Nokia Set To Become World’s Biggest Camera And MP3 Manufacturer

Nokia Set To Become World's Biggest Camera And MP3 ManufacturerNokia continues to be the Big Cheese of the worldwide mobile handset market, shipping nearly twice as many phones as its nearest competitor, Motorola.

According to a report by IDC, Nokia shipped 53.8 million handsets in the first quarter of 2005, representing a chunky 30.9% share of the market.

Motorola lagged a fair way behind with 28.7 million shipments (16.5% of the market), followed by fast-rising Samsung, who had 24.5 million shipments and 14.1% of the market.

Nokia anticipates continued success and expects to shift 25 million smartphones in 2005 – twice as many as the 12 million it sold in 2004.

According to data from Canalys, it’s already off to a flying start, shipping almost 5.4 million smartphones in the traditionally slow first quarter, a triple fold increase from last year.

Overall, global shipments of smart mobile devices were up 82% year on year in Q1 2005, with Nokia grabbing half the market, followed by palmOne, RIM (Blackberry) and Fujitsu.

Phenomenal camera phone sales are also predicted by Nokia, which looks to ship 100 million camera phones and 40 million phones offering MP3 playback.

This would make Nokia the biggest camera and MP3 player sellers in the world, toppling Canon and Apple respectively off their thrones.

Nokia Set To Become World's Biggest Camera And MP3 ManufacturerAs we reported last week, Nokia has announced a range of high quality two-megapixel camera phones, making the phones an attractive alternative to a dedicated digital camera.

Similarly, their spanking new N91 phone has both a camera and an MP3 player built in, with a 4 gig hard drive rivalling standalone digital music players like the iPod mini.

The new phone is expected to come with a wallet draining price sting of around $800-$900 (~$422-£475 ~ €623-€700), although telecom carrier deals are expected to bring the price down to around $500 (~£264 ~€390) in the US.

Things are heating up in the handset industry, with the big players trying to out do each other on the feature lists.

Sony are about to release the W800, their first walkman phone, while Samsung is already offering camera phones offering higher resolution images than Nokia.

It’s not all going Nokia’s way though. In the US, Motorola remain the top dogs with a mobile market share of 31.7%, while Samsung overtook Nokia, grabbing 18.2% of the market compared with Nokia’s 14.6%. In fourth place was LG Electronics with a market share of 12.6%, with Kyocera in fifth at 5.2%.

Nokia
Canalys
IDC

Real Rhapsody: To Go And Free Service Added

Real Rhapsody: To Go And Free Service AddedReal Networks is looking to up-end Apple’s iTunes store and nobble Napster To Go by launching a new music subscription services for portables music players.

The Seattle-based outfit, who are this month in their tenth year, is looking to extend its Rhapsody subscription music service, which currently lets home users and subscribers download as many tracks to their computers as they want for US$9.95 (£5.22/€7.66) a month.

The big shocker is that after years of scratching each other’s eyes out, Real has decided to license digital rights management (DRM) for their service from its once bitter rival, Microsoft.

The Microsoft software, code-named Janus, will disable songs from playing on devices once a customer stops paying the monthly fee.

The new music service comes in three flavours: Rhapsody 25, Rhapsody To Go, and Rhapsody Unlimited.

Real Rhapsody: To Go And Free Service AddedRhapsody 25 is the entry-level standard service which is completely free to use. It’s being supported by advertising, initially Chrysler and is designed to tempt people to subscribe. It allows anyone who downloads Rhapsody’s Windows-based jukebox software to listen to 25 songs for free each month from Rhapsody’s library, with the option to purchase and download songs a la carte. There will also be 25 ad-free radio stations available.

Users of this freebie will also be able to share their selected music with others, even non-subscribers. When the generated email arrives, access to the DRM-controlled content is made, downloading them the software if they don’t already have it. Real hope they will benefit from the network viral effect.

The Unlimited deal is pretty much what is currently offered, provides a subscription-based service that costs US$9.99 per month, giving users access to 100 pre-programmed Internet radio stations, 50,000 “artist-based” radio stations and more than 1,500 music videos online. A few bells and whistles have also been added.

Subscribers can download an unlimited number of songs to their computer’s hard drive and these remain playable for as long as they remain subscribers.

Rhapsody To Go offers a near-identical subscription-based deal as Napster To Go, letting users download a near-unlimited amount of music to compatible portable music players. The price is identical to Napster’s offering too at US$14.95 (£7.85/€11.52) per month.

That’s all fine and dandy while they’re shelling out the cash, but as soon as a subscription ends – whoosh! – there goes their music collection, as every song they’ve downloaded is automatically rendered unplayable.

Real Rhapsody: To Go And Free Service AddedIt’s been likened to having your CD collection on permanent hire purchase – once you lapse on your payments, you can kiss goodbye to your tunes. To old-school music fans, not owning your precious sounds is a bonkers proposition, but both Real and Napster believe there’s a market for subscription-based music downloads, with punters excited by the promise of filling an entire iPod for less than the price of two CDs.

The MS Janus DRM protection demands compatible portable music players, ones that turn the content off if the subscription lapses. Currently there are two favorites, the Zen Micro and iRiver H10. To further induce subscribers to the To Go service, Real are offering a US$100 (€77/£52) rebate on the H10 for a limited period.

According to recent estimates, the subscription market – comprised of Real’s Rhapsody, Napster and Yahoo’s MusicMatch service – is reckoned to generate about US$200 million in 2005 sales. Indeed Real announced they had passed one million subscribers last week.

By comparison, the digital music downloading business made popular by Apple’s iTunes service, is expected to rake in around US$350 million in 2005 revenue, according to Phil Leigh, an analyst at market research firm Inside Digital Media.

Real Rhapsody
Watch Real CEO, Rob Glaser introduce the new Rhapsody

Adobe To Buy Macromedia: US$3.4Bn

Adobe To Buy Software Firm Macromedia For US$3.4 billionDigital document software giants Adobe have announced that it will be buying up rivals Macromedia for about US$3.4 billion (£1.7bn/€2.6) in stock.

Adobe, best known for its market-leading document distribution Acrobat PDF software and Photoshop graphics suite, said the deal would help the company meet customer demands for wider-ranging applications, including audio and video capabilities.

The deal, announced early today, is expected to close in the fourth quarter of 2005, subject to shareholder approval.

Bruce Chizen will continue as Adobe’s chief executive and Shantanu Narayen will remain president and chief operating officer. Macromedia chief executive Stephen Elop will join Adobe as president of worldwide field operations.

Here’s the PR spin on the deal:

“The combination of Adobe and Macromedia strengthens our mission of helping people and organizations communicate better. Through the combination of our powerful development, authoring and collaboration tools – and the complementary functionality of PDF and Flash – we have the opportunity to drive an industry-defining technology platform that delivers compelling, rich content and applications across a wide range of devices and operating systems.

Adobe To Buy Software Firm Macromedia For US$3.4 billionBy combining the passion and creativity of two leading-edge companies, we will continue driving innovations that are changing the ways people everywhere are experiencing and interacting with information.”

The combined company would have annual sales of just over US$2bn (£1.05bn/€1.5bn), based on the most recent fiscal and calendar year figures from both.

The two companies have been battling it out for the hearts of creatives for several years – Adobe’s killer app Photoshop has long ruled the roost for designers, although Macromedia’s innovative rival product Fireworks was constantly nipping at its ankles.

Macromedia is best known for its hugely-popular HTML authoring package, Dreamweaver, and its animation software ‘Flash’, which enables Web designers to deliver fast downloading, interactive multimedia content.

Adobe’s late-to-the-party Flash riposte, ‘Live Motion’ never really got anyone excited, and its capable HTML authoring package, GoLive, failed to seriously trouble Dreamweaver’s dominance.

There has been no announcement about the future of individual products, and bulletin boards on the Web are already speculating as to the future of competing products, such the high-end illustration packages, ‘Freehand’ and ‘Illustrator’ (Macromedia and Adobe, respectively).

Adobe To Buy Software Firm Macromedia For US$3.4 billionBoth products have large, loyal user bases and there may be some concern that – in the words of Sparks – “this town ain’t big enough for the both of us”.

There are also fears that with Adobe now free of any real competition in this lucrative sector, a damaging monopoly could emerge.

Adobe
Macromedia

Advertising in Games Forum predicts $1Bn in revenue 2010

Advertising in Games Forum predicts $1 Billion advertising revenue in US by 2010Last week, 250 executives from advertising agencies, game developers and publishers swarmed into the first annual Advertising in Games Forum on 14 April 2005 in New York City.

The audience, primarily made up of sharp-suited, silver tongued advertising agency executives, were there to discover more about market opportunities and expectations within the game industry.

According to the organisers, The Game Initiative, attendees were treated to a feast of ‘key facts, figures and estimates’ spun out by leading industry experts at the forum.

In a bullet point-laden onslaught of PowerPoint presentations, these key facts emerged:

According to the Yankee Group, advertising in games is expected to rise to US$800 million in 2009 from nearly US$120 million in 2004.

Around US$266 million – that’s more than one-third of advertising in games in 2009 – will come from (wait for it) “advergaming.”

Advertising in Games Forum predicts $1 Billion advertising revenue in US by 2010For the benefit of buzzword-deficient execs, Yankee Group senior analyst Mike Goodman explained that this hideous word describes what you get when advertisers create a game around a product rather than place their brands within a well-known title.

Mitch Davis, chief executive of video game ad network Massive Inc., whipped the watching execs into a frenzy of monetary expectation when he revealed that the audience video game advertising would top US$1 billion in the United States by 2010, and approach US$2.5 billion worldwide.

Anita Frazier, Entertainment Industry Analyst, NPD Group opened up her big book marked ‘Facts’ and informed the Advertising In Games Forum audience that there are 100 million game capable cell phones currently in the Marketplace – with 65% of the population owning a cell phone.

The sound of keenly rubbing palms grew to a crescendo as Frazier announced that within 16 months all cell phones in the marketplace should be game capable and thus brimming with cash-raking, game-downloading potential.

Advertising in Games Forum predicts $1 Billion advertising revenue in US by 2010Fact-bloated attendees also learned that the top selling 2004 game titles (according to the NPD Group) were:

  1. Grand Theft Auto San Andreas – 5.5 million sold since launch
  2. Halo 2 on X box – 4.5 million units sold since launch
  3. Madden NFL 2004 on PS 2 – 3.5 million units sold since launch
  4. ESPN NFL 2K5 -1.6 million units sold since launch
  5. Need for Speed Underground 2 -1.7 million units since launch

The top selling PC title of 2004 was Sims 2 with 750,000 units sold.

The ‘best selling game title of all time’ title goes to Grand Theft Auto Vice City with a massive 6.5 million units shifted, with Super Mario 64 on the N64 coming in second with an impressive 6.0 million units.

Game Initiative

Men Spend More Money on Video Games Than Music: Nielsen Report

Men Spend More Money on Video Games Than MusicA study by Nielsen Entertainment has revealed that men spend more money on video games than they do on music, adding weight to a growing belief that video games are displacing other forms of media for the notoriously fickle attentions of young men.

And it’s not just the kids fragging and gibbing away – the study also reveals that old ‘uns are getting down with da yoot on the consoles, with nearly a quarter of all gamers being over 40.

The random survey of 1,500 people was conducted by the interactive unit of Nielsen Entertainment earlier this year and revealed that games now rank only behind DVDs as a purchase category, ahead of CDs, digital MP3 files and other ways of buying music.

We’ve no idea why this is relevant, but Nielsen also wanted to know how gaming split along lines of race, discovering that African-Americans and Hispanics spend more money on games each month than Caucasians. So now we know.

Men Spend More Money on Video Games Than MusicNaturally, advertisers are keen to cash in on the rising popularity of games, and are looking at ever more persuasive ways to bombard bedroom-bound, bunglesome boys with beguiling adverts (branded billboards in race games are already commonplace, as we’ve reported previously).

Never one to miss an opportunity, Nielsen has announced that they are working on a method to measure audience response to the in-game ads.

The study also discovered that 40% of US households have some kind of system dedicated to game play – whether a gaming PC, a console or a handheld device – with 23% mad-for-it gamers owning all three types of systems.

Like masturbation, older gamers prefer to do it alone, with 79% of men and 79% of women over the age of 45 spending most of their time playing alone.

Teenage girls tended to play more socially, while women aged 25-54 spent equal time playing alone and with others.

Men Spend More Money on Video Games Than MusicOverall, Nielsen reported that active gamers tend to spend just over 5 hours a week playing alone and 3 hours a week playing with people or online.

The US video game industry now rakes in US$10 billion (€7.7b/£5.3b) in annual revenue, roughly as much as US box office sales.

Nielsen Entertainment

BookSurge, Print-On-Demand Book Company, Signs With Amazon

Print-On-Demand Book Company Signs With AmazonOnline retail giant Amazon.com has scooped up the ‘printing fulfillment’ company BookSurge, which maintains a catalogue of thousands of book titles available for users to print on demand.

“Print-on-demand has changed the economics of small-quantity printing, making it possible for books with low and uncertain demand to be profitably produced,” Greg Greeley, vice president of media products for Amazon.com, said in a written statement.

The move seems to reflect Amazon’s continued efforts to add new revenue streams and fight off competition from online rivals such as eBay and Overstock.com. Amazon has already been forced to lower prices to keep customers wandering off elsewhere.

Despite generating twice the revenue of its main rival eBay, Amazon is lumbered with the hefty financial drain of maintaining and operating its warehouses throughout the world – because eBay sells a service not a product, it manages to be three times more profitable than Amazon with only half its revenue.

Amazon’s deal with BookSurge gives the company the ability to offer a new product without adding any further burden on distribution network.

Print-On-Demand Book Company Signs With AmazonThe company will now offer (cue: North American accent) “inventory-free book fulfillment” to publishers through BookSurge Publisher Services and to authors through BookSurge Publishing.

Print-on-demand allows booksellers to offer titles with limited appeal, without the hassle of having to keep stock which may not get sold.

Additionally, retailers, wholesalers and distributors will be able to leverage the BookSurge Direct wholesale platform.

“BookSurge makes it possible to print books that appeal to targeted audiences, whether it’s one copy or one thousand,” Greeley said. “Our new relationship with BookSurge will provide Amazon customers an ever-expanding selection of titles that are not available through other channels. Thanks to print-on-demand, ‘out of print’ is out of date.”

This latest move continues Amazon.com’s trend toward the world of e-books and other downloadable products, building on its 2001 eBook deal with Adobe Systems that added nearly 2,000 e-books to its catalogue.

Print-On-Demand Book Company Signs With AmazonAlthough e-books are still a small part of the current online book market sector, significant growth is expected by publishing companies and online retailers.

Internet portal Yahoo already has an e-book sales deal with four major publishing houses and Amazon are clearly looking to get their size nines wedged into this door of opportunity.

Amazon
BookSurge

‘Enron: the Smartest Guys in the Room’, Gets Simultaneous Cinema/HDTV Release

HDNet Movies Offer Simultaneous Cinema/HDTV Release For New MovieIn a break with cinema-tradition, HDNet Movies viewers will be able to see Alex Gibney’s highly acclaimed documentary “Enron: The Smartest Guys in the Room” on the very same day the movie premieres in US theatres.

Cackling wildly in the face of convention which dictates that cinema releases always come first, the film, which debuted in the Documentary Competition at the 2005 Sundance Film Festival, will appear on the US available HDNet Movies twice on opening night, 22 April at 8:00 pm and 11:00 pm EST.

After its one-day HDNet Movies premiere, the film will then be offered in traditional PPV, VOD and DVD windows.

“Enron: The Smartest Guys in the Room” was produced by HDNet Films, the high-definition production division of Todd Wagner and Mark Cuban’s 2929 Entertainment, and is being distributed by 2929-owned Magnolia Pictures. Using insider accounts and incendiary corporate audio and videotapes, Alex Gibney, the films director shows the almost unimaginable personal excesses of the Enron hierarchy and the utter moral vacuum that posed as corporate philosophy. It is expected that audiences will be shocked by the avarice of Enron’s traders and their bosses.

Cuban is well known for trying to smash commonly accepted business standards and conventions. “We want to reward HDNet Movies subscribers with great movies,” table-thumped Mark Cuban, co-founder of HDNet and HDNet Movies. “Our feeling is that people who want to get out of the house and go to the theater will do so.

Those who can’t make it, rather than missing the water cooler talk on Monday, will be able to see the film, only on HDNet Movies.”

The company has also announced production on a new drama, “One Last Thing…,” starring Cynthia Nixon, Michael Angarano, Sunny Mabrey and Wyclef Jean which will also premiere on HDNet Movies under the same day-and-date model.

HDNet Movies

Cell Phone Porn On The Way Up

Cell Phone Porn On The Way UpThrill-seeking mobile phone users around the world slapped out US$400 million on pornographic pictures and video in 2004 – an amount that is expected to rise to US$5 billion by 2010, according to a report by research group Strategy Analytics.

Surfers seeking saucy smut contributed to the fast growth of the adult entertainment sector on the World Wide Web.

Media industries were fast to take advantage of the new medium, with porn connoisseurs among the first to get high-speed Internet access for downloading X-rated films.

In the squinty-small screen of mobile communications, however, pornography might not do as well, with high telecommunications charges and tiny displays reducing the thrill.

“In 2010 we estimate that expenditure on mobile adult content will represent just 5 percent of total end-user spend on mobile content services,” said analyst Nitesh Patel.

“We expect services that are built around sports, music and media to perform better, because they appeal to a wider audience of users,” he added. In addition, there is value in offering news bulletins or a recently scored goal on a mobile screen.

Cell Phone P0rn On The Way UpThe US$5 billion forecast for 2010 represents a huge upward shift from Strategy Analytics’ earlier predictions, with the company noting that adult entertainment businesses are aggressively building services and customers appear happy to shell out for them.

Playboy and rival Private Media Group have ramped up their offerings, and many mobile phone makers are busy implementing strategies to make sure no subscribers aged under 18 years will be able to access X-rated services.

Additionally, the growth in colour screens (one in every two phones sold in 2005, predicted to rise to four out of five by 2010) along with enhanced video capability is expected to increase the ‘value’ of mobile-delivered porn.

Elsewhere, anecdotal evidence from countries that have a technological edge shows a throbbing interest from consumers, with adult content registering over 23% of the traffic over South Korea’s SK Telecom in late 2003.

Broadcast Flag “Crossed The Line”, FCC told by US Appeals Court

FCC Oversteps Their Authority on Digital TV, T.V.A US appeals panel has challenged new federal rules which require certain video devices to incorporate technology designed to prevent copying digital television programs and distributing them over the Internet.

US Appeals Judge Harry T Edwards delivered a slap across the wrists of the Federal Communications Commission by saying that that it had “crossed the line” with its requirements for anti-piracy technology in next-generation television devices.

The anti-piracy technology, known as the broadcast flag, will be required after July 1st for televisions equipped to receive new digital signals. Many personal computers and VCR-type recording devices will also be affected.

The broadcast flag would permit entertainment companies to designate, or flag, programs to prevent viewers from copying shows or distributing them over the Internet.

Two of the three judges on the District of Columbia Circuit panel said the FCC had not received permission from Congress to undertake such a sweeping regulation, and questioned the FCC’s authority to impose regulations affecting television broadcasts after such programs are delivered into households.

“You’re out there in the whole world, regulating. Are washing machines next?” fumed Judge Harry Edwards. Judge David Sentelle was equally unimpressed: “You can’t regulate washing machines. You can’t rule the world.”

The groups challenging the FCC’s broadcast flag regulation include the American Library Association, the Association of Research Libraries, the Medical Library Association, Public Knowledge and the Electronic Frontier Foundation.

They argue that the FCC has over-stepped its authority, that Congress should be responsible for making copyright law, and that librarians’ ability to make “fair use” of digital broadcasts will be unreasonably curtailed.

Although the judges’ comments are encouraging for opponents of the Broadcast Flag, doubts have been cast whether their opponents have the legal standing to challenge the rule in court.

Either way, we can expect to wait a few months before the court issues a ruling. In the meantime, activist groups like the Electronic Frontier Foundation continue to offer consumers the means to get around the restrictions with their “HD PVR Cookbook,”.

Electronic Frontier Foundation
Federal Communications Commission

Envisional Report:: UK Biggest Downloaders of Copied TV Shows

UK users biggest pirate downloaders of TV showsWe may not win many things these days, but when it comes to downloading pirated television, us Brits can puff out our chests and proudly declare, “we’re number one!”

The UK has emerged as the world’s biggest market for downloading pirated television, driven by tech-savvy fans unwilling to wait for popular U.S. shows such as ’24’ and ‘Desperate Housewives.’

Britain’s status as the big cheeses, head honchos and numero unos of TV downloading was revealed on Thursday in a study by UK technology consultancy Envisional.

The report could pose problems for UK broadcaster BSkyB, which is counting on high-profile US shows such as the new “24” series to draw new subscribers and entice advertisers to its satellite TV service.

According to Envisional’s report, devilish Brit downloaders account for nearly one fifth of TV downloads through file-sharing networks such as BitTorrent and eDonkey. In second and third place were Australia and the United States.

“Because there’s such a demand for US TV, the UK is going to be the main downloader,” said Envisional research consultant David Price.

UK users biggest pirate downloaders of TV showsThe downloading frenzy has been driven by the consumer-annoying practice of releasing popular US TV shows such as “The West Wing,” “The Sopranos” and “Friends” months after they’ve been seen by our American cousins.

Broadband-connected UK fans keen to get the latest fix of these shows have – not surprisingly – elected to download the programs instead, with episodes of popular shows like ’24’ showing up on the popular file-trading network BitTorrent minutes after airing in the United States.

According to Envisional, a typical ’24’ episode is downloaded by about 100,000 users, with “The Simpsons,” “The OC” and a host of sci-fi programs including “Stargate SG-1” and “Enterprise” also being firm favourites with the UK pirates.

Other TV networks airing large amounts of US shows are monitoring the growing popularity of online TV downloads, although insiders feel that the level of technical knowledge required will keep it a minority interest.

For now.

Of course, in the US, Hollywood is already putting in the boot, with the Motion Picture Association of America dishing out lawsuits like they were going out of fashion.

Several sites providing links to movie and TV download sites have already been closed down, with LokiTorrent being a major scalp last week.

The broadcast industry’s failure to learn from online music sharing means that without a legitimate TV download service, consumers will continue to use file swapping sites while lawyers get fatter.

Envisional
Motion Picture Association of America
BSkyB