppets don’t count as compelling content). With the increasing availability of content that subscribers might actually take an interest in, 3G services might finally take off.

Telstra

Real Gunning for iTunes

Another week, another RealNetworks/Apple story: this time streaming leader and iPod “hacker” is offering cut price tunes whilst promoting freedom of choice for music consumers.

In order to entice some of iTune’s customers to the RealOne service, Real are embarking on a huge marketing campaign that will concentrate on their new iPod compatibility, sneakily coupled with a sale.

Tracks from the Real music store will cost US$0.49 (€0.40) for a limited period, with albums half price at US$4.99 (€4). This double whammy might just tempt users away from iTunes – until Apple break Harmony’s iPod compatibility in the next update, that is.

Enticing users away from their favourite online music stores is difficult as it’s not as simple as getting punters to cross the road from Virgin to HMV – software has to be changed, tracks are incompatible and players won’t play all formats. You have to get your customers early before and make them build a library that they’ll be reluctant to abandon.

Whilst a sale will generate new interest in RealNetworks’ products, many users will try a wait and see approach as Apple have made it clear that they’re not happy about Harmony’s approach and intend to scupper it at the earliest opportunity.

We’re not quite sure if it’s a spoof or not, but RealNetworks have also launched a blog-style site featuring the “Rock on Rob!” weekly Q&A with Rob Glaser (I’m embarrassed just typing this in). The site features several anti-Apple postings from around the net, and even a petition. The site is not conspiciously branded by RealNetworks, but we see what they’re trying to achieve.

Freedom of Music Choice

Computer Associates Picks Up PestPatrol

Computer Associates have acquired PestPatrol, in a bid to expand their portfolio of software to cover anti-spyware tools.

CA will be including PestPatrol’s application in their eTrust Threat Management suite, whilst renaming the tool eTrust PestPatrol.

Russell Artzt, executive vice president of eTrust security management at CA, said: “This acquisition enhances CA’s position as the world’s leading provider of security management solutions for the safety of Internet connectivity and the integrity of computing environments in the office and home alike.”

Anti-virus software houses are keen to expand their range of products to tackle the main problems that internet users face: spam, adware, viruses and hacking attempts. Companies like Symantec and McAfee have acquired and developed their products to meet consumer demand for solutions and also to create single control centres dealing with these problems, rather than relying on three or four separate applications.

Anti-spyware applications are not as mainstream as anti-virus packages, though with increasing consumer awareness could well be the next big thing for security software publishers.

eTrust

MSN’s Cinema Push

MSN subscribers will soon have easier access to films and cinema, thanks to three new deals. MSN has signed deals with CinemaNow, Blockbuster and MovieTickets to allow subscribers to download films over the internet, rent DVDs and buy cinema tickets online.

“MSN is rolling out the red carpet to movie fans across the nation with easy access to renting, downloading or buying movie tickets online — making it the only Web destination for finding both old favorites and new releases through a simple click of the mouse,” said Yusuf Mehdi, corporate vice president of the MSN Information Services & Merchant Platform division at Microsoft.

MSN’s deal with CinemaNow will provide broadband subscribers with more than 2,000 films and hours of TV content for download or streaming to their PCs. The MSN customised version of CinemaNow will offer content from 20th Century Fox, Disney, MGM and others.

Subscribers will also be able to rent up to three DVDs at a time from Blockbuster 25,000 title library for US$20.

For those of us who still prefer seeing their films in the old school way – actually visiting a cinema, MSN has renewed and expanded their deal with MovieTickets.com to offer online ticket booking at 750 cinemas from 32 theatre chains.

Movies at MSN

Sky’s New 80 Hour PVR

BSkyB have announced a new version of their popular Sky+ PVR with new features and a greatly increased capacity.

The Sky+ 160 will offer approximately 80 hours of TV programme storage (four times the current capacity) and will be available from October. The new unit is manufactured by Thomson and also includes a USB port, though Sky say they have no current plans that incorporate it. There are many things it could be used for – including transferring content, gaming and even video conferencing.

All Sky+ boxes will receive a software upgrades that will allow subscribers to make digital recordings of scheduled interactive programmes on all digital satellite channels. Users will be able to record up to two video streams broadcast alongside an interactive application. BSkyB are promoting this service as the first of its kind, and will be available both for Sky’s interactive services and those from other broadcasters.

Other enhancements include new sorting options in the Sky+ EPG, online parental controls, customisable aspect ratios for second TVs and easier radio recording.

Brian Sullivan, Director of New Product Development and Sales at Sky said “Sky+ is transforming the way we watch TV. The next stage of that revolution will be the forthcoming launches of Sky+ 160, and the software upgrade to all Sky+ boxes, providing even more flexibility, choice and control for our growing customer base. Feedback from Sky+ owners since it first launched in 2001 has been amazing and we are constantly working to make the product the best TV experience available anywhere. After listening to customers we are delivering this new interactive recording and sorting functionality as well as the option for an average of 80 hours storage space with Sky+ 160. Once again Sky is leading the way in digital TV, putting viewers in control of their TV schedules.”

Sky+

Open Mobile Alliance Publish DRM Standard Version 2

The Open Mobile Alliance have officially published version 2 of their DRM standard. Supported by Nokia and Arpa amongst others, the standard incorporates the Open Digital Rights Language.

The standards are open source and available without any obligations or licensing requirements. Permissions and restrictions are as simple as possible, being limited to play, display, execute, print and export for Permissions, and count, timed-count, datetime, interval, accumulated, individual and system for Restrictions. Combined, these mean that content can be protect from unauthorised sharing, or viewed only a fixed number of times.

OMA began working on the standard in 2001 in response to market demand and has steadily upgraded the specification as networks, content and end-users have become more sophisticated.

The Open Mobile Alliance

Google Auction Starts Friday

Google has closed bidder registration for its share auction, with the auction expected to take place later today. 25.7 million shares in the company are expected to be sold for between US$108 to US$135 (€88 to €110). This represents about 9% of Google’s capital, and if the price reaches the upper estimate will give the company a market value of some US$36 billion (€29.5 billion).

Google’s rid to IPO has not been an easy one – illegally issued shares, conflict over IP like Orkut and a under-performing market have led analysts to recommend caution to those considering investing in the company.

The unorthodox Dutch auction for shares was adopted to reflect real-world demand for the shares and allow the company to benefit more from the IPO.

Google IPO