August 15, 2005
Volume 10, Issue 2
Welcome Visionary Strategies
Please warmly welcome Visionary Strategies to the Platform Group. We look forward to providing valuable services to this newest DCIA Member and supporting its contributions to the distributed computing industry.
Visionary Strategies is a holistic branding and licensing company for the fashion, apparel, and related consumer-trend products industries. With over 25 years of hands-on experience, primarily in the retail and wholesale fashion sectors, Visionary Strategies provides a one-of-a-kind approach to branding.
In Visionary Strategies' branding efforts, the firm evaluates and determines new media components for marketing to targeted consumers, while also building effective communication and marketing platforms for its clients.
Visionary Strategies continually researches, evaluates, and recommends advanced strategies that will effectively communicate to targeted brand audiences as media usage evolves.
As a result of its analyses, Visionary Strategies has become a strong proponent of commercial peer-to-peer (P2P) initiatives that hold enormous potential, and the firm looks forward to bringing together DCIA Members with consumer marketers wishing to utilize P2P.
BigChampagne & AOL Music Data Sharing
Excerpted from Digital Music News Report
As the digital music space grows, so do its tools for measurement and analysis. Most recently, DCIA industry data resource BigChampagne joined forces with AOL Music in an information-sharing partnership. The deal will immediately layer AOL song and video data into BigChampagne online music measurement reports.
Conversely, BigChampagne will also share its own monitoring reports with AOL Music, which include comprehensive P2P tracking information. That offers a win-win, with BigChampagne strengthening its online music monitoring capabilities, while AOL Music receives stronger clues about what's hot and what's not.
The deal comes on the heels of a similar BigChampagne partnership involving rival Yahoo Music, and also follows a recent arrangement with Nielsen Entertainment. The result will be a much broader picture of artist popularity and activity, with BigChampagne analyzing online data alongside terrestrial, satellite, and digital radio airplay stats.
But the company will remain a big bellwether for P2P file-sharing activity, offering critical consumer response nuggets to major labels. That highlights an ongoing duality with file swapping, with labels suddenly able to save big on marketing budgets by monitoring initial P2P activity, despite ongoing lawsuits against swappers.
Report from CEO Marty Lafferty
 In the wake of the Supreme Court ruling in the MGM v. Grokster case and the Senate Commerce Committee hearing on related issues, the private sector is showing signs of progress.
As noted in other reports in this week's DCINFO, developers and distributors of established P2P software programs are expanding their existing services and/or offering new ones to content providers that support secure dissemination and monetization of copyrighted works.
In addition, new P2P applications and associated offerings are launching with innovative and promising business models, some of which are sufficiently appealing to attract content licensing from major entertainment companies for the first time.
As Rob Hof reported from Music 2.0 in Business Week, we still have a great deal of work ahead of us. "There are some rays of hope: a lot of folks such as DCIA Member Shared Media Licensing with Weed and PassAlong Networks are working on technologies that combine file sharing with paid music services in interesting new ways. But for now, they seem hamstrung by music industry powers that still aren't embracing the full potential of the new technologies.
As a result, we have very limited choices. We can get song downloads for 99 cents that, using an iPod and Apple Computer's iTunes Music Store, produce a great but rather too-expensive experience unless you get music from your own CDs or from free file-sharing networks. Or we can get subscriptions for $5 and up a month, but you can't put those songs on an iPod without ridiculous gyrations.
It's no wonder that a panel of teens and 20-somethings at the conference today said they rely on file-sharing networks for the bulk of their music.
The upshot: If you're looking for that perfect combination of a great music player and a great digital music service, pull up a chair. It's going to be awhile."
And as Digital Music News' Paul Resnikoff observed this week, "Peer Impact's launch is the first of a slate of music-industry-approved applications scheduled to come on board later this year. That includes Mashboxx, headed by former Grokster chief Wayne Rosso, and SNOCAP, which aims to be a catalog clearinghouse for existing P2P applications.
Other pre-launch players include iMesh, which is emerging as a reborn application following a harrowing legal round with the RIAA.
Now, the big question is whether these applications will be able to draw users from the endless free downloads that are available on systems like LimeWire, eDonkey, and BitTorrent – all of whom are experiencing traffic increases."
The DCIA wants to do all that we can to encourage commercial development of the P2P distribution channel for secure licensed distribution of copyrighted works.
In addition to our three new initiatives – the MGM v. Grokster Response Working Group (MGRWG), NEW VOICE OF P2P (NVP) concert tour, and technology solutions request for proposal (RFP) – the DCIA is also glad to serve in the role of 'meeting broker' for qualified parties to help them identify, contact, and initiate business discussions with third parties whose capabilities and requirements compliment their own.
In fact, as the pace of change accelerates for authorized file sharing, one of the increasingly valuable features of DCIA Membership will be as an adjunct to the internal business development resources of current and prospective Members.
The P2P file-sharing channel is approaching a major turning point in its evolution. Now is an excellent time for interested parties to get involved with this emerging industry and help make history. Please feel free to call our Member Services leader Karen Kaplowitz at 888-890-4240 or me at 888-864-3242 for more information.
61% of P2P Traffic is Video Content
Excerpted from Digital Media Wire Report
A study of worldwide P2P traffic found that video now accounts for 61.4% of all files shared, followed by audio (11.3%) and "other" files (27.2%), such as games or software. Conducted by UK-based CacheLogic, which provides P2P traffic management software, the study culled findings from actual packet data and traffic levels from Internet service providers (ISPs) worldwide.
The study tracked the four leading P2P applications, including eDonkey and BitTorrent, and found that eDonkey is now 'the network of choice for video file trading,' while BitTorrent 'is increasingly being used for the distribution of legitimate content.'
Additional revelations from the study include that Microsoft video formats now represent 46% of aggregate worldwide P2P traffic, and that while 65% of all audio traffic is in MP3 format, a surprising 12.3% consisted of open-source OGG audio files.
Morpheus Adds Peer Response
StreamCast Networks, developer and distributor of Morpheus P2P file-sharing software, last week announced Peer Response (PR), its flexible platform designed to facilitate compensation for participating content creators and copyright holders.
PR provides multiple methods of payment for authorized digital media files that are returned within Morpheus users' search results. Content owners can be remunerated through sale or sponsorship of downloads in Morpheus' open decentralized P2P environment, or gain exposure by allowing consumers to discover and download their content for free. Content can also be positioned as an intermediary web page, offering consumers detailed information about titles or streaming samples so that users can make informed decisions about future purchases.
PR uses an integrated Morpheus-branded eWallet provided by Media Global Infrastructure. Additional partners initially include DCIA Members INTENT MediaWorks, Shared Media Licensing, Softwrap, and Trymedia Systems (now part of Macrovision).
"By connecting content creators with millions of interested users at the most powerful moments of the purchase cycle – when consumers are declaring exactly what they want, Peer Response leverages existing file-searching behavior to convert downloaders into customers," said Mike Weiss, CEO of StreamCast.
PR will launch with a full slate of licensed music, game, and video downloadable titles to 'try-and-buy' that include: Halo 2, From Russia with Love, Monopoly, Tha Outlawz, Ms. Cherry, and thousands more. Over one million video, music, game, and software titles will be added in the coming months. Self publishers will also be provided with automated tools to distribute their content.
Wurld Media Launches Peer Impact
Wurld Media announced last week a retail channel partnership with Army & Air Force Exchange Service (AAFES) and the official launch of Peer Impact (PI), its P2P digital media service.
AAFES, which services more than 15 million active, guard, reserve, and retired military personnel and their families, will promote PI via an in-store radio and television network that is heard and seen at more than 150 military retail locations around the world. Under terms of the agreement, AAFES will also distribute PI client CDs, gift cards, and program information through its physical retail footprint while building overall awareness for PI at AAFES-operated movie theaters.
As the first P2P service to sign agreements with all four major record labels, PI will enable customers to download and share licensed content exclusively. Wurld's partnership with AAFES is the company's first retail channel partnership announcement.
"Wurld Media could not be prouder to announce AAFES as our first retail channel partner," said Greg Kerber, CEO of Wurld Media. "We have always been a company that prides ourselves on serving our community, and the opportunity to offer Peer Impact to our servicemen and women is a true honor considering all that they do for us on a daily basis."
This news follows last month's announcement that Wurld Media retained Casey Hughes, a 27-year industry veteran and recognized leader in the development of technology sales channels of distribution, to serve as VP of Channel Development.
SopCast P2P Television
Excerpted from Broadband Reports
A software program called SopCast, based on P2P technology, allows users to watch streaming television or other media on PCs via the Internet. It has three modes, official channels which are supported by sopcast.org, user channels, and test channels.
Users in Cool Broadband Bookmarks Forum have taken a closer look at the program and its capabilities. The software is available for free download on the SopCast site.
Coming Events of Interest
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Crimes Against Children Conference – August 15th-18th in Dallas, TX. Each year brings new challenges for those engaged in the battle against child victimization, including through P2P PATROL. This 17th annual CACC will benefit front-line professionals from law enforcement, prosecution, child protective services, social work, medicine, and CAC teams in their investigation, intervention, and treatment of crimes against children.
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How To Win The Internet Search Game – This Chicago Interactive Marketing Association (CIMA) panel on August 18th will focus on the future challenges of Internet search engines and what advertisers must do to stay ahead of fast-moving technological advances. The panelists will be Justin Merickel of Yahoo; John DiCola of Google; Matt Kain of Real Media; and Dan Olson of Performics. The moderator will be Matt Spiegel, President of Resolution Media.
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Future of Music – September 11th-13th in Washington, DC. Since 2001, the FMC Policy Summit has played host to over 500 stellar panelists and speakers including musicians, business leaders, scholars, policymakers, legal experts, and advocates. Widely praised by advocates and industry alike, FMC's events have gained a reputation as a kind of Geneva where all sides in any number of contentious music industry fights can get together and play nice for a few days.
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Kagan's Digital Media Summit – The theme of this year's conference, which will be held on September 12th-13th at the Four Seasons / Mandalay Bay in Las Vegas, NV will be "New Opportunities For Monetizing Content." The DCIA will participate in the panel entitled "MIXING MEDIA'S POTION: Content Security Plus E-Commerce Fulfillment and On-Demand Delivery." DCIA Members receive a 50% discount on registration. Please contact DCIA Member Services leader Karen Kaplowitz for more information at 888-890-4240 or karen@dcia.info.
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Digital Hollywood Fall – "Transforming the Entertainment Industry." Scheduled for September 19th-21st at Loews Santa Monica Beach Hotel in Los Angeles, CA. The preeminent digital media and entertainment conference in the country. This year featuring a series of special University Project workshops. The DCIA will moderate "Track I: Next Generation P2P Music and Film - DRM, Paid for Pass-Along and Other Legal Distributed Computing Models and the Entertainment Industries." DCIA Members are also planning to host entertainment.
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Technology Law Institute – A Digital Media Rights panel will be featured September 20th at the Headquarters of the State Bar of Georgia, in downtown Atlanta, GA. Kilpatrick & Stockton's James Trigg will moderate with speakers Renay San Miguel from CNN, Kevin Lapidus from YellowBrix, and Marty Lafferty from the DCIA.
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Internet Telephony Conference & EXPO – DCIA Member Skype CEO and founder Niklas Zennström will deliver the keynote address at this major conference at the Los Angeles Convention Center, CA October 24th–27th. His address, which will be delivered live from London via Internet Telephony Videoconference, will take place Tuesday, October 25th at 12:15 PM PT. Click here to register for the show.
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