Business

Changes to business digitisation brings

  • The MP3 Era Spawns Its First Superstars

    The MP3 Era Spawns Its First SuperstarsNow holding the record for the fastest-selling debut album in the UK, the success of young British indie-rockers Arctic Monkeys shows how the Web has changed both the way in which bands promote and market themselves and how people find new music.

    Before the Web, keeping in touch with fans (and prospective record buyers) was a tough business for unsigned acts.

    For most bands, their only point of contact with their audience was at a gig and once their knackered Transit van had spluttered out of town, there was little prospect of keeping fans notified, short of setting up expensive snail-mail mailing lists or local poster campaigns.

    But the Internet has changed all that.

    When a band leaves the stage these days you’re more likely to hear them clearly shout out their Web address than a mumbled “thankyougoodnight” and any leaflets will be festooned with .com addresses.

    The MP3 Era Spawns Its First SuperstarsFor less than the cost of a handful of flyers, bands can set up their own Websites, offer free downloadable tunes, sell merchandise, maintain free email mailing lists and invite a dialogue with their fans.

    The Arctic Monkeys built up their formidable fan base after handing out free CDs of their tunes at early gigs in 2004.

    Excited fans uploaded the songs onto file sharing networks to share with others as the buzz around the band built up a head of steam.

    Suddenly venues were packing out and the band were astonished to hear punters singing along to songs before they’d released a single record.

    The MP3 Era Spawns Its First SuperstarsWith a growing fanbase clambering for more, it wasn’t long before record companies were begging to sign up the band, and last week’s album release on Domino Records saw the Artic Monkeys record-breaking leap up the charts.

    Of course, it wasn’t just the Web that made the band a huge success, it was the chuffing great tunes, but it does illustrate how the Internet is changing the way some consumers discover new music, and how bands are able to exploit these new possibilities.

    It’s just a shame that the MP3 age arrived after the ‘zenarchist’ KLF had left the music business.

    Now that could have been real fun!

    KLF: how to have a number one the easy way.

  • Who Will Pay The Price For Google’s Stock Drop?

    Who Will Pay The Price For Google's Stock Drop??The tumbrels are resounding for enemies of Google European head, and former T-Mobile boss, Nikesh Arora, following the “disappointing” financial results. In fact, the results were trivially down, but that was enough, and his head will be anxiously sought by Google in the US, say our stray packet interception team.

    Your Network Sniffer has discovered that Google insiders are blaming the flop of Web’n’Walk (T-Mobile) and the low-key, reluctant Vodafone contract for making Google the default search engine for phone users. Both contracts, had they been successful, “would have earned the $40m that Arora promised the City he would have,” said one insider.

    And what is $40m in the context of Google earnings? “Enough!” is the answer. As a pundit in the Telegraph remarked today: the reason for owning google shares is “it goes up every day” and this is the first time Google has been obliged to report figures below prediction.

    Who Will Pay The Price For Google's Stock Drop?And the City doesn’t like people it can’t cut down to size. Give them an excuse, and they will jump on you, which is what happened. That $40m is the excuse they’ve been waiting for. “Misled us with the forecast!”

    Why has Nikesh been nominated as scapegoat? Well, apart from the fact that nobody inside Google Europe likes him, it seems that he committed the cardinal sin of not actually telling his US bosses that he was falling short.

    “You’d think that a search company could find out what was happening inside its own offices in Europe!” was one quip which, apparently, bit deep. But that appears to be where it all went pear-shaped: instead of saying “I’m going to be $40m short, sack me if you aren’t happy!” to the financial world, Arora didn’t reveal the gap between prediction and reality until the quarterly results came out.

    This story originally appeared on NewsWireless, a site read by those who really understand the value of quality journalism.

  • Big UK DAB Radio Sales in December

    DAB radio (Digital Audio Broadcasting) is really taking off in the UK.

    Sales figures for the all important christmas period are now in. How many do you think were sold? Get ready for it – a gnat’s whisker short of 500,000! That’s just in the UK in December. Close to a third of all DAB sets sold that years.

    As at the end of December there’s over 2.7m DAB sets having been sold so far. It’s not hard to see that the hockey stick curve is really getting considerably steeper.

    When DAB sets like the new Asono DAB1 are becoming available, it’s hardly surprising that people are getting encouraged to make the switch. What a lovely bit of kit

    We thing that the sheer quality of BBC radio, 4 in particular, is a major reason why the UK is being seduced by DAB.

    Referring to the competition from the increasing popular digital music players, in particular the iPod, DRDB (Digital Radio Development Bureau) chief executive, Ian Dickens said: “Christmas on the High Street was a tough proposition this year. DAB digital radio was once again a shining light with independents, the multi-nationals and especially the mass-merchandisers enjoying strong sales right through the holidays and into January.”

    The continued growth of DAB is hoped to receive a further boost as uber-regulator, OfCom, plans to release further, new DAB-able spectrum.

    Digital Radio Development Bureau
    Asono DAB1

  • Anyone Got A Job For Free Culture IP Lawyer?

    Anyone Got A Job For Free Culture IP Lawyer?Inga Chernyak, until recently, had a legal clerk job at an IP law firm in New York City. On the 26 January she was called in to the firms HR department and fired.

    Why does that make news in Digital-Lifestyles?

    Her claim is that she was told it was because she’d appeared in an article in the New York’s Village Voice, discussing the Lawrence Lessig-inspired Free Culture movement. The article came out in the Village Voice on 10 January. She was fired on the 26th.

    She also assets that they told her that her “views about what the firm does were incompatible with…what the firm does.” Her views on the expansion of Copyright laws are that they place overt restrictions on the population as a whole.

    Anyone Got A Job For Free Culture IP Lawyer?There may be those who think that it’s pretty obvious that is you work in an IP firm; wanting to train as an IP lawyer; you hold views that IP law is over restrictive; then have your name and photo featured in an article that starts by describing how to circumvent CD DRM protection and are a founder of NYU chapter of the Free Culture movement – you’re going to end up in trouble said IP law firm. Others cry foul.

    Given how the blogging world works, I’d imagine that this incident will far from harm her career, and as she says in her own words, “as a member of the Free Culture movement, and a young woman of 19 without children to support, I can afford to take this blow in the name of progress.”

    Take a stand against DRM? Get fired from your day job

  • BBC World Now On Australian And Norwegian Mobile Phones

    BBC World Now On Australian And Norwegian Mobile PhonesBBC World have been busy bunnies of late, signing distribution deals all over the globe.

    Two of the most recent, in the last week are Telenor Nordic Mobile and Hutchinson/3 Australia. Both have signed deals to deliver the BBC’s commercial news service, BBC World, to mobile handsets.

    Mobile subscribers who have compatible 3G handsets will be able to watch live running 24-house news, streamed to their handsets.

    BBC World Now On Australian And Norwegian Mobile PhonesThe video streams include the adverts that would be shown if BBC World were being shown on the TV in the region. As yet, BBC World aren’t charging their advertisers any extra to splash them on mobile screens – they’re seeing it as added value for them

    As far as who pays what to whom (BBC World) varies on the mobile company and if the mobile subscribers are being charged to receive the service to their mobile, on top of data fees. Some of the mobile operators currently provide the service for gratis, while others include it in content bundles.

    In general, we’ve found that there’s not too many Mobile companies that are charging for video content currently, as they are desperate very keen to get people to sign up to receive video so they get in the habit of watching and get addicted. Having said that, things are starting to change and you can expect the freebies to start drying up.

    BBC World Now On Australian And Norwegian Mobile PhonesIn the 3/Hutchinson Australia deal, the subscribers are being asked to pay Au$4/month for unlimited access, Au$2/day or Au$0.50/two minutes.

    The management and delivery of the service for Telenor is being handled by Rubberduck Media Lab, a subsidiary of the Mobile Media Company.

    BBC World is a separate entity to the UK license-funded BBC, and its normal commercial cousin, BBC Worldwide. They’re free to do deals, as long as they’re outside the UK. They now distribute their service to mobile in eight countries – Finland, France, Germany, Norway, Switzerland, Bahrain, Malaysia and Australia.

    BBC World
    Mobile Media

  • Kodak’s Digital Revenue Snaps Past Film Sales

    Kodak's Digital Revenue Snaps Past Film SalesFor the first time in its long history, Eastman Kodak is generating more annual sales from digital imaging than from film-based photography.

    Figures for the fourth quarter saw Kodak’s sales rise 12% to $4.197 Billion, with digital sales making up 54% of total revenue for 2005.

    Kodak's Digital Revenue Snaps Past Film SalesBut it’s not all good news though, with the company reporting that total losses could top an eye watering $1 billion, as a result of the hugely expensive restructuring demands required by a potentially risky shift to digital.

    With film cameras rapidly vanishing off consumer’s shopping lists, Kodak – the world’s top maker of photographic film – had no choice but to jump ship into digital or risk fading to irrelevance.

    Kodak's Digital Revenue Snaps Past Film SalesThe company is still half way through the arduous task of restructuring the business for the digital world, and has already laid off some 25,000 workers.

    Costs of restructuring are immense adding up to $900 million in 2004, $1.1 billion last year, and an anticipated $1 billion to $1.2 billion in 2006.

    Kodak's Digital Revenue Snaps Past Film SalesFortunately for Kodak, Christmas proved a highly profitable period with sales of its EasyShare Printer Docks surging 95%, and sales of kiosks to drugstores and other outlets up 23%.

    Despite the Everest-high losses, Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company remains chirpy and upbeat, insisting, “We have reached a critical mass that will allow us to be a profitable consumer-digital company,”

    Kodak

  • First UK Filesharers Sued By BPI

    UK Filesharers Fined By CourtsNews has broken that two men in the UK have been found liable for file sharing their music. The first ruling of its kind in the UK.

    Both men who were ruled against are, as yet, unnamed. The details that are know are – one is a postman, father of two and living in Brighton; the other living in King’s Lynn.

    King’s Lynn, as we shall call him, has been instructed to pay £5,000 ‘down-payment’ on costs and damages, Brighton must pay £1,500. Both have been instructed to stop filesharing.

    UK Filesharers Fined By CourtsHaving been found liable, the two are now exposed to the BPI’s legal fees. Given the City law firms the BPI use, where it’s not unusual to pay £200/hours for their services, it’s going to be an expensive business. BPI have stated that “Total costs are estimated at £13,500 and damages are expected to take the bill even higher.”

    Each defense used a different argument. The first, that the BPI had no direct evidence of infringement; the second on the grounds that he was unaware that what he was doing was illegal and did not seek to gain financially.

    The second case was dismissed by Judge Justice Lawrence Collins declaring, “Ignorance is not a defence,” which we thought was known by one and all. Given the weakness of this defence, we imagine that this person must have defended themselves. Details of argument against the first were no disclosed.

    The names of the people who were sued haven’t been released by the BPI. When we asked for their names, we were told they weren’t to be made available as, “we don’t want to put them through anymore stress.” A bit strange when the stress they’re under, which we imagine to be pretty considerable, would have been caused by the BPI’s actions.

    This route, taking legal action against members of the public, has been well trod in the US. Reaction there has been varied from Hurrah! from the majority of the US music business – to Boo! from a large number of citizens, who in reaction have threatened not to buy music from the major music companies.

    The BPI is obviously taking this opportunity to pressure the 51 file-sharers that they have in their sights, urging them settle. We suspect that many will take the hint.

  • ZipTV: UK iTV Pioneer Falters

    ZipTV: UK iTV Pioneer FaltersA great shame to hear that ZipTV has had to enter receivership.

    ZipTV launched in July 2004 with high ideals. Their original aim was to take on the mighty power of Sky and create an interactive advertising channel running in parallel to Sky TV’s programming.

    ZipTV: UK iTV Pioneer FaltersThey way it worked was, as the punters were watching ‘normal’ TV and an advert from one of ZipTV’s clients was shown, a press of the Red button on the remote control (the UK standard for interaction), would take the punter away from the ‘normal’ TV show, to a dedicated TV channel. This gave the advertiser the opportunity to show an 8 minute video advert, but just pay for a 30-second spot-ad to get them there.

    A very neat idea, I’m sure you’ll agree.

    Taking on Sky, especially their income-generating advertising is … well, brave to say the least. If you were contemplating it, it’s the sort of thing you check with your lawyer, bank manager and then frankly, your psychiatrist before doing. We’re not sure if ZipTV did any of these.

    ZipTV: UK iTV Pioneer FaltersYou see Sky, and it’s very competent employees and owner, Rupert Murdoch don’t muck around. If they see some bright young things coming along with a super wheeze they will drain their income – it will get their attention – and not in a good, cuddly way.

    In advance of launching, ZipTV gathered some of the biggest advertisers around, including Honda, BT and Unilever, but some were lots prior to their launch.

    Not surprisingly Andrew Howells, founder and joint managing partner at Zip TV, said, “Having a genuine alternative to Sky is a necessity. There is only room for one alternative and it needs to be an independent one.”

  • WePay Service By 3 Pays Customers To Take Calls

    WePay Service By 3 Pays Customers To Take CallsMobile operator 3 has launched an innovative service that, for the first time, pays customers to receive calls and texts.

    Called ‘WePay’, the new pay-as-you-go price service rewards customers with cash credits for calls and texts they receive – and the payment is higher than you might expect too, with punters earning 5p per minute for received calls and 2p per text received.

    So a customer who manages to keep a caller nattering for a full five minutes will earn enough credit to send two texts, or a picture message or watch the highlights from two episodes of Coronation Street.

    Cash credits can be claimed whenever customers purchase a new WePay Top-up voucher, but there is a small catch: the credits have to be generated over 30 days and the money can only be used to purchase more 3 services.

    WePay Service By 3 Pays Customers To Take CallsDesigned to boost usage of data services, 3 also hopes that the cash-back scheme will prove attractive to new punters and tempt customers from other networks to switch.

    However, the slow speed in which numbers can be ported in the UK is causing concern to Graeme Oxby, 3’s Marketing Director.

    He claims that it can take at least seven days to port your number in the UK, compared to countries like Ireland and Pakistan, where it only takes “just a couple of hours”.

    Oxby continued: “Because the process can be slow, only a fraction of people on PAYG port their number when they get a new phone. Our new reward for picking up calls and texts makes it worthwhile for consumers to move their number.”

    WePay Service By 3 Pays Customers To Take CallsThe WePay top-ups come as all-cash vouchers available in £10, £15 and £20 denominations, with no expiry date. However, the WePay cash credits are only valid for 30 days.

    Graeme Oxby, 3’s Marketing Director, commented, “The introduction of WePay means we’ve raised the bar on rewarding loyal PAYG customers and at the same time created a way for everyone to enjoy music and TV on their mobile.”

    The WePay tariff is available from 1 February 2006.

    3

  • Are They/ Aren’t They? – Pixar/Disney

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    Are They, Aren't They - Pixar/DisneyOver the last couple of weeks there’s been a lot of speculation that Disney are going to be bidding to buy Pixar, the digital animation studio that’s supplied the majority of Disney’s successful computer-generated animation successes.

    The Telegraph got very excited over the weekend and jumped the gun on the purchase, to announce that Pixar had in-fact already been bought by Disney. The poor dears, obviously embarrassed about their blunder, have replaced the story (without mention of the cockup) on the original URL to say that Jobs _would_ receive about $3.5Bn for his share of Pixar. The whole deal is rumored to be worth $7.5Bn, achieved through a stock swap.

    Jobs hasn’t done too badly with the $10m that he paid for the computer animations division of Lucasfilm in 1986, that he then turned into Pixar as we know and love it now. It is thought that if the deal were to complete, Jobs would become the largest single Disney shareholder.

    As it is now understood, negotiation between the two parties have taken place, but the boards of both companies have yet to make their decisions.

    With mutterings abounding that Jobs may become the Chair of Disney, they’d gain a huge boost with the personal PR ranking that Jobs has fashioned for himself to become the darling of all things Digital.

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