Geographic

iTunes Becomes Seventh Largest US Music Retailer
Apple’s iTunes online store has been ranked the seventh-largest music retailer in the US in the third quarter, charging into the top 10 for the first time.
According to research from the NPD Group, iTunes Music Store has climbed from fourteenth place last year to overtake many US High Street music stores.
Based on the number of songs sold, Wal-Mart, Best Buy, Target and Amazon.com remained the top four, although iTunes rising star is expected to overtake more stores by the end of the year.
Already eating iTunes’ dust are big names like Tower Records and Borders, reflecting music fans’ growing passion for online music.
“With the growing interest in digital music, forecasts of more iPod demand this holiday, plus the stocking-stuffer appeal of iTunes gift cards, we can expect Apple to increase its share even more by year’s end,” predicted Russ Crupnick, music and movies industry analyst for the NPD Group in the report.
Launched in April 2003 to offer downloadable tracks to users of its best-selling iPod digital music player, Apple has sold more than 600 million songs, with the service boasting more than 10 million iTunes account holders.
Combined revenue from the iPod, Apple’s fastest- selling product, and iTunes music accounted for a massive 40 percent of sales last quarter, up from 27 percent a year earlier.
Steve Jobs has confirmed that Apple have already shifted over 30 million iPods since the product launched in 2001.
iTunes
23 November, 2005
Mydeo Signs Tiscali In Home Video Sharing Deal
Mydeo, the UK consumer video streaming company, has teamed up with UK ISP Tiscali to offer streaming video sharing services to broadband users of the UK Tiscali Website.
Available within the Community, Members and Technology areas of the Tiscali.co.uk site, the co-branded service will let users add home videos to their Websites, blogs or personal Webspace areas, and send streaming video emails.
‘Streaming is perfect for sharing home videos on the web because it allows users to show people their videos without giving the files away. Downloading not only means waiting to watch but, for the publisher, it also means you lose control of your content,’ enthused Cary Marsh, Managing Director and Co-Founder of Mydeo.
‘We know how important this is to our members sharing personal and family videos,’ Marsh added, earnestly.
The accent is definitely ‘family videos’ here. Unlike some of the other services that have sprung up since Mydeo first started, the video on it are definitely on the respectable side. It’s the sort of place you’d be happy to point your family to without them seeing anatomy shots or someone having their head cut off.
Members will be able to stream their cinematic masterpieces on a pay-as-you-go basis, and will only have to shell out when they choose to upload a video. Users can pay in Euros, UK Pounds or US Dollars.
Once on the server, members can blast out their captivating home videos in customised video emails to lucky recipients.
We’ve learnt that the deal with Tiscali is a one-way exclusive, i.e. Tiscali can’t use another video sharing services, but Mydeo can work with other ISPs. It’s our understand that Mydeo are in discussion with other broadband ISPs, who we’re told are showing a lot of interest in carrying the service.
‘We are very pleased to be able to bring such an exciting and innovative service to our users. Streaming video and broadband are a natural fit,’ purred a deeply chuffed Alex Hole, commercial director of Tiscali UK.
“Mydeo is really easy to use and offers lots of help and support for our members who may be putting video on the Web for the first time,” Hole insisted.
With the Mydeo service already integrated into the popular Windows Movie Maker 2 package, the process of uploading videos should be fairly straightforward for Windows XP users.
Mydeo are the only European supplier of streaming services to Microsoft Windows Movie Maker 2.
The company claims that their service lets the “humble home video maker” enjoy the “quality and reliability of a world-leading streaming network, something they would never have been able to purchase as an individual.”
Mydeo
Tiscali
23 November, 2005
Royal Mail: Internet Fuels Growth Of Paper Catalogues
The Internet was supposed to herald in an age of paperless offices, online browsing and tree-untroubling electronic mail, but it seems that when it comes to flogging goods, the trusty old print catalogue still rules the roost.
According to new research from the Royal Mail, online retailers will be looking to stuff your letterbox full of paper catalogues before Christmas in an attempt to drive up sales over the festive season.
In a survey conducted by the Royal Mail, more than 20 online traders – including big names like John Lewis Direct and Firebox.com – were asked about their marketing strategies.
The survey found that old fashioned catalogues remain one of the most effective promotional channels for generating online orders, with 60% of survey respondents currently licking stamps on catalogues and brochures to be sent to customers in an attempt to increase online sales.
Of course, the Royal Mail has something of a vested interest in promoting these figures, but we have to admit that we always prefer to flick through a glossy print catalogue than stare at a screen. And, of course, it’s a bit trickier to take a laptop to the loo for a bit of furtive, at-work browsing for gifts.
The Royal Mail also found that some 36% of consumers agreed that having an online catalogue makes them more likely to purchase something from a retailer’s website.
Additionally, the survey revealed that 55% of retailers planned to follow the annoying trend set by High Street stores and “extend” the Christmas buying period by encouraging consumers to buy earlier (If only we could “extend” the Christmas holiday period too).
Record earnings are predicted for online retailers this year, with UK shoppers leading their European counterparts when it comes to online shopping.
Around 80% of consumers are expected to buy at least a quarter of their Christmas purchases online this year – up a mighty 15% over last year.
Royal Mail
22 November, 2005
Cisco and Scientific Atlanta Converge
Convergence took a step forward Friday past as Cisco announced the takeover of Scientific Atlanta (SA). The price? $6.9 billion cash.
SA shareholders don’t get a big premium (around 4%). The markets had already priced the shares to allow for a takeover talk, of which has been ongoing for some time – Sony being rumoured as one of the prospective suitors. Conversely, Cisco stockholders aren’t too enthused with the takeover, and see the cable business as riskier than the high margin routers that have been Cisco’s cash cows.
The acquisition looks a good fit though, Cisco are keen to push their IPTV proposition, SA’s strength in the US set-top-box market (they have around 40% market share) will allow them to capitalise on the access to the home that video brings. The companies’ combined news release majors on this, John Chambers, president and chief executive officer of Cisco Systems said “Video is emerging as the key strategic application in the service provider triple play bundle of consumer entertainment, communication and online services.”
The release also notes that the coming together of the two companies “creates a world class, end-to-end triple play solution for carrier networks and the digital home”
Formed in 1951, SA has long been a market leader in Cable TV, has a healthy balance sheet and already has one large IPTV customer in the shape of SBC Communications. The critical mass of SA as part of Cisco should help it win more.
Expect both Motorola (SA’s main US competitor) and Microsoft to consider how best to respond to this strategic move by the dominant Internet hardware backbone provider.
Cisco
Scientific Atlanta
21 November, 2005
Hauppauge Nova-s PC Card Offers Freesat TV Via Sky
Hauppauge Digital have whipped out a new add-on card to convert a boring old PC into a multimedia-tastic satellite TV receiver.
Their new WinTV Nova-s card receives free satellite channels (the -s is for satellite), and will work with Sky’s Freesat, that give free access to the unencrypted channels on Sky, which are currently all of the BBC offering and soon ITV (hopefully). Sky normally charge you £150 for the privilege.
Once they’ve shelled out for the £59.99 (~$103, ~€87) decoding device, punters won’t need a viewing card or subscription fees to enjoy free satellite transmissions on their desktop.
The card is aimed at consumers who already have a satellite dish stuck on their roof/wall, with Hauppauge suggesting that the WinTV Nova-s would be ideal for a PC “in the kitchen, study or bedroom as an additional digital TV.”
Owners can watch full screen satellite TV on their desktop, or have a smaller window open whilst trying to work on something else (yeah, right: who’s going to carry on working on their VAT return when there’s some top notch footie onscreen?!)
The Nova-s is compatible with Microsoft’s Windows XP Media Center Edition, and also offers the option to record shows to the PC’s hard disk. It will also work with all-round media handlers like ShowShifter.
At the moment, the Hauppauge’s WinTV Nova-s can receive all the BBC TV channels (including One, Two, Three, Four, CBBC, Cbeebies and BBC News24 and Radios 1 to 7.)
ITV currently encrypts, or scrambles, its satellite transmissions using the service provided by Sky, but will soon be following BBC’s lead and broadcasting its channels without encryption, so they can be viewed any satellite receiver.
This means that ITV1, ITV2, ITV3 and the ever-fascinating Men&Motors will become available soon, with more channels to be added in 2006 when Freesat officially launches.
Freesat will be the satellite equivalent of Freeview,” said Yehia Oweiss, Managing Director of Hauppauge Digital. “Already broadcasting BBC, the service will be available to all UK households and bring free digital TV to the 25 per cent who are outside Freeview’s area. Consumers can buy our Freesat tuner now and enjoy many digital channels now, with more being added all the time.”
The WinTV Nova-s looks reasonably future proofed too, offering HDTV (High Definition TV) compatibility, with HDTV broadcasts expected to be delivered by satellite in 2006/7
Freesat’s EPG (Electronic Programme Guide) will be made available on the Hauppauge card, but for now the information can be downloaded through the Internet.
The Hauppauge WinTV Nova-s also provides a video input socket for slapping in a camcorder and digitising the content into MPEG format for editing and burning to DVD.
Hauppauge
Showshifter
21 November, 2005
Digital Dividend Review: Ofcom Look At Spectrum Use After Analog TV Switch Off
Now that the Government has hit the ‘go’ button for switchover there are plenty of people anxious to know how the released spectrum will be used – and thereby how we will realise the value of it for UK plc.
In an attempt to address this issue Ofcom announced today the beginning of the Digital Dividend Review (DDR) – the project which will examine the options arising from the release of spectrum afforded by the digital switchover programme.
Ofcom estimates that the digital switchover programme will release up to 112 MHz of spectrum in the UHF (Ultra High Frequency) band for new uses. The UHF band is prime spectrum, because it offers a technically valuable combination of capacity (bandwidth) and range.
Ofcom say,
“The cleared spectrum – the Digital Dividend – offers real opportunities for wireless innovation.”
The Digital Dividend could enable the launch of a wide range of different services. Ofcom’s examples include:
- New mobile services, with high quality video and interactive media delivered to handheld devices
- Wireless broadband services, with high-speed data and voice services
- Wider coverage for advanced services in remote and rural areas. This spectrum is particularly suitable for low cost, wider-area coverage
- Advanced business and broadcasting services, such as those used to support major sporting events
- Additional television channels including possible High Definition (HD) channels carried on Freeview
Ofcom point out that this is not an exhaustive list – which will please HM Treasury since the greater the potential uses and users the higher the value likely to be realised from auctioning it.
On this point, Ofcom have a tricky job since they will have to ensure that there is enough incentive to investing the development of a particular wireless technology with no guarantee of it actually securing an allocation of the spectrum required – however it should be noted that Ofcom have stated that they will also begin work on a new auction design, with a view to ensuring that the spectrum is acquired by users who are likely to make best use of it – (i.e. best use = greatest value) – not sure how HMT will view this.
This approach means Ofcom will:
- Consider the potential uses for the available spectrum
- Set out the technical limits on spectrum use to prevent potential interference
- Draw up packages of frequencies that give flexibility to the market
- Design an efficient auction/allocation process
The proposed timetable for DDR is:
- Digital Dividend Review (DDR) begins – November 2005
- Programme team and consultants in place – end 2005
- Stakeholder meetings begin – Jan-Feb 2006
- Outcome of RRC – June 2006
- Digital Dividend Review completed – Q3 2006
- Ofcom publishes final proposals – Q4 2006
- Digital switchover programme begins – 2008
- Digital switchover programme completed – 2012
Luke Gibbs writes regularly for Ofcomwatch.
Ofcom Digital Dividend Review
17 November, 2005
Search Safe: UK Gov Advises Parents
The Home Office’s Internet Task Force yesterday published guidance aimed at advising parents on how to keep children safe when using the Internet, mobile phones or other means.
The simple document covers:
- What an Internet search actually is, why users sees the results they do and how search is generally made available on the internet
- Advice for parents and carers on safe searching
- Guidance for service providers and what they can do to make searching on the internet as safe as possible for children
The document discusses the variety of searches you can make and how this affects the results you get.
It also provides practical guidance on how to use search effectively but safely, for example, by monitoring or filtering your search results.
Home Office Task Force on Child Protection on the Internet: Good practice guidance for search service providers and advice to the public on how to search safely (PDF)
16 November, 2005
UK Gov Wants Your Views On Content Protection And More
Ladies and Gentlemen, start your word processors …
The House of Commons’ Culture, Media and Sport Committee today announced a new inquiry into the challenges and opportunities for the creative industries arising from the development of new media platforms.
For the purposes of the inquiry, the term “creative industries” includes music, visual broadcasts, sound broadcasts, film, graphic art, design, advertising, fashion and games software.
The Committee is particularly interested in receiving evidence on the following issues:
- The impact upon creative industries of recent and future developments in digital convergence and media technology
- The effects upon the various creative industries of unauthorised reproduction and dissemination of creative content, particularly using new technology; and what steps can or should be taken – using new technology, statutory protection or other means – to protect creators
- The extent to which a regulatory environment should be applied to creative content accessed using non-traditional media platforms
- Where the balance should lie between the rights of creators and the expectations of consumers in the context of the BBC’s Creative Archive and other developments
Written submissions are invited from any interested organisation or individual by Thursday 19 January 2006.
Submissions should give the name and postal address of the person sending the memorandum and should state whether it has been prepared specifically for the Committee. If the memorandum is from an organisation rather than an individual, it should briefly explain the nature and membership of the organisation. The Committee may publish some of the submissions it receives.
For more guidance on the preferred format, see http://www.parliament.uk/commons/selcom/witguide.htm
Submissions should be sent to the Clerk of the Committee at the address below.
Kenneth Fox
Clerk of the Culture, Media and Sport Committee
House of Commons
7 Millbank
London SW1P 3JA
[email protected]
Luke Gibbs writes for Ofcomwatch.
16 November, 2005
Will ADSL2+ deliver in the UK?
The rollout of ADSL2+ in the UK appears to be going through a reverse-hype process, with people saying it’s not going to deliver high speeds to most people. That may be partially true, but in urban areas where people are within 1.5Km of the exchange they should get 20Mb/s+.
These speeds are enough for multi-channel HDTV. At the extreme end (extremely optimistic end?), we’ve seen Microsoft demonstrate what they call near-HDTV running at 1.5Mbps. A more ‘normal’ size for HD will be running at 2.5-4Mbps.
We can see that the delivery to the home isn’t a problem, but the back-haul (speaking between the exchange and the content provider) is another matter. Unless intelligent delivery and caching is used, shipping that amount of content to all of your customers gets very expensive.
Most people do seem to be ignoring QoS though, as having 20Mb/s downstream and 1.3Mb/s upstream is still useless for VoIP unless some of that bandwidth can be guaranteed so the voice traffic doesn’t get mixed in with everything else.
Using traditional CoDecs and then packetising them uses more bandwidth than over traditional telephony links. VoIP bandwidth can be squeezed to much lower levels, but then the calls are not what’s called toll-grade.
Broadband providers moving into VoIP are going to need to look long and hard how they actually implement services such that they are competitive (in terms of call quality) with existing analogue lines.
15 November, 2005
UK Digital Switchover Costs: Ofcom Report Questioned Again
Matthew Wall of the Sunday Times Doors section hammers Ofcom over the regulator’s recent report on digital switchover cost and power consumption issues. Wall labels Ofcom’s report a ‘dubious attempt to play down the true costs of switching…’
Read for yourself folks, but basically Wall claims that The Times / Doors estimates the digital switchover costs at about one billion GBP, while Ofcom’s report claims a ‘pie in the sky’ figure of 572 million GBP. The tone of Matthew Wall’s piece is aggressive and he suggests Ofcom is deliberately playing down the true costs of digital switchover.
My comments: Wall needs to be careful in his accusations. Ofcom did not author the report at issue. Instead it was authored by Scientific Generics. While I don’t know if this is the case with this particular report, in the past Ofcom has published third-party research without endorsing the conclusions contained therein. In particular, Ofcom’s recent third-party produced report on the Television Without Frontiers Directive proposed revisions was merely put on the internet as an interesting report for public viewing and comment. The regulator informed me that the TVWF report was useful third-party data but did not contain Ofcom’s views, per se.
That being said, Ofcom need to do a better job at handling third-party research. Some suggestions:
1. These types of reports should be tendered in a public manner. How do these research projects get sourced? I’d like to know…
2. Ofcom should publish how much it pays for these types of reports. I’ve mentioned this before and the reasons Ofcom gives for not reporting how much this research costs are not convincing.
3. The significance (or lack thereof) of these reports should be plainly stated. Similarly, if Ofcom is not necessarily endorsing a particular report’s conclusions, it should plainly state that fact. An ‘evidence-based’ regulator should be very clear as to how it treats these findings made by third parties. If the Scientific Generics report is not endorsed by the Ofcom Board, but it is merely one of many research inputs on the issue of digital switchover costs, then Walls’ claims are clearly overstated. However, it’s hard to blame the press when reports like these are published on the Ofcom website with no disclaimers, giving them the imprimatur of Ofcom approval.
On the merits, I think people should stop bellyaching about the cost of digital switchover. No expert can seriously claim to accurately predict the true cost: Qui numerare incipit errare incipit (He who begins to count, begins to err). Anyway, the cost is not the real problem – the real problem is that Freeview stinks as a platform and Wall is correct when he observes that the U.K. government tends to assume it is the standard of the future. But that’s just my opinion.
Russ Taylor writes for OfcomWatch
14 November, 2005