Category: Geographic

Microsoft Media Player-free Windows in Europe from January

Microsoft has lost its appeal to block antitrust sanctions, originally imposed by the European Commission (EC) in March this year.

Back then, along with a record-breaking near 500m Euro fine, the EC insisted that Microsoft should release two version of their Windows operating system, one without the media player built in and one without. The EC see Windows as the dominant computer operating system and want to try to ensure a more level playing field with the playback of digitally held audio and video. Some networking communication protocols were also opened up to compulsory licensing.

The ruling won’t be a surprise to Microsoft but an unhappy result all the same. When we spoke to senior European Microsoft people back in September, they felt this action was likely, but were spinning a line saying that two version of the OS would confuse the public.

It’s possible that the impact on the consumer may be close to zero. Philip Carnelley, research director with Ovum pointed out an interesting possible problem, “The way that part of the ruling was phrased doesn’t prohibit Microsoft from supplying Windows with Media Player at the same price as the version without, so there’s very little room for competition in the market place. If you can get something for free, why would you not take it?” The pricing issue was confirmed in a teleconference held with Microsoft general counsel, Brad Smith.

Smith revealed that company lawyers wanted to look more closely at the 90-page decision before deciding whether to appeal. Smith confirmed that Microsoft would begin complying with the decision immediately, with a version of Windows that doesn’t include Media Player software being made available to European PC manufacturers in January and to resellers by February. Outside of Europe they have no plans to offer a version of Windows without Media Player.

One long term worry for Microsoft could be that this ruling leaves it open for Europe able to question which extra bundled software could or should be included with Windows.

We’ve got a couple of question about the impact of this ruling:-

The Media player part of the ruling appears to only cover “Client PC’s” versions of Windows, not PDA’s or mobile phone version. We think the EC missed a trick here. If anything, the PDA or mobile player would be of more value to change, given its relative high market demand, than the less-than-furiously fought “Client PC’s” space. This oversight could be due to the age of the original legal action, instigated four years ago, when having media play back on a portable device wasn’t at the forefront of peoples minds.

It is not immediately obvious which media player company will benefit from the removal of Microsoft media player. The only major PC maker to currently install Apple’s QuickTime player is HP, following their iPod deal. As far as we’re aware, Real player doesn’t have deals with major computer maker. Perhaps given this ruling they will accelerate their efforts and other entrants will be stimulated to enter.

A confusing thought for you over the holiday period – will there be version of Windows Media Center Edition available Europe without Windows Media player! FYI – When we contacted the Microsoft team in Brussels said they didn’t think so.

Microsoft ruling, Court of First Instance Order on Interim Measures – Court of Justice of the European

Cellular Phone Emissions Damage DNA, Study Finds

A new study, majority-funded by the European Union, has found that in laboratory conditions, radio waves from mobile phones harm body cells and damage DNA, reports Reuters.

When tested in a laboratory, the cells showed a significant increase in single and double-strand DNA breaks after being exposed to electromagnetic fields that mobile phones emit. Some of the damage couldn’t be repaired and “there was remaining damage for future generation of cells,” said project leader Franz Adlkofer.

Despite what appears to us as being quite worrying information, the researchers said the study did not prove any health risks and suggested it “require further studies.” He recommended using a landline if available and an earpiece if using a mobile.

The cellular phone companies have always asserted that there is “no conclusive evidence of harmful effects as a result of electromagnetic radiation.”

Perhaps there’s nothing to worry about. The stock market certainly doesn’t appear to be concerned by the news, if Nokia’s stock is anything to go by.

I wonder if the mobile phone companies have taken out insurance in the case that mobile phones are proven harmful to human health? If so, wouldn’t it be interesting to find out what the value of coverage was? [email protected]
Mobile Phone Radiation Harms DNA, New Study Finds – Reuters

BT Wholesales 4m ADSL Connections

BT has, through its arrangement with over 150 broadband providers, delivery four million ADSL connections in the UK. This figure also includes connections sold directly to the public by BT Retail.

BT say they are connecting a new customer every 10 seconds, equating to an average of nearly 60,000 new connections each week.

The last million milestone was only back in August 2004 when three million connections were announced. A million new connections in one quarter is pretty good.

Currently there isn’t really any competition for BT Wholesale, although some companies are starting to make early moves with specialist services like UK Online.

We see this as another in the long running back and forth between BT and OFCOM. BT tells the press “No BT would equal No Broadband” (as Christopher Bland did to the Telegraph), OFCOM tells them to trim their prices. Is their any co-incidence that BT issued this news on the heals of OFCOM ordering BT to cut the cost of third party access to the customer, opening the market for strong competition for BT Wholesale?. As the Guardian commented

At the moment BT is the gatekeeper to all but 16,000 of the UK’s 25m phone lines, and charges for access to them. The telecoms operator suffered a blow six months ago when it was forced to lower the prices it charges for access to its network. Ofcom is aiming to get a system in place next year that will see 1 million lines unbundled a year.

Will BT continue to be so strong with meaningful competition?

Creative Archive Gathers English MP support

The Culture, Media and Sport Committee of the UK House of Commons today released the first volume of its report, “A public BBC.” The committee, made up of eleven cross party Members of Parliament (MP), has taken evidence both written and through expert witness panels going back as far as May 2004.

The 87-page tome contains a lot of interesting and insightful comments from the MPs which are going to take a while to digest. One of the manageable chunks is on the Creative Archive and being long term supporters of it, it drew our eye.

The support from the MPs appears strong, but there’s few items that cause us confusion bordering on concern like the executive summary

7. We strongly welcome the BBC’s proposals for a Creative Archive, and agree that access to this should be free for non-commercial applications. We look to the Corporation to develop, in cooperation with intellectual property owners, innovative solutions that appropriately balance the interests of rights holders with those of the wider public. Digital rights management is a key issue in the modern media environment, and we recommend the DCMS establish a forum for assessing its implications.

We’re slightly confused as to why Digital Rights Management (DRM) is being mentioned in the same paragraph as the Creative Archive. Are these separate items that have just been mentioned in the same paragraph or is their suggestion that the Creative Archive material has DRM applied to it? One of the central ideals of the Creative Archive is the ability for the UK public to load the downloaded content into their video editing packages and create new content. How is this to be achieved if DRM is applied to the content?

Much of this may become clearer when the BBC starts a trial of the Creative Archive in January 2005 as re-announced on 24.Nov.04 by Mark Thompson, Director-General, BBC.

We’re going to be doing some more digging tomorrow to try and get some clarity on this.

Details of material about the Creative Archive

62. In Building public value, the BBC commits to launching a Creative Archive, providing “free access to BBC content for learning, for creativity, for pleasure.” The BBC’s ambition is that, starting with factual material, online access for non-commercial applications will eventually extend across all areas of its output.

63. The Electronic Frontier Foundation espouses the benefits that will accompany the establishment of the BBC’s Creative Archive, and supports its becoming a core element of BBC services. Ultimately, this could comprise the whole of the BBC’s extant archive of radio and television programming, placed online under a licence that permits non-commercial distribution and re-use of this material by “remixers”. This open licensing system is similar to that deployed by the Creative Commons initiative, a system of “some rights reserved” copyright. And it is possible that, by enabling non-commercial exploitation, there is created “a gigantic and clever series of advertisements for the commercial rights” associated with the works.

64. The Creative Archive brings to the fore what Professor John Naughton termed the “maniacal obsession” with intellectual property. In his view, the copyright industries “see digital technology as an unprecedented opportunity to extend control over how copyrighted material can be used to a degree that was inconceivable in an analogue world.”

65. In written evidence, the Music Business Forum expressed concerns that such initiatives should not be allowed to “ride rough shod over the copyrights and performers’ rights of those who contribute to BBC programmes”. There had to be provision for rights holders to be paid for the additional use of their work through access to archives. This should be the case whether in the form of repeat broadcasting fees, extensions of the collective bargaining agreements in place for the payments of revenue for secondary uses, or through the negotiation of clearance for the right to exercise new rights on individually negotiated commercial terms. The BBC ought to consider the case for the implementation of encryption and digital rights management applications in order to counter growing piracy – whether via internet or personal video recorder downloads. The MBF is concerned that while this is available free and unpoliced, commercial download services will be unable to compete and artists, writers and the other creators will have no means of getting paid. “The BBC, as a publicly-funded organisation, has a responsibility to be seen at every opportunity to be upholding the systems of rights that operate in the UK, not least to act as an example to others. The licence fee does not of itself authorise licence fee holders to the free use of BBC output in whatever way they wish.”

66. We strongly welcome the BBC’s proposals for a Creative Archive, and agree that access to this should be free for non-commercial applications. We look to the Corporation to develop, in cooperation with intellectual property owners, innovative solutions that appropriately balance the interests of rights holders with those of the wider public. Digital rights management is a key issue in the modern media environment, and we recommend the DCMS establish a forum for assessing its implications.

Culture, Media and Sport Committee report, “A public BBC”

UK Households Buying Second Digital TV, Ofcom

In Ofcom’s morning release of its third quarter figures for digital TV (dTV) penetration in the UK, they’re reporting an estimated 55.9% of UK households now have dTV in some form.

The dominant provider of dTV in the UK is still Sky, with over 7m subscribers, although they have only added 53,000 more in the quarter.

With just short of 4m households is Freeview (the UK Free-To-Air Digital Terrestrial Television service), which exceeds the combined analogue and digital services of UK cable TV providers NTL & Telewest. Pure digital cable is running at 2.5m subscribers.

One of the big concerns with digital switch off has been going beyond the first dTV set in the house. It was fine to say that over 50% of UK households had digital TV, _but_ given that the UK average is 2.5 sets per household, what was going to happen to the analogue sets that were left? There might be a lot of unhappy people not able to watch TV the day after analogue switch off.

The latest figures bring good news to those worried about this. Around a quarter of new sales of Freeview went to homes that already have one digital TV. With the pricing of the Freeview Set Top Boxes (STB) starting from as little as £49 (~$95, ~€71), households must be finding the content on Freeview compelling enough to want also have it in the kitchen, bedroom or child’s room.

What isn’t clear from the figures, is if the original dTV set was Freeview, Sky or cable. We contacted Ofcom to dig a little deeper, only to find that they “don’t dig that deep” into the figures. One thing that did become clear during the chat, was that Sky household’s that purchase a second box are not broken out at all, but are just added to their overall subscriber base numbers.

Full Ofcom Digital Television Update – Q3 2004

UK Film Council Launches “Film Theft in the UK” report

This morning the UK Film council launched a 94-page report containing 30 measures they feel will help defeat the spread of unauthorised film copying in the UK.

Compiled by the Anti-Piracy Taskforce convened by the UK Film Council, it contains suggestions of short, medium and long-term actions aimed at the UK Government, the UK film industry and, what they call, “Government-backed and other film sector stakeholders”. Started in Summer 2003, it has taken nearly 18-months to complete.

The report is being forwarded to The Creative Industries Forum on Intellectual Property, which was launched by the UK Government in July this year. Headed by the Department for Culture, Media and Sport, Department of Trade and Industry and Patent Office, the group contains Ministers from eight Government Departments including the Treasury and Home Office.

There is clearly a large problem with DVD’s being commercially copied and offered for sale in the UK. We’ve been surprised in the past, when offered copied DVD’s of many feature films. A while back one of the writers at Digital Lifestyles was offered the then unreleased Incredibles, a Pixar film, by an Oriental lady with a bulging bag of DVD’s with colour photo copied covers. The price for this unreleased film? Just five pounds. This was made all the more cheeky by us being a stones throw from the centre of the UK film industry.

For research we bought one, and found the audio quality to be terrible at the start of the film. Persisting, we were later amused to see the classic “Bloke off to the toilet” head raise up and pass in front of the screen, only to return 10 mins later. From the size of the mystery person, it was clear that this has been shot in a small private screening room, probably during a preview, possibly from within the projector room. The likelihood was that this wasn’t shot by a member of the public, but by someone within the industry.

When discussing the availability of commercially copied DVDs with others, we heard that there are regularly stalls on the high street in Kilburn, London that are openly selling copied DVDs, with the police walking past not taking any notice.

Based on figures from Federation Against Copyright Theft (FACT), the report estimates the value of black market in pirate DVDs in the UK to be £400-£500 million in 2003 and they expected it to exceed £1 billion within three years, based on their retail price. In the full report (yes, we read it) they list the main sources of copied DVD’s to be Pakistan (36%), Malaysia (31%) and China (14%).

We found it very confusing that the authorities or the film companies didn’t appear to be taking, or even publicly threatening, actions against commercial copiers, when there was considerable noise being made about the imminent death of the film industry being caused by file sharing networks. It’s more than obvious that the current installed base of DVD players is significantly bigger than those with computers and a broadband connection.

Down to their suggested actions. They felt that trading standards don’t have enough powers to combat trading in copied films and would like them to have more. There are a couple of suggestions to clamp down on car boot fairs (public markets where individuals turn up, pay a fee and sell their goods) including; ensuring that people registering to sell be over 18 (they say that currently children under 14 are being registered as the stall holders, and legal action cannot be taken against a child under 14); making the registration of car boot fairs compulsary; and there being powers to close down car boot sales where pirate DVDs are persistently sold, which they told us would be a “last resort measure.”

Some of the points mimicked ideas running in the USA, such as making the act of camcording in a cinema a clear criminal offence (it is currently a civil offence) and providing incentives for cinema staff to look for unauthorised camcorder usage.

It was encouraging that some of the problems that are normally glossed over were addressed. To this end, one of their short-term suggestions is to conduct a thorough review of security risks in the film making process, looking to develop improved security procedures for the handling of film prints and digital materials.

Despite a whole chapter in the reports appendix “Learning from the music industry”, we were disappointed to see that “Developing clear commercial strategies in relation to Internet Film Distribution” was only listed as a medium-term goal. Indeed, when we spoke to the UK Film Council, we were further disappointed to hear the same old delaying arguments of “when the technology is in place and the broadband market is significant” being rolled out. It’s clear to all who pay any attention to this area that this point has already been reached otherwise, people wouldn’t be swapping films online, was met with a blanket, non-committal response.

UK Film Council

LG opens European RandD Centre in Paris

The march of LG continues West with them setting up an R&D office in Paris (Reg.Req.), France. The advantages to them are plentiful; a stronger understanding of the needs of the European market; the forging of closer relationships with European network operators; having the cellular standards bodies on their door steps – ETSI (European Telecommunications Standards Institute) and 3GPP (Third Generation Partnership Project) are both based in Paris.

This will be their fifth R&D centre, following San Diego, Beijing, Bangalore, and Moscow.

LG profile has grown tremendously in recent years, and their handsets have been doing well. They hope the opening of this R&D centre takes them one step closer to being a ‘global top 3’ in handsets by 2006. On past performance it looks highly achievable – rival companies must be getting worried.

LG

European Networked and Electronic Media (NEM) initiative launches

How Europeans receive their digital entertainment in the future could change, following an event in Nice last week. At the launch of the bold and ambitious Networked and Electronic Media (NEM) initiative, the European Commission (EC) announced their intention to form an integrated, interoperable platform. Its broad scope stretches from the way media is created, through each of the stages of its distribution, to its playback.

The EC want its citizens to be able to locate the content they desire and have it delivered seamlessly, when on the move, at home or at work, no matter who supplies the devices, network, content, or content protection scheme.

With interconnectivity as its goal, it is fortunate that over 120 experts were there to share the vision and hear pledges of active support from companies such as Nokia, Intel, Philips, Alcatel, France Telecom, Thomson and Telefonica.

It might initially appear to be surprising that companies in direct competition are keen to work together, but again and again speakers stated they could not see incompatible, stand-alone solutions working. A long-term strategy for the evolution and convergence of technologies and services would be required.

The EC is being pragmatic in its approach. They have identified that many standards bodies have, and continue to, define standards in the areas that NEM encompasses, but recognise that some of these standards overlap. The NEM approach is to take a serious look at what’s available and what’s in the pipeline, pick out the best, integrate them together and identify where the gaps are. Where it finds holes, it will develop standards to fill them.

While the global access to content is not a unique idea, what is significant is that such a large and powerful organisation has stated its desire for it to be fully open and interoperable – not restricting the consumers choice at any stage in the process.

This is bound to please, if not surprise, many individuals and user organisations who feel that the wishes of the holder of rights to content are normally considered over and above those of the consumer. Following the keynote earlier in the week of EC Director João Da Silva, they now know they have a supporter within the higher echelons of the European Commission.

Many feel that the most difficult and challenging area for the EC will be to identify a solution for interoperating Digital Rights Management (DRM) schemes. Currently DRM solutions are incompatible – locking certain types of purchased content, making them unplayable on all platforms.

With the potential of having a percentage of every media transaction that takes place globally, the prize for being the supplier of the world’s dominant DRM scheme is huge. This leads the companies who feel they have a chance in controlling it to not be very open to sharing.

Although entertainment is an obvious first step, it will encompass the remote provisions of healthcare, energy efficiency and control of the Smart Home. The over-arching initiative amalgamates the work of many currently running research projects that the EC has been funding for a number of years.

The NEM is a ten-year project, which in the everything-immediately age we live in, might seem like a lifetime away, but it’s important to remember that the digital delivery of media stretches a long way into the future. Decisions made and solutions selected now will have far reaching consequences.

This piece was featured on the BBC Web site.

Online Documentary Channel Planned by UK Channel 4

The Chief Exec of Channel 4, Andy Duncan, has been floating the idea of launching an Internet-based documentary channel, that would carry archive footage from previously transmitted shows.

Duncan also announced that Channel 4 is to “double the amount it spends on ‘public service’ Internet sites”, which he revealed was currently in the low millions, reported Brand Republic.

We understand from Ofcom that the comments were made during their PSP pitching day.

Andy Duncan moved from the BBC, where he was the mastermind of the highly successful Free-To-Air service, Freeview. He’s been speaking publicly a lot about re-positioning Channel 4, although not all of his comments have been well received.

When Digital Lifestyles spoke to Channel 4 today about the Internet-based channel, there were still only sketchy details available; in their words it was “work in progress.” They did confirm that new programmes would be commissioned specifically for the site and that content would be downloadable.

Channel 4 told us more details will become available in the New Year and the launch is muted for Spring 2005.

Channel 4
Ofcom

Jo

In his keynote presentation at the Net-atHome conference in Nice, France, João Da Silva gave an overview of where Europe is with digital media within the home, what the trends are and where Europe would like to be in the digital landscape.

Da Silva is Director of (deep breath) Communications Networks, Security and Software applications, at the European Commission. His opening slide stressed the European Commission’s desire to create equilibrium between three parties, the consumer; technical suppliers; and content owners. They want to create a balance where the rights of the content owner and the consumer are protected, to try and level the current imbalance, as “there has been a tendency to protect the rights of rights holder over the consumer.”

Moving on to bandwidth, he declared that since July 2002 broadband in Europe has grown over 248%. Despite this he feels there is a danger of a digital divide over Europe – not between no access and some access, but a split of where there is broadband of decent speeds and where there is insufficient for the next generation of entertainment.

He highlighted the huge variation in pricing of broadband services over Europe, giving the example of the contrast between Belgium and France; the first giving a 3Mbps connection and the latter 150Kbps – for the same charge. While some felt this example wasn’t quite as simple as the headline sounds, as it ignored the population density of the two countries, it does point to disparity. He illustrated this further, with examples of companies moving their offices to get bandwidth. The message was clear, member states, get your broadband up to scratch or you’ll start falling behind.

The inevitable comparison with Asian markets was covered. Japan now offers 100Mbps over Fibre To The Home (FTTH) for €22/month (~$29, ~£15) and Korea offers 50Mbps over VDSL.

When discussing the explosion in content, Da Silva pointed to blogs as a major source of new entertainment – content created by the consumer, for the consumer. He quoted the growth of blogs running at rates of 20% per month and generating traffic of 8Gbit of traffic daily. The EC are generally excited about the growth in user-generated content, seeing it as a real option to, what is currently seen as entertainment.

Concluding his presentation, he reminded the audience that the European Commission’s Information Society Technologies (IST) programme has a four year research budget with a net worth of €4Bn (~$5.34Bn, ~£2.76Bn), equating to €1Bn year. He encouraged all with innovative ideas to apply.

European Information Society Technologies (IST) Net-atHome conference