Sky Says Easynet Purchase “Solves All Problems”

Sky Says Easynet Purchase Solves All ProblemsBSkyB’s Director of Product Management, Gerry O’Sullivan couldn’t help sounding smug as he took centre stage at The Connected Home conference in London today.

“Those of you who read the papers may have noticed we bought a small Internet company last Friday,” he announced. “To have a combination of satellite distribution and broadband connectivity solves all problems”.

O’Sullivan’s presentation focused on Sky+ and stated the need for a “whole home solution” but he was keen to distance himself from existing IP-based offerings such as the Windows Media Player.

Sky Says Easynet Purchase Solves All ProblemsWhile Microsoft’s Cynthia Crossley and Telewest’s Mark Horley nodded collaboratively to Merlin Kister of Intel’s assertion that “We mustn’t be close minded and pick a winner. It’s important for all players to work together,” O’Sullivan looked disinterested.

“I’m a fan of Media Player – but my mum doesn’t want a reminder to renew her anti-virus subscription while she’s watching Coronation Street,” he said.

And, in response to an audience show of hands revealing nearly all had regular problems with programme crashes on their PCs, O’Sullivan added:

Sky Says Easynet Purchase Solves All Problems“There’s zero tolerance (among our customers) for that sort of unreliability and pain…we can only roll out products that you switch on and they work.”

And BSkyB has the money and ambition to keep turning out products it thinks consumers may need – the five day old Sky Gnome for example, enabling you to listen to satellite radio in the garden, or the new movies over IP service, Sky By Broadband – due to launch in the next two weeks.

The third generation Sky+ boxes have 160GB of space – only half are visible to the consumer – the other 80GB of disc space is for BSkyB to keep as a store for future ‘on demand’ programming, O’Sullivan revealed.

Sky Says Easynet Purchase Solves All ProblemsHorley mentioned that Telewest was launching its own 160GB PVR in early 2006, with the WHOLE disc available for recording “as we already offer video on demand”.

Sky can’t support true VOD – it’s satellite distribution network has limited bandwidth and lacks an intrinsic return path – but do consumers care?

With Sky+ proving a virtually churn-free proposition (apparently 90 per cent of viewers say they’re very satisfied), Easynet on board and plenty of money in its pocket, O’Sullivan can’t help but smile – looks like BSkyB is onto a winner.

The Connected Home 05

Networked Home “too confusing” for consumers

Networked Home “too confusing” for consumersThe futuristic vision of a connected home with content moving seamlessly from our TV to our PC and on to our mobile device is still a long way off, according to key speakers at The Connected Home conference in London today.

While David Sales (pictured right) from BT Entertainment waxed lyrical about broadband; Microsoft’s Elena Branet praised IPTV; and Mary Francia of Philips presented the Streamium product range; they conviently avoided the the area of interoperability.

Networked Home “too confusing” for consumersIt took Dimitri Van Kets (pictured left), from Belgian telco, Belgacom, to voice what many were thinking by announcing that the networked home was “little more than a mass of standards” and “too confusing” for the average consumer. Unless the service providers get together and educate customers, he said, true home connectivity was never going to happen.

Sky Interactive’s Paul Dale, speaking from the audience, said he’d been annoyed when a perfectly legal DVD of Thomas The Tank Engine wouldn’t play on his Windows Media Player. Luckily he’d been able to hack into it – but clearly this wasn’t the preferred way forward!

Networked Home “too confusing” for consumersPaul Szucs of Sony said that service providers should “try not to lose the plot with content protection”, adding that “consumers simply want their devices to work together and share content.”

The mood was best summed up by Peter King of Strategy Analytics: “We’re not going to move any further without a massive consumer awareness programme funded by all players in the chain.”

Even Microsoft’s Branet admitted there was a need to “focus on educating consumers”.

But until the key players stop operating in silos, this isn’t going to happen.

Microsoft
Streamium

Considering Apple’s Impact

Considering Apple's ImpactLast night Apple launched 3 new products (as we briefly noted). A new versionof iTunes, updated iMacs and as expected, a video-enabled iPod.

New iMac G5
They’re faster and thinner (and the 20″ version is cheaper than itsprevious incarnation). They now include an iSight (video camera) builtinto the unit and come with new software “Front Row” which include anIR remote, looking suspiciously like an iPod shuffle which attaches tothe side of the iMac (the IR receiver is allegedly hidden behind theApple logo).

Already considered a design classic, the new iMacs look even better, butin reality though Apple have added more power for the buck, they’rejust iMacs. However the real innovation is Front Row which is designed to directly compete with Microsoft’s Media PC, and it does this by using Apple iLife applications being simple to use and control(the Microsoft Media PC has 24+ buttons, the Apple remote has 6).

Considering Apple's ImpactFront Row gives extremely simple access to content stored on the iMacincluding music through iTunes, videos (including the newly availablevideo content that’s available through iTunes), photos stored in iPhotoand DVD’s though iDVD. The remote works up to 30 feet away from theunit.

Currently Apple are not saying whether Front Row will be available asan upgrade for existing Mac users, however the new universal iPod dockdoes have an IR receiver on the front and the remote is available as aseparate purchase so an educated guess would be that it will be.

The iSight is a nice addition (the add-on version costs over GBP 100),but it’s a fantastic webcam. It obviously works with iChat (Apple’s IMsystem) allowing video conferencing with up to 3 other people, andthere’s now Photo Booth which allows snap-shots to be taken and thenmanipulated by adding effects etc.

Both the 17″ and 20″ come with 8x SuperDrives which are now dual-layer(DVD+R DL/DVD+-RW/CD-RW), they have a PCI-X bus (faster than the oldPCI bus) and PCI-X video cards (17″ is a Radion X600 PRO and the 20″ aX60 PRO XT). Both come with 512MB RAM expandable to 2.5GB, the 17″ witha 160GB SATA disk and 20″ with 250GB. CPU speeds have been upped to1.9GHz (17″) and 2.1GHz (20″). UK pricing starts at GBP 899 (inc VAT)for the 17″ and GBP 1,199 for the 20″.

Considering Apple's ImpactSince there’s no base unit (everything is built into the actualdisplay) the amount is space they require is minimal. They’d look justas good on a desk as in the living room.

Video-capable iPod
The 5th generation iPod is here, though probably not what manyexpected. It’s just a prettier, thinner version of the iPod Photo witha larger screen (now 2.5″). The iPod’s lines are now much closer tothat of the new iMacs (excepting the click wheel and of course it nowgenerally available in black as well as white).

The screen is crisp, clear and remarkably bright, though it’s only320 x 240 resolution, which is good enough to watch music videos andsuch like, but rather small compared to other devices on the market.However album art, podcasts etc. with some aspect of video (or photo)content does look very good. Though Apple have probably alreadydeveloped a widescreen video iPod, why launch it now just to give thecompetition a chance to catch-up? The new iPod is a step change overexisting versions and everyone is again going to have to compete withit.

Currently video can only be imported through iTunes (like photos),however this is likely to be a move to appease the movie studios.Whether they’ll be an upgrade to iTunes to import (noncopyright/encrypted) video content is yet to be seen, it might nothappen for a while. The iPod plays MPEG4 and H.264 video content.

If the iPod is plugged into a dock, the video can be sent to anexternal display like a TV, but it’s still only sent at 320 x 240 whichlooks pixelated.

There are a few extras in-line with the nano, such as extra clocks,being able to lock the unit, more games etc. A real improvement is thecalendar application which suits the new display perfectly.

Pricing is GBP 219 for the 30GB version and GBP 299 for 60GB (both incVAT).

iTunes 6
Considering Apple's ImpactiTunes 5 was launched with the iPod nano, and a month later there’s nowiTunes 6 to go with the 5th generation model. The main new advance isvideo content, there are now around 2000 music videos available on theiTunes music store (unfortunately there’s still a huge pricedifferential between the US and UK with a music video costing $1.99 inthe US and GBP 1.89 in the UK – with the UK getting panned on price, as usual).

Since Steve Jobs (CEO of Apple) is also CEO of Pixar (the animationcompany that made Finding Nemo, The Incredibles etc) there’s 6 PixarShorts also available for purchase on the iTunes store (same price as amusic video).

In the US there’s also terrestrial TV shows available from ABC and theDisney Channel (Lost, Desperate Housewives and others). Why may TVshows available as downloads when you can buy DVD sets? Because itgives revenue for PVR opportunities i.e. it’s unlikely someone willdownload every episode of Lost, but they will download and pay for theepisode they missed last night (and can watch it on their hour commuteto work), iTunes makes it incredibly easy to do this, rather thanworking out how to set your PVR, and then getting the content off it.Though content can be watched through iTunes, it’s likely more peoplewill use it with their iPod.

It’s somewhat odd that Apple are working with Disney as Pixar have beenvery publicly rowing with Disney over distribution agreements fortheir films. What people forget is that Pixar are contracted to make 6new films for Disney, so assuming that’s one a year that’s 6 years tosettle the arguments (even lawyers can work to those timescales). It’sjust a matter of money, Pixar want more and Disney don’t want to payit. By the time 6 years are up it’s likely they’ll be buddies again andboth with have reached a happy compromise.

Considering Apple's ImpactThe video aspects of the iTunes store, though limited at the moment,are a major break-through (even ground-breaking) especially with thecurrent shows being available. Disney obviously have a huge amount ofcontent they could make available if all the legal intricacies can besorted. Once one studio cracks, they’ll all follow suit.

It shows how successful iTunes is considering that arch rivals Realand Microsoft have just made an agreement to share technology etc andjoin forces rather than fighting with each other to try and expand the25% of the market they JOINTLY command.

There’s some other new features of iTunes, gifting which allows anyoneto give away a track, albums, music videos or their playlists to anyother registered iTunes user (i.e. the gifter purchases it and it’smade available to another user for download).

Just for You is in beta, whereby iTunes suggest purchases based onprevious behaviour – a suggestion engine.

One of the most request features for podcasts has been user ratings andthis is now available, so like a podcast you can now rate it and themore ratings it get, the higher up the listings it goes.

Considering Apples future

Considering Apple's ImpactApple’s future has definitely been shaped by the iPod (they sold 1mNanos in 17 days – how many returned was, not surprisingly undefined) which is molding how the company moves forward.

Macsare becoming companions for iPods rather than the other way around. Keyto all of this is content and iTunes is definately leading the way with75%+ market share (globally) and higher in specific markets (UK it’sover 85%).

If Apple can crack the video market, they’re going to dominate for along time, and though the 5Gen iPod is a step in the right direction,it’s just that. Though Apple never pre-announce products you can besure the 6Gen and even 7Gen iPods are already designed and waiting in thewings and they’ll be full blown widescreen systems.

Macs are going to change as Apple move away from IBM Power processorsto Intel CPUs, but that’s an internal change and they’ll stillergonomically beat the pants of almost everything else out there.

Apple

Samsung Partners Pentax to Make Digital SLRs

Samsung Partners Pentax to Make Digital SLRsWith the corporate might and phenomonal R&D budgets of Nikon and Canon continuing to create cameras that dominate the dSLR (digital Single Lens Reflex) market, smaller brands are discovering the benefits of pooling their resources to produce rival products.

Way back in July, we reported on dSLR makers Minolta teaming up with digital compact kings Sony to jointly develop digital dSLR cameras, and today Samsung have announced a similar deal with Pentax.

Both companies are hoping to share their respective competencies to “enhance competitiveness in the burgeoning digital SLR market,” read, Blimey, this markets getting a bit hot, we need scale.

Samsung Partners Pentax to Make Digital SLRsThe partnership will draw on Samsung’s digital image processing technologies, brand recognition and digital convergence technologies while Pentax can offer an established dSLR brand with a huge range of interchangeable lenses. It can’t hurt that Samsung currently are one of the biggest players in LCD screens production.

Pentax already have four well regarded digital SLRs under their belts, while Samsung – who announced their intention to become a “top-class Digital Camera manufacturer” in May 2005 – have enjoyed rapid sales growth with attractive products backed by strong marketing.

Samsung Partners Pentax to Make Digital SLRsSamsung’s recent Pro815, an advanced prosumer compact digital camera, attracted praise for its innovation while Pentax’s *ist dSLR range has won many friends, although failing to match the popularity of rival Nikon and Canon products,

Samsung has the No. 1 market share in Korea with a share of around 30% and is one of the fastest growing brands in digital cameras on the planet, with market share doubling in the last year.

Samsung Partners Pentax to Make Digital SLRsContinued growth is predicted for the world-wide digital camera market, with pundits expecting the tally for 2005 to be around 82 million unit sales, soaring to 89 million in 2006.

Falling prices have contributed to the digital SLR market growth rate exceeding the overall digital camera growth rate, with 2005’s expected 4 million unit sales to be surpassed by a predicted 5 million unit sales in 2006.

Samsung

Businesses Are Blasting Out One Billion IMs Daily

Businesses Are Blasting Out One Billion IMs DailyAccording to a study by IDC, instant messaging in the business world is going bonkers and looks set to continue its huge growth, but experts are warning of security risks.

Their research found that the worldwide enterprise instant messaging market (which includes instant messaging server products as well as enterprise instant messaging security, compliance, and management products) leapt 37% in terms of year-over-year revenue in 2004, and is expected to skyrocket from $315 million in 2005 to $736 million in 2009.

“With more than 28 million business users worldwide using enterprise instant messaging products to send nearly 1 billion messages each day in 2005, and many more crossover corporate consumers who use consumer instant messaging networks in the workplace, these products are clearly reaching more mainstream users,” said Robert P. Mahowald, program director for IDC’s Collaborative Computing research.

“Especially in compliance-driven sectors like Wall Street, financial services, and government, instant messaging is a critical differentiator. In the next few years, IDC expects instant messaging – once the plaything of teenagers – to continue to grow into its role as a substantial business collaboration application,” he added

Businesses Are Blasting Out One Billion IMs DailyThe growth in the enterprise segment is being fuelled by domestic users of IM tools like MSN Messenger bringing their online chatting habits into the work place and using the service as a business collaboration tool.

The report identified financial services and the public sector as the keenest to take up enterprise IM, with business IM monitoring and archiving tools able to keep a watchful eye on yapping employees.

According to a recent Gartner poll, instant messaging is now used in 70% of all companies, but figures from the Yankee Group reveal that only 15-20% of those companies operate IM administration, leaving 50% of office IM use unmonitored.

This wouldn’t appear to be the brightest idea as a new IMLogic study reveals that an increasing number of virus authors are starting to focus on IM clients as virus spreading agents.

Businesses Are Blasting Out One Billion IMs DailyIMLogic says that the attacks on the IM clients have reached record values – up 14 times on last year – with the complexity of the attacks also increasing.

The company’s IM monitoring service showed that MSN Messenger suffered the highest attack rate at 62% of the reported cases, with AOL’s AIM client coming at second with 31% of the attacks and Yahoo third with 7% of the attacks targeting their client.

IMLogic’s research found that the majority of the attacks were worm-based (87%) with 12% of the attacks aimed at spreading a virus.

IDC
IMLogic

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

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

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

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

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

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

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

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

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

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

Paramount

Samsung To Produce Dual HD-DVD/Blu-Ray Player

Samsung To Produce Dual HD DVD/Blu-Ray PlayerWith Sony and Toshiba still enjoying a schoolyard scrap over which of their rival formats should become the standard format for next-generation DVDs, Samsung have announced a nifty compromise that plays both formats.

With the ghost of Betamax still casting long shadows over weary consumers, Samsung have decided to soothe buyer indecision by offering a player that supports both Sony’s Blu-Ray Disc and Toshiba’s HD DVD standards.

In an interview in the Financial Times Deutschland, Samsung’s consumer electronics big cheese, Choi Gee-Sung, announced that the machine will launch sometime next year.

“We would welcome a unified standard but if this doesn’t come, which looks likely, we’ll bring a unified solution to market,” he said.

“It won’t be simple but you’ll see our solution in the coming year. Consumers will be too confused otherwise,” he added.

The bun fight between the two next-gen DVD camps has been dragging on for what feels like an eternity, with initial hopes of an agreement in April 2005 falling apart by August.

See: Unified DVD Format Trouble Confirmed

All this faffing about with different formats is sure to hold back punters who don’t fancy being lumbered with this year’s Sinclair C5, but pundits are hopeful that dual-play machines could prove the key to breaking the deadlock.

Samsung To Produce Dual HD DVD/Blu-Ray PlayerAlthough both Blu-Ray and HD DVD use groovy blue laser light to dramatically increase the storage capacity of a DVD-sized optical disc, they work in completely different ways.

The two formats employ different capacities, optical specifications and file structures, so Samsung’s new dual-format player will have to supplement its red laser (for current CDs/DVDs) with at least two other read heads for the blue-laser discs.

All that extra electronic wizardry suggests that their combo player is not going to be cheap, potentially putting off consumers wooed by the prospect of future-proof compatibility.

All of which adds to the industry pressure for stubborn Sony and tenacious Toshiba to sort out their differences in double quick time.

HD-DVD
Blu-Ray

Names In Space; IR Transmission; Sporting Computer; Underwater CCTV?

PlutoSend Your Name To Pluto
No, that wasn’t a typo just then: It was actually true! This is the latest in space exploration efforts, and it’s destined for Pluto. With it, will be a list of names, and the space probe is destined to return to Earth in 50,000 years. What names, I hear you ask. Well, any that are submitted here. What a great idea! There’s even a searchable list of all the people who’ve already put their names down on the list. Go look for mine, ‘cos I’m going to Pluto!!

IRDAIt’s fast, but why? Nice solution, but where’s the problem?
I personally had all but forgotten Infra-red as a data transmission means: It’s slow and line-of-sight only. Also, everything now has Bluetooth instead or as well as it. That’s why I was so surprised by the announcement by The Infrared Data Association that they have developed and adopted a new high-speed Infra-Red protocol promising speeds of up to 100Mbit/s. While faster is almost always better, it’s got no real-life use anymore in my opinion. Who still wants to precariously line up two devices on their lap in a bumpy train when they can leave one in their rucksack and instead connect to it over Bluetooth? This whole thing left poor little me very puzzled.

Azul SystemsThat’s… Fast!
The Register has a nice story this week about a start-up company challenging the heavy weights like Dell. Apparently, Azul Systems have released a computer sporting 1,248 processor cores with 800GB of RAM that, when running, only draws 9.1KW of power. To put that in perspective, a typical hair dryer weighs in at about 1.5KW. This means that this computer with 1,248 processor cores has the same electricity requirements as six hair dryers. A comparable Dell machine with the same amount of cores on the other hand would require 37 times more electricity, which equates to 307KW o electricity or 204 hairdryers. This is a lot by the way. So the Dell one might be cheaper, but with a kWh (kiloWatt hour) of electricity currently costing around 7pence, the Dell would be costing over £20/hour (~$36 ~€29) to run, whereas the Azul Systems machine would only cost around 63pence/hour. Over the period of a year, the decreased electricity consumption of the Azul Systems machine would pay off.

Whether this challenging of the big players in a crowded economy is going to work or not will be decided in the future and is impossible to predict now, but I know one thing: When I have US$800,000 kicking around in my pocket, I would like one of these. Imagine the frame rate on Quake3!! (Sorry…)

Swimming PoolBig Brother is Everywhere
Here’s an unusual one: An array of cameras in a swimming pool coupled with a state-of-the-art detection system. CCTV? No, this is a way of monitoring swimmers and alerting lifeguards when they’re drowning.

The company making the system are called Poseidon, and they have their systems installed in various pools world-wide. They have some cool images taken by their camera equipment documenting various rescues here.

Unified DVD Format Trouble Confirmed

Unified DVD Format Trouble ConfirmedFollowing reports yesterday of difficulty between Toshiba and Sony in agreeing on the Unified DVD format, bringing together HD-DVD and Blu-Ray, we’ve spoken to Sony and they have confirmed difficulties.

Disc capacity
Blu-Ray, surprise, surprise uses a blue laser, as does HD-DVD. They didn’t just like blue lasers because it fits in with their name, or even that it’s their favorite colour, the shorter wavelength of the blue light, 405nm, (think of its position in the rainbow relative to the red, 650nm) allowed for higher density of their disks. Current CD and DVD media uses red lasers.

The difference in capacity of the two formats is pretty large. A single layer disc yields quite a difference – HD-DVD provides 15GB, and Blu-Ray 25GB.

Blu-Ray are claiming that their eight layer disks can hold 200GB of content, a considerable amount in anyone’s book. They’ve also told us they’re working on ten and twelve layer disks, pushing storage even higher to 300Gb. HD-DVD holds 30GB on their dual layer disks.

Why extra capacity is a sticking point
Many may wonder why 200GB is needed for a disk (not you, dear reader, I’m sure). Well while the storage requirements of HD content has a small part to do with it, the obvious use is to provide near-endless ‘extra’ material to go with the film on the disk (even if the purchaser isn’t interested in it). Less obviously, is placing material on the disk that is locked.

Unified DVD Format Trouble ConfirmedWe think that Blu-Ray’s dogged pursuit for high capacity (possibly in the face of Unified DVD), and the fact that Sony are driving Blu-Ray is no coincidence.

Sony, having learnt its lesson during the Betamax/VHS wars, now own a serious amount of content and the studios want to make more. We imagine that the content side of Sony’s business is pushing hard to extra capacity for commercial reasons.

Think about it – what do media companies want to do? Reduce the involvement of the middle man, or cut it out completely. If they are able to sell a disk with one accessible film on it, plus a number of films on it that are locked, they’ve reduced their distribution costs, and importantly, kept percentage paid to the retailer to a minimum. To access the extra films, the purchaser simply has to contact the media owner.

An important part of the Blu-Ray standard is its online capabilities, so the unlocking could be requested and paid for through the player, or via the phone for the die hards. The great thing, at least in the eyes on the media owner, is that the additional income generated is nearly all profit.

Difference in programming One thing that appears to have been missed by most commendations on Unified DVD is the world of difference in the programmability of HD-DVD and Blu-Ray. As a player supporting both standards isn’t realistic, one of the sides would have to change completely. This leads to considerable additional cost for the media creator, forcing them to effectively have to programme the whole disc twice.

Unified DVD Format Trouble ConfirmedCover layer thickness difference
This is possibly the unbridgeable gap. Cover layer thickness – how close the information is written to the surface of the physical disc. Blu-Ray is 0.1mm and HD-DVD is 0.6mm. HD-DVD has plumbed for the 0.6mm, the same standard as current DVD’s. From our discussion, this appears to be an intractable difference.

The difference in layer thickness is one of the factors that makes manufacturing Blu-Ray discs more expensive, as the equipment used to create the disc has to be replaced.

Both sides have been busy gathering supporters of their own formats, in a not dissimilar way to two groups at school picking teams in the playground, trumpeting when another new chum joins their gang.

It will be a great shame if Unified DVD does fail. We all know what will happen – everyone suffers from the producers of the content to the consumer. At this time, it looks like we’re going to have to prepare for that.

HD-DVD
Blu-Ray

Warner Music To Launch E-Label

Warner Music To Launch E-LabelWarner Music Group has announced a new digital music distribution mechanism based on downloads rather than physical media like CDs.

Labelling the new mechanism an “e-label”, Edgar Bronfman Jr., Warner Music’s chairman and CEO, told the Progress & Freedom Foundation conference that they were “trying to experiment with a new business model” to “see where it goes.”

With music download services raking in the cash and sales of CDs slipping, Bronfman proposed that e-label artists could churn out music in clusters of three songs every few months rather than a CD every few years.

Warner Music To Launch E-LabelWith far lower production costs, Bronfman claimed that the e-label will give recording artists a “supportive, lower-risk environment” (I think this means “less cash from the record company”) without as much pressure for huge commercial hits – something that could benefit artists with a more “selective audience”.

Interestingly, Bronfman added that artists signed to the e-label will retain copyright and ownership of their master recordings.

“An artist is not required to have enough material for an album, only just enough to excite our ears,” Bronfman said at the conference.

Warming up to the theme of the relationship between technology companies and the entertainment industry, Bronfman reminded attendees at the conference that recorded music has long been influenced by the distribution technologies available – pop songs were traditionally restricted to around 3 minutes because that’s as much music as a 45 rpm record could hold, he said.

Hastily compensating for his brief bout of nostalgia, Bronfman let the gathered suits know that he was a 21st century guy, unleashing two buzzword laden bon mots in quick succession: “Technology shapes music;” “Music drives technology adoption.”

Warner Music To Launch E-LabelBronfman called on the technology industry to work on digital rights management (DRM) standards, arguing that compulsory licensing – with support from P-to-P vendors – would set a price for downloaded music while forcing music companies to make their products available online to P-to-P users.

“As a content company, we quite naturally want devices out there that permit consumers to seamlessly access our music without having to worry about the compatibility of operating systems or DRMs,” he said.

“The consumers’ digital music experience should be as seamless and rewarding as possible, but we would be hypocrites to suggest that the government should force interoperability standards on devices while at the same time insisting there is no need for compulsory licensing.”

The latest figures from the International Federation of the Phonographic Industry, reveal that around 180 million songs were sold online in the first half of 2005, up from 57 million in the same period last year.

Warner Music Group