Category: UK

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

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

i-mode UK Bound Via mmO2?

There has been some press speculation over the last day or so about mmO2 partnering with DoCoMo to bring their phone and content platform, i-mode, to the UK. Reuters reported that mmO2’s Chief Executive, Peter Erskine, had said last week that the company would decide by year-end on whether to introduce i-mode.

Things appear to have moved on, and this morning the Financial Times is more firm on the story, reporting that O2 will announce the deal next week. They say the service would start next year.

We spoke to mmO2 and their official comment was “the process is ongoing and we are still on schedule to announce before the end of the year”, so no big scoop for us there then. In conversation they did mentioned that the i-mode service has become more attractive over the years, since they last looked at it. Over that time the available range of handsets has increased significantly, it has driven up usage in the markets it has been deployed and the range of content available now for the platform has increased substantially.

[A brief interlude. Why is the company sometimes called mmO2 and other times O2? Let us clear up the confusion. mmO2 is the parent company that operates in a number of countries (UK, Ireland, etc). Its operating units in these countries are called O2. So, parent co=mmO2, local instance=O2.]

i-mode is a huge in Japan, where it has 42m users. Some even credit it with bringing the Internet to the youth of Japan. As home computer ownership previously wasn’t that large, the youth used their phone to get online.

It is already running in four European countries; Germany, France, Italy and Spain, although the take up figures haven’t been what you would call stunning, running at around 4m over the continent. The UK is a big gap in DoCoMo’s European coverage.

For content producers, the most interesting thing about i-mode is its content publishing model. Compared with other mobile platforms in the UK who can take as much as 50-60% of payments made by consumers, i-mode takes significantly less – in the low double digits.

It’s deals like this that are highly likely to draw content to mmO2 – it’s not wholly surprising that content producers will be inclined to get the most income from their wares as possible.

Given the current fashion among 3G watchers is to think that the winners in 3G will be those with the strongest content, a generous share of the income to draw in content owners could be a very smart move by mmO2.

DoCoMo
mm02

Sky Active re-launches with Significant Upgrade

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

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

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

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

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

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

Sky Active

Ofcom to BT: Equivalence or else

After a long period of deliberation Ofcom, the UK regulator, has come to its conclusion on the Strategic Review of Telecommunications Phase 2 (SRT 2 to those in the know). It won’t be forcing the split of BT Retail and BT Wholesale.

For a very long time, most companies in the UK telecoms market have bemoaned BT Retail getting a better deal from BT Wholesale (they own the network) than they were able to achieve. In the competitor’s eyes, the market hasn’t been balanced. Many felt that BT has been expert in ‘playing’ the regulator, especially Ofcom’s previous rendition, OfTel – only making changes just before they were forced.

In SRT 2 Ofcom investigated three options, Full deregulation; Enterprise Act investigation; BT to deliver real equality of access. They’ve come down on the side of the latter, in their words

“Ofcom calls on BT to provide prompt and clear proposals which will achieve these behavioural changes and bring about the level of confidence required.”

and if equality isn’t achieved, they threaten to use the second; an investigation into the market under the Enterprise Act 2002, with the potential for a subsequent referral to the Competition Commission.

In theory, when equal access to the network is given, the need for Local Loop Unbundling (LLU) to provide competing broadband services will be reduced.

When we spoke to Video Networks, the company behind the London-based IP VOD-services, they said the news today would “not impact their LLU plans”. EasyNet, a significant unbundler, didn’t get back to us before we went to press.

The SRT 2 is now open for public consultation until 3 February 2005.

It would appear that the threats from Christopher Bland, Chair of BT, in the Telegraph at the weekend that “No BT would equal No Broadband” were unnecessary.
Update: OfcomWatch comment

First 8Mb Broadband for UK Homes from UK Online

UK Online are today launching the UK’s first 8Mb consumer DSL service. Called Broadband 8000, it will cost £39.99 per month and is subject to a £50 setup charge.

The previous fastest consumer service in the UK was 4Mb but the vast majority of ADSL connections run at 512k, making Broadband 8000 sixteen times faster. Upload speeds remain at 400k matching higher speed services.

UK Online, who were established in 1994, aim to offer the service to 230 exchanges spread around the UK during 2005. This will covers 18% of the UK population, or 4.4m homes.

As of today, the 8Mb service is available from four exchanges; Walton-on-Thames, Surrey; Kingswood, East of Bristol; St Albans, Hertfordshire and Dinsdale in the Midlands.

Alternatives to BT’s broadband service are possible due to “Local Loop Unbundling” (LLU), where other companies place their equipment in telephone exchanges. Working with their unbundling partner EasyNet, they are planning to convert 10 exchanges a week, with the other exchanges being chosen on a demand basis. Chris Stenning told us “we encourage people to pre-register at the site”. A smart and logical move on their part and one that BT used in the earlier days of broadband when choosing the exchanges it would convert.

UK Online have wisely recognised that the broadband requirements have risen for many multi-occupancy households. As DSL users realise how much better the broadband experience is, their demand for usage increases. When a household has a number of members using the broadband connection at the same time, the currently standard 512k connection isn’t up to it.

We’re big supporters of any service that increases bandwidth to consumers. The more bandwidth available, the more willing people will be to take their video entertainment from online sources.

The real bandwidth hog is video, but as with all of these things, multi-room TVIP services will demand higher bandwidth than 8Mb per household.

Justin Fielder, CTO of UK Online told us that 8Mb is the fastest service that can offered in the UK with current regulation. Faster services, such as ADSL 2+, would require approval from UK regulator, OFCOM. ADSL 2+ uses higher frequencies, so it needs to be ensured that these would not cause interference within the network. This process is currently being undertaken by OFCOM and when complete, promises speeds of up to 18-24Mb. Fielder tell us that upgrading their customers to that, would only require a software update at the exchange and a new modem which would be shipped to the customer.

UK Online Broadband 8000

Music Downloads from Street Kiosk

Inspired Broadcast Networks (IBN) has announced an electronic music vending Kiosk that will sit at locations around the UK/London. Members of the public will be able to insert a cash payment and once paid for, the electronic music will initially be downloaded using either a USB port, or by inserting an SD memory card into the machine. IBN feel (rightly) that wireless distribution will become dominant and are supporting Bluetooth and WiFi distribution of the content.

The first cash download will take place on Wednesday at IBN’s office in Soho, London. Tracks will be £1. Following this, the kiosks will be rolled out around the UK starting with three mainline London train stations, Charing Cross, London Bridge and Waterloo. We think the choice of these sites is ideal – commuters, bored of their current music selection will be able to charge their portable music players ready for the journey. IBN hope to get to 20,000 sites in the next two years.

All of the music will be supplied by Entertainment UK, the largest supplier of physical music formats in the UK. It’s currently unclear if this partnership will see the kiosk located in the shops that Entertainment UK supplies physical goods to.

The music will initially only be available in protected Windows Media format (WMA). IBN are also working on a system called ‘Linguist’ that they hope will translate between differing makes of DRM, while maintaining the contents protection. They are also ‘in discussions’ with Apple, which is strange. Inspired Broadcast Networks (IBN) is a subsidiary of Leisure Link Group (LLG), is the largest operator of coin-operated entertainment terminals in the UK. The Cloud, a WiFi access company is its sister company.

Back in March IBN signed a deal with Ericsson to provider 5,000 WiFi access points in locations around the UK.

Inspired Broadcast Networks

Utilities Switch On Broadband Over Powerlines

Broadband over Powerline (BPL) is an emerging technology that may shake up the competitive world of broadband Internet and Voice over Internet Protocol (VoIP) services. It offers high-speed access to your home through the most unlikely path, a common electrical outlet, allowing you to plug your computer into any electrical outlet in your home and instantly have access to high-speed Internet.

Combining the technological principles of radio, wireless networking and modems, the technology can be used to send data over power lines and into homes at speeds equivalent to DSL and cable. In Singapore, Pacific Internet is one of two ISPs trialling the technology in conjunction with Singapore Power. The Singapore trial is currently sustaining connection speeds of 2.2Mbit/s – faster than Telstra ADSL. Elsewhere in the world, power lines are running at 4.5Mbit/s, and ultimately the technology supports speeds of up to 10Mbit/s. It also allows utilities to tap existing infrastructure cheaply, fill market gaps in underserved regions and benefit from plummeting equipment costs.

For instance, the city of Manassas in Virginia has signed a deal with local utility Communication Technologies to extend broadband services across the city’s powerlines to 15,000 residential and commercial locations for less than $30 (£16) a month. Revenue is then shared between the city and the utility, as long as they adhere to powerline radiation-emission restrictions and follow consistent and repeatable measurement guidelines set out by the Federal Communications Commission (FCC).

It’s not all been going smoothly for the new technology though. The two test plants near Rochester, NY, both pulled the plug on their setups when the cost analysis came in. There was a major interference issue on BPL also, but the final argument was decided due to the money.

New UK VOD Gets All Clear from EU

European regulators have approved a joint venture between The Walt Disney Company, Columbia Pictures (a division of Japanese electronics giant Sony), and the UK’s ON Demand Group to provide a video-on-demand service in Britain and Ireland. The new venture will be called MovieCo and will give UK cable network operators an alternative to procure video content other than BSkyB, which is currently the dominant player on this market.

The MovieCo joint venture will offer films to customers of Britain and Ireland’s two biggest cable companies, Telewest and NTL. According to the EU statement, it ‘will provide an open platform to which movie content providers will have access on a non-discriminatory basis, therefore enabling them to make films available by way of video-on-demand directly to customers.’ The deal is also likely to help improve Hollywood’s leverage with BSkyB, as the satellite TV company renegotiates with individual studios over the rights to films for its stable of movie channels. Sky offers its movie channels to cable customers as well as its own satellite subscribers.

The new service will allow viewers to pick from a wide selection of movies to watch whenever they want. The technology is expected to be a key weapon for cable and telecommunications providers in their battle against satellite firms. Companies including BT Group and France Telecom’s Wanadoo also have video-on-demand platforms in the works. Video Networks’ HomeChoice already offers video-on-demand to areas of London.

More importantly, MovieCo will add legitimacy to the concept of on-demand movie downloads to PCs. The business has been in a state of flux because of piracy on popular peer-to-peer networks (P2P) and concerns over the quality of digital movies. To boot, the sector is also under constant scrutiny of the Recording Industry Association of America (RIAA), which is making good on its threat to sue file-swappers. The trade association has been busy in the US issuing subpoenas to ISPs demanding the identities of subscribers using P2P applications to upload and download copyrighted works.

The Walt Disney Company
Columbia Pictures (Sony)
ON Demand Group

Vodafone 3G Services Go Live!

Following on from Monday’s story, Vodafone’s betting heavily on 3G this Christmas, read on for further details of Vodafone’s new offering.

Timed to attract consumers in the lucrative pre-Christmas market, Vodafone’s third-generation (3G) service offers quicker music, video and e-mail downloads compared to GPRS. With 3G you can access all of Vodafone’s current services, as well as new video calling, video messaging and video clips specifically for the 3G network. Vodafone is supporting the new service with an enhanced Web portal designed to offer easier access to the 3G services.

The mobile operator is aiming at the youth market, which has been influential in the growth of services such as text messaging. It hopes the key attraction will be music downloads, as mobile operators look to compete with Internet music download services such as Napster and Apple’s iTunes.

The roll-out will be concentrated in densely populated urban areas, covering about 30 per cent of the population, according to Vodafone. Although the new 3G technology promises to provide data transfers at near-broadband speeds, it has taken ages for firms to launch their 3G services due to technical glitches. Although streaming audio and video will the prime marketing driver, it’s likely that data on the move, not video calls, will drive the market.

Vodafone’s ‘enhanced’ 3G content includes a downloadable music catalogue, a made-for-mobile drama inspired by the TV series 24, together with exclusive videos, pictures, animated greetings and wallpaper including the launch of Movie of the Month, starting with Bridget Jones: The Edge of Reason. Sports fans are promised access to UEFA Champions League and Barclays Premiership video clips, together with exclusive Manchester United and Ferrari mobile video content.

“Vodafone live! with 3G will dramatically change the way our customers experience their Vodafone services and we are confident that Vodafone live! with 3G will be a success”, said Arun Sarin, chief executive at Vodafone. “Customers want communication, organisation, entertainment and information on the move and they will increasingly turn to one device to deliver these needs: their mobile phone. Vodafone live! with 3G will become increasingly mass market next year and we expect over 10 million customers to be using Vodafone live! with 3G by March 2006 in our subsidiaries.”

As reported in September, Vodafone has ordered 10 varieties of 3G handset from Sharp, Sony Ericsson, Motorola and Samsung, with built-in features including MP3 music players and 2-Megapixel camera phones. They will be subsidised as aggressively as its existing 2G handset range, so high-end users who agree to a contract will be entitled to a free phone. The launch is also international, extending to Austria, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, Portugal, Spain, Sweden, Switzerland and the UK.

www.vodafone-i.co.uk/live/