RIAA’s Sales Claims “Suspect”

Neilsen Soundscan is reporting that CD sales are increasing, yet the Recording Industry Association of America claim that business is bad. So what’s actually going on?

As reported in Digital Lifestyles last month, Neilsen is celebrating a 10% increase in sales, whilst the RIAA is still telling us that CD sales have plummeted because of copying and downloading.

It turns out that the RIAA’s claims are based on the total number of CDs shipped to record shops – not the numbers sold to customers, so this has no reflection on sales at all. Record shops are ordering less stock, but selling the stock they have faster. Having lots of cash sitting in your storeroom doing nothing isn’t good business sense when economies are suffering. Additionally, the RIAA also has a measure of control over the number of CDs shipped to stores, so it can influence the figure in any way it likes.

Soundscan recorded 146 million CDs sold in Q1 2003, against 160 million in Q1 2004 – an increase of nearly 10%. Figures for Q2, released this summer are expected to show yet another increase. The RIAA, on the other hand, are claiming a 7% decrease in revenue – but that’s purely through managing shipments and returns.

RIAA Radar

Cannes: Film Makers Meeting to Discuss Piracy

One of the major topics on the agenda this year at the Cannes Film Festival is the growing problem of piracy. A group of 16 executives and studio heads from around the world got together along with the French Minister of culture last night to encourage directors and actors to adopt their anti-piracy message before it’s too late. They are keen to get directors on board because they’re the major victims of the crime.

The think tank is seeking solutions for film piracy, and has come up with three major points:

Firstly, the recognition that downloading films is illegal, and it’s dangerous for the industry (well, you’ve got to start somewhere).

Secondly, that the public need to be educated that downloading is wrong – Jack Valenti, president of the MPAA has already been speaking on university campuses in America. “We need copyrights that are more stern and the political will to enforce them. We need to educate and change behaviour. Too many think that it is risk free so ‘I can do it too’.”

Thirdly, the group recognised that the industry needs to be technologically savvy to be able to combat piracy. Indeed Renaud Donnedieu, the French Minister of Culture and Communication announced: “The President of France is ready to translate such a plan into concrete action and intends to announce a statement next week addressing prevention, repression, communication and positive action.”

Film Festival website

When Search Engines Strike Back: Yahoo and Google Block Adware Company

Influential search engines Google and Yahoo has disabled links to WhenU, a adware manufacturer that they’ve accused of using “cloaking” to trick search engines into favourably ranking decoy pages that redirect visitors.

Avi Nader, chief executive of WhenU said that the questionable practices were the result of an external search engine optimisation company, and that they expected to be relisted now that they’ve stopped working with that organisation.

WhenU produce an application that keeps tabs on browsing habits – they’re currently embroiled in a debate as to whether this practice is in fact legal.

Adware, sometimes called spyware, are applets that are installed on your PC, sometimes without your consent or even knowledge, and can do a number of things: they can tell companies which webpages you’ve visited, what you’ve been typing on your keyboard (including bank details and credit card numbers), flash ads up on your screen or redirect you away from competitors products. Some people install them by choice (it’s the old “people will do anything for a discount thing”) but often the applications are malicious. There are a number of free tools for ridding yourself of these pests, and we’ve linked to a good one below.

Scan and get rid of adware on your PC free – Ad-aware 6

E3: America’s Army Recruiting Gamers for Special Forces

“America’s Army” is a battlefield simulation aimed (ouch) at promoting the US Amred forces to potential recruits – and now it’s one of the five most popular games hosted online, with 3.3 million registered users.

The US Army find that prospective soldiers who contact recruiters after playing the game have a much better follow-through rate than any other form or advertising or promotion, and is a much more efficient method of providing information to young people.

That’s right: this is a game actively encourages children to use guns and learn to kill people, and society is actually pleased for a change.

All of the scenarios in the game give a realistic view of Army life and require employing real-life tactics – if you go in blasting as if you were playing HalfLife, then you won’t last very long.

If you shoot one of your own, then you end up in prison – though this feature seems to have been omitted in “real life”.

E3 was the first showing of a new follow up to America’s Army: Operations, called America’s Army: Special Forces. Players attempt to earn Green Beret status by completing individual and collective training missions drawn from the Special Forces Assignment and Selection (SFAS) process.

Players who complete the SFAS process have the opportunity to take on elite Special Forces roles and are qualified to play in multiplayer missions with units ranging from the elite 82d Airborne Division to the 75th Ranger Regiment.

The British Army’s two attempts at recruitment games “Britain’s Army: Deepcut” and “Britain’s Army: Blown Up in Our Troop Carrier by an American A10 Warthog” were dismal failures.

My hope is that The Last Starfighter might actually be true and I will be contacted by aliens to save them because of my skills at Ikaruga. Knowing my luck though, it’ll be Super Monkey Ball.

Rumours that a certain group of footballers use Grand Theft Auto: Vice City to brush up their prostitute beating skills are unfounded.

Get your copy of America’s Army here

New HomeChoice Service Launches

The HomeChoice set top boxVideo Networks have launched the latest iteration of their HomeChoice service, available in the UK from 1st June.

The basic package includes 1mb of broadband (capped at 1gb per day downloaded – about 20,000 light web pages or 200 mp3s), more than 60 TV channels and a video on demand service. Films available on the on-demand service cost between £0.99 and £3.50 (€1.47 to €5.19) for the standard 24 hour rental.

The TV channels available are an extension of the standard Freeview fair, and include channels unavailable on Freeview such as E4, Discovery, CNBC Europe, UKTV Style and UKTV Gold. The are also some music offerings exclusive to Video Networks such as V:MX Hits and V:MX Dance. Interestingly, the service carries Club Zebra – a sort of exercise on demand (EOD – you heard it here first) channel where you can interact with keep fit and health programming.

The broadband component of the service can be upgraded to 2mb for an additional £15 (€22.26) per month – this takes the download cap to 45gb a month. The HomeChoice box comes with an Ethernet port in the back for connecting to your home network, but a rather smart wireless option is available for an extra £125 (€185.53). Including an Ethernet port makes the service a true competitor to existing broadband services. Beforehand, HomeChoice was really “VOD with broadband”, as the broadband connection from the box was USB: this iteration is more “broadband with VOD and content”, a much richer and flexible offering.The service is initially launching in West London to those with a BT phone line.

HomeChoice

VideoNetworks

E3: PSP Revealed

Sony has announced the specifications of its new PlayStation Portable console to attendees at this year’s E3 in Los Angeles – we can confirm that the new console is indeed region-locked, so won’t play games from other markets.


Some prototype peripherals were also on display with the console: a keyboard, camera and even a GPS unit (presumably so that kids can answer that perennial question for themselves: are we there yet?).


With a launch in Japan by the end of 2004, followed by European and US launches Spring 2005, it won’t be long before consumers get their hands on these to see what they’re like for themselves.



PSP™ Product Specifications Product Name:  PlayStation®Portable (PSP)   Color: 		Black   Dimensions: 	Approx. 170 mm (L) x 74 mm (W) x 23 mm (D)   Weight:  		Approx. 260 g (including battery)   CPU: 		PSP CPU (System clock frequency 1~333MHz)   Main Memory: 	32MB   Embedded DRAM:	4MBDisplay: 		4.3 inch, 16:9 widescreen TFT LCD 		480 x 272 pixel (16.77 million colors) 		Max. 200 cd/m2 (with brightness control)  Speakers:  	Built-in stereo speakers  Main Input/Output: IEEE 802.11b (Wi-Fi) 		USB 2.0 (Target) 		Memory Stick™ PRO Duo 		IrDA  		IR Remote (SIRCS)    Disc Drive: 	UMD Drive (Playback only)  Profile: 		PSP Game 		UMD Audio 		UMD Video  Main Connectors: 	DC OUT 5V  		Terminals for charging built-in battery  		Headphone/Microphone/Control connector Keys/Switches: 	Directional buttons (Up/Down/Right/Left)Analog pad 		Enter keys (Triangle, Circle, Cross, Square) 		Left, Right keys 		START, SELECT, HOME 		POWER On/Hold/Off switch 		Brightness control, Sound Mode, Volume +/- 		Wireless LAN On/Off switch 		UMD Eject  Power: 		Built-in lithium-ion battery, AC adaptor  Access Control:  	Region Code, Parental Control  Accessories: 	Stand 		Headphone with remote commander 		Headphone with remote commander and microphone 		External battery pack 		Case 		StrapUMD Specifications Dimensions: 	Approx. 65 mm (W) x 64 mm (D) x 4.2 mm (H)   Weight: 		Approx. 10g   Disc Diameter:  	60 mm   Maximum Capacity:	1.8GB (Single-sided, dual layer)  Laser wavelength: 	660nm (Red laser)   Encryption: 	AES 128bit  

In-Game Advertising with Massive

I must confess, the first time I fired up WipeOut in 1995 and sailed under that Red Bull banner (scraping my way along the barrier), I was impressed by this new collision of real products and virtual worlds. Even though it’d been done before, this was, to me at least, the most impressive example at the time. Mind you, I’ve only just ceased being amused by the Dole logos in Super Monkey Ball.

Fast forward a few years and product placement and advertising is everywhere in games – sometimes it works, sometimes it’s intrusive. A football game without any ads on the pitch would look strange, yet fantasy RPGs with soft drink product placement would break the sense of immersion.

Massive Incorporated, a New York based company have come up with a solution for games development houses keen to acquire revenue through placing adverts in their games, and for advertisers desperate to reach all those gamers that don’t watch TV any more.

Massive Ad Server is a service for streaming advertising into games live through an internet connection – allowing more adverts in games, and hopefully keeping them focused. Advertising is traditionally hard coded into games, and so the ad is never updated – this gets fresh advertising in to games, and allows the sponsor and products to be changed and updated.

Massive back the service up with a sales team that have advertisers keen to reach gamers in-game, using information gathered about the game and its demographics. No point in streaming Barbie ads to young adults playing Grand Theft Auto: San Andreas, is there?

I’m not entirely sure how I feel about this one really. Given that 20% fewer men between 18 – 24 are watching TV these days, advertisers need new ways to reach audiences. Gaming is a good way to do it – but the second I see Link wearing Nike, I’m taking up croquet.

Massive Incorporated

Nintendo DS Specs

Nintendo have been leader of the hand-held video game platform for the past fifteen years – no-one has ever been able to come close. Many have tried – Sega with the Game Gear, Atari with their Lynx console. Sony even had a mild go with the PocketStation. What do you mean you’ve never heard of it?

Nintendo’s monopoly of the market is even more surprising considering how dated their GameBoy platform is looking. They got away with the standard GameBoy for nearly ten years before finally adding colour to it. Even the GBA SP isn’t an enormous leap beyond previous GameBoys.

With Nokia’s N-GAGE QD on the horizon and the PlayStation Portable getting closer every day, Nintendo know that they’ve got to release something pretty special to stay ahead – hence the DS.

Rumours flew around the internet for months over what the machine would be like – and it seems that some of the more outlandish claims are actually true.

Here are the facts:

  • It has really does have two screens

  • It’s true, one of the screens has touch input

  • The two processors allow true 3D polygon graphics on both screens

  • Voice recognition is built in

  • It has built in wireless communications

  • It has a chat client

  • The battery is rechargeable like the GBA SP

  • The game media is smaller than a GBA game cartridge – and can store over a gigabit


The new console is certainly innovative – and might well prevent Sony or Nokia taking over their party, but we’ve yet to see any confirmation on how much it’s going to cost. Since the console is certainly not a phone, its price won’t be subsidised with a service contract – but we think it’ll probably come in a bit cheaper than Sony’s PSP, which is being targeted at an older (and slightly richer audience). This puts it at about $150 (€127)– but what will this mean for the suddenly, massively, outdated GBA SP at $100 (€84.50)?
Nintendo on the DS

BT Announce 70% Reduction in Local Loop Price

BT has been under considerable pressure for some time to reduce the cost access to the last mile of copper linking households to telephone exchanges, and it looks like they’ve finally done something about it.

The cost of Local Loop Unbundling has long been accused of preventing rival broadband providers from offering competitive products to BT. Ofcom are on the eve of announcement regarding BT’s treatment of the situation – hence BT’s timing, no doubt. BT hope to reduce the need for regulatory intervention – and this demonstrates that they would have been quite happy to sit there enjoying the status quo had Ofcom not accused them of overcharging.

BT chief executive Ben Verwaayen said in a statement: “Our announcement marks a major move towards the telecommunications market of the future. BT has always argued that a market needs to develop in which those who are willing to invest and innovate can reap the rewards. This is a significant step in that direction.

“We now have a far clearer idea of how Ofcom sees the market developing and we share their view that competition based at the infrastructure level will be good for everyone and for the UK in general.

“Their statements about regulatory certainty are crucial as we have enormously ambitious plans for the networks of the future and require that certainty for shareholders if we are going to invest the huge sums required.

“BT took a bold step forward two years ago when it cut the price of broadband and changed the shape of the broadband industry. This is an equally ambitious move and one we are confident will have long term benefits for both the UK and BT.”

The price cuts will take effect form 1 June – the monthly rental price for the existing LLU product will drop from £4.42 to £2.26 (€6.59 to €3.37), connection charges will now be £83.33 (€174.38), down from £117 (€124.20).

Ofcom

BT on the announcement

Napster Signs Distribution Deal With the Association of Independent Music

Napster will have just acquired another 50,000 tracks for their summer launch in the UK in a new deal with the Association of Independent Music (AIM). AIM is a UK body of 800 independent music companies, and Napster have licensed tracks from 50 of them. US Napster users will have access to the music too, once it has been uploaded.

“Napster creates the ultimate community experience for music fans and the variety, quality and originality of music from the independent UK sector is a vital to delivering this experience,” said Napster president Brad Duea. “The Association of Independent Music has shown great foresight in joining forces with Napster at this time and has underlined its reputation as an influential player on the international music scene.”

“Napster is going to make a big difference to music fans in the UK. At last we have a legitimate service from the world’s leading online brand, which offers flexibility in streaming and downloading to music fans. It also takes our music to fans around the world, confirming the promise that the internet can deliver a global business to independent artists and record companies,” said AIM chairman and chief executive Alison Wenham.

Artists made available through the deal include darlings of Hoxtonites such as Coldcut and Kruder & Dorfmeister. Billy Bragg will also be available.

Wippit, a subscription-based music service previously reported here has also just licensed tracks from Sony Music for distribution in the UK and Ireland. Sony Music’s artists include Bruce Springsteen and Beyonce.

It looks like the battle for legal music downloads is hotting up with Napster and iTunes launching almost simultaneously in the next few weeks.

Napster UK – get five free tracks when it launches

AIM