Business

Changes to business digitisation brings

Warner Music Strikes Deal With YouTube
Warner Music Group has announced a deal with YouTube to distribute music videos, as well as extras such as band interviews, behind-the-scenes footage and artist rockumentaries.
Warner Music’s vast music video library is set to become available with the launch of YouTube’s new content identification and royalty reporting system later this tear.
This comes with reporting and tracking tools to monitor music and video royalties, with YouTube claiming it can automatically identify copyrighted music and video content being uploaded to the site.
The companies hope that this new system will help YouTube get on top of the copyright issues that go hand in hand with video-sharing sites, with uploading punters rarely bothered about seeking the approval of copyright owners.
Uniquely, the system can also grant permission to other YouTube users to use any music from the WMG portfolio within their own videos, although we’re not sure if this will be made available for free or not.
Advertising revenue
YouTube and Warners plan to start sharing advertising revenue generated from running ads “on both WMG music videos and user uploaded videos that incorporate audio and audiovisual works from WMG’s catalog.”
Commenting on the partnership, Warner Music boss Edgar Bronfman said: “Consumer-empowering destinations like YouTube have created a two-way dialogue that will transform entertainment and media forever.”
“As user-generated content becomes more prevalent, this kind of partnership will allow music fans to celebrate the music of their favourite artists, enable artists to reach consumers in new ways, and ensure that copyright holders and artists are fairly compensated,” he continued.
Chad Hurley, YouTube’s CEO was clearly an excited chap: “By providing a new distribution opportunity, we are paving the way for media companies to harness the vast financial potential of user-generated content on YouTube. We are thrilled that WMG had the vision to be the first music company, in partnership with its artists, to support the use of their content within user videos and to allow our community to interact with WMG music in new creative ways.”
Legal issues looming?
Of course, his gushing enthusiasm could also be seen an expression of relief as his company finally secures a big name backer to help pay off what must be truly formidable bandwidth bills.
He may also be facing some big legal bills too, as circling record company sharks look set to bite soon over alleged copyright infringements.
Doug Morris, head honcho of Universal Music, the world’s biggest music company, gave his sabre an extra long rattle in the direction of YouTube last week, saying, “We believe these new businesses are copyright infringers and owe us tens of millions of dollars. How we deal with these companies will be revealed shortly.”
With that kind of old fashioned refusal to try and work with new technology that can’t be uninvented, it looks like we might be in for another epic Napster vs The Man-type battle all over again.
YouTube
WMG
20 September, 2006
$150Bn CapEx Projected For Mobile Companies
Those studious fellows at ABI Research are projecting that the CapEx (Capital Expenditure) of the mobile/cellular business worldwide will exceed $150Bn, with the majority being spent on WCDMA (Wideband Code Division Multiple Access).
Why the focus on WCDMA? Well, 3G runs on WCDMA and one of the strengths of 3G is that it likes handling data. As more applications and advanced data services such as mobile TV and mobile broadband rollout, demand for data will increase dramatically.
It’s not just about the aerials and cellular coverage. As ABI points out “To offer advanced data and content services with improved delivery and reduced network costs, mobile operators will have to invest in more leased capacity, upgrade to microwave technologies, and add fiber links where microwave technologies have been exhausted, in an effort to boost their networks’ backhaul capacity. Operators will also have to deploy advanced switching technology in the backhaul network, to improve traffic flow and maximize the performance of the backhaul infrastructure. ”
If you want to read details on this until your eyes bleed – like “In 2005, China Mobile’s CAPEX in China was $8.86 billion, more than Vodafone’s global total CAPEX ($8.74 billion)” – then ABI have just the document for you. They tell us that “Worldwide Mobile CAPEX Investments” examines global CAPEX spending by mobile operators on all major technology deployments, and forecasts the regional prospects for various technologies and equipment types.
With all of that cash being spent, it doesn’t give us that much hope that mobile data will get much cheaper – which we feel it must, as at current prices it’s just plain impractical for the man in the street to afford.
ABI Research – Worldwide Mobile CAPEX Investments
Wikipedia – WCDMA
18 September, 2006
News Corp Buy 51% Of Jamba For $187m!
News Corp has reportedly shelled out $187.5m to buy 51% in Jamba (Jamster in the US), the mobile phone ringtone company who came to prominence with the Crazy Frog ringtone.
What!, was the cry around the Digital-Lifestyles offfices. How much …. and for what?
Many had the same reaction when Murdoch bought MySpace for $580m a year ago. These same people had to quickly readjust their view as member accounts rose to 100m and they signed a deal with Google that brought in $900m.
Here’s a few of our theories as to why they might have splashed so much cash on this.
News Corp are very gun-ho about content to mobile … well actually all platforms now. It may be that they hoping to buy large amounts of Jamba’s already-paying customers. We saw Jamba at IFA in Berlin (where they’re based) and the stand was indeed filled with eager young-things, trying to look cool, in their self concious way – ideal clients for content.
The WSJ is reporting initial offerings are expected to be ringtones, wallpaper and short clips from the popular Fox animated series The Simpsons.
With this purchase, you could assume that News Corp want to move into this space very quickly, as building an infrastructure to deliver content to mobiles isn’t exactly beyond the realms of achievability. Jamba obviously have a lot of expertise in delivering content, primarily ringtones, to mobile phones.
Verisign bought Jamba for $266m in 2004 at the height of the Crazy Frog promotion. We thought at the time it was a very strange fit for a company that provides services.
Jamba
12 September, 2006
87% Of Email Is Steeenkin’ Spam
A new report from anti virus firm SoftScan has revealed that spam levels remain hideously high at 87.72% of all email traffic, while reports of phishing activity have soared.
Virus levels have doubled, but at 1.02% they still represent a tiny proportion of the total email scanned by SoftScan last month.
The company said that 89.5 per cent of all viruses scanned were classified as phishing malware, although this increase could be attributed to improved or additional antivirus detection.
Diego d’Ambra, chief technical officer at SoftScan, said: “Recent enhancements and developments by the antivirus industry to their scanners has meant an increase in detecting phishing emails as malware, as opposed to spam. This gives the impression that phishing has risen significantly, but is really due to the reclassification from spam to malware.”
Spam levels are expected to reduce by a few per cent soon, with the post-summer holiday rise in legitimate business email pushing the spam percentage back down to its usual level of around 85 per cent.
A breakdown of the the top five virus groups in July are as follows:
1 Phishing: 89.50%
2 Netsky: 2.44%
3 Mytob: 2.19%
4 Bzub 1.42%
5 Bagle 1.22%
Mailwasher
Here in Digital Lifestyle towers, we’re plagued with spam like everyone else, but have been long time users of the excellent Mailwasher Pro software (Windows/Mac/Linux) which lets us swot spams from our server without having to download the things.
The software analyses each email as it arrives and flags up a warning if it is suspected junk mail using fuzzy logic and filtering, and there’s also the ability to set up custom filters.
There’s also a free version available for single accounts: Mailwasher freebie – well worth checking out for nowt!
5 September, 2006
SanDisk Forced to Remove MP3 Players From IFA:Exclusive
Digg this story
Societa Italiana per lo Sviluppo Dell’ Elettronica, S.p.A., (Sisvel), a Turin, Italy-based patent management company filed a complaint with German public prosecutor in Berlin last week over SanDisk not paying Sisvel a license fee for using their ‘essential’ MP3 patent. Prices for stereo equipment start at 60c US per player, reducing with volume.
The German public prosecutor was convinced by the argument and issued an injunction to remove all of the MP3 players from the Sandisk stand. Those visiting the stand will only be able to look at its pictures of the MP3 players.
The outcome
Clearly this will hit Sandisk pretty hard, not only in the embarrassment of the story getting out, but they will not be able to show any of their MP3 players to the German retailers who visit them at IFA – don’t forget IFA is a trade as well as a consumer show.
During an interview with Digital-Lifestyles [MP3 of Interview], Roberto Dini, consultant to sisvel, in his flamboyant style, made the self-proclaimed extreme comparison of the injunction being like cutting off a supplier at the port, so the goods doesn’t get distributed.
We asked SanDisk to comment, but they said they didn’t currently have anything to say beyond this official statement.
In a litigation currently pending in the Mannheim District Court, SanDisk is showing that its MP3 player operates a technology which is completely different from a certain audio data transmission and reception techniques that has been patented for Philips and others many years ago. An expert opinion from on os the founders of MP digital audio compression substantiates SanDisk’s position. SanDisk is not infringing any patent in the pending litigation
This has history
This isn’t the first time these two have had legal clashes. The battle between the two parties has been well documented, SanDisk even detailed the various legal actions in their latest stock market 10-Q filing last month.
Sisvel have taken action against them in four countries, US, Netherlands, Germany and the UK.
SanDisk have filed its own suit in the English Patents Court back in March, 2006 against Sisvel and owners of the patents Sisvel has tried to assert; Koninklijke Philips Electronics NV, France Telecom SA, Telediffusion de France SA, Institut für Rundfunktechnik GmbH.
Sisvel’s Dini’s response to the action? “It means that the 600 companies, the biggest ones, who have taken a license, they are stupid, because all of the other have paid.”
This one looks like it’s going to run and run.
Listen to the Interview with Roberto Dini, Sisvel
SanDisk
sisvel
4 September, 2006
Sun To Join Blu-ray Board: IFA News Blip
The Blu-ray Disc Association (BDA) has just announced that Sun Microsystems will join their board.
Why Sun? The interactivity of Blu-ray is powered by Sun’s Java, so in someways it’s pretty surprising that they weren’t there already.
Here at IFA, there’s a pretty strong feeling that the battle for the Next Generation of video disc has been won, with stronger and stronger support for Blu-ray being shown over it’s rival HD-DVD.
Mike Dunn, President of 20th Century Fox Home Entertainment announced a roster of 8 films that will be released on Blu-ray, with the first being Ridley Scott’s Kingdom of Heaven (Director’s cut). This title has extensive use of Java-driven interactivity, including a video game that uses scenes from the film.
The BDA board already contains some of the largest names in consumer electronics; computing and film companies.
31 August, 2006
Google CEO Joins Apple’s Board Of Directors
In a Star Trek-like melding of minds, Google CEO Eric Schmidt is joining Apple Computer’s board of directors, setting tongues wagging that some kind of alliance between the technology giants could be looming.
The subsequent statements by both companies suggest that a veritable flurry of back-slapping and advanced mutual fawning took place, with Eric Schmidt effusing, “Apple is one of the companies in the world that I most admire.”
“I’m really looking forward to working with Steve (Jobs) and Apple’s board to help with all of the amazing things Apple is doing,” he gushed.
Not to be outdone, Apple co-founder and chief executive officer Steve Jobs was ready to share the love, “Eric is obviously doing a terrific job as CEO of Google, and we look forward to his contributions as a member of Apples board of directors.”
“Like Apple, Google is very focused on innovation and we think Eric’s insights and experience will be very valuable in helping to guide Apple in the years ahead,” he continued, as the room filled with dust from several hours of hearty back patting.
The addition of Schmidt to Apple now brings the total number of board members to eight, and these include Steve Jobs, Al Gore, former vice president of the United States and the head honchos of Intuit, J. Crew and Genentech.
Google book search expands
Elsewhere, Google have expanded their controversial book search service to allow users to download full PDF copies of public domain books, which can now be printed out.
Previously, surfers could only read books on the Google Book Search site, but not download or print them.
Google Books
30 August, 2006
BT Vision Buys From BT/Entriq
BT Media and Broadcast the business to business outfit within BT’s Global services division has announced an alliance with Entriq.
It’s a change for BT Media and Broadcast (BT M&B), who’ve in the past received coverage at Digital Lifestyles for their efforts to offload their satellite TV interests to have some positive news to announce.
The BT Media and Broadcast/Entriq combination has already landed an important customer in the shape of BT Vision, who as well as planning to roll out of a ipTV customer proposition to the home at the end of this year, have a live ‘download to own service’ at www.downloadstore.bt.com.
Barry Bonnett BT M&B’s CEO, aware that some cynics may think BT signing with BT rather convenient, noted that the tender was “highly competitive,” and that, “BT Vision recognised the quality of service and cost effectiveness of our overall network based capability.”
Entriq, who are in the business of developing and managing Pay Media infrastructure, is part of the South African publishing and media conglomerate Naspers. Naspers, as well as having the successful consumer TV platform Multichoice in South Africa, has technology interests that include the Conditional Access company Irdeto.
Headquartered in San Diego, California, Entriq have offices dotted around the world and have a host of existing big name broadcast customers that includes MTV Networks, NBC Universal and the UK’s Channel 4 television.
29 August, 2006
Fox Plays With “Blinks”: Super-Short Advertising
We’ve all known for years that PVR’s have been eating TV advertising. Murdoch has been on top of this for ages too, which makes it all the more interesting to hear that his Fox network is using 2-second Blinks, adverts. Digital Music News covers what is happening.
Clear Channel Radio realigned its advertising strategy last year by structuring shorter spots, a move designed to spark greater listener stickiness. The strategy, dubbed “Less Is More,” has now gone into overdrive with the “blink,” an incredibly short spot that runs about two seconds.
The ultra-fast slot is now being used by Fox to promote several shows, including “Prison Break,” “House,” and “The Simpsons.” The quick punch is designed to create an instant connection, and drive subsequent viewers. “Like our breakthrough programming, these spots are one-of-a-kind, and through the power of radio, they will be heard across the country,” said Kaye Bentley, senior vice president at the Fox Broadcasting Company.
Overall, Clear Channel Radio has experienced mixed results following Less Is More, though recent quarters have shown positive revenue increases. Clear Channel executives have credited those jumps to the shortened advertising slots, which address a major source of radio listener irritation.
From a broader perspective, the concept is also designed to discourage listener migration towards competing formats like satellite radio subscriptions and even iPod collections. Blinks have already run for “Prison Break,” and get started for “House” and “The Simpsons” early next month.
25 August, 2006
More PE Takeover Talk At NTL
The much heralded NTL/Telewest merger, expected to be the saviour of the UK cable industry, has become the subject of another Private Equity takeover rumour and the likely winner, if it goes ahead, is Richard Branson.
A quick recap
Branson did a deal with NTL that saw Virgin mobile become part of a four-play (geddit?) proposition, allowing the operation to use the Virgin brand and in return received 10.6% of the company. The merger of the three companies has not yet bedded in, and customers across the country are still waiting for the promised improvements in the notoriously poor levels of customer support.
Flextech the programming arm of the company, which was up for sale at the time of the earlier merger (I hope you’re paying attention), is likely to again be offered up for acquisition to media companies. A great way for potential new investors to make a chuck of their cash back.
Market reaction
The market has viewed the possible takeover positively, as it considered the cable company is still under valued following its 20% share price drop in the last three months. More recently shares in the company, quoted in the US, gained around 8% last week, on the possible fresh takeover.
What would the impact be?
If a takeover goes ahead, then the focus will be on installing a strong management team to leverage the offering against well established competition from BT and the newer entrants to the market, like Tiscali whose purchase of Homechoice has put them in the triple-play space, and Sky who are rolling out a broadband proposition under their own well known brand.
21 August, 2006