MTV Unveils Interactive TV Portal – CeBIT 05

MTV Unveils Interactive TV PortalMTV in Germany has been demonstrating an interactive TV portal that combines satellite and broadband services.

The interactive portal will shunt a veritable cornucopia of personalisation and revenue-boosting options to customers, including games, news and the latest pop-tastic charts.

A deal with T-Online will also let annoying teenagers download the latest cray-zee ringtones for their mobiles, with the option to download extra goodies like wallpapers and song downloads from the comfort of your armchair.

There are also plans afoot to provide interactive voting and advertising, as well as offering access to video-on-demand archives.

Content and links to the interactive television services will be transmitted via satellite, while a broadband connection will be used to deliver specific items requested by the user (viewers will need an MHP compatible satellite receiver with broadband access to take advantage of the service).

The service was showcased at the CeBIT trade show in Hannover and MTV intends to introduce the service as soon as suitable receivers are available in retailers.

“Being the first to offer this interactive TV technology, MTV has once again confirmed its leading role in the field,” beamed Catherine Mühlemann of MTV.

MTV Unveils Interactive TV PortalMTV is using Alticast for the technical implementation and broadcast of the interactive service.

The company will be using Nionex´s HTML-based pontegra platform, which acts as a browser supporting a fully compliant subset of DVB-HTML, OCAP 2.0 and ACAP-X.

Pontegra’s open-ended concept makes it suitable for all kinds of iTV services, with the company claiming it to be the “iTV platform par excellence for all kinds of iTV services as EPGs, iTV-portals, T-commerce, voting and polls, interactive TV shows and commercials, community functions such as email and chat, etc.”

MTV in Germany
Nionex pontegra platform

Virgin Electronics Discontinues MP3 Product Line?

Virgin Electronics Discontinues MP3 Product Line?Unconfirmed reports are suggesting that Virgin Electronics, the consumer electronics division of Virgin, have become an early digital music casualty with the division discontinuing its product line.

The word filtering through the wire is that Virgin will not be supporting the devices already out in the market and that their PR people have been quietly making calls and asking reviewers to return the units.

Virgin’s range includes a wearable, “teeny weenie” flash-based mp3 player, originally introduced last autumn in 128MB and 256MB flavours, with the latest product update issued in January of this year.

Virgin Electronics Discontinues MP3 Product Line?The company had pinned their hopes on the well-reviewed “Virgin player 5GB”, which had the audacity to try and take the iPod mini head-on.

That strategy seems to have failed miserably, with a Virgin spokesperson recently confirming the cancellations to Digital Music News. However, Virgin Digital is not thought to be affected by the Virgin Electronics discontinuation, as each Virgin division is essentially an independent entity.

Virgin Electronics have already been through one metamorphosis, dumping their Pulse line of home electronics gear (including DVD players and cordless phones) last year in favour of focusing mainly on MP3 players.

The Virgin Electronics product halt could be part of a larger industry shake-out, with several portable mp3 player manufacturers under-performing against Apple’s mini-marvel.

Serious contenders like Creative and iRiver look set to go the distance, however, and there’s always the chance that the Virgin brand may reappear at a later date.

Virgin Electronics
Digital Music News
Virgin Electronics, RIP (Om Malik)

Apple Shares Fall As Sony And Napster Bite

Apple Shares Fall As Sony And Napster BiteApple Computer shares dropped Tuesday as Sony relaunched its famous Walkman line amongst concerns that increased competition from Napster might impact its dominance of online music and portable players.

The soaraway success of the iPod music player has transformed Apple’s balance sheet and its stock price, with the company shining as one of the best performers in the Nasdaq technology index over the past year.

But some industry pundits are predicting that Apple is being damaged by serious competition from a new generation of smaller, sleeker and cheaper MP3 players from the likes of Sony, Rio and Creative and a host of online music services led by Napster.

Shares of Apple have dropped 8.5 percent since the announcement of the stock split on 11 February, and have fallen some 6 percent this week alone.

“Competition concerns are certainly going to influence how this stock trades,” said Warren West, principal at Philadelphia-based GreenTree Brokerage Services, which executes trades for institutional investors such as asset managers and hedge funds. “Investors in general have enjoyed the stock moves, there’s a lot of money that has been made, and people are going to start taking profits _ especially after the split.”

Apple Shares Fall As Sony And Napster BiteOver the last twelve months, Apple’s share price has gone from US$23 (€17/£12) to an all-time high of US$81.99 (€61/£42) just before the split was announced.

Investors must now decide if the company’s share price can maintain its strength in the face of a market getting becoming increasingly crowded with rival products.

Sony are aggressively targeting the iPod with their Walkman line of digital music players, hoping to woo customers with lightweight and compact flash memory players instead of bulkier, hard drive-based units.

In fact, many of the new iPod alternatives aren’t trying to compete with Apple’s player at the high end but are focussing on consumers who are choosing between cheaper, lower-storage-capacity flash-media players and pricier, entry-level hard-drive players that hold more than 1,000 songs.

The Sony flash-media players will be knocked out for as low as US$130 (€97/£68) – not as cheap as the new iPod Shuffle, but considered to be better value because of a longer battery life and more features.

“Flash is going to be here for a while, because it’s more affordable,” Kelly Davis, product manager for Sony Electronics, says. “People are trying to get more capacity for their dollar.

The new Sony players are expected to give the company the No. 2 position in the portable music player market by next year.

Apple’s iTunes service is also coming under attack, with rival Napster recently boosting its sales outlook with growing demand for its new “Napster To Go” subscription service, expected to generate US$15 million for its fiscal fourth quarter.

Apple is also experiencing competition from music services offered by rivals such as Microsoft Corp., Real Networks, and Yahoo.

The company still remains in good shape though, with Piper Jaffray analyst Gene Munster predicting continuing good sales for the iPod line.

“Our checks have left us more confident that demand for Apple’s key products most notably iMac, Powerbook, Mac mini and various versions of the iPod continue to be ahead of expectations,” Munster told clients in a research report. “We anticipate that strong demand across various segments of the company will allow Apple to exceed Wall Street estimates for overall revenue and earnings.”

Munster expects the company to report earnings of US$1.04 (€0.77 /£0.53) per share on revenue of US$12.81 billion in 2005, up from previous expectations of a 98% share profit on sales of US$12.25 billion.

Piper Jaffray told clients it expects Apple to sell 3.8 million iPods during the second quarter, including 1 million iPod shuffle models, followed by 4.6 million iPods during the third quarter, with the Shuffle model accounting for 1.8 million of the sales.

Apple Shares Fall on Sony, Napster Fears (PA)
Sony MP3 players
Apple iPod

Digital Music Forum :Summary

More than 400 industry professionals gathered for Digital Media Wire’s 5th annual Digital Music Forum at The French Institute in New York City on Wednesday. Discussion topics recalled the creation of the original Napster, examined the current business and legal environment, and looked ahead optimistically towards the future growth of subscription and mobile services.

In a widely anticipated keynote conversation, Napster founder Shawn Fanning described how early peer-to-peer file trading networks fundamentally changed consumer expectations for the breadth of music content available to them. Speaking about his new venture, Snocap, Fanning outlined his plans to create a central database for rights clearance while introducing a digital identification and acoustic fingerprinting architecture for file trading systems. Fanning expressed his hope that the creation of a trusted third party to manage rights administration will create an environment in which the interests of peer-to-peer companies, retailers, and content owners will not be in conflict.

Technology and rights management remained in the spotlight during a panel discussion about the forthcoming MGM v. Grokster case that will go before the Supreme Court on March 29th. At issue, according to Digital Media Association Executive Director Jonathan Potter, is whether a software developer can be held liable for the actions of its users. Martin Elgison, a partner at Alston & Bird, advocated separate assessments of legality for a company’s business conduct and the associated technology. Jim Delong, senior fellow at The Progress & Freedom Foundation, agreed that the courts need to examine a company’s underlying business model and question whether it depends on copyright infringement.

Speaking to technology’s current effects on artist management, Nettwerk Productions CEO Terry McBride conveyed that digitization currently represents a mixed opportunity for his clients like Avril Lavigne, Sarah McLachlan and Barenaked Ladies. On the one hand, McBride reported, Barenaked Ladies sold more than 900,000 live tracks in the past year and archives 150 concerts for sale online. On the other, he voiced concern that his artists’ catalog sales are being negatively affected by peer-to-peer file trading. On the whole, McBride was bullish on technology’s long-term potential, both for management companies seeking to provide for all their clients’ needs, as well as for artists pursuing long term careers.

In an afternoon keynote, Yahoo Music Vice President and General Manager David Goldberg highlighted the opportunities created by consumers’ desires to discover and control their music in an on-demand environment. Goldberg predicted the continued emergence of subscription-based digital music services, as well as the use of customization and community functionality to drive traffic and consumer engagement. According to Goldberg, playlists will become the “killer app of music” for users confronted with more than a million tracks at their fingertips and services will need to focus on delivering appropriate recommendations to create the ultimate listening experience.

MSN Marketplaces General Manager Mike Conte addressed Microsoft’s digital music effort which initially launched last October as an a-la-carte download service. According to Conte, Microsoft is principally involved with music to drive traffic and advertisers to MSN.com while contributing to the company’s strategy to build an overall ecosystem for digital media. While emphasizing that Microsoft’s plans were still in their early stages, Conte echoed Goldberg in emphasizing the importance of building community to engage customers and alluded to future digital music integration with messaging, blogging and playlist capabilities. Conte also agreed with predictions for the future growth of subscription services, citing company research indicating that the younger the consumer, the lower the likelihood that they desire to own their music.

During morning and afternoon panels, participants painted a positive future for the mobile music marketplace. Sony BMG Senior Vice President Thomas Gewecke noted that mobile services continue to be the dominant digital revenue stream outside the United States. Gewecke further predicted that mobile devices will become the dominant method for initial music purchases, even if the content is eventually consumed on another platform. Sprint General Manager of Wireless Music and Personalization Nancy Beaton reported that music represents an important way for the company to boost its current average monthly bill of $62. Beaton also cited successful ringtone launches with artists like Beyonce and 50 Cent, with both reaching platinum sales levels.

Thanks to Wesley Radez (wradez @ digitalmusicnews.com) over at Digital Music News for this report.

Sony Ericsson W800: Walkman Phone Launched

Sony Ericsson W800 Announces First Walkman Branded Mobile PhoneWhen Sony start slapping the world famous Walkman mobile music brand on their products, you know that they mean business, and their new Sony Ericsson W800 has been proudly trumpeted as the first mobile phone to combine a high-quality digital music player and a 2 Megapixel camera.

The W800 will come equipped with a two-megapixel camera, GPRS data access and a digital music player compatible with MP3 and AAC music file formats. As is the case with several comparable music phones, song playback can be paused as users take phone calls.

The music player is operated with a Direct Music button that plays, pauses and stops tracks. Conveniently, the player and phone can be used independently of each other, so that users can still playback tunes when on a flight, for example.

Some music fans may be dismayed to see Sony resolutely sticking to their proprietary Memory Stick Duo, with the phone being supplied with a 512MB memory card, enough storage for around 150 music tracks, or 10-12 full length CDs.

Pundits expect the initial focus being on consumers shifting their CDs onto the device, with Sony expected to announce the ability for consumers to download tracks from “open standards music services” later in the year.

Steve Walker, Sony Ericsson head of product marketing has described the move to the phone-as-music-player as “a new lifestyle behaviour” (whatever that means) and suggested vendors will have to start finding new ways of describing multimedia mobiles.

Sony Ericsson W800 Announces First Walkman Branded Mobile PhoneSadly, we’re going to have to wait a while before we can start adjusting our lifestyle behaviour – the release of the Sony Ericsson W800 is not scheduled until the third quarter of 2005

The mobile music market is growing exponentially, with Juniper Research calculating the music download and ring tones market to generate a whopping great US$9.3bn (€7.05bn/£4.8bn) globally by 2009.

It doesn’t take a genius to work out that the Sony Ericsson W800 is another step in the accelerating convergence between phones and multimedia devices, and we wonder how long it will be before someone brings out an iPod-type device integrated with a phone, video player and high res camera (an ‘iPodPictureVideoPhone, if you will!).

We’d like one just as soon as you’re ready, techies!

Sony Ericsson

Promo Only MPE: DRM Within The Music Industry

Destiny Media Technologies Updates Promo Only MPEDestiny Media Technologies has announced a new version of its proprietary anti-piracy and digital distribution system, Promo Only MPE 1.1, designed to secure electronic music distribution within the music industry.

The new system serves up a host of enhanced features including a new user interface to improve accessibility and ease of use; the ability to download entire albums and samples; improvements to the email management; higher quality previews and multi-label support.

“With the new functionality and multi label support, we can open the system up to other labels,” said Steve Vestergaard, Destiny CEO, “The system is ready for adoption by the entire music industry.”

Promo Only MPE has been developed to help the music industry combat the ongoing issue of piracy and to gain the benefits of digital technology – quicker distribution and reduced costs.

A lot of piracy originates from within the industry and, not surprisingly, those ‘Promo only, not for resale’ stickers haven’t exactly put a stop to it. DJ shedding their promo tracks isn’t new. Anyone who’s pawed through the racks in second hand music stores can attest to that.

In an industry clearly riddled with mistrust, Promo Only MPE uses a sophisticated security system that ‘locks down’ the distributed content and allows labels to track who is accessing their property.

Each song is uniquely encrypted so that only those with the MPE program can access it. In addition, an ID code specific to each individual user is applied when a song is requested; meaning that only registered users can access the song and, once installed, the ID cannot be moved to unauthorised computers.

Promo Only seems well chuffed with that fact that the MPE system has surpassed 1,500 registered users signed-on to the service – industry leader Universal Music Group (UMG) has been using the service since its launch and has distributed over 200 tracks to radio so far and Clear Channel Communications have made the system available to all of its stations across the country.

Destiny Media Technologies Updates Promo Only MPE“The new build was modified with the customers’ ease of use in mind,” gushed Dean Ernst, Director of the MPE project at Promo Only. “The response to version 1.1 has been unprecedented and reflective of the overwhelming number of users signed-on to date.”

Personally, we could think of a few DJs who won’t be too pleased to have to start messing about with DRM every time they’re sent a new release. They might just end up playing the tracks that are easy for them to access.

Destiny Media Technologies
Promo Only MPE 1.1.

Jens MP-120: Better Than iPod shuffle?

Jens of Sweden Takes on the iPod Shuffle , MP120, MP400, MP 120, MP 400Jens of Sweden has unveiled its latest cool digital music player which they reckon will give iPod Shuffle a run for its money.

The midnight black, cigarette lighter-sized MP-120 music player can squeeze in 300 tracks (depending on track compression) and a features a USB 2.0 port.

It is available for SEK 1344 including VAT (US$194/£102/€148), which the cheeky Jens claims will undercut the iPod Shuffle by a massive one krona (£0.07/US$0.14/€0.11).

“Steve Jobs claims users prefer to be served random tracks than choose from among hundreds of their own tunes. We don’t agree which is why we offer a player, that besides random tracks, also allows users to see and choose exactly what they want to hear. Given today’s prices I’m convinced we can sell more MP-120 than iPod Shuffle in Sweden, despite Apple’s advertising budget,” says Jens of Sweden chief executive and founder Jens Nylander.

We admit we’re fans of Jens. We used to have a Jens MP-130 which we dearly loved – using it to listen to music, carry data and record interviews with broadcast-quality clarity. Everyone we showed it to was wowed by it and we would in turn enthuse about it at every opportunity. How many products can you say that about?

Then some low-life nicked it when we were at the AtHome conference in Nice at the end of last year. It broke our hearts. If this player is anything like as good as our dear MP-130, it’s going to be a contender.

The iPod shuffle has a fundamental weakness that Apple tried to turn around as a benefit. It has no display. In our experience, when you’re randomly listening to selection of tracks from a large music collection or a collection of podcasts, you want to know the name of the tracks you like and the ones you hate. The MP-120 has a display.

Jens of Sweden’s earlier MP-400 player was offered in seven colours – as well as 24-carat gold – and with the MP-120 model, it is taking customisation one step further by allowing customers to choose their own headphones.

The MP-120 can function as USB file storage memory, and also has an OLED screen and dictaphone.

It supports MP3, WMA, ASF, OGG Vorbis music files, and the built-in lithium battery should give users about 22 hours’ playing time.

While we don’t think Steve Jobs will be losing sleep over this, we think this will have a ready market with those who don’t want to conform to the Apple mentality.

The MP-120 is now available on Jens of Sweden’s Web site.

Jens of Sweden

Apple Updates iPod Mini and iPod Photo, Now Direct Camera Upload

Apple Updates iPod Photo and iPod Mini ModelsApple has updated its iPod photo line-up with a new slim 30GB model, holding up to 7,500 songs, for just £249 ($475, e360) and a new 60GB model, holding up to 15,000 songs, for £309 ($590, e446)

Designed for content-hungry consumers who can’t bear to be parted from their music and photo libraries, both iPod photo models feature a high-resolution colour screen for displaying photos and (ahem) “enhancing the entire iPod music experience” (we think this translates to having some pictures and album art to look at while you’re playing songs).

Both models hold up to 25,000 digital photos and will feature the ability to import photos from your digital camera via the new iPod Camera Connector for “instant viewing and slide show playback “.

“The new slim 30GB iPod photo at just £249 lets music lovers enjoy their iPod in full colour, including album artwork along with their personal photo library,” enthused Steve Jobs, Apple’s CEO. “And now you can import photos from your digital camera directly into iPod photo with the optional iPod Camera Connector.”

We welcome this enhancment, meaning that holiday won’t involve lugging a laptop around just for image downloads. Sadly, the iPod Camera Connector is not built in: it’s an optional extra that will set consumers back £19 ($36, e27.5) – and it isn’t available until March 2005.

Although the iPod remains one of the finest MP3 players on the planet, we’re not convinced that the iPod Photo is quite there yet as a photo wallet.

Unlike some rival units, there’s no built in card reader or Bluetooth support and we haven’t been able to work out if the iPhoto will be able to import – and view – RAW format files, something that would definitely create enthusiasm amongst the photographic cognoscenti. It would appear strange if they didn’t given, the impressive support that Apple’s iPhoto software has for the RAW format.

Apple Updates iPod Photo and iPod Mini ModelsThe truth is that the iPod photo seems to be far better as a versatile MP3 player and photo presentation unit rather than something for serious photographers to use for direct-to-camera storage.

However, the aggressive price cuts (rumoured to be in response to rumoured poor sales of the original iPod photo) will no doubt be warmly welcomed by consumers and ratchet up the fierce competition with main rivals iRiver and Creative Technology.

The 4GB and 6GB models of iPod mini for Mac or Windows are available worldwide immediately for a suggested retail price of £139 ($265, €200) and £169 ($322, €244) respectively, in a choice of silver, pink, blue or green.

“At this breakthrough price point, and with more than twice the battery life, the new iPod mini should appeal to even more music lovers,” said Apple Chief Executive Steve Jobs.

Both iPod mini models feature increased battery life of up to 18 hours, USB charging and the same lightweight design.

All these new iPod models work with the Apple iTunes software and store, and are compatible with either Mac OS or Windows based PC, connecting via firewire or USB 2.0.

Apple
iPod photo
iRiver
Creative Technology.

AllOfMP3 Face Heat from Russian Copyright Cops

JVC announces its 2005 DVD recorder line upRussian prosecutors are considering filing criminal charges against a Web site that offers cheap music downloads, the music industry’s global trade group has said.

The computer crimes unit of the Moscow City Police has submitted the results of its investigation into Allofmp3.com to the Moscow City Prosecutor’s office on February 8, according to the London-based International Federation of the Phonographic Industry (IFPI).

Allofmp3.com and its principals are alleged to be involved in large-scale copyright infringement by offering music for sale without authorisation from rights holders in Russia and internationally.

The prosecutor has 30 days to decide whether to proceed with a criminal prosecution.

Unlike the market-leading iTunes online music store, Allofmp3.com offers music in the popular MP3 format without troubling itself with pesky digital rights management, leaving users free to copying and share files to their heart’s content.

Songs are offered on the Web site for a mere 5 cents each, compared with 99 cents from most services in the United States, and the site offers music from groups like the Beatles who are famous for refusing to allow their songs to be sold online.

However, the site claims on its Web site that it’s doing nothing illegal because they pay a fee to a copyright group that represents songwriters, the Russian Organisation for Multimedia and Digital Systems.

The Russian music market is ranked 12th in the world and was worth US$326.2 million in 2003.

In most countries, payments must also be made to artists and record labels, but Allofmp3 says it is exempt because of what it describes as a “loophole” in Russian law.

Igor Pozhitkov, Regional Director, IFPI Moscow says: “We have consistently said that Allofmp3.com is not licensed to distribute our members’ repertoire in Russia or anywhere else. We are pleased that the police are bringing this important case to the attention of the prosecutor. We very much hope and expect that the prosecutor will proceed with this case, which involves the sale and digital distribution of copyrighted music without the consent or authorisation of the rights holders.”

Allofmp3.com has apparently declined to comment.

This latest copyright wrangle is symptomatic of the global tangle of music rights, which are licensed differently in every country.

Such confusion – and the continuing availability of free MP3 files from file sharing networks continues to hinder the global roll-out of legitimate online music stores like iTunes and Napster.

Allofmp3.com

Like Music from Philips Offers Intelligent, Mood Based Music Sequencing

New Philips MP3 Players Offer Intelligent, Mood Based SequencingIn an increasingly crowded marketplace, heavily dominated by iPod products, rival MP3 manufacturers are constantly foraging around to unearth new Unique Selling Points.

After Apple scored another direct hit with the iPod shuffle – a simple player offering randomised MP3 playback – the boffins at Philips were dispatched to their techie bunker and told not to come out until they’d come up with something Very Special Indeed.

And it seems that they might have come up trumps, with the new Philips HDD093 and HDD095 models.

Although they may not look too revolutionary, sporting the usual feature set (small form factor, 3GB drives, ten hours of battery life, MP3/WMA playback, greyscale and colour screens) the killer stroke comes with an intriguing new feature regaling under the deceptively simple name of ‘Like Music’.

This smarty-pants widget has the ability to ‘thread’ songs based on common attributes, including genre, tempo, and overall mood.

So, if you’re swinging your pants to some crazy punk music, engaging the ‘Like Music’ feature should get your MP3 player to intelligently serve you up 20 more tracks that it thinks sounds similar to what you’re currently listening to.

And it doesn’t just serve up any old stuff either – apparently, the player uses 40 metrics to locate tracks with a familiar beat, instrument line-up, and tempo, so you shouldn’t find a Kylie track wedged between Green Day and the Pistols.

Although we’ve yet to be sent a player to test for ourselves (excuse us while we deliver a loud cough in the direction of Philips), this looks like a really compelling feature, and one that could give Philips an edge over their rivals.

After all, with MP3 players increasingly being stuffed full of thousands of tracks which are often mislabelled or just lumped together in over-flowing folders, mood-based sequencing could prove to be the best way to keep the party going.

The players will debut in the late summer for around £200. Drunk MP3 DJs will love them.

iPod shuffle
Philips

Photo credit: Engadget.