Real Networks and Starz Launch Broadband Film Service

Real Networks and Starz Encore Group have launched a new service delivering films over broadband to US subscribers. A US$12.95 (€10.68) subscription to Starz Ticket gives viewers access to a library of major films encoded in RealVideo 10 with download times of as little as 20 minutes. Titles include such reasonably recent fare as Pirates of the Caribbean, and comedy fish movie Finding Nemo.

Content providers seem to like subscription models, either charging a flat rate for access to all content, or a lower subscription with content priced individually. It’s a good way of locking in customers.

“In the cable and satellite world the ‘all you can eat’ subscription business model has proven to be much more popular than the transactional pay-per-view model,” said Starz chairman, founder and CEO, John J. Sie.

Subscriptions are a cheaper business model too, as lots of small individual transactions cost money to process and unless all your customers suddenly jump ship one month, month to month income is more predictable.

It’s a shame that geographical boundaries still apply to distribution rights – there’s no other reason why Starz Ticket should be US only.

Starz

Real Networks

Napster and NTL’s Broadband Partnership

Napster UK and NTL have completed a deal to bundle the new music store with NTL’s Broadband Plus package. This will bring Napster a potential one million more customers, and will also include a 30 free trial subscription to the store.

NTL’s Broadband Plus package starts at UK£3.99 (€6), or UK£9.95 (€15) including a Napster subscription.

“This is a significant deal for Napster because we are partnering with the biggest provider of broadband services in the UK, and ntl’s own research has shown that over 75% of broadband customers download music each month,” said Brad Duea, president of Napster.

Napster’s catalogue now stands at over 750,000 tracks, making it the largest music store in the market at the moment.

Napster UK

BT Trialling Fibre to the Home

Quick – move to Martlesham Heath, Suffolk. 1,500 businesses and residents in three UK locations, Suffolk, Milton Keynes and Docklands are to take part in a one year trial of fibre optic broadband connections, running to September 2005.

The properties will be linked directly to BT exchanges by glass fibre, upgrading connections to an end-to-end internet protocol network – something that’s go to come to the entire country sooner or later.

Paul Reynolds, BT wholesale chief executive has stated that BT will not go out and replace all of the copper wires in the country if the trial is a success: only new building developments will have fibre installed. “At this stage we don’t envisage a widespread deployment of fibre to the premises or the cabinet in the near or medium term,” i.e. it would be hideously expensive. “While we believe the use of fibre can help deliver better operating costs in terms of maintenance, we need to balance this against the cost of installation and systems developments. These trials will help to shape our thinking and help us make strategic investment decisions.”

BT have also announced a five year plan to replace the old switched network to properly carry voice and data services, with migrations beginning in 2006.

BT announce their timetable

UK Gets 36Mbps Wireless Broadband

Libera, a UK company aiming to reach 75% of the country’s business with wireless broadband, will shortly be offering a 36Mpbs service in London Docklands. The service goes live in July, and will be rolled out to Greater London by summer 2005. Subscribers can choose connectivity anywhere between 1 and 36Mpbs – making it the fastest in the world for the time being.Libera’s network is carried on the 28GHz band of the radio spectrum, one of the rare instances of that band being used.

Paul Momtahan, marketing director, emphasises the high tech nature of the network: “if they need more bandwidth we can turn it up, if they need less, we can turn it down”.

Libera are not commenting on the pricing of their service yet, but expect it to compare with business SDSL connections.

Libera

Mobile Peer to Peer File Sharing with PDAs

Simedia, a small software publisher in Bucharest, has ported a clone of Apple’s Rendezvous application to PocketPC and teamed it with a web server. The result? A mobile P2P file sharing program.

The application discovers other devices on the same WiFi network and allows people to share files and documents. And of course, music.

Simedia themselves give various uses for the application, including using it to “share your music collection with passers-by or listen to their collections whilst sharing a ride on the bus”. Features like these will no doubt have music execs jumping out of windows, whilst RIAA lawyers will be lighting cigars with $100 bills.

The software will be available from 16 June in two versions: a free version, and a paid version with corporate functionality.

Simedia already have a history for off-beat PDA products – they are well known for their SounderCover application which plays background noises (trains, the dentist, a errr, circus parade) over phone calls for those wishing to deceive spouses and employers that they somewhere different to their real location.

Simedia

BT Launch New Broadband Satellite Service, Satellite Broadband 500.

Literally aimed at rural businesses, BT have introduced a new broadband satellite service providing 500kps to areas where there there are currently no ADSL facilities. The service is carried on Intelsat’s IS-907 satellite and covers the entire UK – if it’s successful, BT has an option to take the service into Western Europe.

The product, Satellite Broadband 500, comes in two flavours – Plus and “Lite”. Lite is for single users with a need for web access, whilst Plus is for multiple users requiring LAN connectivity.

The service will be available from BT Retail, but will also be offered wholesale for other ISPs and operators to resell. Subscription charges are competitive, starting at UK£46.99 (€75) per user for Lite and UK£85.99 (€129) for Plus. However, equipment prices start at UK£699 (€1048), and standard installation is UK£250 (€375). Subscriptions come with a dedicated BT support network.

Jonathan Wing, Head of Satellite Broadband at BT Broadcast Services, said in a statement: “There is a clear and demonstrated need for businesses, ISPs and others in the UK to have high-quality, high-speed, satellite broadband connections. Satellite broadband enables businesses and ISPs to be effective and competitive, wherever their offices are located.”

BT

Cable and Wireless Buy Bulldog – What’s the Threat to BT?

Cable and Wireless’ recent purchase of Bulldog means that they acquire four years of local loop unbundling experience, 38 ready-equipped exchanges and a number of well-marketed, innovative products. All for the bargain price of UK£18.6 million (€28 million) – though Bulldog’s net assets at the end of 2003 were only UK£1.6 million (€2.4 million). This puts C&W in a position to offer unique services, and not just resell products from BT Wholesale.

Bulldog have long been critical of BT, and have said some fairly dramatic things over the last few months. My own personal favourite quote was from Richard Greco, when talking to The Register in 2001: “Oftel needs to force BT to move. And if BT doesn’t, then Oftel should point the gun – and pull the trigger.” However, he was quite gushing about BT when agreed to carry their SDSL products some months later: “It really is a powerful combination.”

Bulldog’s frustration at BT stemmed from the glacial pace that the communications giant was unbundling the local loop. Bulldog have installed their own equipment into 38 exchanges, a figure that C&W now want to raise to 200. They will doubtless use this position to tempt more ISPs to jump from bitstream services to LLU – as C&W chief Francesco Caio said in a statement: “The acquisition of Bulldog will accelerate our ability to deliver directly connected DSL solutions for our existing and potential customers with an experienced team specialising in LLU services.”

Bear in mind that it’s not just BT that is causing frustration with LLU – across Europe the entire process has been slow and as yet only a small percentage of lines have been unbundled.

BT has already demonstrated that it’s worried about complaints about its LLU conduct and progress by making huge cuts to wholesale prices and promising faster progress. With C&W breathing down its neck even more, expect those exchanges to be unbundled faster than ever before.

About Bulldog

Broadband is Killing Television

A survey from Wanadoo has revealed that people’s TV viewing and Internet habits are changing as broadband becomes more popular.

The Fishbowl 2 survey asked 1000 people to keep a diary of their media use over a two week period.

Broadband subscribers spend 45% more time online than narrowband users, and cite entertainment as their use after 6pm – making the Internet the second most popular media in the prime time slot. Broadband users also claimed that the Internet was the only medium that satisfied all of their media needs (i.e. news, music, information, entertainment etc.) all at one time.

Key findings from Fishbow 2:

  • TV has declined by 12% (almost 3 hours) in viewing time
  • Broadband users take a higher share of media time at 16%, compared to average Internet share at 12%
  • Broadband users spend 11% less time watching TV than Narrowband users, and 45% more time online
  • This equates to 2.1 hours less time watching TV per week, but 2.1 hours more time online – indicating Broadband’s direct cannibalisation of TV consumption
  • After 6pm weekdays and 2pm weekends, the Internet is the number 2 medium behind TV for all demographic groups
  • TV cannibalisation is occurring at the above times for Broadband users. Weekday evening for example, Narrowband Internet share is 10% and 77% for TV; Broadband Internet share grows to 18% but is only 68% for TV
  • Needs fulfilled online are changing from ‘traditional’ Internet needs. Searching specific information and communication has decreased as a need fulfilled online whereas entertainment is growing
  • Entertainment is the top need fulfilled online after 6pm, as with TV
  • The Internet is the number 2 “prime time” entertainment medium, with Broadband eroding time spent watching TV

Wanadoo on the report

BT to Offer Itemised Broadband Bills

BT Wholesale will be offering itemised bills to its customers from 28th May. Subscribers will be able to view each user’s time spent online and the amount of bandwidth used.

“Previously, BT wholesale gave service providers the start and stop time for each user. With the improved functionality, we are able to record a breakdown of the bytes used both upstream and downstream,” said a spokesperson for BT Wholesale.

BT

BBC Creative Archive licensing to be based on Creative Commons

In a significant step forward towards the opening of a portion of the BBC’s archives, the BBC today made their intentions for the Creative Archives clearer to other UK broadcasters and public sector organisations. The Creative Archive,  originally announced by Greg Dyke in 2003, plans to offer the British public free access to some of the BBC’s audio and video programming.

This afternoon the first meeting of an external consultative panel, which included many UK media holders, heard the BBC’s decision that it will base the Creative Archive usage licence on the Creative Commons (CC) model. This confirmation follows some speculation on the subject. The CC model turns copyright on its head by explaining the ways that the content can be used rather than saying it cannot – or Some Rights Reserved as they put it. By happy coincidence, Creative Commons 2.0 was released yesterday.

By applying a CC-type license to the content, the BBC will enable individuals in the UK to download released content to their computers, share it, edit it and create new content. Commercial reuse of the content will not be allowed.

Professor Lawrence Lessig, chair of the Creative Commons project was clearly excited: “The announcement by the BBC of its intent to develop a Creative Archive has been the single most important event in getting people to understand the potential for digital creativity, and to see how such potential actually supports artists and artistic creativity.” He went to enthuse “If the vision proves a reality, Britain will become a centre for digital creativity, and will drive the many markets – in broadband deployment and technology – that digital creativity will support.”

Lessig has been invited by the BBC to be a permanent member of external consultative panel, which is wise because he is clearly at the centre of Creative Commons and politically wise in the BBC becoming closely associated with the whole movement. This announcement will also be a huge boost in profile for Creative Commons.

Paul Gerhardt, Joint Director, BBC Creative Archive explains: “We want to work in partnership with other broadcasters and public sector organisations to create a public and legal domain of audio visual material for the benefit of everyone in the UK.” Those attending today’s meeting included Channel 4; the British Film Institute; the British Library; ITN; JISC; The National Archives; the Natural History Museum; the Museums, Libraries & Archives Council; senior figures from the independent production industry; BBC Worldwide. The BBC plans to keep those attending abreast of the project, while encouraging them to follow the same route to opening their own archives.

This news will give further hope to those who feel the BBC is a leading light in the usage and availability of content in a Digital Lifestyles world. Gerhardt added “We hope the BBC Creative Archive can establish a model for others to follow, providing material for the new generation of digital creatives and stimulating the growth of the creative culture in the UK.”

Read our interview with Paula Le Dieu, Joint Director on the Creative Archive.

Creative Commons