November 7, 2005
Volume 11, Issue 2
Telcordia Expands MVNO Solutions
DCIA Member Telcordia continues to roll out innovative network and data services as part of its rapidly expanding Hosted Solution for Mobile Virtual Network Operators (MVNOs). The company last week announced enhanced functionality including a wireless application (WAP) gateway, personalized alerting, and rich content downloads, to help enable MVNOs meet customer demand for advanced services, further differentiate their offerings, reduce churn, and increase customer loyalty.
Telcordia's Hosted Solution enables carriers to offer high-quality, prepaid and postpaid wireless services without having to own a network or manage network operations. By incorporating 724 Solutions' XMG WAP gateway and XAP alerting platform and a new download platform and directory into the Hosted Solution, operators can provide rich data services on mobile phones and consumers have the ability to access personalized information like stock quotes, sports scores, weather reports, or traffic updates and download games and other multimedia content.
"Telcordia continues to provide best-in-class services to help carriers rapidly transform their business beyond just voice, offering an array of innovative rich data services," said Doug Patterson, General Manager, Hosted Solutions, Telcordia.
Exclusive Offerings for Moby Fans
Dwango Wireless, a leading developer and publisher of mobile entertainment content for top lifestyle brands, and eLabel INgrooves announced last week the release of new, exclusive ringtones, audiotones, unique art originals, and album cover graphics from the multi-platinum recording artist Moby of DCIA Member V2 Records.
The ringtones will feature 30 hits from Moby's three most recent albums: "Hotel," "18," and "Play," and be released through Napster Ringtones, a service of Dwango Wireless. The mobile content is priced from $1.99 to $2.99 and is compatible with a wide variety of handsets and wireless carriers.
"Working closely with V2 Records and Dwango Wireless, we have put together a top-notch mobile program that maximizes the promotion and broad availability of Moby's greatest hits," said Robb McDaniels, CEO of INgrooves. "Moby fans will be thrilled to be able to personalize their mobile devices with Moby's electro-pop recordings and images," added Alexander Conrad, President & COO of Dwango Wireless.
EMI Music Selects RightsLine ERM
DCIA Member RightsLine, the leading provider of solutions for enterprise rights management (ERM), last week announced that EMI Music went live with RightsLine software to streamline processes and improve the performance of its licensing business. RightsLine's software will give EMI real-time access to valuable business information, making it more efficient while also optimizing costs.
"By using RightsLine's software, EMI Music has more efficient and timely access to asset rights ownership information, content availability, deal activity status, and financial analysis," said Colin Finkelstein, CFO, EMI Music North America. "Furthermore, this will help us speed our clearance processes and increase our responsiveness to our licensing clients."
"We are excited to work with EMI Music, a global leader in their market," said Russ Reeder, Chairman & CEO, RightsLine. "By selecting RightsLine, EMI gains a competitive advantage in the marketplace while simultaneously improving the overall performance of its licensing business."
Please click here to pre-register for RightsLine's webinar on Enterprise Rights Management scheduled for this Thursday November 10th at 9:00 AM PT.
Electronic Arts & Nettwerk Digital Label
Video game publisher Electronic Arts (EA) announced Friday that it has partnered with DCIA Member Nettwerk Music Group to launch a digital music distribution label that will release EA-owned compositions as ringtones.
EA Recordings will deliver ringtones to iTunes, Rhapsody, and other retailers from artists who have contributed original music to its games, such as beats from Da Riffs and Just Blaze, original songs and remixes from Paul Oakenfold, and themes and soundtracks composed by Sean Callery, Michael Giacchino, Chris Lennertz, Trevor Jones and Mark Mothersbaugh.
"We've entered a new age where video games are arguably more powerful than radio when it comes to exposing audiences to music," said Nettwerk CEO Terry McBride. Initially, music will come from EA titles including "The Sims," "NBA Live," "FIFA Soccer," "Medal of Honor," and the company's James Bond game series.
Report from CEO Marty Lafferty
 The DCIA is pleased to be participating in a defining event in the development of the Internet, worldwide media, and anti-piracy: The Global Forum on Intellectual Property Rights Protection (IPRP), next week in Beijing, China.
IPRP is a critical global concern that impacts media, technology, and commercial stakeholders. We believe the impact of this summit and related announcements will be historic.
Lead conference planning organizations have included the China Institute of Policy and Strategy (CIPS), State Council Information Office, and the State Office of Intellectual Property Protection of the PRC. Vice-Premiere of State Council Wu Yi is presiding over policy elements.
The agenda features an introduction of the Chinese government's policy plan to implement IPRP and formation of its coalition to develop national standards and directions as well as promote international cooperation on effective anti-piracy measures.
China's next-generation digital media platform will be discussed along with Internet IPRP requirements, and there will be demonstrations of recent anti-piracy initiatives adopted by well-known enterprises.
Attendees and participating organizations will represent the key decision-making officials and leaders from China's foremost government policy groups and industry sectors, European government leaders, and world technology industry executives.
The People's Republic of China is placing great importance on developing a twenty-first century information and media services framework. This summit will serve as the culmination for many of China's most influential government decision makers and IT authorities on the direction of IPRP in China.
It will provide a unique opportunity to examine the final policy process before the region's broadband content market is in full swing.
The aim of the gathering is to develop a global anti-piracy solution for China and for media companies worldwide. This represents an ideal opportunity for policy designers and authorities to learn about our objectives and those of all DCIA Members for future industry direction.
We also invite interested prospective DCIA Members to get in touch with us this week if you would like to participate. Please contact our Member Services Asia leader, Michiko Hashimoto in Tokyo at +81 3-5450-9240 or michiko@dcia.info or me at 888-864-3242 or marty@dcia.info for more information.
Involvement in this event will provide an exceptional opportunity to advance each participating company's technology position and build key relationships for China's digital media future. This summit will mark a critical step along a new commercial path so important to China as it approaches the 2008 Beijing Olympics and further World Trade Organization involvement.
Among the highlights that will mark this occasion will be the first dialog with policy makers forming China's Digital Media Law for the 21st Century and a ground-floor occasion to initiate a legal platform for global content distribution in China.
Again, we invite your contributions to the "China in the New Digital Media Era" summit, and look forward to engaging in a dialog with delegates on emerging market opportunities in China. Share wisely, and take care.
ISC Forms P2P Alliance
Excerpted from ChinaTechNews Report
The Internet Society of China (ISC) last week launched a Broadband Peer-to-Peer (P2P) Application Promotion Alliance to coordinate with the government's scheme to explore P2P's commercial application in China.
The new Alliance encourages the development of intellectual property containing P2P network application core technologies, and it will regulate the technology's application and promotion based on intellectual property rights. It will also bridge the government's supervisory role in this area.
P2P enables users to communicate and share Internet-based information without being linking to a main server. Therefore, it makes communications more direct, interactive and convenient.
P2P technologies have also been blamed for the easy downloading and dissemination of copyright materials like music and movies. ISC plans to help regulate Chinese companies' activities to ensure that illegal activities are not spawned by P2P in China.
Microsoft Acquires File-Sharing Service
Excerpted from Information Week Report by Antone Gonsalves
Microsoft on Thursday said it has acquired file-sharing service FolderShare, a move that's part of the software giant's recently announced strategy of making its products available as Web services.
FolderShare allows subscribers to create a private peer-to-peer (P2P) network to synchronize files across multiple devices and access or share files with other people. The service, which is available at no charge and requires a software download, is marketed as an easier way to share files than through e-mail, uploading to a Web site, or burning them to CDs or DVDs.
Microsoft chairman Bill Gates told a San Francisco news conference that the company was developing a new wave of "live software" that would be available over the Web as a service. Microsoft is betting that it can make money by offering software supported by advertising instead of licensing. The company would continue to also sell packaged software.
Windows Live combines a portal that features search, e-mail, instant messaging, online maps, and Internet telephone with other applications. In announcing the service, Gates said it would automatically update files and preferences across any number of devices users chose to use for access.
NATPE Focus on Content Protection
Excerpted from TV Watch Report by Wayne Friedman
For the National Association of Television Program Executives' meeting in January in Las Vegas, NATPE is putting heavy emphasis on protecting content. "We're about everybody watching, wherever they watch, as long as rights are protected," said Rick Feldman, President & CEO of NATPE.
Traditional syndication revenue has already been in danger over the last several years, as TV producers increasingly look beyond additional TV coverage to distribution on mobile phones, computers, and devices such as Apple's iPod.
Responding recently to a question about peer-to-peer (P2P) networks exchanging TV shows over the Internet, Bob Wright, Chairman of NBC Universal, told Broadcasting & Cable, "That is certainly a fact. Those things are all coming into play."
TV stations and cable networks have realized that big changes in distribution windows are on the horizon as well. Already there has been grumbling from ABC affiliates concerning the network's move to put full episodes of its popular prime-time shows on iPods.
1M Video iPod DLs in 19 Days
Excerpted from MediaLife Magazine Report
Traveling TV on tiny screens is catching on fast. Apple said last week that one million $1.99 downloads for its new video iPod sold in 19 days.
iPodders can watch episodes of shows like "Desperate Housewives" and "Lost" on the 2.5-inch screen, also choosing from more than 2,000 music videos. Video iPod also offers animated shorts from Pixar.
But Apple isn't the only one getting into small downloadable video. NBC said it will begin offering downloads of "Tonight Show with Jay Leno" to Sprint wireless customers, as a part of the $9.99 per month Sprint TV Live, which includes live feeds from networks like the Weather Channel and Fox News.
Music Gremlin Coming to CES
Excerpted from Inside Digital Media Report
iPods are great. But wouldn't it be better if they could connect to the Internet so that users could get new music when they are at Wi-Fi hot spots.
Music Gremlin will be introducing just such a device at the Consumer Electronics Show (CES) in January. Not only will the player connect to the Internet at a Wi-Fi hot spot, but it will be able to communicate with other devices using the same technology. Thus, if their privacy settings permit, a user may examine the playlists of other Music Gremlin owners nearby. Moreover, Music Gremlin device owners can actually "beam" tracks to one another.
Music Gremlin has spent several years developing the technology and hopes to license it to major hardware manufacturers. If they are successful, the capabilities of the device will ultimately become features via license agreements in consumer electronics devices and appliances made by popular brands such as Panasonic, Phillips, and Sony.
Peer-to-Peer Goes Legit
Peer-to-peer (P2P) network iMesh has a new service that enables users to share up to 2 million tracks from the four major record labels. The New York-based company is charging its 5 million users an a la carte fee of 99 cents to purchase a track, or $6.95 per month to gain unlimited access to the catalog.
On Monday, iMesh appeared to be off to a good start. It was the No. 4 most popular download on Download.com, and more than 150,000 users have downloaded it since last Tuesday. IMesh 6.0 provides users with three months free access to content.
The company has built Microsoft Digital Rights Management (DRM) technology into its software, allowing users to see a complete list of tracks available on the Gnutella network. However, they can only download tracks that they are willing to pay for, or that are not copyright protected.
Analysts said iMesh will have its work cut out for it. Not only is it competing with more-established services like iTunes, Rhapsody, and Napster (which is no longer a P2P service), it will also face challenges from other P2P music-sharing services.
"From a business perspective their main challenge is to convert their installed base, which is used to downloading music for free, over to paid subscribers," said Gartner analyst Mike McGuire. He estimated digital music is one of the fastest-growing sectors on the internet, with sales projected to swell to about $1.4 billon by 2009 from just $335 million in 2004.
WiMax Price Club
Excerpted from Online Spin by Shelly Palmer
Want free Internet access for life? No problem. Just order your tower kit online. When it arrives, erect your new 80-foot antenna tower in your backyard or on your rooftop. Just plug in the included WiMax repeater and you'll be online in a jiffy!
This is the first mutual Internet access club. It represents the total democratization of Internet access and the total disintermediation of the established telephone and cable infrastructures. The WiMax Price Club has purchased a bunch of dark fiber from a defunct CDN and lit it up with its own hardware.
Your tower and repeater are all that are needed to surf free and download at will. Share the connection with your friends; you can charge them a small override or just let them enjoy the fruits of your labor. Put up your own portal software, and you're the master of your 70 megabit domain and the 10-mile Area of Dominant Internet Access around your house.
Imagine free telephones using Skype, free movies and videos using BitTorrent, free surfing for all of your Wi-Fi-enabled devices – and pretty soon, free wireless VoIP handsets to replace your cell phones.
Why pay hundreds of dollars each month for cable television, landline telephones, old-fashioned broadband? Get connected to the only Internet that's for the people, by the people – the WiMax Price Club.
Yes, the new 802.16 (WiMax) specification is super exciting, unapproved, and very misunderstood. But this type of technology and hypothetical homegrown technological rebellion could easily happen. In fact, commercial versions will absolutely happen – well before 2009.
Paid Downloads Plateau
Excerpted from Digital Music News Report
Paid downloads appear to be leveling out. Third quarter figures were mostly flat, prompting analysts at Fulcrum Global Partners to voice concern.
The group noted that paid downloads during the quarter were only 3 percent above Q2 returns. "We are surprised that weekly digital downloads have not increased throughout 2005, given how early the industry is within its digital migration."
The plateau appears to be continuing in the current quarter. According to a recent Bloomberg report, which quoted figures from Nielsen Soundscan, weekly paid download volumes in late October were 6.7 million, roughly the same as figures from May of this year.
Those numbers raise troubling questions about the format, and could lead to an unspectacular holiday performance. The result also offers a stark contrast to booming iPod sales, which are now hovering at just under 30 million total units.
While digital sales have become a more noticeable percentage of overall label revenues, it remains unclear if paid downloads can offer the industry the revenue transition it needs.
Lawsuits Fail to Deter Downloaders
Excerpted from InfoZine Report
It's been two years since the Recording Industry Association of America (RIAA) started suing music fans who share songs online. Thousands of Americans have been hit by lawsuits, but peer-to-peer (P2P) file sharing continues unabated.
In "RIAA v. The People: Two Years Later", released Thursday, the Electronic Frontier Foundation (EFF) argues that the lawsuits are singling out only a select few fans for retribution, and many of them can't afford either to settle the case or defend themselves.
EFF's report cites the case of a single mother in Minnesota who faces $500,000 in penalties for her daughter's alleged downloading, as well as the case of a disabled veteran who was targeted for downloading songs she already owned.
"Out of the millions of people who download music from P2P systems every day, the RIAA arbitrarily picks a few hundred to sue every month," said EFF Senior Staff Attorney Fred von Lohmann. "Many of those families suffer severe financial hardship. But despite all the publicity, studies show that P2P usage is increasing instead of decreasing."
EFF's report was released in conjunction with the first annual P2P Litigation Summit in Chicago on Thursday, which brought together defense attorneys, clients, advocates, and academics to discuss the latest developments in the lawsuits.
Three other reports released Thursday were aimed at helping lawyers representing music fans sued by the RIAA. "Typical Claims and Counter Claims in Peer-to-Peer Litigation" is a general discussion of the lawsuits, while "Parental Liability for Copyright Infringement by Minor Children" and "Copyright Judgments in Personal Bankruptcy" both tackle important issues arising in defending families from devastating judgments.
"After two years of lawsuits, there's only one conclusion to draw," said von Lohmann. "Suing music fans is no answer."
City Canyons Signs The Alrights
DCIA Member City Canyons Records is pleased to announce the signing to a multi-album deal of The Alrights, a dynamic and exciting trio from Duluth, MN with a unique sound that promises to take the world by storm. "High School," their first album on the City Canyons label, is scheduled for release in early 2006.
Formed in the summer of 2003, the band creates catchy, memorable, original material with songs varying in style from hip-hop soul to cutting-edge rock, and a wealth of influences in between, that all meld into one compelling sonic treat.
"City Canyons Records heard this unique and delicious sound and decided that The Alrights were simply one of the best bands in the country, "says Trebor Lloyd, CEO of City Canyons Records.
Coming Events of Interest
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The Old Model Doesn't Work Anymore: How Consumer Controlled Media Is Re-Shaping Your Online Go-To-Market Strategy – November 11th in Scottsdale, AZ. Time-shifted, networked, and high-power forms of consumer based marketing. Speakers on topics ranging from podcasting and RSS to online word-of-mouth marketing, social networking, and power laws of the Internet. A high level diagnosis of marketing today and a detailed analysis of how to channel these new consumer-connecting media.
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Search Engine Marketing Seminar – November 16th in Long Island, NY. Join Search Engine Marketing Pioneers, Prime Visibility, for this hands-on full day event and learn how to get your website on the first page of Google, Yahoo & MSN. Featured as leading SEO experts on A&E's Biography Channel, this seminar also includes a free live site clinic where audience member websites will be analyzed.
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China's New Offshore Investment Laws: What They Mean for VCs & Entrepreneurs – November 18th at 11:30 AM ET via interactive virtual seminar. Hear from knowledgeable professionals who deal with SAFE regulations on a near-daily basis on major unknowns for entrepreneurs looking to tap into China. Taking questions during this 90-minute discussion will be: O'Melveny & Myers' Howard Chao and David Roberts, Lovells' Rocky Lee, and Dow Jones' Dave Barry.
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The Digital Entertainment & Media Expo (DEMXPO) – November 30th-December 1st at the Century Plaza Hotel in Los Angeles, CA. Join over 1,500 senior-level executives at the premier event for the digital entertainment and media Industries. Over 150 featured speakers cover the key issues you need to know in digital music, mobile, digital video, gaming, and digital advertising.
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Search Engine Strategies Conference & Expo – December 5th-8th in Chicago, IL. Real-time actionable information to grow your business through search engine marketing. Ins-and-outs from top search experts and the search engines themselves. Access to the world's most comprehensive gathering of search engine marketing & optimization-related solutions providers and potential partners. Please click here to learn more about this event.
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FutureMedia 2005 – December 8th in London, England. This C21 Media event is a must-attend one-day conference that brings attendees face-to-face with the players shaping the future of entertainment. FutureMedia 2005 is the meeting place for the converging media industries, where producers, channels, rights owners, technology suppliers, and advertisers come together to discuss the fast-changing environment.
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Digital Hollywood at CES – January 5th-7th at the Las Vegas Convention Center North Hall. The Consumer Electronics Show will have over 140,000 attendees; 2,500 exhibitors; 4,000 press representatives; and keynotes by Bill Gates, Chairman, Microsoft; Howard Stringer, Chairman & CEO, Sony; Paul Otellini, CEO, Intel; and Terry Semel, Chairman & CEO, Yahoo. The DCIA will moderate the "Next Generation P2P" panel on January 7th.
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MidemNet Forum at MIDEM – The World's Annual Forum for Digital & Mobile Music January 21st-22nd, Cannes, France. Confirmed keynotes to date are EMI Group Chairman Eric Nicoli; Ken Lombard, President of Starbucks Entertainment; Patricia Langrand, Senior EVP of Content for France Telecom and Nokia's EVP and GM of Multimedia Anssi Vanjoki. MidemNet forum will welcome the world's leading digital music experts and global authorities on mobile music.
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