June 14, 2004
Volume 5, Issue 1
Welcome New DCIA Member SVC
Please warmly welcome SVC Financial Services, Inc. to the Platform Group. We look forward to providing valuable services to this newest DCIA Member and supporting its contributions to commercial development of the distributed computing industry.
SVC (OTC:SVCX) is a publicly-traded transaction management company that provides integrated financial services and value-added software to help its clients accelerate sales.
SVC has pioneered a scalable, integrated media and transaction management solution, the Mazarin Media Platform (MMP), which provides rapid application delivery for any size organization.
SVC enables companies to inspire consumers to make immediate, informed purchase decisions. SVC solutions have a broad range of applicability and provide tremendous value to clients in music and entertainment, political, non-profit, research and testing, as well as corporate and consumer marketing areas.
MMP is a rich media application generator that allows virtually any company to rapidly deliver browser-based applications. MMP integrates highly secure SVC payment services with the Mazarin application generator, creating 'smart' applications for sales, marketing, research, and promotional activities.
SVC payment services provide a unique, cost-effective peer-to-peer (P2P) and mobile solution for cash-based consumers such as teens, students, or friends-and-family, for local and international reimbursement and remittance transactions.
Report from CEO Marty Lafferty
 Thank you to Steve Zuckerman for executive-producing the Global Entertainment & Media Summit (GEMS) in Los Angeles this past weekend.
GEMS LA improved upon Steve's highly successful NY May event in establishing a high-quality venue for musicians and filmmakers to network with new distribution-technology providers.
According to founding partner Les Ottolenghi of DCIA Member and GEMS exhibitor INTENT MediaWorks, GEMS LA provided a great opportunity for emerging artists to learn about digital distribution of their works via P2P.
INTENT MediaWorks debuted its new musician-friendly software at GEMS to an enormously positive response. An exemplary GEMS case study features a musician who calls himself the " G-Man."
The G-Man's noteworthy feat began by defying the boycott of P2P by major record labels and offering all the music from his first album free to file sharers.
Then he went further: he contacted thousands of DJs and remixers, established P2P file-sharing relationships with them, and then uploaded individual tracks (bass, synth, vocals, drums, guitar, etc.) to them if they wanted to mix new versions of his songs.
The results have been spectacular, involving reviews, remixes, club play, radio play, a record deal, publishing and licensing agreements. His CD has been nominated for Electronica Album of the Year by the Los Angeles Music Awards.
"This approach may be the new way for starting a career," G-Man asserts. "And some people say this method puts me in the vanguard of changes that are overwhelming the music industry. Perhaps it's both."
Six years ago, Scott G was an advertising writer, radio commercial producer, and sometime music critic. But he wanted to make sounds, not just write about them, so he picked up a guitar and began learning to play.
In 2001, he started recording his first CD, creating music that fuses today's dance grooves with pop melodies and adds sly commentary. Some have called it "dancebeat;" some have called it "Zappa-esque;" but Scott calls it "grin groove music."
Using "Grin Groove" as his album title, the G-Man did several things that together represent the beginnings of a quantum shift in the way music is created, marketed, and disseminated to listeners around the globe.
First, he put up a simple, graphically clean website. Next, he gathered e-mail addresses of media as well as 25,000 DJs, remixers, and those involved with raves, clubs, electronica, dance, and drum 'n' bass genres. "This took as much time as it did to record the songs, but it was worth it."
Then, two e-mail messages were created following ideas recommended by Indiespace's Pete Markiewicz: namely, putting the basic idea in the subject line, keeping the message short, and not including any graphics.
One e-mail message announced his new genre of music to the media. The other offered to share tracks for free with anyone who wished to remix his music - and that was perhaps the most significant part of his approach.
"I have had five songs remixed in Russia by a sonic master called Random Distribution," G-Man states, "and one of these tracks went to #1 over there. Meanwhile, an Australian DJ known as Zero Point Energy has done a remix that is now showing up all around the world. A jazz artist known as il moroso has begun remixing more of my songs, and we have now agreed to collaborate on an album of acid jazz music."
Perhaps most interesting has been the reaction from the European community. A consortium of remixers called the Allianz, led by DJ Insane, created remixes of every song on "Grin Groove." One of the DJ Insane tracks reached #5 on a European dance chart.
All of this could be viewed as just a series of fortuitous accidents, but the G-Man doesn't think so. "I believe that the music world is breaking up and is at the same time transforming into something new, and you have to address P2P file sharing in order to exist in this new world."
It involves an attitude of total independence from traditional distribution, and a faith that the business end of your work will catch up with your art. "You create and market and interchange and share and compete with fellow musicians," G-Man explains. "And only afterwards does the business world come to license your work for commercialization."
Did he write out his business plan? "Absolutely. I used the methods outlined by John Stiernberg in 'Succeeding in Music.' Some said my ideas were crazy, but the plan worked. I wouldn't have even been talking with Delvian Records if they hadn't heard about me from all the activity with my songs all around the world," he points out.
"Mostly, I love the fact that the business was totally being driven by the art," G-Man says. "Plus, it was and is the most fun I've ever had. And besides, under what other set of circumstances could I be collaborating on music simultaneously with people in Australia, Moscow, Los Angeles, Big Bear Lake, and The Hague in Holland?"
P2P Usage Statistics of Interest
From Digital Music News
New data from Ontario-based network monitoring service Sandvine shows trading levels via P2P software worldwide are remaining steady, despite deterrent actions by the IFPI and RIAA.
Sandvine analyzes data packets across ISPs in the US, Europe and Asia, and reports P2P usage data in terms of overall net usage.
The most recent Sandvine figures show a slight ebb in the percentage of P2P files transferred in the US, and strong increases in Europe and Asia.
These data points, combined with information from leading tracking firms BigChampagne and BayTSP, reveal a picture of overall strength in P2P application usage. In addition, BigChampagne has new data indicating that P2P files are generally high quality.
The figures, however, conflict with recent claims from the IFPI, which recently pointed to a 27% decrease in the number of music tracks available on P2P networks over last year.
Washington Digital Media Conference
The DCIA proudly sponsors the Washington Digital Media Conference (WDMC), produced by Digital Media Wire and Potomac Tech Wire, this Friday June 18th from 8:30 AM to 5:00 PM at the McLean Hilton in Tysons Corners, VA.
To receive our special rate of $100 rather than the $395 normal registration fee, simply e-mail your name, company, and title to WDMC@dcia.info by Thursday noon ET.
WDMC will bring together decision makers from leading media, entertainment, and technology companies in the greater Washington, DC area for a full-day executive forum focusing on business, legal/policy, and technology developments impacting digital media.
For those who missed our Spring Meeting in LA, the CED's Elliot Maxwell will again provide the opening keynote address on "Promoting Innovation and Economic Growth: The Special Problem of Digital Intellectual Property."
DCIA Members: Pat Breslin - CEO, Relatable; Reed Freeman - Chief Privacy Officer, Claria Corporation; and Gabe Zichermann - VP, Strategy & Communications, Trymedia Systems, will be featured speakers on WDMC panels, providing insights into the transformation of entertainment and media businesses given the unique challenges and opportunities posed by digital distribution.
The DCIA will present a special mid-day track entitled "Technology for Digital Content Delivery."
And finally, DCIA CEO Marty Lafferty will moderate a late afternoon panel entitled "Spyware: Protecting Consumer Privacy," with Ari Schwartz - Associate Director, Center for Democracy & Technology (CDT); Sarah Deutsch - VP & Associate General Counsel, Verizon; plus representatives from Microsoft Corporation and the US House of Representatives.
A cocktail reception will follow the conference from 5:30 PM to 6:30 PM. Plan now to be a part of this inaugural event, bringing together the business and government leaders who are transforming Washington, DC into a center for digital media innovation and development.
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