Companies – Page 121 – Digital-Lifestyles

NDS Threaten TiVo with DirecTV PVR

There won’t be much surprise to hear that the now Murdoch-controlled DirecTV is readying the launch it’s own PVR around Spring 2005, whose function mirrors TiVo. Added to this, NDS the creators of the rivals PVR, claim their unit will handle Pay Per View programming better – by charging for the content when it is watched, not recorded. This will give them the opportunity to speculatively tempt the viewer with lots of yummy content.

The divorce of DirecTV and TiVo has been long, protracted and painful to watch. Much like friends watching from the outside as a marriage crumbles, where everyone appears to know that it’s over, except the unhappy couple.

TiVo has already had experience of the Murdoch approach to their business, when the two ‘worked together’ to bring TiVo to the UK. It is sufficient to say that TiVo stopped selling their product in the UK after only selling 30,000 units. It’s likely that most of these, probably would’ve been brought directly from the US anyway.

The big problem for TiVo is that DirecTV is their largest single customer and it will seriously impact their business. We imagine that they’ve been expecting it since DirecTV sold its 55% stake in one lump and its vice chairman, Eddy Hartenstein, resigned from their board back in June this year.

When this news is combined with, in our view, the near suicidal idea that TiVo plan to ‘upgrade’ the software on their subscriber’s boxes to display popup banner ads when fast forwarding through the TV adverts, you have to think that TiVo is in serious trouble.

Times have changed, and what was once special about TiVo has now become commonplace, and sadly, they don’t appear to be able to add anything to their offering as magical as the original.

We’re dismayed to read in the news report that the new DirecTV device will not have the ability to skip through the adverts. While we’re not surprised that an integrated company like News Corporation want to stop their subscribers for skipping through a revenue stream, we’re saddened that a feature that was so much a selling point for the original PVR, is going to be withheld. We wonder what the reaction of the subscribers that currently have the TiVo box that will be ‘upgraded’ to the new system will be? Even if the reaction is bad and vocal, it’s highly lightly that this will be a mere blip in the media landscape stretching forward.

DirecTV
TiVo

DAB Gets Big pre-Xmas Push from BBC

BBC DAB Xmas campaign The BBC will be launching a multi-format campaign starting at the end of November to promote Digital Radio in the run up to Xmas. It’s being previewed in London today.

Running across TV, radio, online (including the BBC home page) and posters, it will be a comprehensive campaign. The TV element, which airs this Saturday, will use animations of a computer-generated world to relate its message, marketing news site mad.co.uk reveals (reg. req.). In the piece, Robert Senior, the managing partner from the company that created the campaign, Fallon, goes on about a “wider spectrum of emotions” – but that’s quotes from marketing publications for you.

An industry insider tells us that this year the BBC will highlight what makes DAB special, rather than just talking about their additional channels, as happened last year. DAB features such as digital-quality sound and scrolling text should be highlighted.

This is a big year for DAB in the UK. Each of the major electronics retailers will be featuring DAB equipment prominently in their advertising. This year DAB receivers have also been in all of the glossy magazine with them falling over themselves to feature DAB in their publications. Last year they wouldn’t touch it.

The BBC’s isn’t the only campaign. The Digital Radio Development Bureau (DRDB) will be running a campaign over 257 commercial radio stations around the UK telling all and sundry that receivers can be bought for ‘under £50’.

The desired effect of all of this should be two fold. To give a boost to the sale of DAB receivers, at a time people are starting to think about presents for their friends and relatives; as well re-reminding the UK public that there is a wider variety of radio content available over DAB than on the analogue channels.

We learnt from the DRDB that 801,000 DAB units had been sold in the UK in the year to September. Their sales target for this year? “We’re aiming for 1 to 1.2m units before the end of the year” Ian Dickens, Chief Exec of DRDB told us.

With over 100 models now available in many different forms factors, they’ve got a strong chance of hitting it.

BT And Blueprint Jointly Develop Innovative Music Distribution Service

In yet another move in the legitimate digital music market, BT and Blueprint have jointly developed a new service based on Blueprint’s Open Royalty Gateway (ORG) and Song Centre software that allows copyright holders to take more control of their material.

The new service for hosting, managing and distributing music and related content online, promises to accelerate the growth of the market by addressing key problems hampering the development of online music businesses, such as time to market, copyright protection, capital expenditure in IT and networking technologies, control of rights and the margin structure of the present models.

BT brings to the table IT, networking and data storage knowledge, while Blueprint offers experience in media management software and music industry relationships. Blueprint will provide the software framework and industry interface, with BT utilising its digital content hosting platform and international network to deliver a global reach.

The solution enables rights holders – artists, writers, publishers and record companies – to host their songs, videos, ringtones and other digital media files while having a direct commercial relationships with retailers. Content can be delivered directly to any number of media-enabled devices, including PCs, digital audio players and mobile phones. Of course, online-only distribution also dramatically reduces the time it takes to get digital files to market, but the system has to be successful in managing rights and digital licences, reporting royalties and sales to rights holders, and offering a wide variety of digital media to consumers using variable pricing structures.

An interesting feature of ORG is that it allows rights holders to actively manage their content, including setting business rules for pricing and location, electronic contract creation, sales tracking and royalty reporting. In addition to handling ‘major label’ music content, ORG allows independent labels and artists, many of whom control their own rights, to encode, package and upload their content to the service and then manage contracts. Blueprint will also work with retailers, letting them mix and match content to create their own offers and campaigns through a service called Song Centre.

On the other hand, the service could, however, let artists or smaller labels bypass the majors and sell their music directly to retailers or consumers. Referral and reward programmes, using viral recommendation, also means that consumers can earn back the cost of the music they purchase, by rewarding them with a commission each time one of their friends buys recommended content.
The service has already been used by EMI for Robbie Williams’ recent No.1 hit single ‘Radio’ with Australia and New Zealand’s leading music retailers, Sanity and Sounds. Audio, video, visual and mobile content was bundled together for sale, and linked into a competition utilising Blueprint’s referral and reward technology to drive additional opportunities to win prizes. The service is now powering the global Robbie Williams ‘Greatest Hits’ digital download store.

Blueprint
BT

Thomson: ContentGuard and Verisign deals

Paris-based Thomson have been busy. They’ve done two deals that will have an impact.They have become a strategic investor in ContentGuard, a closely-held developer of Digital Rights Management (DRM) intellectual property. With this investment, Thomson enters into a partnership with current investors Microsoft and Time Warner Inc.

Digital Rights Management describes a wide range of technologies that have been developed to allow movies, music and other digital content to be accessed by consumers over the Internet while protecting that content from unauthorised copying and counterfeiting – a technology championed by Microsoft and its Windows Media Player software.

Thomson has agreed to purchase an aggregate 33 per cent voting stake in ContentGuard from Microsoft, Time Warner and Xerox, subject to customary closing conditions and regulatory approvals. The announcement follows Time Warner’s April 2004 purchase of most of Xerox’s stake in ContentGuard.

The three companies (Microsoft, Time Warner and Thomson) are using the announcement to promote the development of inter-operable DRM systems, accelerate the deployment of consumer devices that support Digital Rights Management, and encourage content owners to launch new distribution channels.

The move is also interesting because Thomson is a long-standing technology and services provider to content owners and network operators, thus bringing a unique perspective that should complement the interests of ContentGuard and its co-investors. Thomson also has a lot of experience in IP licensing, which should further help to support ContentGuard’s licensing activities and accelerate and broaden the acceptance of DRM and ContentGuard’s intellectual property.

“The development of Web services and new content distribution systems requires a complete ecosystem of participants. Thomson’s investment alongside Time Warner and Microsoft shows that media, software, devices and services companies are committed to developing the infrastructure for Web services to flourish”, said Bill Gates, chairman and chief software architect, Microsoft. “This partnership will help propel the licensing of DRM intellectual property. With the participation of Thomson, a recognised leader in IP licensing, we add a European headquartered partner that will make this important technology more accessible in other parts of the ecosystem, particularly services and devices.”

“Today’s announcement marks yet another important step in our work on DRM, and expands our collaboration with key partners on this strategic initiative,” said Ron Grant, senior vice president at Time Warner. “We look forward to working with Thomson, Microsoft and others on offering consumers exciting new digital media products and services while simultaneously protecting content.”

In another move, Thomson and VeriSign have joined forces to create an authentication and authorisation service for movies, music and games delivered over digital networks. The new service, which will likely debut next summer, will be used to process secure transactions and for other back-office functions. It is geared at the subscriber digital entertainment market over broadband networks, which is a fast growing industry.

VeriSign’s Internet transaction authentication and network infrastructure technologies will be used, while Thomson will capitalise on its experience in content security, management and distribution. Both companies also plan to develop proprietary technologies to authenticate and authorise digital content and to build an interface for home networking devices such as video recorders, mobile devices and computers. These features could help protect movies and other content from piracy.

Thomson
ContentGuard
VeriSign

Sky Active re-launches with Significant Upgrade

The Sky Active service, which has been around for the last five years, has this week had a considerable redesign. Originally a text-based approach, the new version is significantly richer and takes is into a magazine style. We spoke to Sky to get the details.

Sky Active Front page The opening page (example right) has a video background running on the right and a small number of highlighted options on the left hand side. The layout and links on this page change throughout the day, to match the audience that they think will be looking at it. Currently changing twice it will feature items like horoscopes and lifestyles links during the day and betting and dating in the evening.

Sky Active Content page Another way to access the content is via a mosaic layout (example right). This shows a checkerboard of 16 video pieces running on loops. As the viewer uses their remote control to navigate between the videos, bring it in to focus, the audio channel associated with that video loop plays. This short-form video programming is designed to draw people in to the interactive content that lies behind and on pressing the Select key takes them to the content.

It’s clear that Sky is putting more resources (read money) into this service. There is a full time editorial team of ten people working on it on a day-to-day basis and with the video running, considerably more satellite bandwidth is required to run the video. Sixty people across the organisation have been involved with the re-launching of the site – twenty of them within the design team.

Sky Active is creating much of the content in-house, as well as commissioning other pieces externally. The content that is being created is unique to Sky Active.

Clearly Sky is making money from their interactive service, and want to make sure that they are ahead of the game (pun intended) as other rival services are launched.

Sky Active

Ofcom to BT: Equivalence or else

After a long period of deliberation Ofcom, the UK regulator, has come to its conclusion on the Strategic Review of Telecommunications Phase 2 (SRT 2 to those in the know). It won’t be forcing the split of BT Retail and BT Wholesale.

For a very long time, most companies in the UK telecoms market have bemoaned BT Retail getting a better deal from BT Wholesale (they own the network) than they were able to achieve. In the competitor’s eyes, the market hasn’t been balanced. Many felt that BT has been expert in ‘playing’ the regulator, especially Ofcom’s previous rendition, OfTel – only making changes just before they were forced.

In SRT 2 Ofcom investigated three options, Full deregulation; Enterprise Act investigation; BT to deliver real equality of access. They’ve come down on the side of the latter, in their words

“Ofcom calls on BT to provide prompt and clear proposals which will achieve these behavioural changes and bring about the level of confidence required.”

and if equality isn’t achieved, they threaten to use the second; an investigation into the market under the Enterprise Act 2002, with the potential for a subsequent referral to the Competition Commission.

In theory, when equal access to the network is given, the need for Local Loop Unbundling (LLU) to provide competing broadband services will be reduced.

When we spoke to Video Networks, the company behind the London-based IP VOD-services, they said the news today would “not impact their LLU plans”. EasyNet, a significant unbundler, didn’t get back to us before we went to press.

The SRT 2 is now open for public consultation until 3 February 2005.

It would appear that the threats from Christopher Bland, Chair of BT, in the Telegraph at the weekend that “No BT would equal No Broadband” were unnecessary.
Update: OfcomWatch comment

SBC sign $400m Microsoft IPTV/TVIP Deal

SBC, the largest supplier of DSL connections in the USA, has announced a deal to spend $400m (~€307m, ~£215m) with Microsoft over the next ten years to purchase their Internet Protocol TV (IPTV) software. SBC has been testing Microsoft’s IPTV platform since June 2004 and they now intend to start field trials in mid-2005 and plan commercial availability in late 2005.

The Microsoft product, whose official name is a bit of a mouthful – Microsoft TV IPTV Edition, provides comprehensive security including subscriber and end-to-end digital rights management (DRM), enabling the content to be taken on to the portable devices that support Microsoft’s DRM.

In the first quarter of 2005, construction is due to begin on the SBC “Project Lightspeed”, the company’s initiative to deploy fibre closer to customer locations, providing significant amounts of bandwidth. It is expected to reach 18 million households by the end of 2007.

Microsoft have, of course, had enough opportunity to get TVIP software right. It has been estimated that Microsoft has spent up to $20Bn pursuing their ambitions of being the supplier of choice for TV software for the next-generation of Set Top Boxes (STB’s). We briefly used Microsoft’s TVIP service at IBC this year and found it pretty impressive.

This is the second major TV announcement for Microsoft this month following the Comcast deal.

As the world moves to IP-delivered content, and the source of that content becomes significantly less important, the power that sits with the broadcaster today becomes transferred to the owner/supplier of the box that is used to access the content – the gatekeeper. It is likely that there will normally only be one gatekeeper per household. The race is now on for companies to establish themselves in that role.

SBC
Microsoft IPTV

New UK VOD Gets All Clear from EU

European regulators have approved a joint venture between The Walt Disney Company, Columbia Pictures (a division of Japanese electronics giant Sony), and the UK’s ON Demand Group to provide a video-on-demand service in Britain and Ireland. The new venture will be called MovieCo and will give UK cable network operators an alternative to procure video content other than BSkyB, which is currently the dominant player on this market.

The MovieCo joint venture will offer films to customers of Britain and Ireland’s two biggest cable companies, Telewest and NTL. According to the EU statement, it ‘will provide an open platform to which movie content providers will have access on a non-discriminatory basis, therefore enabling them to make films available by way of video-on-demand directly to customers.’ The deal is also likely to help improve Hollywood’s leverage with BSkyB, as the satellite TV company renegotiates with individual studios over the rights to films for its stable of movie channels. Sky offers its movie channels to cable customers as well as its own satellite subscribers.

The new service will allow viewers to pick from a wide selection of movies to watch whenever they want. The technology is expected to be a key weapon for cable and telecommunications providers in their battle against satellite firms. Companies including BT Group and France Telecom’s Wanadoo also have video-on-demand platforms in the works. Video Networks’ HomeChoice already offers video-on-demand to areas of London.

More importantly, MovieCo will add legitimacy to the concept of on-demand movie downloads to PCs. The business has been in a state of flux because of piracy on popular peer-to-peer networks (P2P) and concerns over the quality of digital movies. To boot, the sector is also under constant scrutiny of the Recording Industry Association of America (RIAA), which is making good on its threat to sue file-swappers. The trade association has been busy in the US issuing subpoenas to ISPs demanding the identities of subscribers using P2P applications to upload and download copyrighted works.

The Walt Disney Company
Columbia Pictures (Sony)
ON Demand Group

East Fork: Media Chipset for Home PC’s from Intel

A chip set focused on providing home users with the ability to capture, manipulate and distribute digital audio and video content around a home network wirelessly is running through the rumour mill. It has been long anticipated.

Intel recently dropped the launch of the 4GHz version of their P4 processor. Many commentators had been wondering what people were going to use all of that processing power for after chip speeds have spiralled upwards in the last few years. In discussion that we’ve had with senior Intel people, it has been clear that they don’t really know what to do with all of that power.

Their new approach is to develop ranges of “platforms” – Centrino, the chipset designed for laptops being a good example. It has low-power use and WiFi built in.

Reuters are reporting on project name “East Fork” will focus the power of the chips on providing and distributing and manipulating Audio and Video (AV) content around peoples home. Playing back AV content doesn’t take a huge amount of processing power, but capturing video and real-time encoding it, to distributed around the household does. The problem Intel faces with that is the media companies don’t want their content digitised, but they are addressing this with content protecting schemes.

The Korean DigiTimes has information that the complete setup will be called “DH EF PCs”. Not too catchy, and we assume an internal name only, that stands for Digital Home East Fork PC.

Apple Avoids French Courts Opening FairPlay DRM

VirginMega, a joint venture between Virgin France and local media company Lagardère, has failed in its legal attempt to get Apple to license it DRM technology.

VirginMega claims that Apple’s refusal to license its FairPlay technology – the Digital Rights Management (DRM) system that allows songs from the iTunes store to be played only on iPods – is hampering the expansion of its digital music download market. The retailers complaint was ruled to be short on convincing evidence, according to the French Competition Council.

The problem, as VirginMega sees it, is that as its own online music service uses Microsoft’s audio files format (WMA) and is protected by Microsoft’s DRM technology, it isn’t supported by Apple’s iPod digital audio player. Since Apple won’t build WMA compatibility into the iPod, and as the iPod is the number one digital audio player worldwide, VirginMega is obviously miffed. Virgin wants Apple to licence FairPlay so it can incorporate the technology into the tracks it sells, thus making them iPod-compatible. The lack of compatibility between rival music services and players will certainly put VirginMega at a ‘disadvantage’, so it’ll have to look elsewhere to improve its sales to WMA-compatible devices.

Clearly Apple isn’t keen to share. Some feel that Apple may have shot itself in the foot here, as wider content support for FairPlay could help to drive the sale of iPods. By establishing AAC and the FairPlay DRM as a standards, more iPods would be sold and other standards, like WMA, would possibly be left by the wayside. Conversely if other music sites started using FairPlay, Apple would lose the relationship with the music purchaser.