eBay Trialling Digital Downloads

eBay are testing digital downloads in a trial with software company Digital River. The 90 day pilot allows purchasers to download software as soon as they’ve paid for it.

Whilst this is a common business model for more traditional companies, it’s the first time that eBay have tried it. Pirated and counterfeit goods are still seen as a problem with online auctions, and eBay will have to police vendors and auctions carefully to stay on the right side of the law.

As eBay will only allow pre-approved sellers to offer downloads so we can forget sales of unloved, second-hand iTunes songs for the time being.

As the rapid success of online music stores is demonstrating, internet users are getting more used to the idea of buying goods on a download only basis – including software, music, fonts and reports. If eBay can keep control of their vendors, then this could be the next big phase for them.

Digital River Inc.

Sony Connect: Video Content Within 12 Months

Sony is to extend its Connect music download service to cover video downloads within the next twelve months. The chairman and and chief executive of Sony Pictures Entertainment, Michael Lynton, said: “Sony Connect will not be just a music service but also a video business within the next year.”

Of course, no-one dropped their latte at that announcement, but this is the first time that the move has been confirmed.

Sony’s consumer electronics business is developing devices that will be able to download and play videos from the Connect store, in exactly the same way that their new range of audio devices do now. The new service will be called Movielink, and given Sony’s enthusiasm for DRM, will probably only be compatible with Sony devices and PCs.

Movielink is a joint distribution venture with Metro-Goldwyn-Mayer, Paramount, Sony Pictures, Universal Studios and Warner Brothers, and will feature content from all five studios and others.

Sony Connect

Internet Radio – On a Radio

The Reciva Reference Wireless Household Internet RadioI would listen to a lot more internet radio if I didn’t have to be in the vicinity of my computer to do so. Internet radio stations are great, but just not convenient around the house for most people – not being able to carry a small radio from room to room to listen to programmes often means that a lot of people just don’t bother listening to the huge range of programming out there.

Reciva have come up with an ingenious way round this – without even needing a computer. Their Wireless Household Internet Radio modules allow consumers to listen to broadcasts in any room of the house by using a WiFi receiver to access streamed content. You could even use it in the park if it’s in a hotspot.

Reciva don’t make the finished devices themselves, instead manufacturing the modules for their partners. They also provide a reference unit for module evaluation, and an Application Development kit. There are more than ten thousand internet radio stations in existence covering most niches, and as they don’t rely on over the air transmission, are not geographically dependent. This means that anyone can set up a station in the UK to reach the 15 million expatriates living abroad, with bandwidth as their only consideration.

If PC-less internet radio devices like this take off along with ubiquitous WiFi coverage, it could mean that digital radio will lose some of it attractiveness. After all, there are considerably less stations and the selection available is dependent on which ones are carried by your local broadcast masts.

Reciva

BT to Challenge BSkyB with Broadband TV Service; Partners with Microsoft on Web Conferencing

BT has announced it has plans to introduce a broadband television service in the UK, aimed to compete directly with BskyB’s Sky+ service. With the cheeky codename “Sky Plus Plus”, a nod to object-based programers everywhere, the project is intended to increase broadband adoption. This will be BT’s first foray into broadcasting, after months and months of false starts and speculation.

BT has already approached the BBC and ITV for content for the project, but will need much more than just those two if it really wants to compete with Sky+.

The telco had originally intended to launch the service in October, but delayed because they thought the initial package was too complicated as it comprised a digital set-top box and PC modem, plus subscribers would have to pay an additional fee for broadband internet access. They have not yet specified if subscribers will have to use a PC to view content, or if it will be viewable on televisions. Also undecided is whether the company will be streaming live programmes or just presenting video on demand. If they are to compete effectively with BSkyB, the BT offering must provide a much wider range of features, as Sky+ offers live television, pausing, archiving and renowned ease of use.

BT has also announced a new partnership with Microsoft – this time to deliver a next-generation collaboration service. Going far beyond video conferencing, the service basically glues together BT’s audio conference products and Microsoft’s Office Live Meeting.

BT have piloted the service internally in the past year, and claim to have saved 6.2 million miles of business travel, which also means 112 million less litres of carbon dioxide pumped into the atmosphere from vehicles.

BT

Microsoft’s Office Live Meeting

Tuning In To Visual Radio

Nokia has high hopes for a new service that sends images and information to mobile phones, synchronised to a FM radio station.


Nokia's 7700 showing Visual RadioA new revenue stream

Mobile phone manufacturers and network operators are developing more and more virtual products for their subscribers – ringtones, wallpapers, games, music, you name it. The favoured charging model preferred by networks is a little but often, hence subscriptions to text alerts, music downloads and other services that extract small amounts of cash from users repeatedly, over a relatively long period.

Given the age of many phone owners, music is an important part of their lifestyle, and so consumes a fair chunk of disposable income – this is what prompted manufacturers to converge the mobile phone with the radio. Whilst it’s certainly handy, there was always an air of missing potential about having a mobile with a radio – two communications streams that didn’t meet up: until now, that is.

Radio met GPRS – and Visual Radio was born.

Visual Radio (VR) is a traditional radio broadcast, backed up and accompanied with information, photographs and graphics displayed on a compatible mobile phone. Handset owners can see immediately what track their favourite radio station is playing and explore more information about the artists, or see what’s coming up next. You can all see the potential for album promotions, competitions and quizzes – and advertising. The service can also be used to sell ringtones and logos – other micropayment-sized virtual goods popular with network operators.

Nokia describes the basic service thus: “You will never again have to wonder WHO is playing WHAT on radio – now you can get detailed information on any piece that is being played. During the news you can SEE what they are talking about, weather reports can now show you the maps and tables of sports results can easily be viewed. Entering the middle of a talk show, you can see what has been discussed so far and what is coming up next. Valuable business news or urgent news alerts can be received at any time onto your screen without having to interrupt the broadcast over the air.”

It also enables radio stations to interact in new ways with their audience – by allowing listeners to vote on popular topics, and getting input from people who perhaps would never phone into a show, but would like to interact nonetheless.

VR is currently available on the rather odd looking Nokia 7700, but the company intends to release more compatible handsets in the future.

How does it work?

The system itself is extremely simple: Visual Radio runs in parallel with a traditional radio broadcast, and is transmitted to the user’s handset via GPRS.

A reasonably informative and immersive service can be transmitted in about 200 kilobits per hour, but can vary enormously depending on the amount of graphics used on the service.

The attractive part here is that there’s no additional subscription for the end-user to have to buy into or extra payment system – she just pays for the GPRS data on her mobile phone bill as she would normally.

The service is currently only available for FM broadcasts, but there’s no reason why it can’t be deployed for AM stations, and indeed Nokia are exploring this.

Nokia has selected HP as its technology partner to bring VR to the market. HP sells the solution to mobile operators and FM radio stations worldwide, as well as provides installation, consulting and integration support. In addition, HP hosts and manages the VR service using standards-based HP platforms.

The VR application is part of the phone software, embedded in the handset’s hardware, and is not a downloadable application. This strikes me as odd: why not make it a Series 60 application and therefore deployable to all Series 60 phones with FM receivers?

What does it take to produce a Visual Radio feed?

VR is basically an XML feed sent to the phone’s browser through a standard GPRS connection. It’s simpler than HTML – there are fixed regions on the phone’s display, and certain content types can only go in those regions. By positioning objects relatively on the screen, similarly to web stylesheets, pages can scale to suit phones with different sized displays.

Graphics are highly optimised, and the preferred format is PNG, keeping button sizes, for example, down to typically less than 1k.

One page of VR, or slide, can be less than 3k in data.

Pages are extremely easy to create, and the process doesn’t get in the way for producing imaginative content – keeping punters interested beyond the novelty stage will be the tricky part. No special tools are required – once the basic templates are worked out, the station (or a third party) can use use an off the shelf package like Dreamweaver to layout pages.

The pages are also timecoded – so that the content is synchronised with the broadcast, images are cached to the phone so that slides are complete and ready when a song starts.

Once the VR pages are produced, they are sent via the internet to a hosting centre operated by HP, and then sent to network operators who transmit them to handsets, on a region by region basis.
A side view of the 7700What’s the business model?

VR is essentially a low bandwidth sales tool. VR users pay for the GPRS data they download – and hopefully buy ringtones and other products advertised on it. The network operator also splits the money made from the GPRS streams with the radio station responsible for the broadcast. The radio station also has a new channel to sell. advertising on.

Sophisticated monitoring facilities are built into the service: the network operator can see how many “listeners” are tuned into the visual radio stream at any one time – providing valuable metrics for the radio station and its advertisers. This also enables the broadcaster to vary the amount of bandwidth and other resources deployed in response to demand.

Where is it?

Visual Radio is currently being transmitted by Helsinki’s KissFM station, and is available to TeleSonera subscribers.

Nokia has a chicken and egg situation here – it needs to sell the idea of Visual Radio to broadcasters as a popular service, but it also needs a range of content to entice users to take part. So far, uptake from both broadcasters and the public is disappointing – but it’s early days.

Visual Radio

BBC Closes Five Websites, May Close More

The BBC is to close five websites in the wake of the Graf Report, and is looking at all BBC Online services. The five sites to close initially are Fantasy Football, What’s On, Surfing, Games and Pure Soap. “The process is not over” stated Ashley Highfield after announcing their closure. “The review is going to look at all of our websites. Nothing is going to escape scrutiny of its public value.”

No jobs will be lost immediately as staff will be transferred to other business areas.

Highfield has added another aim to BBC Online’s remit to educate, inform and entertain – connect. BBC sites will connect with audiences whenever and wherever they want. He also added a pledge that BBC Online would never produce e-commerce, e-mail, gambling or dating sites.

This is not quite the bold pledge it sounds – there is already a bbcshop.com, operated by BBC Worldwide, the commercial arm of the organisation. If the BBC ever wanted to operate any of the services that Highfield has ruled out, BBCWW would be able to do so without breaking any pledges.

BBC Shop

Peppercoin Aiming for More Efficient Micropayments

The basic flaw with small monetary transactions, whether internet related or not, is that the processing charge levied by banks and credit card companies eats a big chunk of the value of your original sale.

The road to creating an efficient micropayment system is littered with the corpses of those who didn’t make it – ecash, digicash – weathered corpses stripped clean from their deaths in the late 90s.

Yet, deep down inside, we know that micropayments must work. Like the first farmer who experienced frustration when he tried to pay for some wood with a cow, only to be told “Sorry mate, I can’t change that – have you got anything smaller?”, we know there must be a way of making transactions more efficient.

Peppercoin, backed by the R in RSA, Ronald Rivest, have brought the micropayment system up to the 21st century, and have launched version 2.0 of their service. Peppercorn 2.0 is aimed at online retailers who shift low-priced digital content and physical goods, or offer subscriptions and pay-per-use services – so it won’t just be ringtones then.

The company has concentrated on making the experience as transparent as possible for the user, as customers can use their credit card to pay a merchant without having to register or create an account. Neither do they have to pre-deposit any money to get started – I can think of at least two micropayment systems from about 1997 that owe me at least US$3.

Merchants and vendors don’t even have to be web-based – one of the key applications of Peppercoin is in coin-op games. The new version of Golden Tee Golf (coming to a pub near you) will feature the Peppercoin system to provide cashless purchases. If I’m hearing you say big deal, then consider that punters spent US$350 million (€288 million) playing this one game last year alone. Peppercoin are well aware that when you allow people to use their credit card at point of sale, they will usually spend more.

The new service works by aggregating low-priced transactions across many consumers, merchants and payment providers, reducing the average processing fee for each individual sale. Customers pay by entering their credit card details online, or by swiping their card through a reader on the device they are paying to access.

Customer service is cleverly automated to keep costs down, with integrated bills and automated pre-dispute resolution dealing with most cases before expensive people have to get involved.

How efficient is the payment system? Peppercoins fees work out at about 10% of a US$1 transaction, which the company claims is 70% less than the usual card not present processing fee.

Peppercoin

Sun’s Radical Java Update

Sun Microsystems, purveyor of all things Java have introduced the most significant update to their platform in five years.

Java2, Sun’s write-once-run-anywhere software platform, popular in everything from mobile phones to PCs to smart cards has gone from version 1.4 to version 5.0.

Previously known as Tiger (stripy mammal, now mostly employed to sell breakfast cereal), the new release hopes to address previous concerns related to speed and scalability. This release of the platform has over 100 new features, including updates to the language and metadata. The amount of memory required by the virtual machine and code has been reduced, and new management tools have been included to help developers and administrators keep track of resources, applications and services. The compiler and code interpreter have been tweaked, providing performance that exceeds C++ … in some applications.

Java was originally seen as a computing platform for small devices, but got a new lease of life with the world wide web as a way of adding interactivity to web applications on a variety of host machines. Recently, Java has received a second huge boost in the form of mobile phones – many modern phones incorporate a Java virtual machine so that games and applications will work across a range of mobile hardware.

Java2

Man Charged For Google Adwords Extortion

Michael Bradley, a California resident who claims to have developed a program to generate fraudulent clicks on Google’s Adword service, was arrested at the company’s offices and charged with extortion.

Bradley had threatened to sell the software to spammers if Google did not give him US$150,000 (€123,400).

The fact that the software is designed to trick Adwords into registering more clicks, and therefore more revenue for the customer from Google, coupled with trying to extort money out of Google by then threatening to sell the software earned him a speedy arrest and freedom on a US$50,000 (€41,100) bond.

He’s pleading not guilty.

More about adwords

AOL Buys Advertising.com

America Online Inc, the world’s largest distributor of disposable CDs and apparently also an interactive services company, has announced that it has signed an agreement to hand over US$435 million (€359 million) in cash for Advertising.com, the internet’s third largest advertising network.

Advertising.com plans and optimises online campaigns for more than 800 advertisers, and also works with some 1500 online publishers to bring them 110 million unique visitors every month. About 70% of all US internet users encounter Advertising.com’s work in the course of a month’s surfing.

This is AOL’s biggest deal since it merged with Time Warner, and shows that there may be some life in online advertising after the bubble burst after all. AOL, having ditched its broadband product and now staring at declining dial-up business, is understandably keen to drive growth in other areas, and believes that content and services are what it’s best at.

Jonathan Miller, Chairman and CEO, America Online, Inc., said, “Online advertising is showing very strong growth across the industry, and the acquisition of Advertising.com underscores AOL’s determination to strengthen its competitive position. Advertising.com has built a profitable, scalable and highly attractive business. This acquisition is a strategic move that will bolster AOL’s advertising business, building on the strides made in the past year.”

Advertising.com