Digital-Lifestyles

Business

Changes to business digitisation brings

  • NBC Take First Pop At TivoToGo Enhancement

    NBC Take First ‘Pop’ At TivoToGo EnhancementAs we predicted last week, the US TV networks are not taking the new TiVo enhancements to its TivoToGo lying down.

    NBC are making the early running, with a spokesman telling the Hollywood’s Daily Variety trade paper, “TiVo appears to be acting unilaterally, disregarding established rights of content owners to participate in decisions regarding the distribution and exploitation of their content. This unilateral action creates the risk of legal conflict instead of contributing to the constructive exploitation of digital technology that can rapidly provide new and exciting experiences for the consumer.”

    Legal types though, are quoting the landmark Sony v. Universal Studios case of 1984, citing it as a precedent where time shifting was expressly found to fall within fair use. Although this particular case has come under the microscope recently, during the Grockster case, where the the US Supreme Court ruled that companies could be liable if they deliberately encourage customers to infringe on copyrights.

    NBC Take First ‘Pop’ At TivoToGo EnhancementIt could be, that time will prove TiVo have announced prematurely this new augmentation, without fully taking account of the wide ranging business and legal implications. But in this fast moving sector, innovation is a necessity rather than an option.

    TiVo

  • Are Media Owners Trying To Hijack Terror Legislation?

    Media Industries Try To Hijack Terror LegislationThe digital rights campaigning group, Open Rights Group, reports that the music industry is lobbying MEPs to co-opt the EU Data Retention legislation currently being debated by the European Parliament.

    Music industry body, the Creative and Media Business Alliance (CMBA), wants data-snooping legislation aimed at the prevention of terrorism to be made available for the prosecution of any crime, such as copyright infringement.

    The move has been condemned by the Open Rights Group and other civil liberties groups across Europe, with campaigners calling on the Alliance’s members – which include industry bigwigs like Sony BMG, Warner Music, Disney, and EMI – to retract their demands.

    The Data Retention draft framework was originally cooked up by Sweden, Ireland, France and the UK, aiming at “the prevention, investigation, detection and prosecution of serious criminal offences such as terrorism and organised crime” by forcing telecommunications and Internet service providers to retain ‘traffic data’ (i.e. information about your phone calls and Internet activities.)

    Keen to exploit the legislation for their own commercial gain, the CMBA has demanded that this data should be made available for the prosecution of any crime – e.g. illegal music file sharing – and not just serious organised crime and terrorism.

    Media Industries Try To Hijack Terror LegislationCoupled with the upcoming IPRED2 legislation (which creates new, Europe-wide criminal offences for intellectual property infringement), campaigners fear that we could end up with a situation where the music industry would be able to pursue criminal court copyright prosecutions entirely at the cost of the taxpayer.

    Worryingly, the Open Rights Group reports that the both the Data Retention and IPRED2 directives are being “fast-tracked” through the EU by short-circuiting normal legislative processes.

    This means that there will only be one reading in the European Parliament, instead of the normal two, with sources from within the Parliamentary system indicating that some MEPs aren’t aware that the usual democratic process is being bypassed.

    A tight timetable means that MEPs are only going to have a couple of days to assess the Data Retention proposal with the final vote occurring on the 13 December.

    “The passing of the Data Retention directive would be a disaster not just for civil liberties and human rights in Europe”, said Open Rights Group director Suw Charman, “it would also put a substantial financial burden on telcos and ISPs which would be passed on to the consumer either in the form of raised bills or through government subsidies funded by the taxpayer.”

    Media Industries Try To Hijack Terror LegislationIan Brown, of the Open Rights Group (not the Stone Roses), said: “The British government claimed that Data Retention was essential in the fight against terrorism and serious crime, but it has now become clear that groups with commercial interests have their eye on the same data. Charles Clarke cannot continue to pretend that this legislation has been drafted purely for reasons of national security.”

    Gus Hosein, Senior Fellow at Privacy International, was equally unimpressed: “The EU has been claiming that data retention was some urgent policy response to terrorist attacks. But they are carefully drafting this legislation to ensure that it can be used for all purposes under the sun.”

    “Ironically, the EU seems to be going at it alone: even the U.S. Bush Administration is not proposing such a ludicrous policy, despite the strong lobbying by Hollywood.” he added.

    There are fears that if the CMBA is successful, the increased number of demands for access could affect the usefulness of the legislation as an anti- terrorism tool.

    The Open Rights Group argue that if British record labels set up prosecution ‘production lines’ like their American counterparts, the system could collapse under the strain, clogging up reasonable and legitimate enquiries into genuine terrorist or serious crime activity.

    Today, Sjoera Nas, Board Member of EDRi and Co-Director of Bits of Freedom presented a 58,000 signatures petition to the Chairman of the Committee, Green Party MEPs, Christian Democrats and the Social Democrats.

    Nas commented, “Last minute negotiations with representatives of the European Council have lead to what we feared the worst – a draconian directive that flies in the face of our recommendations.”

    “We can only hope that the European Parliament will come to its senses and realise that they cannot turn Europe into a surveillance society overnight without throwing away all human rights,” she added.

    Open Rights Group

  • BitTorrent Signs Anti-Piracy Agreement With MPAA

    BitTorrent Signs Anti-Piracy Agreement With MPAAP2P network, BitTorrent has signed an agreement with the Motion Picture Association of America to collaborate on stopping Internet piracy.

    After a press conference, a joint release was released by BitTorrent founder and CEO Bram Cohen and MPAA chairman and CEO Dan Glickman announcing that BitTorrent have agreed to remove all links directing users to pirated content owned by the seven MPAA member companies.

    The agreement will effectively prevent bittorrent.com from locating unlicensed versions of popular movies, making it harder for freeloaders to find online illegal copies of films.

    “BitTorrent is an extremely efficient publishing tool and search engine that allows creators and rights holders to make their content available on the Internet securely,” Cohen said.

    BitTorrent Signs Anti-Piracy Agreement With MPAA“BitTorrent Inc. discourages the use of its technology for distributing films without a license to do so. As such, we are pleased to work with the film industry to remove unauthorised content from BitTorrent.com’s search engine,” he added.

    Thousand of BitTorrent fans the world over will be clenching their fists and shouting “Traitor! You’re doing deals with the Devil,” while other more balanced, less angry-types will be saying “Smart move Bram, you’ve built a technology that they cannot stop and the fact they’ve done a deal with you proves that. Hey and you’re not getting your shirt sued off your back.”

    In September, Cohen revealed that his company had raked in $8.75 million in venture funding to develop commercial distribution tools for media companies, and the MPAA deal looks to be part of a strategy to make the technology more attractive to Hollywood moguls – no doubt with an eye to future lucrative movie download deals.

    With an estimated 45 million users, the BitTorrent technology pioneered by Cohen does its clever stuff by assembling digital files from separate bits of data downloaded from computer users all across the Internet.

    The decentralised nature of technology makes it the easiest, most convenient way to fill your hard drive with dodgy movies galore, while making it harder for Hollywood to find and identify the movie swappers.

    In an attempt to stop the piracy, the MPAA has been slapping lawsuits around like confetti during the last year, successfully closing down 90% of targeted sites using the BitTorrent protocol for illegal distribution of movies.

    BitTorrent Signs Anti-Piracy Agreement With MPAAThe MPAA claims that the film industry lost $3.5 billion to movie piracy last year, with a recent study predicting the figure to jump to $5.4 billion this year. The MPAA claim these losses are excluding revenue lost through online file-swapping, so the true figure could be even higher (although other will say the figures are already gloriously exaggerated).

    With tears welling up in their eyes, the MPAA said that film copying hurts hundreds of thousands of employees dependent on the movie industry, including sound and lighting techies, carpenters, cinema staff, video store employees and quite probably the popcorn sales assistant too.

    But not, we suspect, the fatcat industry bigwigs.

    BitTorrent

  • iTunes Becomes Seventh Largest US Music Retailer

    iTunes Becomes Seventh Largest US Music RetailerApple’s iTunes online store has been ranked the seventh-largest music retailer in the US in the third quarter, charging into the top 10 for the first time.

    According to research from the NPD Group, iTunes Music Store has climbed from fourteenth place last year to overtake many US High Street music stores.

    Based on the number of songs sold, Wal-Mart, Best Buy, Target and Amazon.com remained the top four, although iTunes rising star is expected to overtake more stores by the end of the year.

    iTunes Becomes Seventh Largest US Music RetailerAlready eating iTunes’ dust are big names like Tower Records and Borders, reflecting music fans’ growing passion for online music.

    “With the growing interest in digital music, forecasts of more iPod demand this holiday, plus the stocking-stuffer appeal of iTunes gift cards, we can expect Apple to increase its share even more by year’s end,” predicted Russ Crupnick, music and movies industry analyst for the NPD Group in the report.

    Launched in April 2003 to offer downloadable tracks to users of its best-selling iPod digital music player, Apple has sold more than 600 million songs, with the service boasting more than 10 million iTunes account holders.

    iTunes Becomes Seventh Largest US Music RetailerCombined revenue from the iPod, Apple’s fastest- selling product, and iTunes music accounted for a massive 40 percent of sales last quarter, up from 27 percent a year earlier.

    Steve Jobs has confirmed that Apple have already shifted over 30 million iPods since the product launched in 2001.

    iTunes

  • Royal Mail: Internet Fuels Growth Of Paper Catalogues

    Royal Mail: Internet Fuels Growth Of CataloguesThe Internet was supposed to herald in an age of paperless offices, online browsing and tree-untroubling electronic mail, but it seems that when it comes to flogging goods, the trusty old print catalogue still rules the roost.

    According to new research from the Royal Mail, online retailers will be looking to stuff your letterbox full of paper catalogues before Christmas in an attempt to drive up sales over the festive season.

    In a survey conducted by the Royal Mail, more than 20 online traders – including big names like John Lewis Direct and Firebox.com – were asked about their marketing strategies.

    Royal Mail: Internet Fuels Growth Of CataloguesThe survey found that old fashioned catalogues remain one of the most effective promotional channels for generating online orders, with 60% of survey respondents currently licking stamps on catalogues and brochures to be sent to customers in an attempt to increase online sales.

    Of course, the Royal Mail has something of a vested interest in promoting these figures, but we have to admit that we always prefer to flick through a glossy print catalogue than stare at a screen. And, of course, it’s a bit trickier to take a laptop to the loo for a bit of furtive, at-work browsing for gifts.

    The Royal Mail also found that some 36% of consumers agreed that having an online catalogue makes them more likely to purchase something from a retailer’s website.

    Royal Mail: Internet Fuels Growth Of CataloguesAdditionally, the survey revealed that 55% of retailers planned to follow the annoying trend set by High Street stores and “extend” the Christmas buying period by encouraging consumers to buy earlier (If only we could “extend” the Christmas holiday period too).

    Record earnings are predicted for online retailers this year, with UK shoppers leading their European counterparts when it comes to online shopping.

    Royal Mail: Internet Fuels Growth Of CataloguesAround 80% of consumers are expected to buy at least a quarter of their Christmas purchases online this year – up a mighty 15% over last year.

    Royal Mail

  • Nielsen To Include PVR Viewing In Ratings

    Shock News -PVR Users Are Exposed To AdvertsNielsen, the top American agency that measures TV viewing audiences, is going to provide ratings that take account of time-shifted viewing through digital recording devices like TiVos even though viewers are able to, and in my experience, generally do, fast-forward through the paid for messages.

    And as usual, with research funded by those that benefit, it could be worth taking several pinches of salt with this study. Some of the phraseology has strong hints of bamboozlement; the underlying message from a study conducted for the US TV networks, is that homes with PVRs and equivalents watch more commercials. Much the same came out from Sky after they introduced their Sky+ PVR.

    Shock News -PVR Users Are Exposed To AdvertsThe US networks say that time-shifted ratings should be taken into account, and point out that PVR users watch more TV – which we don’t dispute. They watch around 5.7 hours and that’s more than 10% extra when compared with the technologically-disadvantaged standard household. Their logic follows that this extra 10% of viewing, gives them more opportunity to see commercials. With PVR penetration in the USA already around 8% of the TV universe and expected to rise steadily over the coming years, this adds up to a is significant amount for media buyers.

    As one would expect, media buyers remain sceptical and many have said that they will ignore the new time delay viewers.

    TV is now being consumed in a variety of ways. With Apple having sold more than one million download viewings of ABC programmes, expect further challenges for the agencies, as media companies seek to measure the viewing of commercials from mobile devices, Internet and other on-demand screenings.

  • Cisco and Scientific Atlanta Converge

    Cisco and SA ConvergeConvergence took a step forward Friday past as Cisco announced the takeover of Scientific Atlanta (SA). The price? $6.9 billion cash.

    SA shareholders don’t get a big premium (around 4%). The markets had already priced the shares to allow for a takeover talk, of which has been ongoing for some time – Sony being rumoured as one of the prospective suitors. Conversely, Cisco stockholders aren’t too enthused with the takeover, and see the cable business as riskier than the high margin routers that have been Cisco’s cash cows.

    Cisco and SA ConvergeThe acquisition looks a good fit though, Cisco are keen to push their IPTV proposition, SA’s strength in the US set-top-box market (they have around 40% market share) will allow them to capitalise on the access to the home that video brings. The companies’ combined news release majors on this, John Chambers, president and chief executive officer of Cisco Systems said “Video is emerging as the key strategic application in the service provider triple play bundle of consumer entertainment, communication and online services.”

    The release also notes that the coming together of the two companies “creates a world class, end-to-end triple play solution for carrier networks and the digital home”

    Cisco and SA ConvergeFormed in 1951, SA has long been a market leader in Cable TV, has a healthy balance sheet and already has one large IPTV customer in the shape of SBC Communications. The critical mass of SA as part of Cisco should help it win more.

    Expect both Motorola (SA’s main US competitor) and Microsoft to consider how best to respond to this strategic move by the dominant Internet hardware backbone provider.

    Cisco
    Scientific Atlanta

  • The Teen View On SonyBMG DRM Woes

    We’re really pleased to have Lawrence Dudley writing for us.

    Digital-Lifestyles thinks that all too often articles about teenagers are written by people old enough to be their parents. What teenagers are thinking isn’t represented.

    Lawrence will give you a point of view that you won’t find in other publications. You see Lawrence _is_ a teenager.

    Sony DRM rootkitBecause Criminals Make the Best Police Officers
    A while ago, another teen, Jon Lech Johansen, who was most likely one of those addicted to the Internet, did something that upset a lot of people: He cracked the encryption used to protect DVDs. His actions had a huge impact and a lot of the big movie companies were upset. So much so, that they filed a lawsuit against the then-19 year old.

    Imagine then, after the scandal that was SonyBMG’s DRM software which was actually a rootkit, that SonyBMG actually incorporated some open source software (OSS) code in their CDs. And not just any OSS either: It was software written by Jon himself a few years ago.

    This leaves SonyBMG in a tricky position: If proven to be correct, they have broken almost every rule in the LGPL, a license used for Open Source Software. This license states that a distributor may not distribute software containing LGPL code without revealing the code’s source. SonyBMG and the suppliers of the DRM software, First4Internet, appear to have failed in doing that, and could end up being penalised for it. My views? How about sending a cool million dollars over to our friend Jon Jen Johansen? I’m sure he could use it to research some new cracks.

    Sony DRM rootkitThe other law other are saying have been broken by SonyBMG, and this is one that could land them in BIG legal difficulties, is The Computer Misuse Act, which contains the following clauses, all of which have been broken by SonyBMG in their keenes for DRM:

    • 3.(1) A person is guilty of an offence if
    • (a) he does any act which causes an unauthorised modification of the contents of any computer; and SonyBMG certainly caused an unauthorized modification of the computers on which its software was unknowingly installed on. It even installed a security risk.
    • (b) at the time when he does the act he has the requisite intent and the requisite knowledge. Well this obviously applies to a company like SonyBMG.
    • (2) For the purposes of subsection (1)(b) above the requisite intent is an intent to cause a modification of the contents of any computer and by so doing
    • (a) to impair the operation of any computer; it would appear that making it impossible to make legitimate, fair-use copies of CDs an impairment
    • (b) to prevent or hinder access to any program or data held in any computer; or to me it looks like SonyBMG followed the rule, thinking their program had to break every single clause. Preventing access to data, namely $sys$ named folders, is exactly what SonyBMG did.
    • (c) to impair the operation of any such program or the reliability of any such data. Again an impairment in the operation of the computer. Again a clause which SonyBMG broke.

    There is one interesting little caveat though: The software wasn’t developed by SonyBMG, but by First4Internet, and was only deployed by SonyBMG on their CDs. Whether it will be SonyBMG or First4Internet who will get into trouble over this one remains to be seen, but from my point of view, Sony as a whole has done themselves a lot of damage with this one.

  • Search Safe: UK Gov Advises Parents

    ofcomwatch-logoThe Home Office’s Internet Task Force yesterday published guidance aimed at advising parents on how to keep children safe when using the Internet, mobile phones or other means.

    The simple document covers:

    • What an Internet search actually is, why users sees the results they do and how search is generally made available on the internet
    • Advice for parents and carers on safe searching
    • Guidance for service providers and what they can do to make searching on the internet as safe as possible for children

    The document discusses the variety of searches you can make and how this affects the results you get.

    Search Safe: UK Gov Advises ParentsIt also provides practical guidance on how to use search effectively but safely, for example, by monitoring or filtering your search results.

    Home Office Task Force on Child Protection on the Internet: Good practice guidance for search service providers and advice to the public on how to search safely (PDF)

  • Too Easy(net) For Sky?

    Too EasynetYesterday, Sky’s takeover of Easynet was finalised and it looks to many that, despite paying a premium on the share price, they’ve have quite a bargain on their hands.

    Easynet is not a ‘fly-by-night’ Internet start up but a profitable business having traded for over 10 years in it own right, it has equipment located at over 250 of BT’s exchanges and has earned its technological spurs with deliveries of 22Mb using its ADSL2+ network.

    The broadband addition should future proof Sky against TV being broadcast to the home by ‘Wi-Fi’, and cable or fibre, expect future generations of receivers to start evolving into the home media hub with increased storage and the sophisticated Digital Right Management (DRM) that major film studios demand. Easynet will also offer an alternative to satellite delivery to customers who are prohibited from having a dish, or live in a built up urban area, where there can be no line-of-sight.

    Too EasynetAlthough reports that broadband is the latest media battleground have highlighted the moves by the UK telcos, the ultimate prize is the fabled home digital information gateway. The opportunities that this acquisition enables go beyond a mere triple play option (Inernet, TV & Telephone), allowing Sky to, begin by become the overriding aggregator of TV content and, in time, become the preferred digital gatekeeper for many UK homes.

    The prize? Being the ability to take a small fee for each of the numerous transactions that will take place.

    Sky will be competing initially with the telco’s and ultimately Microsoft. Sky’s choice of MPEG4 H264 for future HD TV delivery pits it against Microsoft and their WMV HD. The two new encoding technologies offer similar advantages and share characteristics but, by and large, broadcasters remain wary of becoming locked into a Microsoft solution and prefer, historically the flexibility of more open standards.

    Eyes are peeled to see if Sky Italia and other associated ‘News’ companies look to replicate this type of broadband acquisition.