Distribution

The new digital ways content was becoming distributed

  • FUD Encouraged By Macrovision Report

    Destiny Media Technologies Updates Promo Only MPEMacrovision, a company who sell content protection (DRM) system, have today released a report they commissioned into content copying.

    The findings? That ‘Casual Piracy’ is “a Growing Challenge in the Entertainment Industry” and that “mass market penetration of digital recording devices and broadband/file-sharing networks are prompting many entertainment brands to enrich their content protection strategies and influence bottom line performance.”

    Let us translate. Digital Rights Management (DRM) is coming and the public had better start getting used to it.

    FUD Encouraged By Macrovision ReportThis is on the basis of what to us appears, from a quick once over of this report, a pretty unscientific approach, as the following paragraph from page 10 illustrates.

    “In order to estimate exactly what effective content protection represents, respondents were also asked to estimate how many units/titles were copied (burnt) for each 100 sold and how many were illegally downloaded for every 100 sold.”

    How can someone write “estimate exactly” without seeing the paradox? They just have well asked them “How paranoid are you about content copying?”

    Their conclusion directly under this nonsense? “None of the figures make for comfortable reading.” WHAT?!?!? Just because these figures are presented in a table in a report with graphs next to them, doesn’t elevate them from what they are – guesses. At this point we stopped reading this report – we had some drying paint that needed watching.

    FUD Encouraged By Macrovision ReportI hope that each time a ‘report’ or so called research like this is published, that it is gone through with a fine tooth comb pointing out its weaknesses. This kind of nonsense needs to be countered.

    FUD rules
    I have, for years, been questioning the content industry – How are you going to sell DRM to the public when what you’ll be selling them some less good/useful than they had before? The answer has always been a resounding silence.

    When I asked a very senior person at Fox (his name escapes me) why DRM would be required when the vast majority of their customers are fair, reasonable and trustworthy, his response stunned me – “We take the opposite view, we treat everyone as dishonest.”

    To me, that summed up both the arrogance and distain of the company, and possibly that of the current ‘entertainment’ industry. Any company that has such a low opinion of their customers, will eventually come to a sticky end – and it’s quite right that they do.

    Through the sheer panic of suddenly waking up to the changes that technology has been bringing to media for decades (hell, I had digitised audio tracks on my Mac Plus, soon after it was released in 1984), the ‘entertainment;’ business has been listening to technology companies, who by strange co-incidence have something to sell – content protection systems.

    That combined with the universal truth that fear is contagious, leads to a point where we are now. The current media companies being near terrified that _all_ of the customers are waiting to steal from them, so they must be restricted – and DRM-selling companies are more than happy to help them in their fear.

    Their perceived need to restrict their customers is costing them _huge_ amounts of money and it will continue to … and to what gain?

    They stop their customers from using their purchases how they feel fit – well, at least until the latest hack removes the protection – and in the process, further alienate their customers, building resentment.

    Why don’t they spend all of this effort, time and money creating new content – engaging their audience further?

    I wonder if the ‘entertainment’ companies have spared a thought as to what would happen if their businesses did fail? Do they not see that generally the technology companies are going to win anyway even without them?

    PDF of complete report.
    BTW, don’t try copying text out of the report, it’s protected unsurprisingly.

  • BSkyB to Buy Easynet: Official

    Sky Buys EasynetUPDATEDSky has today confirmed that it is offering £211m to buy publicly listed UK ISP, Easynet. This follows a period of general speculation, after Easynet issued an official statement on Monday past that they were subject to a possible offer.

    Sky are offering 175p per share, around 81% above Easynet’s market price of a week ago.

    Not surprisingly, the current Easynet price is now up 44% at 171p.

    With this purchase, Sky buys straight into broadband in the UK, gaining a foothold in the Local Loop Unbundling (LLU) market, with 232 unbundled exchanges already under Easynet’s belt.

    Importantly Sky have bought into Easynet’s expertise at unbundling exchanges, which, when combined with Sky’s financial clout, will lead to serious competition to the, (in our eyes), feeble rollout of DSL by BT. We also imagine that there will be sweaty brows at Telewest/NTL, the UK cable company over morning coffee.

    Possible Impact Of Sky Buying EasyNetSky will gain income from broadband subscription and possibly entice further subscribers to their TV service taking them to their stated aim of 10m. Far more important is a new channel to deliver content through – one they have total control over. They like that.

    This move puts BT’s broadband IPTV service on a less secure footing, which, as we broke at the end of September, plans to launch in Summer 2006. At the very least, BT won’t have it all their own way.

    Sky has been talking for a while about broadband-delivery ambitions as well as other paths, indeed Sky COO, Richard Freudenstein confirmed as much just over a month ago.

    Brace yourself. The news is going to be awash with opinion pieces second guessing what this all means to the future of broadcast and broadband in the UK …

    Easynet
    Sky

  • Possible Impact Of Sky Buying EasyNet

    Possible Impact Of Sky Buying EasyNetSky have been mulling about an IPTV service for a while. They were in discussions with THUS who provide the telecoms back-end for their SkyTalk service and helped Sky with their WapTV services, they were talking about doing an IPTV trial with THUS, but THUS pulled out of the LLU arena due to lack of cash. They were looking at spending £20m+ on just a trial.

    Though Sky have 7.3m+ subscribers, they estimate around 20% of households (in the coverage) areas cant get Sky due to dish or coverage problems (including multi-tennant buildings). City centres tend to be problematic due to high buildings obscuring the satellites. There’s also a major problem if the building is in anyway listed.

    Possible Impact Of Sky Buying EasyNetSky have got the resources to bolster a depressed telecoms market and put the necessary cash into a company to achieve a reasonable roll-out. Of course they also have the content that consumers want. If another “triple-play” broadband provider wants to get into the game (including BT Retail), Sky can make it very difficult for them by not licensing Sky content (of course Ofcom may force them to, as they have done in the cable industry).

    Sky have also been talking to other high-speed broadband providers such as Be who also want to offer a triple-play.

    If Sky do purchase Easynet, it’s likely they’ll move all their telecoms and Internet activities to them too, which will put THUS in a difficult position as a large ammount of corporate revenue comes from the Sky account.

    Possible Impact Of Sky Buying EasyNetSky are also in an odd position as they’ll probably utilise MPEG-4 as the coding system, which means they’ll have to modify (or supplement) their existing transmission systems which are all based on MPEG-2. They’ll also have to introduce a new IP based set-top-box. However they’ll have to be carefull as to not make it too feature rich compared to existing STB’s used to decode the satellite transmissions or existing users will want to migrate to the broadband version – which will cost Sky a huge ammount as the exisitng boxes are considerably subsidised.

    Whatever route they go, Sky moving into triple-play will have a major impact on broadband and LLU in the UK.

  • 137m Broadband Subscribers In OECD

    137m Broadband Subscribers in OECDFigures just out from the OECD (Organisation for Economic Co-operation and Development), report 137m broadband subscribers throughout the OECD countries and that’s up 18m since the last figures, six months ago.

    It’s interesting to note that voice and video services are increasingly being provided over these connections.

    Korea continues to be top of the list with 25.5 subscribers per 100 inhabitants, with The Netherlands following up close behind with 22.5, mainy due to comprehensive cable penetration.

    The strongest growth over the last two reports, ie 12 months has been Finland, the Netherlands, Iceland, Norway and the United Kingdom.

    The US is at 12th position (14.5 subs per 100), with the UK sitting one slot lower at 13th (13.5 subs per 100).

    Over all of the countries, DSL is still the preferred method (61.2%), cable modems at around half those levels (32%) and what they describe as ‘other technologies’, ie fibre optics, LAN, satellite and fixed wireless sitting at 6.8%.

    137m Broadband Subscribers in OECDThe ‘other technologies’ have enjoyed the the highest percentage growth in the past six months, growing 13%.

    Looking at absolute subscribers numbers, the US is way out in front at 42.6m, followed by Japan (21m); Korea (12m); Germany (8m); UK (8m); France (8m).

    Enjoy all of the delicious details at the OECD site

  • Sony VAIO XL1 Digital Living System

    Sony VAIO XL1 Digital Living SystemSony are keen for us to ‘redefine’ our living rooms with the release of their new VAIO XL1 Digital Living System, a twin box offering combining a high-end multimedia PC with a 200-disc media changer/recorder.

    Clad in natty silver and black casings, the combo runs on Microsoft Windows XP Media Center Edition 2005 and connects to a television via an HDMI cable, outputting high-definition video and multi-channel digital audio in a single connection.

    Boasting unique functionality as the result of a “close collaboration with Microsoft”, discs inserted into the changer are automatically detected by the PC which connects to the Web (via wired or wireless network) to download any available metadata, including jewel case covers and artist information.

    Sony VAIO XL1 Digital Living SystemA similar process takes place for movies, where an in-depth synopsis and star, cast, director and producer details etc are automatically downloaded and made accessible onscreen through the included wireless keyboard or remote control.

    Sony has innovated once again by introducing a product that is a monumental step forward in defining the way consumers enjoy digital entertainment,” insisted Mike Abary, vice president of VAIO product marketing for Sony Electronics in the US.

    “With the XL1, users can still manage all their meaningful entertainment content such as downloaded music, home movies and personal photos. But the really groundbreaking functionality is the additional ability to easily organize, sort, and access packaged content – all of the DVD movies and audio CDs that have been traditionally relegated to a bookshelf,” he added.

    Sony VAIO XL1 Digital Living SystemThere’s no denying that the recording functionality seems mighty impressive to us, with the XL1 able to automatically and sequentially record up to 200 audio CDs from the media changer to the hard drive.

    Users can also record a series of television show episodes to the hard drive, and transfer them to blank DVDs stored in the changer

    Beating in the heart of the XL1 A/V system is a powerful PC boasting an Intel Pentium D dual-core processor, half a gig of DDR2 memory, PCI-E graphics and space for up to three SATA hard drives (RAID ready).

    Sony VAIO XL1 Digital Living SystemTo ensure that your late night listening pleasure isn’t spoilt by the sound of a mass of Boeing 747-like fans starting up, the XL1 system uses liquid-cooled components for quiet operation.

    The Digital Living System will be sold as a package and will be available next month for about US$2,300 (~£1,300, ~€1,930).

    Sony VAIO XL1

  • PIPEX Purchases Freedom 2 Surf

    PIPEX Purchases Freedom 2 SurfThere still seems to be plenty of cash slopping around the broadband sector, as PIPEX has just waved its weighty wad in the direction of Freedom to Surf (F2S) and bought the company for £10m.

    F2S is a major UK ADSL provider, boasting 40,000 broadband customers at the end of September 2005.

    When added with PIPEX’s existing customers, the combined user base will make the company the 5th largest broadband DSL provider in the country

    PIPEX Purchases Freedom 2 SurfIt’s uncertain whether existing Freedom2Surf customers already using LLU via the EasyNet LLUStream range will stay where they are or be shunted on to a PIPEX LLU product.

    PIPEX had previously announced that it was currently unbundling 60 exchanges, and the acquisition of F2S will greatly increase customer density around exchanges already allocated for unbundling, thus improving return on their investment.

    The 40,000 extra customers also makes the possibility of unbundling a further 40 exchanges more feasible.

    PIPEX Purchases Freedom 2 SurfPeter Dubens, Chairman of PIPEX, said: “In the light of our recent decision to unbundle an initial 60 exchanges, we are very pleased to add F2S to the PIPEX group, which will further increase the density of customers around each exchange, thus improving the return on capital and enabling us to offer higher speeds to a greater number of our customers. F2S’s customers will be able to benefit from our extensive network and the broad range of services we provide.”

    Elsewhere, Wanadoo UK revealed yesterday that it has already unbundled 150 BT exchanges in five UK cities (Leeds, London, Bristol, Manchester and Birmingham) and has plans for another 500 exchanges over the next 12 months.

    PIPEX

  • Paramount To Offer HD-DVD and Blu-ray Disc Movies

    Paramount To Offer HD-DVD and Blu-ray Disc MoviesAs the next-generation DVD wars between HD-DVD and Blu-ray Disc grind on, Paramount Home Entertainment has employed a time-honoured fudge and announced that it will be offering movies in both formats.

    High-definition versions of Paramount’s movies will be released in both HD-DVD and Blu-ray Disc, the company said yesterday.

    Viacom subsidiary Paramount is the first major content provider to announce support for both high-definition video-disc formats, and follows a similar line of thinking as Samsung’s dual HD-DVD/Blu-Ray Player which we reported on last month.

    Paramount To Offer HD-DVD and Blu-ray Disc MoviesBoth formats serve up far more storage capacity than current DVD discs, with HD-DVD offering 15GB or 30GB and Blu-ray Disc 25GB or 50GB, depending on the disc.

    Unfortunately, the two formats remain incompatible with each other, something that’s sure to hold back consumers with less than fond memories of the VHS vs Betamax battles of the past.

    Paramount To Offer HD-DVD and Blu-ray Disc MoviesParamount was one of the first major content players to back the Toshiba/NEC-developed HD-DVD format, with other major backers including Warner Home Video, HBO, New Line Cinema, Universal Pictures and Sanyo Electric, followed by Intel and Microsoft last week.

    Blu-ray enjoys far greater support from electronics companies like Sony, Matsushita (Panasonic), Samsung, Dell, Hewlett-Packard, Apple and Philips, with an impressive line up of Blu-ray supporting content providers including Sony Pictures, Twentieth Century Fox, Walt Disney Pictures, Lions Gate Home Entertainment and Universal Music Group.

    Paramount To Offer HD-DVD and Blu-ray Disc MoviesInfluential in Paramount’s decision was the PlayStation 3’s support for Blu-ray Disc.

    “After a detailed assessment and new data on cost, manufacturability and copy-protection solutions, we have now made the decision to move ahead with the Blu-ray format,” Paramount said.

    Paramount

  • UK Risks Being Left Behind In Mobile TV

    UK Risks Being Left Behind In Mobile TVThe UK production and development community is in danger of losing out to competition from overseas if it doesn’t wake up to the potential of mobile TV, said Mark Selby, Nokia’s Global Vice President for Multimedia, (pictured right) at the inaugural Mobile TV forum in London today.

    “There is already activity in many other markets,” he said. “The UK is perceived as a technology capital by the rest of Europe, but it could lose this advantage. Its approach to mobile TV is being seen as luddite.”

    Nokia has staked its claim on DVB-H (Digital Video Broadcasting for Handhelds) as the best technology for future delivery of mobile TV services. DVB-H is a one-to-many technology; it’s cost effective and provides what could be seen as highly attractive content to consumers (ie. like existing broadcast TV channels).

    UK Risks Being Left Behind In Mobile TVBut many claimed that the lack of spectrum is holding DVB-H back in the UK.

    David Harrison, senior technology advisor at Ofcom, (pictured left) also speaking at today’s conference, confirmed that no new spectrum would begin to be available until the start of analogue switch-off in 2008. [Ed: Following that they’re keen on a spectrum auction, see below for further information on their current proposal]

    Harrison’s comments left the floor wide open for Glyn Jones, Operations Director, Digital One, (pictured below right) to remind the audience that there is an alternative to DVB-H – Digital Multimedia Broadcast (DMB). There’s no coincidence about his comments – Digital One owns the spectrum for it.

    UK Risks Being Left Behind In Mobile TVDigital One owns the UK’s only nationwide commercial DAB multiplex – but the capacity allocated for DMB is minimal.

    The word in the halls over coffee was that recent events such as London winning the 2012 Olympics and the London tube bombings, are causing the UK Government to re-think its mobile TV strategy. Mobile TV could have a positive use in mass crowd control, telling people what to do should another terrorist attack happen.

    In the next 12 months, Nokia will be hoping for a change in policy.

    Nokia
    Ofcom
    Spectrum Framework Review: Implementation Plan – Interim Statement
    Digital One

  • Call forwarding and more added to PC Skype v1.4

    Call forwarding and more added to PC Skype v1.4Skype has today announced a new version of their Windows release of Skype.For the first time, several more functions are added to make Skype both a more serious communication tool, and at the same time, more frivolous.First the serious side. v1.4, which has been in beta since August, includes call forwarding for when you aren’t sitting by your computer, or if you’re a little more advanced, you’ve dropped out of WiFi range on your handheld version. If Skype finds you unreachable, you can set it to forward your calls to up to three landlines, or mobiles. The forwarding for the person initiating the call is free, with the Skype user paying for the privilege from their SkypeOut minutes.We see the Real Excitement is around the ability to forward calls from one Skype ID to another, giving the ability to have more than one Skype ID. Until now this had to be handled by all sorts of complexity of running two versions, separate from each other. Calls forwarded to another Skype ID are free.What the significance of the whole of Call Forwarding? Your SkypeIn number, or Skype ID becomes your first point of contact, something we’ve seen before with Unified Messaging (UM). UM didn’t set the world alight when it came to techy attention 2-3 years ago, but Skype has timed this perfectly, realising that people are now ready.Call forwarding and more added to PC Skype v1.4Personalisation
    Personalise Skype allows, in Skype’s words, “callers to easily express themselves with original pictures, sounds and ringtones for as little as 1 euro ($1.20).” Quite why people need to fall back on pictures, sounds and ringtones to express themselves on a service that is all about communication is a little beyond us. Perhaps we’re not the target market.We suspect the allure of the global ringtone market being forecasted to grow to $5.2 billion in 2006, and ringtones now accounting for over 10% of the $32.3 billion worldwide music market (Arc Group) gives us a strong clue as to the reason it’s being offered.We’ve had a good look over the new version of the software and can’t find out where Personalise Skype is configured. Perhaps they’re bringing it on later.Quite how this will work will the add-on handsets that are currently on the market is unclear, but we suspect they will continue to have a single tone to alert of all calls.Call forwarding and more added to PC Skype v1.4Skype users love it
    Skype has taken this release to tell the world how much Skype users love it, and how frequently they call on it. The figures, from an unnamed, independent study, are as follows

    Skype is used once or several times a day by 76% of its callers, far surpassing the usage levels of traditional IM-based voice calling services. Callers also recognized Skype’s leadership in sound quality – 72% of Skype users consider call quality to be good to excellent. Skype callers are more international, with 85% communicating with people living abroad. Skype’s broad base of early adopters are eager to embrace new features, with 79% interested or very interested in receiving calls from landlines, and 73% interested or very interested in adopting call forwarding, key innovations unique to Skype.

    Other goodies
    We’ve noticed a couple of other additions, not highlighted by Skype themselves. A marketing line appearing on the Skype player just above the box to type in phone numbers has appeared. And a feature previously achieved via a plug-in has hit the main product – Auto pause for music playing on WinAmp appears – we don’t recall seeing previously.As the world-and-his-wife knows, Skype sold to eBay recently for a _huge_ amount of money.Strangely, when we first clicked on ‘Check for Updates’ on one of our copies of PC Skype, we received the message that we had the latest, despite it running v1.3x. Checking again later we were offered 1.4.0.71.This looks like another serious upgrade to the Skype family. Another step forward to world domination.Skype

  • SanDisk ‘Gruvi’ TrustedFlash: Content On Memory Carts

    SanDisk 'Gruvi' TrustedFlash: Content On Memory CartsSanDisk have unveiled their “fingernail-sized” new TrustedFlash cards, a technology that embeds Digital Rights Management (DRM) and decryption technology into memory cards, and also includes a subscription manager enabling the cards to be used for digital subscription music services.

    Speaking at the CTIA Wireless show, SanDisk Chief Executive Eli Harar said, “We think this will be a disruptive technology, but will enable a whole new world of opportunities in the mobile market.”

    “Today content is locked to play back on one device. Now we have the freedom to enjoy content on whatever device consumers want to use,” he added.

    Harar stated that the TrustedFlash card would act like current SD cards, with the technology able to be extend into on-demand content such as feature films and online games.

    Despite their speck-like proportions – a mere 18 mm long and 2g in weight – the cards can offer enough storage space to hold thousands of DRM-protected MP3, films, photographs or games.

    The “Gruvi” (what?!) cards use the micro SD card interface so they can be slotted into mobile phones, GPS devices, MP3 players and computers.

    Users of the card could, for example, buy a video online, view it on their home PC, save it to the TrustedFlash card and then slap the card into their PDA/smartphone for watching on the move later.

    SanDisk 'Gruvi' TrustedFlash: Content On Memory CartsSanDisk are also hoping that content providers like music companies, film suppliers and mapping data companies will ship preloaded Gruvi cards with the content protected against copying by TrustedFlash.

    The first batch of cards using TrustedFlash will be preloaded with the Rolling Stones’ new CD “A Bigger Bang,” due for a November release with the 265MB card costing $39.95 (£22, €33) – What?!? How Much?!?

    The Stones’ release will also hold four additional albums that can be unlocked for an extra fee.

    SanDisk hopes that the new cards – expected in the UK by Christmas – will eventually reduce the costs of buying music.

    Pedro Vargas, SanDisk’s director of mobile entertainment, said that the price was justified by the extra capacity and flexibility on offer, and that he expected prices to drop over time.

    In the future, the cards could be used to play content from subscription music services such as Yahoo Music and Napster.

    Subscribers could download the DRM-protected songs onto the chip and play them back on any suitably equipped MP3 player, with the DRM continually checking the subscription status (so if the subscriber hasn’t kept up with their payments – whoosh! – no more music!)

    SanDisk are producing the new cards in capacities ranging from 256MB to 4GB and expect them to debut in October followed by a complete rollout to be completed by March 2006.

    SanDisk