Korean Music Industry Demands Poor Quality MP3 Phones

Manufacturers like Samsung and LG are of course resistant to the idea, but the Korean Association of Phonogram Producers (KAPP) and Korean Music Copyright Association (KMCA) are demanding that new phones can only play MP3 music at low-fidelity, radio quality.

This demand is after a compromise – KAPP and KMCA originally required phones to only play MP3 files that had been purchased legally. In a market where 95% of MP3 files are said to be illegal, phone manufacturers felt that this would put consumers off.

The battle has become so embittered that Samsung has decided to delay the launch of their new MP3 Anycall handset.

Amid claims that MP3 players and pirated CDs have halved the value of the Korean music market, phone with music playback are expected to be extremely popular – there will be 150 new phones launched in Korea next year, and half the population already carry a mobile.

Yoon Seong-woo, a director of the Korea Association of Phonogram Producers said in a statement: “Our industry has been in a nose-dive since the release of MP3 players in 2000. At that time, we felt hopeless because Korean people were insensitive to copyright issues and we did not have any unified organization that could cope with the situation. Because the MP3 phone market is big enough to destroy the music industry, we’re struggling to defend it.”

It’s somewhat striking that the music industry should expect handset manufacturers to develop and sell inferior product to save their dwindling sales.

There are no currently legal download music services in Korea – surely giving consumers the option of buying music from an attractive, easy to use, reliable source would be far better? Samsung certainly think so and is looking to partner with a music site to provide a download service for its phones.

The Korea Herald on the story

International Federation of the Phonographic Industry Takes Action Against 247 Music Swappers

The International Federation of the Phonographic Industry (IFPI) has begun taking action against 247 alleged illegal music sharers in four counties. They are targeting individuals making a large number of files available on a range of P2P systems including Kazaa, DirectConnect, WinMX, eMule and iMesh.

Although much of the action consists of letters threatening a legal response, individuals in Italy and Canada are already being taken to court.

Jay Berman, Chairman and CEO of IFPI. said: “Today’s announcement should come as no surprise. Over the past year the record industry has been extremely active internationally and locally, educating the public about the huge damage being done by illegal file-sharing, explaining the laws and promoting all the sites where large catalogues of copyrighted music are available for consumers to access legitimately.”

The IFPI is promising legal action against more illegal sharers in coming months – but is keen to stress that this first round of action comes only after an extensive attempt at educating the public. Yet, and independent survey reveals that some 45% of respondents did not know that downloading music from P2P sites like Kazaa is illegal.

The industry is getting tough: Peter Zombik, CEO of IFPI Germany said in a statement: “The unauthorised distribution of music on the web has increased to such an extent over the last few years that it is threatening the livelihood of the German music industry. Whilst we have so far concentrated our legal actions on illegal music offers on websites – in the last two years we were able to close down more than 2000 such websites in Germany – we also carried out an extensive public information campaign in the last year in order to increase the awareness for the legal and technical dangers involved in illegal file swapping. Excuses about being unaware of the legal position are no longer acceptable. ”

IFPI’s press release

Harvard University and North Carolina: Music Sharing Doesn’t Harm CD Sales

Harvard University and the University of North Carolina have just published what they claim to be the most detailed economic modelling survey using direct data from P2P networks. The report’s authors claim: “We find that file sharing has only had a limited effect on record sales. While downloads occur on a vast scale, most users are likely individuals who would not have bought the album even in the absence of file sharing.”

The survey used 17 weeks of logs from a pair of OpenNap servers in 2002, taking a random sample of 500 albums and comparing the sales of these albums in shops.

Record labels have seen sales of CD albums and singles fall dramatically in recent years, and are keen to blame this on P2P sharing and other illegal downloads. Could it be that the real reason is that people just have more things to spend their money on, and are less interested in buying CDs than they once were? DVD and video game sales have rocketed over the past five years – and there’s only a finite amount of cash in disposable incomes – so something has got to give somewhere.

The study seems to lend weight to the argument that downloading actually helps CD sales. “Participants could substitute downloads for legal purchases, thus reducing sales. Alternatively, file sharing allows users to learn about music they would not otherwise be exposed to. In the file sharing community, it is a common practice to browse the files of other users and to discuss music in file server chat rooms. This learning may promote new sales”, says the report.

The RIAA was quick to disagree: “Countless well-respected groups and analysts, including Edison Research, Forrester, and the University of Texas, among others, have all determined that illegal file sharing has adversely impacted the sales of CDs. Our own surveys show that those who are downloading more are buying less,” spokeswoman Amy Weiss said in a statement.

The report

Microsoft Unveils Music Service

There are no details on the size of the catalogue available, or what the pricing is going to be like, but Microsoft finally unveiled its forthcoming music service at the South By Southwest music conference in Texas.

Microsoft chose to demonstrate its new music service in a private preview to independent music labels – a smart move. MSN product manager Christine Andrews said “Other companies took a different route and did not engage with the independent labels early in the process. We heard that the independent labels did feel neglected a little bit. But, more importantly, we want to deliver a site that is great for artists both big and small, and great for the consumers too.”

The tracks will initially be available in Microsoft’s own Windows Media format – though it is thought that MS might make other formats available too. What ever they turn out to be, you can bet it won’t be AAC.

Matthew’s opinion at Geek.com

British Music Industry Issues Warning to Music Sharers

The British Phonographic Institute (BPI) has stated in a new report (linked below) that, of the 8 million people downloading music in the UK, 7.4 million of them are doing it illegally. That’s right – 92% of you out there using music services are pirates. They also claim that people who download music spend 32% less of albums and CDs, and 59% less on singles.

To protect artists’ and record labels’ incomes they are prepared to take “serial filesharers” to court.

Backing this up, the BPI also issued a chilling warning to filesharers: stop downloading music illegally, or we’ll send you unwanted instant messages. They are proposing an IM service that warns uploaders that they are breaking the law and advises them to disable their file sharing clients.

BPI Report (Adobe Acrobat PDF)

Fraunhofer Institute Develops “Fair Use” DRM System ***Update***

Germany’s Fraunhofer Institute, creators of the phenominally successful MP3 music format, has developed a content protection extension to MP3 – and it could end the controversy over file sharing.

The Light Weight Digital Rights Management (LWDRM) system is based on a principle which has been used in video and audio media for some time – and in fact is already built into Microsoft’s Window Media platform.

Users pay for an audio file and can use it as they wish, but if they want to transfer it to another device or give it away to someone else, they must download a certificate from a certification body. Because the file is signed with your identity, if several thousand copies of an MP3 you once bought are found on the internet, then they know whose door to knock on.

We really think that Fraunhofer are missing a trick here. Rather than just flagging who once owned the file, why not make it so that an unauthorised recipient must download and pay for a license before they can play the media? This is already implemented in various ways in Windows Media, and we’re a but baffled why the technique isn’t employed here.

The system was originally developed for MPEG4, but has adapted it for use with MP3. Fraunhofer say that LWDRM will allow users fair use of the media they have bought whilst protecting the artists’ and record labels’ investments.

To support adoption of the new system, Fraunhofer aim to launch their own online shop, which will be free to small labels.

Fraunhofer on LWDRM

Fraunhofer on the MP3 standard – recommended reading!

Sony Launches Hard Drive for PlayStation2 in US

Sony have finally launched the PlayStation2 hard drive in the US, some might say a little late into the console’s life cycle. The drive is identical to the one that has been shipped with the Linux kit for the last 18 months – but then the drive in the Linux kit wasn’t compatible with game saves or downloading content.

So why now? The hard drive is needed to play Final Fantasy XI, the first online iteration of the baffling (hey, only if you don’t play it) role-playing game, and sales of the FF series more than justify marketing a $99 peripheral that was already in production. The drive comes with FFXI pre-installed, and players will be able to sample the game free for 30 days – but will have to cough up $12.95 a month as a subscription to keep going.

But that’s just one game – there will be a huge range of downloadable content and media available for subscribers: new levels, music, perhaps even full-length films. Given that the average game save is about 200kb and you could fit roughly 200,000 of those on the new disk. Sony obviously have a lot planned – and if the peripheral takes off, suddenly Sony has a potential installed base of more than 70 million broadband-enabled, game playing media hubs in living rooms and bedrooms around the world.

We’ve been quite looking forward to the hard drive, the endless fiddling about with memory cards is annoying: one card for RPGs, one card for all our EyeToy pictures, and Bahamut help me if I lost Sesame’s card with her Grand Theft Auto and Silent Hill saves on it.

Sony’s press release

“But your chocobo just squashed my level 76 Beastmaster!”

 

T-Mobile Introduce Mobile Jukebox, Unleashes New Music Format on Unsuspecting World

T-Mobile have partnered with Sony Music and Unversal Music to provide a somewhat unique entry to the mobile music market. Called “Mobile Jukebox”, the service allows subscribers to download music clips to their mobile phones.

So far, there are 200 tracks available to choose from – but the real killer is that those tracks are between only 90 and 120 seconds long.

We think this one might have launched a bit early – with only tiny number of tracks currently available, and even those are brutally short, this has an air of “So what?” about it. T-Mobile intend to offer more tracks later in the year, and full length ones too – but will that be enough?

Thomas Gewecke, Senior Vice President of Sony Music Digital Services explained: “Mobile Mix enables music fans to download a 90 to 120 second excerpt of a song in just a couple of minutes, allowing them to get a feel for the music almost instantaneously, and takes the mobile music entertainment experience to an entirely new level.”

Mobile phone users tend to be young and demanding, and require quite high standards form their entertainment, so surely they want considerably more than just to listen to a music clip? It maybe that T-Mobile have misjudged their market here, or were just keen to get some sort of music product out as soon as possible.

T-Mobile on Mobile Mix

Microsoft’s’ iPod Killer – Bigger, More Expensive

It had to happen – although Microsoft have had mixed fortunes in the hardware market, it was inevitable that they would release a competitor to the iPod and other personal media players out there.

This new gadget will have functionality not seen in iPods so far: video playback and picture display, and it will run MS’s Portable Media Centre (PMC) OS. “We think this is going to be one of the hot devices for Christmas 2004,” said James Bernard, product manager for PMC. The hardware itself is basically a Creative player with a 20 or 40 gb hard drive. Sizewise, it’s about three times the thickness of an iPod and twice as long.

The device will play MP3s, so won’t be completely tied to Microsoft’s own Windows Media Format. As previously reported, MS have content deals in place with Napster and EMI.

Pricing in the in relevant markets varies, but is estimated to be US$750, €550 (Denmark, Sweden) and UK£399.

The impeding release can only increase speculation that Apple will retort with a video iPod at some point next year.

Slashdot — “LOTS OF SHOUTING”

Reuters

CeBIT: Sony’s European Music Launch

Sony have announced at CeBIT that they’re launching a new music service in Europe in June. The initial countries on the list will be UK, Germany and France. The service will comprise of some 300,000 tracks form Sony’s catalogue, and they will be available for the usual €0.99 per track.

Now for the bad news. The tracks won’t be MP3s, they won’t be AAC and they won’t be Windows Media Format. They’ll be ATRAC3 (Adaptive TRansform Acoustic Coding 3) – and customers will have to use Sony’s Sonic Stage 2.0 software.

We’ve used Sonic Stage in the past, and it’s a bit of a pig: getting tracks onto devices is relatively simple, but getting them off again can be a nightmare – we hope that some changes will be made to the platform to make the whole process considerably less painful.

This is also a bold move for Sony – by providing Sonic Stage as the engine and selling ATRAC3 music, the service will only work with Sony devices, considerably narrowing their market reach at the expense of copy protection. With Napster and iTunes launching in Europe later this year, it won’t take long to see if this was a good decision or not. We’ll keep you posted.

US Service “Coming Soon”