Digital-Lifestyles

Content

Content in its shift to become digital

  • BT And Blueprint Jointly Develop Innovative Music Distribution Service

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

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

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

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

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

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

    Blueprint
    BT

  • Thomson: ContentGuard and Verisign deals

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

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

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

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

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

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

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

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

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

    Thomson
    ContentGuard
    VeriSign

  • Universal Music Group Creates Digital-Only Music Label

    Another month, another digital music announcement. This time, however, a record label is actually thinking long term. Universal Music Group (UMG) are embracing online technology as part of its business model, rather than wasting its time, money and efforts suing a handful of consumers for downloading copyrighted material.

    Universal, which like other record companies, has heavily relied on profits from sales of CDs, will this week promote eight relatively unknown acts on a digital-only label (UMe Digital) through online services including Apple Computer’s iTunes, RealNetworks’ Rhapsody and Microsoft’s MSN Music. Online promotion is an alternative marketing option that’s nowhere near as expensive as traditional forms, but has the potential to be highly effective.

    It’s great news that Universal is taking these innovative steps, as it finally shows that music labels will have to adapt to online sales and marketing in order to survive, especially as sales of CDs have fallen over the last four years, record stores are moving from high streets, and more shelf space is being given to DVDs and video games.

    The move is also great news for bands because they can get relatively large exposure without having to spend a fortune on recording, making a video and then going on the road to ‘develop’. However, bands do not receive an advance or even the cost of producing an album. Having said that, they do retain full ownership of their master recordings and licence them to Universal for a limited time.

    Universal is paying the musicians around 25 per cent royalty on the retail price of the downloads, and if online sales of an artist’s music reach a certain point, say around 5000 copies of a particular song, the company has an option to pick up distribution of the CD to record stores.

    It’s now only a matter of time before digital-only independent labels start promoting bands online by creating a low-risk way to market them without producing a physical album or underwriting a tour or music videos. For consumers, gone are the days of paying £15 for a CD – a digital world means more choice and better value.

    Warner Music Group is developing a unit similar to Universal’s, initially to sign artists and finance recordings for online sales, with the potential for later CD releases.

    Universal Music Group
    Warner Music Group

  • JFK Reloaded Described as ‘Despicable’

    JFK ReloadedOn the eve of the 41st anniversary of John F Kennedy’s murder, a dramatic new ‘docu-game’ brought the tragic assassination by Lee Harvey Oswald to life for a whole new generation. However, a spokesman for the president’s brother, Senator Edward Kennedy, called the game ‘despicable’, but has not commented on whether the family was taking any action to stop the game’s release.

    JFKReloaded ($9.99, ~€7.70, ~£5.40), recreates the last few moments of the President’s life and challenges participants to help disprove any conspiracy theory by recreating the three shots that Lee Harvey Oswald made from the infamous sixth floor of the Dallas book depository.

    The game promises to accurately recreate the surroundings and events of 22nd November 1963 in downtown Dallas, using information from the Warren Commission report, and has taken a ten-man team seven months to research and six months to program. The reconstruction enables players to examine the challenges that faced Oswald.

    ‘This new form of interactive entertainment brings history to life and will stimulate a younger generation of players to take an interest in this fascinating episode of American history,’ commented Kirk Ewing, managing director of Traffic and the creator of JFKReloaded. ‘We’ve created the game in the belief that Oswald was the only person that fired the shots on that day, although this recreation proves how immensely difficult his task was.’

    Regardless of the continued passion in the US surrounding the death of one of America’s greatest heroes, Traffic is determined to promote the title respectfully whilst encouraging as many people to play the game as possible. The company has also offered an incentive of up to $100,000 (~€77,000 ~£54,000) for the first person to most accurately recreate the three shots made by Lee Harvey Oswald. A cash reward of this size is the first of its type for a game.

    “We genuinely believe that if we get enough people playing the game we’ll be able to disprove once and for all any notion that someone else was involved in the assassination. The computer ballistics model says it’s possible, but players will discover just how hard it is to place those three bullets in exactly the same way that Oswald did.” The site goes live at midnight on the 22nd November 2004 and will run for 3 months.

    It’s more than likely that this game will raise the issue in the press of video games containing violence, as was last seen with ‘Manhunt’. Last time the press got the wrong end of the stick and blamed a killer’s obsession with the violent computer game ‘Manhunt’ for the death of a schoolboy, although it actually turned out that the game was present in the victim’s home, not the killer’s. Some are wondering if the release of JFK game around the anniversary of the incident was a calculated move by the development company, Traffic, after watching the sales of Manhunt go through the roof during the last press frenzy.

  • Philips’ Tiny Chip Provides FM Radio In Mobile Devices

    Royal Philips Electronics has showcased a series of chips that will add FM and AM tuner functionality to mobile phones, CD/MP3 players, PDAs, and other handset devices. The chips are not only the world’s smallest, but will also allow handset manufacturers to create ‘true’ multimedia devices that are capable of playing audio, video, games, and radio.

    According to Philips, FM radio is one of the key features users are looking for as mobile phones are evolving into connected consumer devices. With listening figures as high as 20 hours per week, according to the company, Philips is hoping that consumers will appreciate the addition of easy-to-use FM radio on their mobile phones. This, of course, is very likely, as for most people it will probably mean one less item to carry in their pockets. Today, only some 15 per cent of mobile phones sold worldwide have FM radio, although the market is set to continue to grow towards 50 per cent, asserts Philips.

    Each new chip has its own peculiarities. For example, the TEA5767 requires low power whilst the TEA5777 supports the AM range. The smallest in the series, the TEA5761, is made using WL-CSP (Wafer Level – Chip Scale Packaging) and is a wafer of silicon crystal plates. As the I/O connections were redesigned and some of them removed, TEA5761-based solutions require considerably less PCB space. Some of TEA5764 are also shipped in WL-CSP package, but they primarily stand out with RDS (Radio Data System) support (provides various information like station name, current track, news, ads, and so on). RDS also helps to simplify tuning by ensuring that the radio always tunes to the strongest signal available. The technology also offers benefits for telecom operators by increasing average revenue per user (APRU).

    ‘Mobile phones are becoming the ultimate portable device and consumers are placing great value on the multimedia features that differentiate their phone from others in the market. Already established as a proven technology with a large user base all over the world, FM radio is a valuable addition to any handset,’ said Peter Baumgartner, senior vice president of Philips Semiconductors’ Communications business. ‘As the leader in this market for FM radio on mobile devices, Philips enables everyone to enjoy radio entertainment, everywhere and anytime they want.’

    Philips’ FM TEA5761 is available now, while the FM+RDS TEA5764 and the AM/FM TEA5777 will be available in January 2005.

    Royal Philips Electronics

  • Microsoft TV Attracts Older People To The Web

    Microsoft is hoping its Web-based TV service will attract ageing users to surf the Internet, read e-mail and view digital photos – all without a computer. In what initially seems like a shot in the foot, Microsoft’s research indicates that the untapped market potential for older users is in excess of 40 million – a sizable figure even for the king of software.

    As well as the older generation, Microsoft is also targeting first-time Web users, particularly in developing economies where the Internet is out of many people’s reach because of the cost of a PC. The major benefit of being able to view photos and read e-mail on your TV is that most people already own a TV, thus eliminating the prohibitive cost of a PC, as well as the hassle of installing and learning how to use it. Sitting in front of a TV is also usually a heck of a lot more comfortable than a computer.

    “Our average user is 57 years old,” said Andy Sheldon, senior director of product marketing for MSN TV. “These people are getting to the age where they don’t want to deal with complicated ways of connecting to the Web.”

    The service comes via a MSN TV 2 unit set-top box, bringing e-mail and the Internet to the TV. It includes a wireless keyboard and remote control and costs $199, in addition to a subscription fee, which costs around $22 per month. MSN TV 2 also includes a 56Kbit/s phone modem, as well as an Ethernet jack for connecting to an existing network or broadband connection. Of course, there’s also e-mail and instant messaging accounts and access to 200 radio stations and video clips. Viewers can also browse Web pages or even digital photos stored on memory cards.

    MSN TV 2 is probably ideal for those who have yet to take their first step onto the Internet, but anyone interested in a home networking device can get more for their money
    .

  • Europeans Devote 20% of Media Activity to the Internet

    There has been a rise in the amount of time people spend online, with the Internet now accounting for 20% of Europeans’ media consumption, according to research commissioned by the European Interactive Advertising Association (EIAA).

    The Internet now represents 20% of European’s media consumption, above magazines (8%) and newspapers (11%) but below radio (30%) and TV (35%), according to the research.

    The study was undertaken via phone interviews with 7,000 respondents in the UK, Germany, France, Spain, Italy and the Nordic countries between September and October 2004. Five hundred were interviewed in both Belgium and the Netherlands. The study was designed to quantify how people allocate their time across media in Europe and to gauge consumer perceptions of the Internet and the role it plays within their media selection.

    The EIAA is a pan-European trade organisation for sellers of interactive media. Members are currently AdLINK Internet Media AG, AOL Europe, LYCOS Europe, MSN International, Tiscali, T-Online International and Yahoo! Europe.

    Issues:

    According to the survey, the Internet now accounts for 20% of European’s media consumption, up from 10% in December 2003. Almost half of all Europeans are now using the Internet with penetration rates ranging from 74% (Sweden) to 34% (Spain).

    At 35%, TV continues to represent the lion’s share of the average European’s media consumption, followed by radio (30%), the Internet (20%), newspapers (11%) and magazines (8%).

    Respondents generally perceived the Internet as a more pro-active media. Sixty-one per cent viewed it as a medium to “keep you ahead of the game” and half cited the Internet as their favourite source of information. Seventy per cent rated the Internet as “the best place to get what you want when you want it” and 80% described it as the “best time-efficient medium”.

    These results compare with a separate study by the Online Publishers Association (OPA) in New York which showed that, for the first time in the US, content such as information services or entertainment became “the leading online activity as measured by share of time spent online”. Content surpassed other online activities such as communications, commerce and search.

    Positions:

    “We are witnessing a shift in how consumers are using the Web as broadband households continue to grow. Clearly, it is much more than a tool; it is a primary source of information, entertainment and fun,” said Michael Zimbalist, President of the Online Publishers Association.

    “The Internet is now a rival to other media and with ‘always on’ and mobile technologies emerging, we can only expect this trend to continue,” said Michael Kleindl, Chairman of the EIAA.

    The number of Dutch broadband connections (cable and ADSL) increased from 2.53 million on 30 June 2004 to 2.85 million on 30 September 2004. The penetration of broadband connections in Dutch households reached 40.4 percent on 30 September 2004 compared to 22.9 percent on 30 September 2003. ADSL increased market share to 54.7 percent and penetration per household to 22.1 percent. Cable continues monthly additions over 100,000, thanks to @home with 49,000 new customers. @home boosted its customer base to 409,000 and passed chello, while Wanadoo saw a seasonal dip in quarterly growth, continuing to stay the largest broadband ISP with 429,000. Het Net doubled net additions to 66,000, passing the 200,000 milestone in Q3 and becoming the fifth largest broadband ISP with 204,000 subscribers, behind chello with 379,600 and Planet Internet with 376,000.

    European Interactive Advertising Association

  • Sky Active re-launches with Significant Upgrade

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

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

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

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

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

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

    Sky Active

  • Grokster and Mercora Team Up for P2P Radio

    Grokster, the peer-to-peer (P2P) software provider, and Mercora have rumours that Sony are interested in working with Grokster

    Grokster
    Mercora

  • AtomFilms And CustomFlix: DVD compilation service

    When I first used CDuctive in 1998, I was hugely excited. Using a Web browser, you could preview and select music tracks from different artists, pick the order of the tracks, pay for it and have it posted to you. The disks would arrive a short while later with a professionally printed cover, listing the selected tracks. I was so impressed with the idea, I thought the service was worth investing in.

    These days the idea doesn’t seem that revolutionary. Indeed it appears a little old-fashioned, having been outdated by music downloads.

    Today, AtomFilms and CustomFlix are announcing that they’ve got together to offer the video equivalent – DVD compilations of short films. Using CustomFlix’s Build-Your-Own DVD™ service (isn’t it amazing what you can trade mark these days), purchasers are able to choose up to 10 pieces, initially from a selection of 125 of AtomFilms’ shorts. There are a couple of limits – there cannot be more than a total of 90 minutes of footage onto one DVD and each video clip can be up to a maximum of 30 minutes long. In the same way that CDuctive worked, the disc’s content and packaging reflects the selected films. The disc then arrives in the post.

    It’s a good idea, a DVD duplication service combined with a content company, opening the market to those who don’t have sufficient bandwidth to view films online. Posting DVD’s is a very efficient method of bandwidth delivery. 4.7Gb of data transfer costs a lot more than the price of an envelope and a stamp.

    They label it a “major step forward in the distribution of on-demand”, which is stretching the concept of on-demand a little – with that logic anything you buy or rent is now on-demand.

    After a quick look, it is encouraging to see that it looks like the service is deliverable outside the US. An advantage, I assume, of the contracts signed by AtomFilms for the original material being delivered via the Internet – by definition they are likely to have global distribution rights.

    What is not clear is why there are only 125 films initially offered. Is it that Atom doesn’t have rights to physically distribute the other material or perhaps the material isn’t held, or even available in DVD quality?

    It’s hardly worth mentioning because it’s too obvious, but clearly when broad-broadband is universal, online distribution will significantly reduce the demand for services like this. We’re not there yet, and clearly many parts of the world are far from close to that, so this service does have the ability to last a while.

    There are advantages of buying it on DVD, over the future online delivery methods. The purchaser will own the DVDs content, free to play it on the device of their choosing and it will be DVD resolution, not a version compressed for download. If you go looking for CDuctive, I’m sad to see that it looks like it faded away – but that was six years ago.

    CustomFlix
    Atomfilms