Business

Changes to business digitisation brings

  • YouTube Brookers Signs TV Deal

    OK, you’re used to us breaking news here, but here’s one that slipped through without us noticing. We think it’s sufficiently important for us to swallow our pride and report it anyway.

    In an inevitable move, an LA production company, Carson Daly Prods, has signed talent/development deal with Brooke “Brookers” Brodack, who has made quite a name for herself on YouTube. We’re sure you do, but just in case you don’t know what YouTube is, it’s a phenomenally popular Web site that holds videos watched at the rate of about 40m per day.

    While it is predictable (yes, we’re surprised this type of deal hasn’t happened sooner too), it doesn’t make it any less significant. What was previously known as ‘the entertainment industry’ (music, films, tv, etc) has been very slow on the uptake to even notice that the ‘people’ have been madly creating their own entertainment and sharing it online. It finally looks like they’ve started to notice … and not only that, but guess what? It’s a pool of cheap talent to plunder, one without agents and prima-donna salaries and demands. That should get them listening.

    Brookers, as she’s known as by tens of millions of YouTube viewers has been posting videos for about nine months, mostly featuring her doing pieces to camera, often miming to sound tracks.

    The one that brought her to wide attention was her homage to Gary Brolsma’s Numa Numa.

    It’s clear that Brookers has gone a number of steps beyond just plonking herself in front of her Web cam (as many homages do), they’re more of a production, using changing camera angles and locations.

    Of course it’s not all about TV deals, realising the size of her audience, she’s recently posted an entry asking for people to donate to her car fund. Very cheeky.

    How many people will continue to be able to show their talent like this in the future isn’t clear as various music industry voices have been talking about stopping ‘their music’ in personal videos. Strange – we thought it actually promoted the music.

    Variety cover the story

  • Ofcom GPS Repeaters Ruling May Hit Mobile Phone GPS

    Ofcom GPS Repeaters Ruling May Hit Mobile Phone GPSOfcom has just issued guidance that GPS repeaters are probably illegal in the UK, both in their use and their sale.

    In their dry language, “Any person who places this type of apparatus on the market or uses it in the UK is likely to be committing an offence.”

    Medium term this action could hit the wave of GPS-equiped mobile phones that are a year or so away, and the location-based services that they’ll bring.

    GPS repeaters use radio signals to pass Global Positioning (GPS) or other Radionavigation Satellite system (RNSS) location information between units. Unless the operators have specific licenses, they be breaking the law in the UK.

    Ofcom GPS Repeaters Ruling May Hit Mobile Phone GPSGPS devices need to be able to receive the positional information from satellites. Initially this involved having line-of-sight to the ‘birds’, but as chip-sets have improved, they’ve become more sensitive, so requiring less direct sight. If GPS units work within buildings, they do so at the sacrifice of accuracy. Even with the chip improvements, GPS will not work within buildings, and certainly not underground.

    We spoke to Jenny Bailey, Technical Director of J-Squared to get the low-down. J-Squared were funded by the DTi 3 years ago to develop a GPS repeater system, which they subsequently received a patent.

    Jenny told us the major current use for GPS repeaters is by the emergency services. Ambulances stations are equipped with them to ensure their on-board GPS ‘know’ where they are as they leave, speeding them to their location. Police and firefighting services also benefit from being able to locate their personnel within buildings.

    In the medium term, Ofcom will create quite a kerfuffle with this ruling. Mobile phones will, within a couple of years, be commonly equipped with GPS, enabling location-based information and services. These will not work within buildings without GPS repeaters, knocking their broad usefulness on the head. We’d imagine that the mobile companies will be on the phone to Ofcom sharpish.

    Ofcom is becoming increasingly stringent on the ‘unauthorised’ use of radio spectrum. One of their Big Ideas is to auction off radio spectrum to the highest bidder and if people are using it without paying for it, the whole idea becomes undermined.

    Given the inevitability of the march of mobile phones, it could be that Ofcom are acting as King Canute, but in this case attempting to hold back radio waves.

    Ofcom GPS or GNSS signal repeaters ruling
    J-Squared
    Indoor Positioning Limited

  • UK Consumers Are Lapping Up Convergence

    UK Consumers Are Lapping Up ConvergenceBrits are going wild for the latest technological innovations according to market research firm GfK in its biannual ‘UK Technology Barometer report.’

    The study rates smartphones, Webcams, communication devices and storage products as the hot! hot! hot! categories registering the fastest growth, while the major overall trends are seen as convergence, the growth of wireless, and the continued tumble of technology prices.

    The report highlighted on the site of our dear friends Pocket Lint concludes that UK punters are getting down with the convenience of multi-function devices, as GfK IT Business Group Director Jean Littolff explains, “Not only are we looking at convergence within IT sectors, but also a blurring of lines between IT, consumer electronics, telecoms, and photo areas”.

    Wi-Fi usage continues to grow massively across Blighty, with sales of 3G cards soaring by 475%, mostly to the business community.

    In the consumer market, sales of Wi-Fi routers have also shuffled in an upward direction, registering a 77% growth.

    UK Consumers Are Lapping Up ConvergenceNot surprisingly, smartphones continue to set the cash tills ringing with a big increase in sales, while single-function PDAs are carrying on their slow decline, with sales slumping by 38.3%.

    Rapidly falling notebook prices have led to more laptop-toting peeps, encouraged by the average price dropping from £808 in the first half of 2005 to £686 in the first half of 2006.

    Bursting with tech-tastic confidence, Littolff added, “With price barriers falling, the major obstacle preventing the average consumer from enjoying the sexy technology long enjoyed by business users is gone, and little seems to impede the anti-Luddite sentiment of the British spending public”.

  • iTunes Law: France Court Controversy

    iTunes Law: France Court ControversyLast week the French legislature approved a new law which could radically change the landscape of digital audio. The so-called ‘iTunes Law’ is designed to break the control hardware manufacturers exert over the type of content that can be played by their digital music players and software. The result would be that companies such as Apple, Microsoft and Napster would have to make their data formats interoperable, thereby opening their systems to music from rivals. A regulatory body could be set up to police the sector.

    Apple has not yet responded to this development but has previously called the bill “state-sponsored piracy.” The US based group, Americans for Technology Leadership (founded by technology companies), commented “Once government regulators take away a company’s intellectual property rights and dictate that they must allow competitors to benefit from their creations, they break the cycle of innovation that benefits consumers by destroying the incentive companies have to create new and better products.”

    While it’s not surprising that technology companies would wish to defend their business models, consumers could be forgiven for finding the current plethora of differing standards, restrictive legal agreements and crippled playback formats a significant turn-off. Anyone who remembers vinyl, or even pre-DRM CDs, may recall a simpler world where all the players could play all the media and might wonder where things went awry? French Culture Minister, Renaud Donnedieu de Vabres, said “Any artist’s work that is legally acquired should be playable on any digital device”.

    iTunes Law: France Court Controversy The iTunes Law does, however, leave a get-out for the tech companies. A newly-added clause permits artists to exercise control over additional DRM. In short, artists could object to their music being transferred into other formats, thereby ensuring that current practices could continue unaffected. This loophole would require renegotiation of existing contracts, something Apple et al may wish to avoid given record companies’ desire to recoup perceived losses due to piracy. Lawyers observed that the new law is complex and its impact will be difficult to judge until it is tested in court.

    The bill is likely to become law in France within a matter of weeks and its progress has kicked off a debate about access to digital content in countries across Europe including the UK, Norway, Denmark and Sweden. With several countries poised to review national copyright laws in the coming months, the iTunes Law could have wide-ranging impact.

  • BPI vs AllofMP3: Granted ‘first hurdle’ by UK High Court

    BPI vs AllofMP3: Granted 'first hurdle' by UK High CourtUK British music recording industry trade association, the BPi, has today issued a statement that they have “successfully jumped the first hurdle in its battle to have unauthorised Russian download site AllofMP3.com declared illegal.”

    AllofMP3 has been really getting on their wicks for a long time, as it sells music downloads for normally under $2 per _album_ rather than the 99c per track that iTunes has made standard. Given the choice between the two prices, many people are going the cheaper route offered by AllofMP3.com.

    To take action against an entity outside the UK, the BPI is required to apply to the UK High Court. This is what has now been granted.

    The BPI’s next steps aren’t certain and they told us that they contemplating various options. Possibilities include taking personal legal action against the owners/directors of AllofMP3 or against the company as a legal entity.

    They informed us that various treaties exist between the UK and Russia for pursuing legal actions.

    BPI vs AllofMP3: Granted 'first hurdle' by UK High CourtThe argument of the BPI is that AllofMP3 has no right to be selling the music, as they aren’t licensed to do so. AllofMP3 counter that they are “authorized by the license # LS-3М-05-03 of the Russian Multimedia and Internet Society (ROMS) and license # 006/3M-05 of the Rightholders Federation for Collective Copyright Management of Works Used Interactively (FAIR).”

    We asked the BPI about this and they claimed that ROMS “wasn’t a collection society recognised by the UK industry.”

    It’s clear that the BPI isn’t going to just let AllofMP3 continue with what they view as illegal activity. Taking legal action across International boarders is pretty tough, as is enforcing these legal actions. The BPI’s lawyers must be rubbing their hands with glee.

    ifpi’s words on AllohMP3
    AllofMP3.com’s view on their legality

  • Study: Desktop PCs And Laptops Get More Reliable

    Study: Desktop  PCs And Laptops Get More ReliableSomething will go wrong sooner or later with nearly one-fifth of all notebooks, with a new hardware component needed to sort the problem, according to a new survey by industry analysts Gartner.

    The study found that 15 per cent of new laptops will break within the first year, and over a fifth will break within four years.

    The fault could be something as minor as a broken latch, but the most frequent failures were major disasters like knackered motherboards and toasted hard drives – the kind of catastrophe that could turn mild mannered folks into screaming, blubbering wrecks of rage (we speak from experience here).

    The picture is better for desktops, with just five per cent of desktop PCs purchased in 2005-2006 breaking within the first year, and only 12 per cent going AWOL within four years.

    Although these figures look bad, they actually represent a 25 per cent decrease in annual failure rates for PC hardware over the last two years.

    Study: Desktop  PCs And Laptops Get More ReliableLaptops have also shown a significant improvement, with features like suspension mounting of hard drives and rubber bumpers between laptop lids and keyboards helping keep the damage tally down.

    Busted screens
    The most common disaster to hit laptops used to be the dreaded broken screen.

    Improvements by notebook manufacturers – like adding structural rigidity to the casing and screen bezel and providing more space between the screen and keyboard on closed lappies – have happily made cracked and smashed screens less common.

    Study: Desktop  PCs And Laptops Get More ReliableMotherboard fry-ups and hard drive breakdowns are now the two main sources of failure for desktops, a situation brought about by the increasingly complexity of the things, with more components being integrated into the motherboard.

    Years ago, if a network card went down, a quick call to the coke-slurpin’, death-metal listenin’ IT spod guy would have the card replaced in a jiffy, but with the network card welded onto the motherboard, the job suddenly becomes a much bigger one.

    According to the study, less common hardware failures include latches and hinges on the chassis breaking, keycaps disappearing into the ether and the time-honoured, “Whoops! I’ve just spilt coffee/beer/coke on my keyboard.”

    Gartner

  • Symbian Academy Launches: Free Teaching Aids For Universities

    Symbian Academy Launches: Free Teaching Aids For UniversitiesSymbian, the smartphone OS company, are pulling a smart move (pun intended) by offering free assistance to Universities and their lecturers to have Symbian programming skills built into courses. Very clever.

    They’re designed to make it easy for universities to create courses that teach Symbian software development and to integrate a Symbian component into existing computer science courses.

    Those who sign up are showered with free course materials, training, technical support, development literature, expert Symbian lecturers.

    It’s all part of the idea to “maintain the growth of the thriving Symbian ecosystem,” what ever that means in English.

    Symbian Academy Launches: Free Teaching Aids For UniversitiesAs a sweetener to the lecturers to get involved, Symbian will provide “exposure to Symbian’s industry partners.” Pretty healthy if you fancy running a software development company and want to get exposure for your potential products, or you’re getting a little bored of Uni life and fancy impressing those in industry that you’re a bit of visionary.

    Nokia are the dominant shareholder in Symbian (47.9% share holding) and you can see how seriously they’re taking getting their software into education, they’ve even got a Head of Academic Relations, a Harri Pennanen.

    If you fancy getting involved, just drop a mail to [email protected] and tell them that Digital-Lifestyles sent you.

    Symbian Academy

  • Bright Star: BT Media and Broadcast Sale Close

    As you may recall, we first reported the sale of BT’s Media and Broadcast division (or BTM&B as it’s known internally) and its TV satellite interests at the turn of the year. Since then detailed negotiations have been ongoing, with around 200 staff worldwide expected to be moving away from the comfy world of BT, to the more exposed waters of a private equity-driven outfit. We’ve heard that it’s expected to be known as Bright Star.

    The new enterprise centred around Satellite Occasional use and satellite TV multiplexs will be headed up by Mark Smith who was the boss of what was, a couple of years back, BT Broadcast Services. Joining Mark there will be some new hires alongside those former BT folks, described as ‘in-scope’ who we understand have decided to take a sweetener of around £4,500 to transfer their skills and experience to the fledgling outfit.

    It is expected that initially BT’s Media and Broadcast customers will notice little difference as BT continue to offer a wrap that includes satellite expertise. Beyond that, Bright Star will be looking at other opportunities not limited to BT’s customers.

    The new business will include satellite earth stations in the UK, France and the USA but it is as yet unclear where the operation will be headquartered. Currently BT’s M&B operates out of the iconic BT Tower.

    The transfer and negotiations around the unit are likely to have given BT some food for thought as to how they can manage the disposal of business units they do not see as key, or that are giving rates of return below the main business’s targets.

    After such protracted negotiations it will be interesting to see if a more bottom line-focused business emerges and if BT attempts similar transfers around the peripheries of its empire in the future.

  • Hollicks Eyes ITV For Takeover Rumour?

    Hollicks Eyes ITV For Takeover Rumour?Some commentators expect ITV’s share price to renew vigour over the coming weeks, as rumours of a fresh takeover are fanned by its institutional shareholders. This is despite poor audience performance and strong competition from a publicly owned, but very commercially managed, C4. There are those who are keen to take over the ITV helm where Greg Dyke so publicly failed.

    Critics of ITV’s current management are keen to back a plan that can create value where Charles Allen, the current ITV supreme, has so miserably failed. The individual who is being ‘bigged up’ as heading the next takeover bid is the former United Business Media (UBM) executive and Labour luvvie, Lord Hollick.

    Hollick knows more than a little about UK commercial TV. While he headed up UBM, it controlled Meridian TV with the most affluent ITV franchise areas that UBM then unloaded to Granada before Granada and Carlton formed ITV. UBM was also at the time of Hollick’s chairmanship a key mover and shaker in the formation of Channel Five, with UBM holding 35% of the company ahead of RTL taking sole ownership.

    Hollicks Eyes ITV For Takeover Rumour?Some wonder why the continued interest in ITV as the deregulated non-linear future hurtles closer, but in truth, ITV has a value in both its content and brand that may be undervalued. The channel when compared against the triple and ‘four-play’ options that are so exciting the Telco executives, still has programmes that viewers will seek out. The next 12 months are critical to the brands long term success, as it’s multi channel strategy is tested by the Freeview expansion of C5 with two more channels. Not forgetting the move of Channel 4’s film channel to an advertising supported free to air proposition, a strong assertive strategy could turn the corner for the dominant UK commercial player but more On Digital type disasters could spell a long and unpleasant demise.

    Hollicks Eyes ITV For Takeover Rumour?The other left field possibility is that US media titan Time Warner in selling off its UK AOL business has an eye on acquiring a much bigger UK fish that looks astonishingly like the UK’s main commercial TV network- eyes should be glued to the unfolding drama.

  • The Siemens-Nokia Deal Examined

    The Siemens-Nokia Deal ExaminedIn the wake of the dot com boom, then the dot com collapse, equipment vendors have been feeling the fall-out and mergers seem to be the way to reconcile the collapsing markets. The Nokia-Siemens merger announcement bears witness to this.

    Though the telecoms market is still expanding, increased competition from new entrants has made life very difficult for incumbent players.

    The Siemens/Nokia merger is just the latest in what’s likely to be a continuing trend, both for vendors and telecoms companies.

    Nokia brings expertise in the mobile space (they previously pulled out fixed markets), while Siemens has experience in the wired and broadband markets. Though there will be some overlaps, both companies mainly concentrate in non-competing spaces and as such, they should be able to move forwards with the best of both companies to offer a strong solution for next generation networks.

    The Siemens-Nokia Deal ExaminedSiemens, a German giant
    Even after disposing of their mobile arms (BenQ have already taken up the mobile phone division), Siemens is still a huge force in the world market, with over 600,000 employees. They have just disposed of parts of the companies in markets they’re not competing well in.

    The BenQ buy-out of the mobile division of Siemens allows BenQ to sell phones under the Siemens brand for 18 months, and then under a joint BenQ/Siemens brand for a further 5 years, though BenQ may well drop the Siemens brand altogether. However, they are able to utilise Siemens’ retails channels and will actually based out of the Siemens mobile division in Munich.

    This turns BenQ from a small phone player, to one of the larger ones. Siemens have always been good at making phone innards (radios), but their designs have been dated. BenQ must be hoping to imitate the Sony/Ericsson partnership where Ericsson made good phones that weren’t stylish, while Sony had the ergonomics, but dire insides.

    Watch out for the Chinese
    Though the west is merging like mad (most recently Lucent and Alcatel, both previously giants in the telecoms world) the real threat is coming from China.

    The Siemens-Nokia Deal ExaminedCompanies such as Huawei (“wu why” sometimes pronounced “who are we” which fits their appearance into markets that they had no presence in until recently) are starting to make serious dents into the Tier 1 telecoms/ISP markets.

    A couple of years ago, no one had heard of them. They initially attacked the core ISP market with Internet routers, and offered Cisco “clone” hardware. While Cisco might sell you a system, then you add the software and then all the extra features, Huawei offered a system with everything on in the first place for 60% of the Cisco base price. Not surprisingly in an extremely competitive market, ISPs started utilising Huawei equipment. Huawei also have a huge development resource of 10’s of thousands of high class engineers out of Chinese universities. Where Cisco might take weeks to analyse and diagnose a problem, Huawei set of team of people on the problem and can release fixes in hours.

    The Siemens-Nokia Deal ExaminedNow they’ve established themselves in the ISP market, the surrounding markets are being worked on (and since most ISPs are now owned by telecoms companies, it’s the telecoms markets that are easiest to move into).

    The Chinese can make carrier class equipment much more cost effectively than their western counterparts, which is why they are suffering.

    As networks move towards triple and quadruple plays (voice, video, Internet or voice, video, Internet and mobile) the equipment vendors now have to compete in all these areas. Triple plays are most common currently, but as can be seen from the likes of players like Orange and NTL (both offering quadruple plays), the market is moving in that direction (Vodafone recently announced they’re moving into fixed/broadband plays).

    The combination of Nokia as the mobile infrastructure side of the business and Siemens Communications as the broadband/fixed player should allow them to offer a complete solution to their existing and new customers. If they can get the synergies right, the combined might of both has a good chance of competing and ultimately surviving in this crowded arena.

    Only time will tell if they can defend against the power against them.