MP3tunes – Robertson Returns to MP3

Robertson launches MP3TunesMichael Robertson, one of the founders of MP3.com, is to return to the world of downloaded music.

Full details will be coming out next week, but the essence is, Robertson feels ‘compelled’ to make paid-for music available in MP3 format. In his words ‘certain market forces are trying to drive consumers away from MP3 towards proprietary systems, which lock out some consumers and force everyone to buy a particular company’s player or software program.’ Can anyone think of who he’s might be aiming his comments at?

The new venture, MP3tunes, will sell high-quality music downloads online, in MP3 format – therefore not protected by DRM (Digital Rights Management). Customers will be free to do as they will with the track once it’s been paid for and downloaded.

Bleep.com has been selling MP3’s for close to a year and many were surprised to hear Steve Beckett, managing director and co-founder of Warp Records and Bleep.com say, “We still don’t know if it was the right decision,” at the recent Midem music conference in Cannes, France.

Currently it’s unclear where the music for MP3Tunes will be coming from. Given the records companies keenness on DRM, it’s unlikely to be them. It could be new artists that MP3.com promoted in its heyday.

It’s quite surprising that Robertson has friends in the music business. He irritated them considerably during the days of MP3.com and ended up being sued for an estimated $118 million in damages in a copyright infringement lawsuit brought by Universal Music Group.

Since leaving MP3.com when it sold to Vivendi Universal, with a few wheelbarrows of cash, he’s been pushing Linux as a desktop replacement with his company Linspire, originally called Lindows. It’s highly possible that he’s been locked out of being involved with music download since the sale of MP3.com

Microsoft and Macrovision Join Forces

Macrovision and Microsoft joing forcesIn a move sure to annoy and frustrate pirates and possibiliy home users, Microsoft has struck a deal with copy-protection specialists Macrovision to make it harder for consumers to swap video content.
The technology aims to stop people making copies of TV shows and movies using analog connections between devices (e.g. linking a set-top box to a television).

Up till now, the big studios and content providers have been more concerned about preventing high quality, digital to digital copies, but now they’re getting in a sweat about users recording the output of a DVD player onto a computer hard drive.

Unlike most digital copy protection schemes, Macrovision doesn’t scramble the signal, but it blasts out a pulse of electronic energy along with the video as it is played. Devices such as DVD recorders will recognise this signal and refuse to record the content.

The new deal also enables Microsoft’s Windows Media software to detect this signal in incoming analog video streams. Future versions of the software may allow content to be stored for just 90 minutes or up to a week.

Upcoming versions of Microsoft’s Media Center Edition operating systems will allow users to make a temporary copy that can be stored for one day and then rendered unusable after that time.

By hammering down digital rights management, the idea is that the entertainment industry can to take advantage of emerging revenue channels without remaining confident that their rights are protected.

How your average consumer, keen to make a copy of the Antiques Roadshow at home, might respond to all this technology is another matter. One option they might take is to replace their Windows machine with another type that doesn’t place this restriction on them.

Macrovision
Microsoft

Universal Music Group Creates Digital-Only Music Label

Another month, another digital music announcement. This time, however, a record label is actually thinking long term. Universal Music Group (UMG) are embracing online technology as part of its business model, rather than wasting its time, money and efforts suing a handful of consumers for downloading copyrighted material.

Universal, which like other record companies, has heavily relied on profits from sales of CDs, will this week promote eight relatively unknown acts on a digital-only label (UMe Digital) through online services including Apple Computer’s iTunes, RealNetworks’ Rhapsody and Microsoft’s MSN Music. Online promotion is an alternative marketing option that’s nowhere near as expensive as traditional forms, but has the potential to be highly effective.

It’s great news that Universal is taking these innovative steps, as it finally shows that music labels will have to adapt to online sales and marketing in order to survive, especially as sales of CDs have fallen over the last four years, record stores are moving from high streets, and more shelf space is being given to DVDs and video games.

The move is also great news for bands because they can get relatively large exposure without having to spend a fortune on recording, making a video and then going on the road to ‘develop’. However, bands do not receive an advance or even the cost of producing an album. Having said that, they do retain full ownership of their master recordings and licence them to Universal for a limited time.

Universal is paying the musicians around 25 per cent royalty on the retail price of the downloads, and if online sales of an artist’s music reach a certain point, say around 5000 copies of a particular song, the company has an option to pick up distribution of the CD to record stores.

It’s now only a matter of time before digital-only independent labels start promoting bands online by creating a low-risk way to market them without producing a physical album or underwriting a tour or music videos. For consumers, gone are the days of paying £15 for a CD – a digital world means more choice and better value.

Warner Music Group is developing a unit similar to Universal’s, initially to sign artists and finance recordings for online sales, with the potential for later CD releases.

Universal Music Group
Warner Music Group

Viagra to Use RFID to Highlight Fakes

It has been claimed that 50% of the Viagra offered over the Internet is fake. Given this and the fact that Viagra had worldwide sales of nearly $1.9 billion last year, it pays Pfizer to protect its product.

Pfizer have announced that by the end of next year they will be shipping Viagra bottles with Radio Frequency ID (RFID) tags built in to them. The tiny RFID tags will give them the ability to trace the shipments from factory to shop, while giving the purchaser the confidence that the goods are genuine.

The subject of RFID has proved controversial. Many businesses are enthused by the potential of the technology in further automating their supply chains while some groups feel that individuals privacy could be compromised the technology. If RFID tags were fitted to clothing, a shop would be able to ‘read’ which clothes a person was wearing as they walked through the door.

It’s unclear whether purchasers of Viagra will be happy to walk around with a bottle that could be remotely detected.

Pfizer

TiVo to Restrict Content Usage

In the very near future, your TiVo machine will surreptitiously download a patch that will put restrictions on how long your DVR can save certain kinds of TV programmes. It’s the first time since its inception that your TiVo won’t let you watch whatever you want, whenever you want.

The slippery slope started when Macrovision became concerned about TiVo’s imminent TiVoToGo service, which will allow users to transfer programming from the TiVo to a PC. One patch will cause TiVos to automatically delete pay-per-view content after a preset period of time, while another change affects TiVo viewers’ ability to view National Football League broadcasts.

NFL was concerned that TiVo’s new remote access service would somehow circumvent the league’s broadcast regulations by playing real-time retransmission outside of the subscriber’s local television market. A new agreement with the NFL prevents TiVo owners from doing this.

In a recent interview with J. D. Lasica on endgaget, Mike Ramsay, CEO of TiVo said, “When you are a slave to television it screws up your life.”  It would seem though that TiVo might be assuming the mantle of slavery by being too deferential to the broadcasters.

TiVo say they are changing because Macrovision is changing, and that it’s a case of having a more restrictive Macrovision licence or no licence at all, especially since the restrictions are limited to pay-per-view and video-on-demand – so far.

The thing is, TiVo is not legally required to have copy protection, and in an interview with Lucas Graves in the latest issue of Wired, Graves asks TiVo’s general counsel, Matthew Zinn why TiVo just don’t tell Macrovision to stuff it?  Zinn replies, “That was an option. But if there was no Macrovision license, we would run into a lot of copyright problems with things like remote access and “TiVo to Go” functionality. To innovate and give people more flexibility with broadcast content, we decided it was acceptable to allow content owners to apply protections to higher-value content.”

Having an arbitrary expiration date set after which your copy gets wiped cannot be good for customer morale, the risk being that they may find non-legal ways to get what they want.

Tivo
Engadget interview with Mike Ramsay, CEO of TiVo
Wired interview – Lucas Graves, general counsel, TiVo