Content

Content in its shift to become digital

Midem Mobile Music Forum Report
Few topics are as hot as mobile music right now, with the Midem Mobile Music Forum the place to be on the subject. Panelists touched upon several important areas, with all attempting to understand the future direction of explosive medium. Once again, Digital Music News was on the ground to capture the chatter.
Just who is buying all of those ringtones and downloads through their phones? A knee-jerk reaction seems to always point to the younger buyer, though many close to the space are seeing activity from the older buyer. During one of the mobile music panels, Martin Peronnet (Content Director, Mobile/i-mode division of French operator Bouygues Telecom) declared that 15% of his customers are in the 35 -40 age bracket. That is a total of one million customers, with many among the most active subscribers. Others revealed similar data, with Universal Mobile Chairman Cédric Ponsot announcing the launch of a series of oldies realtones, based on major hits from the 60s. Clearly, ringtones aren`t just for kids.
With the mobile music space expanding, where do things go from here? Many were convinced that 2005 will be the breakout year for the space, with new services like full song downloads on the horizon. But many attendees urged their peers to remain focused on ringtones, the most lucrative aspect so far. Meanwhile, projections were bandied about, with event chairman Ralph Simon forecasting a $11.2 billion space by 2008 .
But more money can sometimes bring more problems, with operators, publishers, and labels swimming in disagreement. Vodafone Global Marketing Director Guy Laurence gave a clear warning to the music industry when he declated that “the music industry needs to sort out the mess between publishers and labels and figure out who owns what during the next quarter. It is the consumers that matter. The bickering has to stop.” In another panel, Chrysalis Group Chief Executive Richard Huntingford expressed his concern about Vodafone exerting too much control. “What do they know about music?” he asked, calling for the music producers to unite their efforts. Orange Marketing Handset Services & Solutions Director Pascal Thomas called for mutual collaboration, reminding attendees that the CD has been around for 20 years with almost no innovation, while the mobile business is rapidly deploying new products.
Mobile Music Forum
26 January, 2005
Music Download Giant Napster Considers Film Service
Napster, one of the largest players in music downloads, is considering offering a film download service. The new service would sit alongside its music offering and help to give the company a competitive edge over its rivals. The technology is already in place to download movies, so the same service model could easily apply to films, television programmes and video games, now that broadband connection speeds are getting faster and more prevalent.
In a move targeted at the younger video-game generation, Napster won’t be the first company to enter the legal movie download market. In the US, MovieLink and CinemaNow are already offering a service to a growing customer base in America. Films on these sites start at around $2.99 (£1.59 Euro 2.29). However, similar to the music industry five years ago, the film industry is struggling to keep piracy at bay with technologies that allow movies to be downloaded quickly and in full to users with high-speed Internet connections. The Motion Picture Association of America has already filed lawsuits against pirates and is cracking down on distribution networks such as eDonkey and BitTorrent.
Regardless, legal film downloads will be a winner and are the future – just like audio downloads. Since broadband, film downloads have surged considerably, and around one in four people online have now downloaded a film, according to the MPAA. Such statistics have encouraged Napster and others to keep an eye on the market.
Since Christmas, Napster UK has reduced the price of its entire music catalogue of over 1 million tracks by 20 per cent. In response to record sales, the more aggressive pricing strategy will mean that full albums now cost £7.95 (US$14.89 Euro 11.43), while individual tracks cost 79p (US$1.48 Euro 1.14) when bought by Napster subscribers or purchased with Napster Pre-Paid Cards and Online Music Vouchers. Pricing for movies has yet to be announced, but it’s obvious they’ll have to be a lot cheaper than the latest DVDs for the service to takeoff.
Napster – UK
Napster – USA
MPAA
25 January, 2005
Snakes Snare N-Gage for Nokia
The all-time classic Nokia game, Snake, has now hit their gaming platform, the N-Gage. Best of all it’s free to download.
One initially surprising thing is that the whole game can be uploaded to another N-Gage via Bluetooth. Clearly this hasn’t been a feature of the commercial games already released, which include snowboard-a-thon SSX yesterday, but as it’s a give away, it makes it an interesting way to get it spreading.
Pasi Pölönen, Director, Game Publishing at Nokia said in a statement, “The unique method of viral distribution via Bluetooth, plus the free download, means that practically every N-Gage owner can enjoy the addictive gameplay and upload their high scores to the N-Gage Arena.”
Snakes on N-Gage has been updated to run in 3D, taking advantage of the additional processing power of the N-Gage. It also lets up to four players join together in a game by using Bluetooth to connect them up.
N-Gage hasn’t been the huge success that Nokia had wanted, but it is clearly not going to let the N-Gage slip away unnoticed.
Just looking at the Snakes Break Out Website, that they’ve prepared to support the release of Snake, proves that. It appears they have spent a considerable amount of money on its faux-TV appearance – and this is for a game that is FREE to download.
Snakes Break Out Website
The First Review of Snakes?
25 January, 2005
HomeChoice Doubles Broadband Speeds, Free
Video Networks Ltd (VNL), who run the UK VOD service, HomeChoice, will be doubling the speed of their broadband service from 1st February, at no extra cost.
512Kbps will raise to 1Mb, 1Mbps to 2Mbps and 2Mbps to 4Mbps.
Last week the two UK cable companies, ntl and Telewest, announced they would be offering Video on Demand (VoD) in the UK over their existing connections. They both offer broadband services at a range of speeds, but they are generally distinct from the TV services which are available at extra cost, except from occasional special offer bundles.
Currently ntl offer “broadband” at 300Kbps (arguable if this is broadband), 750Kb and 1.5Mbps (£37.99/month (~€57.50, ~$75). Telewest offer broadband only services (blueyonder) between 256Kbps and 4Mbps, with the top package being £50/month (~€72, ~$94). As these prices don’t include the TV services, they also won’t include VoD, when it gets rolled out.
The HomeChoice offering is delivered over a telephone line and includes the TV service; VoD; free evening and weekend phone calls; as well as higher speed broadband connections with their base level service now being 1Mbps. Their 4Mbps service is priced at #45/month (~€65, ~$85).
Roger Lynch, Chairman & CEO, Video Networks Ltd. said: “Video Networks is constantly looking for ways it can enhance its current suite of services to continue to provide a superb customer experience.”
It’s taken long enough for competition to arrive in the UK, but it finally appears to be taking root. For the UK consumer, this is all good news, as competing providers clamour to offer better deals to woo subscribers.
HomeChoice is currently available to over 1.4 million homes around London. VNL have stated that they want to expand their offering beyond London, although details are not yet public.
Existing HomeChoice customers will be notified of the automatic speed upgrades from 24th January via direct mail.
HomeChoice
24 January, 2005
TiVo effect, TV still doesn’t know what to do
In a long line of articles where TV execs try to ponder how to stop losing sleep and preserve their once comfortable lives, Meg James in the LA Times covers the impact of PVR’s, in particular TiVo, and how the TV industry is still trying to adjust to its impact.
It’s warming to see that there are still articles coming out, with quotes from TiVo users such as, “Once you’ve used one, you can’t imagine life without TiVo,” as Charlie Flint of Marina del Rey, California did. It’s somewhat reassuring that the impact is still as great for new users as it was when TiVo was first introduced.
One thing that doesn’t get mentioned in connection with this, and this is something that TV people should have sympathy with, is that ad breaks, do exactly that, break up the programme. Interrupting its flow.
This has been more than amply proven in the UK where The Simpsons have moved from commercial-free BBC2 to the advertiser-supported Channel 4.
Previously used to watching the show from beginning to end, without interruption. When watching the show, on TiVo of course, the story is interrupted by having to skip through the adverts.
Interestingly the exact opposite of the programmes sponsor desired intention is achieved. I have now come to resent the Pizza chain, as they are associated with interrupting my viewing pleasure.
One of the reasons that articles like this continue to make press is that estimated figures coming out of research houses and banks make worrying reading for the TV, and therefore the entertainment world.
By 2010, half the US households with TV sets are expected also to have digital recorders, according to a recent Smith Barney report. The tipping point could come as early as 2007, the report said, when the television industry may lose as much as $7.6 billion — or about 10% of its annual ad revenue — as advertisers seek other ways of reaching consumers.
A number of alternatives are suggested including pay-per-play, product placement in shows.
In one, viewers would pay $1 to see an episode of a show On Demand, “much as music fans do when they download a song from Apple Computer Inc.’s iTunes music store,” appearing to forget that the iTunes users don’t pay another $1 when they listen to the song the following week, as would be that case with a VOD show.
It’s gratifying that Meg James ends the article with a wise quote from her interviewee, one that the TV industry should be listening to, “I’m now trying stuff that I never would have watched before. I’ll give it a shot and set the TiVo, then watch the show later … when nothing else is on,” TiVo-user Flint said. “I’m watching probably 50% more TV than I used to.
LA Times – Looking for New Ways to Make Viewers Pay
TiVo
21 January, 2005
Paid-for music downloads up 10x in 2004: IFPI Report
The IFPI, has reported very positive sales figures for the 2004 and have even higher hopes for 2005.
The IFPI was previously known as the International Federation of the Phonographic Industry, but it looks like they’re probably trying to phase the full name out – it’s far from easy to find it explained on their site. They’re the equivalent to the non-US RIAA (Recording Industry Association of America), to which it is affiliated.
Building on their IFPI Online Music Report of last year, they have found some pretty positive figures.
Online sites that are able to sell music have quadrupled from 50 in the previous year to 230. The tracks that are available to purchase through these sites have doubled to 1 million, and paid-for downloads are up nearly tenfold to 200 million. For the full run down of stats, it’s best to check the IFPA site.
It’s with the benefit of hindsight that John Kennedy, IFPI Chairman and CEO now says “The biggest challenge for the digital music business has always been to make music easier to buy than to steal.” From our recollection, this was certainly a minority view within the music business previously. Their previous approach had been to try and stop the unpaid-for file sharing, while not being particularly co-operative with companies wanting to sell their music. As we all know, it was the release of Apple iTunes music store that changed their view.
We’re encouraged to hear they’re now grabbing digital distribution with both hands. “The record industry’s priority now is to licence music – to as many services, for as many consumers, on as many formats and devices for use in as many places and countries as it can,” Kennedy said in a statement.
Giving further details of the guidelines for signing up distribution services he said, “The straightforward conditions are that the business must be legitimate, the music must be correctly licensed, and record companies and other rights holders must get properly paid.” All good, except there is still some discussion within the industry on what “get properly paid” entails in digital distribution, with many feeling that electronic distribution should bring lower prices than current rates.
The IFPI say they see the “digital music market taking off in 2005”. If 2004 saw paid-for downloads up more than tenfold to over 200 million, they must be jumping with joy in anticipation of the figures for 2005.
IFPI Digital Music Report 2005
20 January, 2005
Ubiquitous Viewer – Phone Access to PC from Toshiba
Toshiba has announced software to remotely execute programs on a PC, via a mobile phone. They call it Ubiquitous Viewer.
Software that gives remote access to your computer from another has been available for years, with a particular favourite within the Digital Lifestyles offices being the open source VNC (Virtual Network Computing).
The way these packages used to work, was by an application running on the host (remote) computer and another on the client (local). Keystrokes and mouse movements are read from the client, sent over a communication line (dialup/IP) and executed on the host. Graphical changes to the screen on the host machine are collected, compressed, sent down the line and replicated on the client.
While this approach is basic, it has the advantage that any software application could be run.
The details of Toshiba’s Ubiquitous Viewer are still sketchy, but what we do know is it’ll allow users to open productivity software, such as the MS Office suite, and to read and modify files. It also supports access to PC-based e-mail, Internet browser and other PC applications.
Internet browsing through a phone to your PC? This is the only one we find a little bizarre, it’s a bit like reading a book through a telescope.
Given the support for “other PC applications” and the photograph, the Ubiquitous Viewer looks like it works on the same principles as the old-school solutions.
To access the remote machine, a password must be entered once. The transfer of data is over a secure connection, as it uses the Web standard secure socket layer (SSL) encryption
The service will initially be released at the end of March 2005 in Japan on KDDI’s service using CDMA1X mobile phones. Following this, they intend to take it other countries.
Quite what the experience will be like on a mobile screen is unclear and frankly this type of solution will only be used in desperation when you must have access to some information that you’ve forgotten.
It is a good example in our view of the future – no matter what the restrictions of the device, any that provides access will be acceptable, until you can move to a location or device that is superior.
Toshiba
19 January, 2005
ntl On Demand Brings VOD to Glasgow
Today ntl turned on its much-anticipated Video On Demand (VOD) service in Glasgow.
Accessible to all Glaswegian ntl subscribers who have the digital TV service, it features free and paid for content including advertiser-free children’s programmes, a ‘Pick of the Week’ option showing a selection of top shows from the previous seven days, a film service, a music video jukebox service, and adult content.
No new equipment is needed at the subscriber’s house, as the software in their current Set Top Box (STB) is automatically updated.
The content is accessed either by pressing the On Demand button on the remote control or by pressing the Red button while watching one of the promotional channels.
The Pick of the Week channel will be provided by the BBC in a six month initial trial. The editorial decision of what is included will rest with the BBC, and it’s expected that a range of shows will be available, including favourites (not ours) such as Eastenders. Each show will be available for seven days from its transmission and it’ll be free to access.
The viewer will have the option to pay for content too, giving then 24 hours access to the content. The cost of the items will be added to their monthly bill.
The film service is supplied by FilmFlex, a separate company run by On Demand Management in a joint venture with Sony and Disney, with “Hundreds of titles, current and classic” films available from 50p to £2. Out of general interest, On Demand applied for the FilmFlex trade mark back in September 2004.
Over 30 hours of Children’s advertiser-free programming is on offer for 20p-50p. Music videos can also be paid for (range 20p-£1.50) with over 35 hours available.
The high price ticket at £7 and largest number of hours of content (over 50) available goes to the Adult content supplied by Playboy.
Coincidentally, Glasgow was also the city chosen to launch ntl’s digital TV service back in May 2000. We imagine that the number of subscribers is manageably low (we did ask for actual numbers but, “this isn’t broken out”), giving ntl a chance to observe the performance of the system and gather feedback, before spreading it around the UK.
ntl are saying they plan to roll it out regionally over the UK during the next two years and all of their 1.4 million Digital TV customers will be able to receive the service. When we asked about the number of non-digital customers, we were told it was in the single percentage figures, possibly as low as 2-3%. Although asked, they decided to keep the order of the planned rollout cities to themselves.
In a statement Simon Duffy, Chief Executive Officer of ntl, said, “VOD is TV the way it’s meant to be.”
Telewest also launched a VOD service today, Homechoice have offered VOD in London and KIT have also been providing VOD in Kingston-upon-Hull for a number of years. ntl
On Demand management
18 January, 2005
HD Radio – More Channels or Music Sales to Bring Income?
The US radio industry is looking to make additional income from music downloads, we’re told by Reuters – while listening to the radio, they’ll be able to select the playing track for paid download.
The piece announces the catch-all snappy name of HD Radio, that’s iBiquity Digital’s offering, which digitised the FM and AM bands. European readers will be well aware of equivalent FM services under the banner of DAB (Digital Audio Broadcasting) which has been available for a considerable period of time, and the currently lesser known drm (Digital Radio Mondial, not Digital Rights Management) which offers FM-quality listening on the AM frequencies.
The benefits brought by HD Radio/DAB/drm are digital compression of the audio, enabling more radio stations to be broadcast on the same amount of frequency. As the broadcast is digital, additional information can be distributed with it, such as the name of the artist and track playing.
As with all things compressed for digital distribution, there is a balacing act between number of stations and the audio quality of those stations. Digital doesn’t have to equal quality. The quality of the audio isn’t assured – the amount of the compression directly controls the quality.
US “terrestrial radio”, as it is being called by some to differentiate it from its satellite-delivered competitor, is under pressure from numerous sources; satellite radio (XM AND Sirius); Nokia’s Visual Radio; Internet-based radio stations; digital music player; podcasting, and don’t appear to have acted that quickly to respond.
The current cost of radios to receive HD radio are in the range of $500-$1,000 (~€382-€764, ~£270-£540), but as we’ve seen in the UK with DAB, it’s just a matter of time before these drop to the £49 (~€70, ~$91) levels, as more efficient chip sets become developed and a mass market is formed.
We found the comments by Jeff Littlejohn, executive vice president of distribution development at the dominant US radio station company, Clear Channel, the most illuminating, “We don’t think the business model associated with downloads is nearly as attractive as adding additional audio channels.”
In Clear Channels view there’s still more money to be made from advertising revenue than from music downloads, not least because they don’t have to share the revenue raised with the record companies – who are not known for their willingness to take small proportion of sales.
Radio Broadcasters Mull Digital Music Stores: Reuters
17 January, 2005
The Sun launch Page 3 Soft Porn to Mobile Phones
News International, the publisher of well known UK tabloid ‘newspaper’, The Sun, has opened the doors on its own mobile content service that it calls Sun Mobile.
It will feature ringtones, java games and … you guessed it … Page 3 wallpapers and screen savers. For our non-UK readers, Page 3 of the Sun is dominated by a photo of a topless (at least) woman.
The service won’t be short of promotion. The Sun website, Sun Online, has around 3m users, with half of its traffic coming from the US and Canada. The printed paper has a circulation of 9 million.
Despite The Sun having a presence on the Vodafone live! and Orange World portals, News International (NI) has set up their own mobile site, developed by Blue Start Mobile. It will be accessible in over 130 countries around the world, thanks to NI’s deal with Bango.
Many mobile content providers are discontented with what they see as unbalanced, operator-biased revenue splits that the mobile phone company are currently offering in the UK. It sounds to us like NI has recognised this, as Simon Ashley the commercial manager dealing with the launch points out, “Sun Mobile gives us direct, interactive relationship with our customers on mobile.”
Sun Mobile (contains nudity)
13 January, 2005