TV-Anytime v2 to include iTV timeshifting

Today the TV-Anytime Forum, the collective of PVR industry-luminaries and deep-thinkers, announced it would soon complete its second, and final phase of the PVR standard.

The new phase, whose scope will be frozen in November 2004 will include

  • enabling the saving of interactive TV content to be saved to a PVR
  • a metadata framework enabling innovative advertising models for PVR’s
  • rights management of content, allowing transfer of programming between devices

We think that the first of these, allowing interactive TV (iTV) content to be saved to the correctly equipped PVR, is the most exciting. The playback of timeshifted iTV content has been the significant missing piece as far we’ve been concerned and if they achieve a standard that can work with any format of iTV content, they will have done very well.

The initial phase, which was been passed as an ETSI standard (TS 102 822 – “Broadcast and on-line services: Search, select, and rightful use of content on personal storage system”, is being implemented in Europe, the US and Japan, with PVR’s with enhanced functionality expected to launch during 2005.

Commenting on its widespread adoption, Simon Parnell, chair of TV-Anytime, “The adoption of TVA’s first specification by DVB, ARIB and ATSC shows how important this work will prove to be for the widespread adoption of PVR standards the public can reply on.”

TV-Anytime

Wotbox – Local Search Engines, Globally

Wotbox, a search engine vendor specialising location-targetted searches, in has launched eight new localised sites covering Australia, Canada, France, Germany, Italy, New Zealand, Spain, and the U.S.

The London-based company wants to reach web users around the world by providing tightly-targeted search facilities in surfers’ native language.

Director Mike Nott said:”We’re trying to give international users more choice by providing another local search option for them. We also wanted the interface for non-English sites to be in the native language, making it easier for local users.”

Wotbox

Ashley Highfield, BBC – The IBC Digital Lifestyles Interviews

This is the sixth in a series of eight articles with some of the people involved with the Digital Lifestyles conference day at IBC2004.

We interviewed Ashley Highfield, Director of New Media & Technology and the BBC on the need to make content easily available to the public, and the platforms they might use to obtain it.

Ashley oversees BBCi services on the internet, interactive TV, and emerging platforms. He’s responsible for the BBC’s Technology portfolio, encompassing IT strategy, Research and Development, and technical innovation looking at the content forms of the future.


Can you give our readers some background to BBC’s interactive and new media operation and what you do here?

I’m responsible for all the BBC’s non linear output – so anything that is on the internet at bbc.co.uk, which is the world’s largest content website. It’s used by over 10 million people each month in Britain, and has a global user base of probably around 30 million. It covers news, information, education, entertainment … everything.

It is supported by our interactive TV service BBCi, which is available on satellite, cable and digital terrestrial Freeview. That too has an monthly audience of over 10 million in the UK alone. It offers a range of services, for example, the Olympics with multiple video screens that you can choose from – as well as information and education, things like GCSE Bitesize. I’m responsible for our mobile offering as well. I also look after the Technology Portfolio at the BBC and Research and Development.

Would you like to tell me a bit about your two IBC sessions this year and the sort of things that you are going to be covering?

The overall framework is that 50% of the UK have digital television, 50% of the UK has the internet and that’s been the easy bit in a way. I think history will come to look at that as actually having been the lesser task than the next 50%. The two sessions actually fall into quite neatly into “What are the technological solutions?” and “What are the content solutions?” So, what broadly are the solutions that could help drive us towards a digital Britain?

And what are the issues?

There has been a lot of work done by bodies like the Digital Inclusion Panel and by ourselves and by the Broadband Stakeholders Group and by Ofcom that are starting to come to some agreed conclusions about what are the barriers to adoption.

They are many and complex and the barriers are around “I don’t know it’s available” through to “I know it is available but I just don’t want it”; through to “I can’t afford it; I am frightened of it; it is not available in my area; I don’t even understand the language it is in; I can’t use it physically for some reason” and so on. There are a range of reasons.

I think that the interesting angle for these sessions, particularly the second one on content, is not just to ask “What are your whacky ideas for the future?”

If we know that the future is going to be held up by these different barriers, what are the contents initiatives to address these specific barriers? That for me would be “What tangible impact do you think it is going to have to drive take-up and get us to a digital Europe?”

That would be I think a much more gritty session rather than one that just goes off into the usual cyber bullshit.

Quite right.

I can give you an example.

Imagine I am someone living in a high rise block, I am thirty-eight but I am a single father bringing up two kids they’re thirteen and I have got digital Television because I have forced to by the Government.

I really never use anything other than the old five Terrestrial Channels. I can’t afford to get my kids a PC and I certainly can’t afford to subscribe to the internet or broadband, and they are getting teased at school for being behind the curve.

They are struggling in their lessons because all the other kids have got the digital curriculum available to them at home. Now, what if we could offer a content solution that got the digital curriculum into that home without any subscription charge? What if we could find a way of beaming that content service over digital terrestrial television into the home and getting it onto a cheap box for storage? If I could do it overnight so that my kids could actually have access to the digital curriculum in their bedroom through a £50.00 Freeview box with a hard drive, that would make a big change and impact on my life and would force me, as this single father, over some of the barriers.

It would be for my kids’ education. If it was simple enough to operate by just using the four coloured buttons, it wouldn’t break down and it was cheap – there was no subscription cost – then that would do it for me.

What are the content solutions, the content technology hybrid solutions that would breakdown all these barriers to leaving us with a non-digital underclass?

Do you see the BBC offering a Broadband content service, and perhaps even its own set top box?

It is not a specific plan – the set top box is not a specific plan, but it does strike me that we are not thinking about these problems laterally enough at the moment. The content people are just looking at the content solutions and the hardware people are just looking at the hardware solutions and what you end up with is hardware being put into the market like DTT boxes with PVRs in them.

Like HomeChoice and Sky+?

I think Sky+ is a platform driven solution where they want to drive subscription up to their platform. That’s very clever, but it is coming at it from their perspective. They haven’t actually thought too much about what kind of content could you start to download onto a Sky+ box. They are just going to start offering that service at the end of the year, downloading movies and letting you consume them when you want to consume them.

HomeChoice has a slightly different angle, and then you have the hardware manufacturers who are just making free-standing Freeview boxes with PVRs in them.

No-one is actually saying “Well, what is the content solution that is going to drive demand?” It is all a bit fragmented at the moment.

So yes, I do think that the BBC has got a role to play in starting to create content solutions that will start to shape the way that people look at the hardware.

The united broadband platform – the equivalent of a set top box like that – has lots of advantages for production houses and people who produce content. You write it once and it can run on several kinds of boxes. How serious is the BBC about getting involved in a project like that when you have people like N2MC trying to work on a single European standard for interactive content? Is there some duplication there or does what you are doing fit in with what the European Broadcasting Union is doing?

I know of a number of initiatives that have tried to set single standards – let’s say interactive TV MHP. I am sceptical because there is installed base in Britain – how many set top boxes do we have, 11 million? 7 million Sky boxes, 3.5 million cable, 3 million Freeview … in fact, well more than that now.

And at least 5 interactive TV platforms across Europe as well.

Right – it is not going to happen. It is better to actually focus either at a higher level of abstraction like putting a Java engine into every set top box or even a higher level just putting tools into the broadcaster to enable us to create content once and then using multi-platform authoring tools.

Again, it is a technological solution that often doesn’t wake up to the reality in the commercial market. Why would Sky ever use any other solution? Let’s assume that Sky is forever going to have Open TV as a legacy in 7 million homes. In which case let’s deal with that reality and therefore try and find solutions in the real world.

That’s what I am interested in – finding solutions in the real world for this last 50% of people who haven’t got Digital Television.

The worse thing is to try to dumb interactive content down to a common technology platform.

The lowest common denominator with the worst functionality.

It is not going to happen.

How much content will be on the Interactive Media Player when it launches?

The vision is quite clear – the vision would be all programmes up to a week after transmission. Then you are into practicalities, everything after that is practicality. Therefore, what can we put in or rather what can’t we put in? I would like to start with everything until somebody gives me an absolutely convincing reason why we couldn’t.

Now, clearly that is going to take a while, when we launch it as a real product, if we launch it – you know we have only just finished the trial – there is no guarantee that we will. If there is no demand for this thing, no matter how cute a technical idea it is, we won’t do it. But, if the demand is strong and we can find solutions to the rights issues and the distribution issues then we would want to set a route map towards all the content.

What rights issues and distribution issues do you see?

A plethora. Everything from encoding the stuff in the first place, to storing it here, to checking people have the right access to get it in the first place: i.e. they are within the UK, right windowing and so on, to how we actually physically distribute it, that it doesn’t make our service fall over, to quality control when they get it, to download and streaming technologies. You may know that we are looking at least three technologies to lighten the load of distribution.

I’ve heard peer to peer mentioned…

Peer to peer. We are doing that for IMP. We are doing multi-casting where we send it once to the service providers who then distribute it on, and store and forward and storage serving.

We are looking at a number of different technologies to lighten our distribution load. That’s the technology issues.

The rights issues are broadly around trying to find a framework similar to the one we achieved with the radio player which is a bulk rights clearance framework because it won’t work trying to clear things one by one by one.

What about Creative Commons? Lots of people are very excited about the Creative Archive and its use of Creative Commons. What’s the feeling inside the BBC about using Creative Comment as a licensing?

Too early to tell. I mean, it is an idea. It’s one that we therefore want to test but as to whether it will provide an effective enough rights framework, I don’t know.

So it is not set in stone yet?

No.

What sort of DRM will you be employing with the Interactive Media Player and will Creative Commons material be DRM’d and will it be your own BBC codec, the source for it or will you be going to Microsoft?

Yes – all those are being evaluated at the moment! Those are the questions. The trial at the moment that separates the download from the DRM I think is very clever. It allows peer to peer, and the file is encrypted and can only be viewed when you come to view it by checking back with the BBC to confirm your rights at that time.
That isn’t going to necessarily work for Creative Archive where we give you the content to view and manipulate in perpetuity. There will be different DRM solutions for different content and that’s why at the moment we are running a separate initiative from Creative Archive – because they are actually testing different demands and different modes of usage. One is about catch up TV, and another is about actually keeping the content forever and doing things with it. They are going to need different rights approaches.

You are looking at using two difference rights systems for content that is used in two different ways.

Yes, currently.

When the public buy content they have copied protected CDs, they have Fairplay protected tracks from iTunes, they have WMA protected tracks from OD2 – and they can’t move content between devices. As awareness increases of the fact that people are locked into devices and DRM systems, where do you think that’s going to end? Do you think there will be a shake-out in the DRM market or will consumers say “That’s enough”?

There’s money in them there hills and competing formats are going to be around for a while. Whether the shake-out would happen such that you end up with the ubiquitous single framework a la VHS or whether you end up with a number of slightly different formats like DVD, or whether in this instance an organisation like the BBC could help to create an open framework remains to be seen.

Clearly, one of our objectives would be to ensure that our content was available, free at the point of consumption – and that is what we are here for as a public service broadcaster – and not intermediated by other gatekeepers. That is the primary strategic drive behind implementing the Creative Archive. It is to be able to get our content to our audiences with the minimum encumbrance.

As far as your audience goes, will the Creative Archive be limited to the UK or will other countries be able to access it by buying a licence?

It’s something that is up for debate. The licence fee extends just to the UK and therefore it is a completely legitimate framework for us to have pay models outside the UK.

Obviously BBC Worldwide exploits extra-UK rights for all of our content. They sell those rights packages to other broadcasters, not to individuals. What we have never done is to offer our content direct to the consumer a commercial B to C model. We have always done B to B to C. So could we start offering pay per play, pay per view for international users off the back of the Creative Archive. It’s something we can look at, but it can never be and will never be the major driver for the products. We can’t have a commercial tail wagging a public service dog.

We are seeing an increased demand for our narrowband streamed content, like our radio services. Also, the Proms is popular in Japan. That’s probably one of our Global roles. Increasingly as the content gets richer and more bandwidth is required, the cost of distribution increase – how do we recover these costs?

The perceived value increases, too, as the content becomes richer and so we get more guarded, a bit more jealous. There is certainly a huge demand around the world for content that is being funded by the Licence Fee.

We need to be careful. The Olympics is a good example where we do not allow Broadband access to the Olympics content from outside the UK.

We have got the rights to all the broadband content on the web but only within the UK. So if you try from abroad you just can’t get it.

The BBC’s efforts for the Olympics this year are phenomenal – you’re providing much more footage than has ever been done before by anyone and you’re covering it in very different ways. There are on-line statistics completely updated, people can watch the five interactive feeds at one time on broadband and on interactive. Do you see this as just the tip of the iceberg for new types of content that are enabled by new technologies? What sort of types of content are you looking forward to in the future?

That is where it starts to get interesting, the question is “How will content change to meet this need?”

My clichéd example is still the best one I can think of: snooker. Colour television, a change in technology made the sport.

Clearly people played snooker before colour telly, but it wasn’t a broadcast sport and suddenly about 1969 it was. What does this broadband and interactive TV technology enable that wasn’t before? The Olympics is a really good example. The viewing figures for minority sports, we imagine, will go up considerably.

So that makes the Olympics a better proposition, but it doesn’t change the nature of the Olympics. What sports could actually be fundamentally changed or created by new technology? An example might be a long form sport that currently doesn’t work terribly well in a broadcast schedule, like the Round the World Yacht Race. You could use GPS graphics – there are websites that enable you to track the yachts, but could you then use some clever interactivity and so on to make it a much more compelling sport, and therefore take it out of a niche activity and propel it into the mainstream.

Yes, almost certainly are there sports out there waiting to be transformed into mass spectator sports, like fishing. That’s where we haven’t got to yet, because we are only four years into interactive TV and probably only about four/five years into entertainment content over the web. We have not yet moved forward into totally new forms of content.

It certainly is an exciting area.

It is and you just see some emerging things like “Big Brother”. “Big Brother” would have just about worked as a television programme just on its own – “Test the Nation” you would have struggled to make Test the Nation work if you couldn’t have actually tested the Nation. If they couldn’t have joined in via interactive TV and the web you would have a bit of a lemon of a format, but, you know, where do you go from here?

Another good BBC example, of course, is “Come and Have a Go if You Think You’re Smart Enough”.

Right – totally doesn’t work.

It would never exist unless there is participation through the use of technology. Actually those kind of content, I think, we should set up at the beginning. Probably those are the ones that we want to show that we are on a journey here from enabling existing content to be shown in new and interesting ways to increase Region consumption through to totally new forms of entertainment that this technology allows.

Just thinking about “Come and Have a Go” and that sort of integration of different content platforms. Where do you see mobile content services moving? Will the BBC be adopting things like DVB-H?

We have been in a world where mobile content is not able to be distinctive enough to have made it appropriate for a large scale investment by the BBC. We are meant to be by being public spirited, we are meant to provide content that is distinctive and that is where its public value outweighs its market impact.

I think it has been very difficult with a tiny screen and text to let the values of the BBC through. I think it changes once you start to get 3G more broadband video, more meaningful video onto mobile phones.

However, I still don’t think that would then be enough if all we were doing was duplicating the audience that were already using us on-line. Then is that the best use of the Licence Fee? The question I’m asking is: What audiences are we not getting on interactive TV or the web that we could reach through the mobile?

Let’s take teens, a clear audience that are watching less television – certainly less BBC1 prime time Television. What kind of services could we offer to that audience through mobiles, and how can we make it high quality and distinctive? Now that is really interesting, and we have done some stuff like that – like GSCS Bitesize. I think it is too early to call at the moment the mobile market because it has been ostensibly a text based information service.

As it becomes a richer service – an example would be GO – IP based services i.e. how rich could it be for the BBC to offer you a content service to your mobile phone depending on where you are. Now have already trialled some of that where you can go on a walk around London and using information from our History website – will know where you are and tell you through the mobile phone historical facts about where you are actually standing at the time.

How could we use our network of Where I Live regional sites to maybe give you the news and information in radiating circles around your mobile phone? That for me starts to become really exciting. Once we start to move into that world I think that value of what we can do on mobile will increase exponentially.

Would you charge for a mobile service like that? If you are trying to get into every area to offer services it means that you are slicing the Licence Fee thinner and thinner.

Well, not if there is no marginal cost of distribution.

If we cut up all our content anyway, my vision would be a world where all of our content is meta-tagged with its location. On Interactive TV you could give me the news in a five mile radius round Humberside but you could also do that on your mobile phone. It’s not just news content – all our content – you could show me say on the Nature website, give me all the sightings of Greater Crested Plovers within a five mile radius of where I am, i.e. that all of our content – give me any entertainment you’ve got, any comedy clips from the Fastshow that are set in Wales. You can just see a whole BBC centred around location – now if we did that if we meta-tagged all out content then there would be no marginal cost of distribution to the mobile phone.

What resolution will Creative Archive material be in?

We’re testing that.

The content ranges from about 400 KB a second – news stuff – a bit more than that like 500 on Top Gear and so on right the way through to trials at 4 megabits for high definition. I have a Media Centre at home so I was able to use IMP to download the HD stuff and then watch it through my plasma telly – awesome!

That then, puts you in an interesting space where we could get HD out to people’s television sets without the need to rely on Sky and Cable to upgrade their Networks. At the moment can’t – it doesn’t matter if I shoot something in HD you can’t get it on your Television set, whereas through the Creative Archive we could. It is interesting but what we don’t know is, is there any demand?

Steven Carter, Ofcom said it wasn’t broadband until it was 10 megabits per second. When do you think that will be happening in the UK?

I don’t that is a terribly meaningful definition anyway. I think we are far too hung up on technology. The right question should be – when can we deliver enriching engaging content through these devices that doesn’t, because of its quality, diminish the experience? That is the question. It doesn’t matter if you come up with amazing encryption technology. Get me Eastenders down 500K and I get just as much out of it because the graphics aren’t blocky, then that is fine.

We are not there yet – jerky, slow video – we are not there yet but I don’t think it is 10 megabits. It is probably useful to try to understand it because it is certainly more Bandwidth than we have got with them at the moment. But understanding what – here is a good example – in Hull we found that local news people were willing to take it “lower quality” and yet to the audience it wasn’t lower quality at all – we thought lower quality meant lower picture quality, but actually for them it was higher quality because it was local.

It was immediate and although it was user generated, that for them was their perception of quality. The fact that the picture was shaky didn’t matter. So we are putting our perceptions of what quality is onto this equation.

I suppose it has a higher value to them because it is local and, in fact, when you see footage coming back from Baghdad you don’t mind that it’s jerky because you expect it to be.

Yes – because the important thing is that you want it now.

What impact will Charter renewal have on new media services on the BBC because obviously you are becoming very intermingled with traditional programme production?

It is fundamental – if you go through Building Public Value, there are 42 major initiatives in there – of which 25 are new media, so we have go to move from a position of still being, to some extent on the boundaries of the core BBC to being absolutely its heart. That’s going to be a big shift in everything.

Ashley is a chairing the ‘New Platforms, New Content‘ session between 09:30 and 11:00 at the IBC conference on Sunday, 12th September in Amsterdam. Register for IBC here

BBC

Sharing iTunes With ourTunes

Apple disabled iTunes sharing some time ago, but David Blackman has produced a Java application that puts that functionality back, whilst respecting Apple’s FairPlay copy protection.

Blackman’s ourTunes program allows authorised users to browse iTunes libraries on remote computers and download unprotected songs. DRM-protected tracks bought from the iTunes music store cannot be copied, and the program is not a P2P client. Additionally, MyTunes only works with iTunes clients on the same network, so there’ll be no naughty browsing and copying over the internet.

“ourTunes isn’t that type of program. It’s designed to only function within your local network. This is partially a design constraint of Apple’s iTunes program, and partially a decision on our part. ourTunes is not meant to be Kazaa. It’s only useful for exchanging music with people close by, who you more than likely know.” Blackman explains.

Blackman describes ourTunes as a continuation of several existing open source projects with additional features like a search function a user-friendly interface.

The Java application works on Window, Linux and Macintosh computers with a Java Runtime Environment installed.

OurTunes

Google Floats as Demand Sags

Google has floated at a US$85 (€68.7) share price, considerably less than the original valuation of US$108 to US$135 (€88 to €110). The company also issued less shares – only 19.6 million, where 25.7 million had been planned initially. It is thought that executives held on to parts of their stakes because of weak demand. Only 5.5 million shares were issued to private investors, less than half the number first bandied about. The shares were issued in a Dutch auction – bids are ranked from highest price down and shares are allocated. Pundits feel that by releasing less shares, the stocks did not have to be sold to the lower bids – sneaky.

The IPO will raise US$1.67 billion (€1.35 billion) for Google, making it the fourth largest this year. Though, since many IPOs have been cancelled in the last few months, that isn’t saying much.

The float values Google at US$23 billion (€18.6 billion), down from the US$36 billion (€29.1 billion) suggested when optimism for the share sell off was at its highest. To give some perspective, Amazon is valued at US$16 billion (€13 billion).

The Google Prospectus

Digitally Tracking Adverts with Ad ID

Ad ID is a 12 digit code to be attached to all advertising so that it can be tracked effectively. The system has been developed by the Association of National Advertisers and the American Association of Advertising Agencies, and has just been endorsed by the top four broadcast networks (ABC, CBS, Fox and NBC) in the US, along with over 100 other large advertisers and trade groups.

Each piece of advertising will have a unique 12 digit ID and combined with RFID technology, will enable advertisers to track precisely how individual households have responded to advertising messages through their purchases. Is it just me, or is that really frightening? The introduction of Ad ID is being compared with the introduction of the UPC bar code 30 years ago – though coupling Ad ID with active technologies such as the internet and RFID chips make this a considerably more powerful tool.

Ad ID is not entirely new – it’s been in development since 2002. Tagging each advert with a unique identifier also allows metadata to be stored about the ad – such as geographic relevance and scheduling. The system is backed by a web portal so that advertisers can update campaign information and consult billing and scheduling details.

Ad ID

UK Government Advertising on Google

The UK Government has bought Adwords on Google in order to encourage more traffic to its web portal. The site was launched in March this year, but rather like the Millennium Dome, visitor numbers have been disappointing. 589,000 visitors came to the site in July, up from 471,500 in June.

The government is currently focussing on families, the disabled and motorists and has bought up key words in those categories. Ads only need to be paid for it they are clicked on.

Naturally, since I like to pick holes in everything, I thought I’d visit Google and find out what focussed and informative my income tax had purchased. Searches for NHS, Blair, “UK government services” and even WMD did not prompt Google to fling up an advert for Directgov. Sure enough though, when I searched for “directgov”, I got an ad.

The Directgov site offers a wide range of services, from applying for a pension credit to reporting a crime, if visitor numbers are low, then it’s because people don’t know the site is there and what it can do.

Directgov

Google IPO: Let the Backlash Begin

Google may have chose a bad time for its IPO – the market for technology stocks is slowing and companies like Nanosys are cancelling their own offerings.

Analysts believe that members of the public will invest in Google because of the brand, and the Dutch auction scheme has a populist appeal. Indeed, the New York Times has even reported that Jerry Kaplan, has warned his mother not to buy Google stock. Many institutions are taking the tried and trusted “wait and see” approach.

With MSN breathing down Google’s neck with new features and Windows integration, they have tough times ahead.

Google’s 24.6 million shares are expected to raise US$3 billion (€2.5 billion) for the company, and documents filed with the Securities and Exchange Commission reveal that Google executives believe that the company will be worth up to US$36 billion (€29.8 billion) on the day of the IPO.

It also transpired this week that Google has issued 30 million shares to staff, but failed to register them. This may be a serious breach of stock market regulations, and the company is now planning to buy the shares back – though at prices much lower than the US$108 to US$135 (€90 to €112) estimates for IPO stock. A rescission of the unregistered stock would only cost Google about US$26 million (€21.5 million) out of their US$0.5 billion (€0.4 billion) cash reserves.

Google’s IPO

Curt Marvis, CinemaNow – the IBC Digital Lifestyles Interviews

We interviewed Curt Marvis, a key player in IP-based video delivery and CEO of CinemaNow.

CinemaNow have the distribution rights to the largest library of on-demand feature films available on the internet. CinemaNow’s distribution model is one of the most flexible in the industry: films are available with pay-per-view, download or subscription licenses.

The company’s library comprises content from more than 150 licensors, including 20th Century Fox, Disney, MGM, Miramax, Warner Brothers and Lions Gate Entertainment.

CinemaNow have not restricted themselves to films, however – their catalogue includes music concerts, shorts and television programmes.

CinemaNow’s technology platform is essential to their business, and so they have developed their own proprietary content distribution and DRM system: PatchBay. They’ve also turned PatchBay into a product, and has licensed the platform to other content distributors. PatchBay allows distributors to manage, track and syndicate content whilst enforcing DRM solutions and territorial restrictions. CinemaNow’s entire business is built around the Windows Media 9 platform, which has simplified their business model somewhat, whilst at the same time allowing them to take advantage of the sophisticated features built into Microsoft’s platform.

Curt Marvis has been CEO of CinemaNow since the company was created in July 1999, arriving there from 7th Level. He was also a founder of Powerhouse Entertainment, and in the 80s and early 90s was CEO of The Company, the Los Angeles production organisation.

Digital delivery of video has been slower to arrive than many industry players predicted in the mid-90s, but with the adoption of broadband and improvements to codecs and DRM systems, it looks like mainstream is around the corner. There are still many hurdles – broadband isn’t quite broadband enough, consumer rights over moving content to other devices is unclear at best, content can be lacklustre and customers are confused by the many competing codecs, DRM schemes and formats in the market.

We spoke to Curt about CinemaNow and his hope for the future of digital content delivery, and the advantages of Windows Media 9.


Some of the visitors to Digital Lifestyles might not know about Cinema Now. Can you give me some background on that for our readers?

CinemaNow has been around for five years. We started the company in mid-1999, which of course was during the dot.com hayday. We started the company then do to the same thing that we continue to do today, which is to offer movies and other video content on demand over IP Networks.

What do you think has kept Blockbuster out of the part of the market in the US for so long?

Blockbuster is actually a small investor in our company and I think Blockbuster feels that when they get into a new marketplace they look for a market which is very, very big which the IP on demand marketplace still is not.

I think their philosophy is that they will enter the marketplace at a moment in time when they feel there is a sufficient amount of revenue.

You have to keep in mind as well that Blockbuster do not own the rights to distribute content in this window yet, so they have to negotiate that through a studio.

They are sort of dabbling with it in the UK, but not in a very high profile way.

Yes, I know Steve Middleton and they have had that trial in Hull. So I’m familiar with that. They are actually doing more in the UK than they are in the US market.

Tell me a little bit about your IBC session. What sort of things are you going to be covering?

We have a sort of technology platform we call PatchBay. PatchBay is the sort of central nervous system of CinemaNow, and it’s a completely Windows based platform.

We deliver our movies exclusively in Windows Media format, but that’s not to say that couldn’t use other codecs or other players, but we chose that as our primary platform when we started the company.

We used the installed base for that choice as well as the specific functionality of the platform, for purposes of what we can do to add additional delivery and content.

Could you tell us a bit more about your Patch Bay product?

Patchbay is a versatile, user-friendly, API and tool for managing all facets of online content distribution. With Patchbay, you can manage six major tasks for successfully distributing content online including: Content Management and Distribution; Content Syndication; Rights Management; User Profiling and Ad Targeting; Pay-Per-View, Subscription and E-Commerce Management; and Comprehensive Reporting.

It’s a tested, real-world application currently being used to manage millions of streams per month over disparate networks. With Patchbay’s scalable infrastructure, CinemaNow maximizes its revenues while protecting and retaining control over its assets, even those syndicated to third-party websites.

Windows Media 9 it has been a terrific platform for delivering and viewing and protecting your content. What excites you most about it?

That is a big question. Is there something that Windows Media excites me?

The Windows Media Platform is directly compatible with the dominant operating systems and you know, EU concerns and other concerns notwithstanding we felt that having a player that was most used with the operating system it was running on was best. We also frankly think that beyond that specific issue the Windows Media Platform and Windows Media Player are the superior player and platforms for digital delivery. That is why we chose them.

Who is the typical Cinema Now subscriber? Who are you actually reaching?

We definitely have a male dominated audience – over 75% of our users are male. They tend to be slightly older than you might initially think. Our typical user is probably between 25 and 40 years of age. Generally speaking they have a higher than average income, higher than average education – you know that sort of thing. That is the kind of profile that we have in general, although it is changing all the time, as we have more and more of the mainstream business.

You have 455 films in your library at the moment. How many are you aiming for?

That’s what you’re seeing in the UK. We have territorial rights which protect our content from being viewed outside of the US for films that we do not have rights to – for example the collection of movies that you see in the UK is significantly inferior to what we offer in the US. In the US on our website right now we have almost 2000 films available. By the end of this year that will grow to probably close to 4000/5000.

In the UK, I am hopeful that we will be up well over 1000 films by the end of the year including the films from major studios.

How long do you think it is going to be before digital delivery becomes mainstream then?

Well, I think there are a number of factors that are sort of the driving part right now. One is the problem of availability; one is broadband penetration; one is hardware device availability and penetration in terms of everything from portable devices, media centre devices etc. etc.

I think there has got to be an alignment if you want to drive fast market adoption. When we started the company in 1999, we thought that by 2004 that time would have arrived. I can tell you now that is just the beginning and we will probably see this become a mass market over the course of the next two to four years – somewhere in that timeframe.

You mentioned that you don’t have the rights to distribute all of your films in all territories – what kind of problems are you facing in getting rights clearances for content in different markets?

No real problems, but rather an issue of needing to be set up in these countries with strong distribution partners before it is worthwhile to spend money acquiring local content and preparing it (encoding and storage) for distribution. Keep in mind that content is distributed on a territory by territory basis and with each version comes new contracts, payments and prepping.

Are you considering a global pricing model or will you be pricing the same content differently on a market by market basis?

We will try to keep it as consistent as we can, but we will definitely need to follow pricing schemes that are consistent with differences in the traditional distribution businesses.

Many content providers are getting excited about supplying content for mobile phones — when you do see serving media to mobiles becoming a mainstream business? Will there be a point when consumers will want to watch long media streams like films on their mobiles? Is there a maximum length that consumers will watch?

I think mobile distribution is really a business in the next few years for portable devices such as tablet PC’s, Portable Media Centers, etc. Cell phones for full length content seems a long ways away, if ever.

What of the content that is being delivered to people the films and content that they are buying has quite often incompatible DRM schemes behind it. What do you think is going to happen in that space over the next four years?

Windows Media has DRM that has been adopted by a lot of different people. I think there will be a shake-up in the market very shortly and one DRM system will be adopted by 95% of the content delivery industry.

What worries you about the future of digital delivery? What keeps you awake at night?

Well, I think, I sleep very well actually. I think the biggest concern is that people will jump into the marketplace prematurely – before there is a high quality user experience to be had, and that consumers will be turned off on the concept if it doesn’t work properly at first or it is not a compelling product offering.

I hope that companies recognise that this is still very much a virgin market, and that when it really begins to take off I think it’ll dwarf the size of what is happening in the DVD industry, and it’ll open up avenues for huge amounts of libraries, great content opportunities etc. I think you will see people consume more and more content and I think there will be plenty of room for a lot players to get into the business.


Curt is a panellist in the ‘Understanding the Range of Platforms – A Multitude of Destinations’ session between 14:00 and 15:30 at the IBC conference on Sunday, 12th September in Amsterdam. Register for IBC here

CinemaNow

IceRocket Takes on Google

Who’d have thought that, at least a couple of years after people thought the search engine battle was over, companies old and new are fighting for your searches and eyeballs. Of course, it helps that Google have shown that there is money to be made out of a successful search engine after all.

Talking of Google, Mark Cuban has invested in a start-up, IceRocket, in the hope that they can beat them at their own game.

Any search engine appearing on the web today has to do considerably more than just retrieve pages featuring the words you typed into a little box, and IceRocket hope that they have a range of features that will change the whole search market around.

IceRocket’s offering looks, shall we say, rather like Google and uses a combination of the company’s own search technology, plus a meta-search agent that queries other engines. After all, why not take advantage of the fact that some of the larger engines have already done much of the cataloguing for you?

I tested IceRocket’s image search – and am still laughing a bit. Naturally, I thought I’d look for a picture of myself. The results for “Fraser Lovatt” were basically thumbnails of an enormously fat man, and a trombone. Yes, that is entirely wrong – thanks for asking. Looking out the window, I tried for further inspiration – and searched for images of pigeons. That search also turned up a very fat man and a trombone. As did a search for cars. Early days yet, though, eh?

Now to the good bit – the web search seems to be very good indeed. It found loads of things that even I’d forgotten about. I tired some of my favourite, regular searches on Google with impressive results. The image thumbnails of the page that your result features on is very useful and provides a lot of information to help you decide whether or not you want to visit that site.

IceRocket also has an email search agent – searches can be emailed to the engine and the results are sent back. Handy for PDA users. A blank email to [email protected] with “monkey furniture”in the subject line returned five reasonably relevant results a few seconds later.

As Marc Cuban says on his blog: “So try it out and let me know what you think and if there are any other features you would like to see added.. If we can do them, we will !!! This is just the beginning, Watch out google, here we come :)”

One to watch out for.

IceRocket

Marc Cuban’s Blog