Sky are firming up their relationship with BT by expanding their offer to customers to include an ADSL package. For me, the interesting part of the story is that they have demonstrated a broadband-ready set top box to select analysts, following the rumours that have been circulating about it for quite a while.
Business
Changes to business digitisation brings
MPAA pursue Film88
Film88, the Internet-based VOD company that offered hollywood blockbuster films at $1 a view that briefly and unsuccessfully re-opened in Iran about a month and a half ago is having the legal wroth of the MPAA set against it.
Seeing no enforceable end to the number of times they re-launch, the MPAA are taking action against both the US based holding company and personally against the Malaysian owner.
I suspect we won’t see such a blatant attempt to offer unauthorised movies like this again too soon.
BBC wins UK digital TV licence
It was announced this morning that the BBC lead consortium has been successful in winning the UK digital TV licence that the crash of ITVDigital left vacated earlier in the year.
RIAA squeeze audio Webcastsers
There was some significant news at the end of last week that will affect/restrict the breadth of music you can listen in the future.
The dispute that’s been rumbling on since 1998 between the RIAA (Recording Industry Association of America) and audio Webcasters, widely know as Internet radio station. The RIAA wanted all Internet radio station to pay a fee to playing music, which most felt was reasonable. The major dispute has been about the level of the fee that is paid. On 20 June, 2002 the US Library of Congress set fee rates for playing music tracks over the Internet. The levels summarised on their site leads one of the many station that has been affected, somaFM, calculate that their DAILY fees would be $500 or $180,000 a year. somFM also say “Don’t listen to the RIAA press release that says most small webcasters will only pay the minimum $500 a year. Any station with more than an average of 5 concurrent listeners will be paying more than that minimum.”
Many of these stations are run by enthusiasts, many of whom made no money and others who spent money from their own pocket. Using their specialist musical knowledge and lead by their enthusiasm, they put collections of tracks together that exposed their wide audiences to music they were excited to hear.
While collect high royalties from Internet radio stations, allegedly more than 100% of their current collective revenues, the RIAA is using the argument that “Internet radio airplay hurts CD sales”.
This is opposite case for both me and many other listeners. By having my choices widened and I have bought more –one of the problems may be that these purchases have been from non-major labels and they don’t like it. The major labels must be frustrated by the fact the people are not interested in their ‘product’ and through lobby pressure they have forced a situation where the small originators find it financially impossible to survive. I’m sure they’ll be more than happy to fill the void this leaves.
There are two killing blows, the fees mentioned here apply to non-subscription services, subscription services have to be negotiated separately and the second is the fees are back date-able to 1998 making the successful, long term stations the hardest hit. With the shock of Internet radio stations being turned off now and not waiting until 1 September, 2002 when the actual rates become effective, they hope to force the listeners to take action by contacting their representative urging them to act.
Sadly the most recent ruling and apparent conclusion don’t do anyone any favours long term. A broad and vital source of exposure to different types of music has been halted.
I don’t think we’ve seen the end of Internet radio, it’s just that the choice we will be given will be significantly limited – diametrically opposed to the philosophy of the Internet.
Broadcast Protection Discussion Group draft proposal
The US general public probably don’t currently know who the Broadcast Protection Discussion Group (BPDG) , or in fact they may never know, but one thing is for sure – if the BPDG’s recently drafted proposal is taken up, the public’s understanding of TV shows and their ability of record them will change for ever.
The core of the idea is to ‘ensure no analogue leaks’ (their words) from the broadcast of shows to the point they hit your eyeballs – by forcing all electronics manufacturers to build-in decryption just before it’s displayed on the screen. There are many things wrong with this approach, some of them highlighted in an EFF blog.
We await to see if the decades of media group lobbying has been good value – as it is thought that BPDG will next approach Congress and the FCC to support the proposal.
New UK e-commerce minister
The UK now has a new e-commerce minister, Stephen Timms and we’re told he’s a strong believer in broadband.
Swedish Minister calls for subsidies
A Swedish government Minister has called for government subsidies for broadband access bringing the price to E22-23/month.
US Library of Congress to decide on Webcasting fees
After a challenge from US radio Webcasters to the level of fees they are being asked to pay for playing songs on their station (up to $1.40 per song heard by one thousand listeners). The Library of Congress, who decides these matters, has to deliver its final determination before 20 June.
BBC Worldwide sign first interactive content deal
BBC Worldwide have just signed their first licensing deal for Interactive content with the Australian broadcaster ABC.
Oftel give BT access to the hallowed ‘Blue bill’
About eight years ago I remember when working on the product structure of the pre-launch of BT’s Wireplay service (Multi-user gaming service – great idea, badly executed, later sold on). One of our suggestions involved placing various charging items on the regular or ‘Blue bill’ and BT were very clear that this was and would only be allowed to be billed for phone charges – although they very much wanted to use it.
I was really surprised to see that Oftel recently gave BT the ability to charge their broadband services on the hallowed ‘Blue bill’. Freeserve can clearly see the advantage of BT having this and have blown a gasket.