January 30, 2006
Volume 12, Issue 2
INTENT & FilmClix Reach Millions of P2P Users
DCIA Member INTENT MediaWorks and FilmClix iTheatre last week announced an agreement to distribute FilmClix movies, animations, extreme sports, documentaries, and music videos across peer-to-peer (P2P) networks utilizing INTENT's seamless end-to-end content distribution solution, which integrates consumer advertising with compelling content.
FilmClix will launch onto P2P by releasing a group of prominent titles geared to the immense audience of P2P file sharers. INTENT will publish encoded versions of FilmClix world-class documentaries, adrenaline-driven gravity sports, and independent-label music videos, exclusively featuring such artists as ESL Music's renowned group Thievery Corporation.
"FilmClix is among the first to blaze a trail into the uncharted market of full-length video downloads," said INTENT MediaWorks Founder & CEO Les Ottolenghi, in announcing the agreement at NATPE.
"We will go where the audience is," added Julia O'Sullivan, Founder of FilmClix. "INTENT is fulfilling our vision, helping us create something new – a network programmed by the dance-of-demand over a user-generated medium."
INTENT's reach includes most popular P2P applications, such as eDonkey, Kazaa, TrustyFiles, and Weed, which are distributed by fellow DCIA Members, as well as major search engines and social networks.
Its digital media e-commerce platform provides delivery in the steadily growing P2P distribution channel for content owners including major media companies, online retailers, corporations, affinity groups, independent artists, and producers.
Fun Little Movies Awards MoTVs at NATPE
Frank Chindamo, President & Chief Creative Officer of DCIA Member Fun Little Movies (FLM), presented the 2006 MoTV Awards last week at NATPE. Film and TV comedy star Eddie Griffin ("Deuce Bigalow: European Gigolo") joined Frank to congratulate winners in a gala ceremony Monday evening at the Mandalay Bay Convention Center.
Award winners were: "Sophie Chase" by Brent Roske and Chuck Bowman – an experimental film starring Kate Clarke and Academy Award nominee Seymour Cassel; "Miami 85" by Marc Shahboz – a noir flash comic book; and "Aroma" by Damon Sylvester and John McDonnell – adventures of two not-so-dainty British mavens. The MoTV Awards were co-sponsored by Quick Play and the Mobile Media Company.
"The mobile phone is the ultimate personal broadcasting device. It was a delight to see so many creative entries for this year's awards. They prove that made-for-mobile content is the true killer app," said Steinar Svalesen, COO of the Mobile Media Company.
FLM specializes in mobile comedy creation. Its works have played on A&E, Bravo, CBS, Comedy Central, FOX, HBO, MTV, PBS, Playboy, and Showtime. FLM films have won 20 awards including finalist for Best Live Action Short Film at the Cannes Film Festival. FLM currently distributes comedy shorts via partnerships with Australia's ABC, Kinoma, Microsoft, Mobile Streams, SmartVideo, and Sprint.
The MoTV Awards provided an exciting culmination to NATPE Mobile++, which attracted over 700 attendees – approximately one-in-ten of this year's NATPE registrants. FLM also produced the NATPE Mobile Content panel on Wednesday with speakers from ABC, E, FOX, and TBS.
Report from CEO Marty Lafferty
 Congratulations to National Association of Television Program Executives (NATPE) President & CEO Rick Feldman and team for mounting a very upbeat and productive annual conference and exposition last week in Las Vegas.
While two major mergers (UPN & WB becoming CW and Disney acquiring Pixar) dominated headlines and top studios cleared high percentages of US television households (TVHH) with their syndicated fare, bold new properties also debuted at NATPE, including "Bikini Bull Riding," "Shut Up and Model," and "Trailer Court Justice."
We are especially grateful to Interactive Television Alliance (ITA) Chairman Karen Lennon, CEO Allison Dollar, and President Ben Mendelson for sponsoring the "alternative upfront" at NATPE, and for announcing a strategic alliance with the DCIA to accelerate commercial development of Internet Protocol Television (IPTV) among our respective Member companies and the entertainment and technology industries at large.
IPTV represents the future of delivery for a vastly expanded range of interactive as well as traditional video program offerings, and the P2P technologies whose commercial development is being fostered by DCIA Members represent its most efficient implementation. We welcome opportunities to partner with the ITA and its members.
ITA CEO Allison Dollar said, "P2P enables large video files to be redistributed via IPTV at enormous savings to rights holders and distributors, making it more cost-effective than ever before to support smaller niche audiences for video programming and their related interactive applications, as well as mass-audience TV programs, and we welcome this opportunity to capitalize on the work of the DCIA as the ITA and our members expand IPTV adoption."
The DCIA and ITA will encourage joint Memberships and sponsor special projects. An inaugural effort was announced at NATPE by DCIA Member INTENT MediaWorks.
"As an early and active DCIA Member, we are proud to be the first to also join ITA, and to concurrently announce at NATPE and MIDEM a kick-off project with Mediaguide that augurs well for the future of both P2P-based IPTV and digital music, with enhanced control and reporting of digital distribution offered by the INTENT platform to advertisers and content owners," said INTENT CEO Les Ottolenghi.
INTENT MediaWorks, the world's largest distributor of licensed content via P2P file-sharing networks, and Mediaguide, the leading provider of digital fingerprinting technology, are partnering to combine tracking and reporting, initially of music content from on-air and online radio broadcasts with authorized P2P music downloads, and later expanding into a similar system for video content. This agreement will provide the industry's most comprehensive view of online and offline music usage to rights holders.
Mediaguide's proprietary digital fingerprinting software will identify songs that are uploaded to the INTENT system, which tracks file-sharing networks comprised of more than 250 million consumers across the Internet, to determine whether the songs have been licensed. Non-licensed tracks will be blocked until rights holders have entered a license arrangement with INTENT.
"This agreement not only provides a legal means for consumers to share music over the Internet, it also integrates radio airplay tracking with file activity on the Internet, ensuring that rights owners receive a full view of and appropriate compensation for their work," said Steve Lubin, Vice President and General Manager of Mediaguide, a subsidiary of ASCAP. "This is particularly powerful for the growing number of independent artists who, for the first time, will be able to see for themselves exactly how many times their songs are played and downloaded."
INTENT allows content rights holders to determine how they want to present their material to consumers online, from charging a fee to offering free promotional or ad-supported files for sharing. This allows consumers to access "free" content in a P2P environment, while allowing rights holders to gain exposure and revenue. The combination of INTENT digital rights management (DRM) and Mediaguide fingerprinting technology will offer rights holders protected access to the P2P file-sharing community on their own terms.
For the first time, on-air radio broadcasts will be tracked against P2P content downloads. Consumers will benefit with better access to more music while rights holders, including publishers, songwriters, and performing artists, will have a more complete understanding of the popularity of their music.
To combine the tracking of on-air and online radio airplay as well as P2P trading activity, Mediaguide will add INTENT P2P trading data to its reporting systems via an existing partnership with Internet radio data provider, Radiowave Airplay Monitor. This will create the industry's most comprehensive and affordable market intelligence on these three mediums for artists and artist services companies.
Mediaguide data will also be used to create customized charts and playlists for consumers who download tracks through INTENT, helping fuel discovery of new music for consumers in the P2P community.
INTENT also plans to expand this initial offering with Mediaguide for music to the new P2P IPTV marketplace for video.
Skype Gives Voice to Online Story Telling
DCIA Member Skype, the global Internet communications company, and the Eastman Kodak Company last week announced the availability of the latest innovation in digital storytelling - Kodak Photo Voice - that combines live voice and online photo sharing.
"Today's families and social networks are scattered around the globe. Staying connected through photo sharing remains an important element in maintaining close personal relationships," said Sandra Morris, General Manager of Consumer Imaging Services at Kodak. "Traditional social gatherings that once took place around the radio, television, or telephone are now happening around the computer, mobile phone, or camera. Kodak Photo Voice marks the next step in this evolution."
Kodak Photo Voice is a brand new way to relive memories, empowering two people to simultaneously view a customized slideshow, and to reminisce and react to each picture. Imagine if Grandma could see pictures from her grandson's first day at school while he narrates every moment of the experience over Skype. Perhaps an old roommate could share detailed photos and recount stories of his new life in London, as his friend back home in California reacts to each picture.
"Our goal is to make technology easy to use and Skype is a simple Internet communications service that is changing the way people stay in touch," said James Bilefield, VP of Business Development for Skype. "The combination of Skype's service and Kodak EasyShare Gallery's photo sharing capabilities will make sharing memories even more simple and rewarding for consumers around the globe."
Digital River Acquires Direct Response
DCIA Member Digital River, a global leader in e-commerce outsourcing, has acquired Direct Response Technologies, a leading provider of affiliate technology and e-marketing solutions. The acquisition will offer the affiliates and clients of both companies a significantly expanded online sales network and more robust affiliate tracking, search-engine bid management and keyword tracking, and ad-serving solutions.
The Direct Response products that were acquired as part of this agreement include DirectTrack affiliate management platform, KeywordMax paid search bid management tool, DNEList e-mail campaign and list suppression applications, and DirectLeads online marketing network.
"The acquisition of Direct Response supports our strategic growth initiatives," said Joel Ronning, Digital River's CEO. "By combining the companies, we intend to deliver a more comprehensive affiliate management system, maximize cross-selling opportunities between our affiliate networks, and further capitalize on the strong growth opportunity that exists for our strategic marketing services."
Since 1997, DirectTrack has tracked tens of billions of impressions and hundreds of millions of clicks and actions for its affiliate clients. Today, the DirectTrack platform powers more than 150 affiliate networks and 500 merchants, carrying nearly 40,000 offers to more than 200,000 affiliates around the world. DirectTrack's platform supports the sale of physical and digital goods across a wide variety of affiliate models, including sales, clicks, leads, and impressions.
Subject to the terms and conditions of the purchase agreement, Digital River acquired the stock of Direct Response in exchange for approximately $15 million in cash. The agreement also provides Direct Response shareholders with an earn-out opportunity based on Digital River and Direct Response achieving certain revenue and earnings targets during the first three years subsequent to the acquisition.
Seamless P2P & OrionsWave Collaborate
DCIA Member Seamless P2P has entered into a software development agreement with OrionsWave to ensure final release integrity of Phenom P2P collaborative communications software. The development schedule calls for completion by the end of the second quarter.
OrionsWave has extensive experience in developing unique and robust digital communications systems, such as helping architect real-time media delivery from-submarine-to-satellite-to-studio for "Return to the Titanic" and consulting for Governor Schwarzenegger on projects including the Arnold Classic. OrionsWave team members have done extensive special project work for the US Air Force in addition to helping launch the first digital studio in the world, CNNfn, along with creating other CNN website technologies.
Seamless P2P President Luke Rippy said, "We are extremely fortunate and excited to work with a team possessing such immense skills and capabilities. OrionsWave will help us build Phenom into the most robust and secure P2P collaborative communications solution available."
Phenom Encryption Software V2.0 is a P2P virtual private network for Wi-Fi networks, LANs, and WANs that provides chat, peer-mail, file transfer and remote PC control applications. Phenom utilizes public-key authentication and encryption using the 128-bit Advanced Encryption Standard (AES).
Megadeth Turns to Online Artists
Excerpted from Reuters Report by Gelu Sulugiuc
Heavy metal veterans Megadeth have turned to an online community of artists to redesign their longtime mascot, Vic Rattlehead.
Dave Mustaine, the band's founder, singer, and guitarist, started a contest on DCIA Member deviantART's website, where 2 million members post photographs, traditional and digital art, and even poetry.
"I'm just looking for somebody to revamp it," Mustaine told Reuters in a phone interview. "I'm looking for a surprise. I'm open to them having their way with it."
The contest ends on February 14th, when three winners selected by Mustaine will receive one of his signature series ESP guitars. More than 600 submissions have been entered in the first week.
The new mascot will appear on band merchandise and will grace the cover of Megadeth's next record.
Mustaine, who left Sanctuary Records after his band's 2004 album, "The System Has Failed," said he is considering offers from three other labels.
"This will probably be my last record contract," said the one-time Metallica member. "It's either going to be great and I'll stay there forever or it's going to suck and I'll be so bitter with the music industry that I'll just quit and go play Cat Stevens songs up in Tibet."
Nettwerk Music Group Defends File Sharer
DCIA Member Nettwerk Music Group last week stepped up its efforts to support consumers in the digital age by helping to defend David Greubel, sued for allegedly infringing copyright when he downloaded nine songs, including "Sk8er Boi" recorded by Nettwerk management client Avril Lavigne.
"Suing music fans is not the solution, it's the problem," said Nettwerk CEO Terry McBride.
Nettwerk became involved after 15 year-old Elisa Greubel contacted another Nettwerk management client, MC Lars, saying she identified with his "Download This Song."
"My family is one of many seemingly randomly chosen families to be sued. The whole lawsuit business is outrageous," she said.
Attorney Charles Mudd said, "In an effort to combat the continued injustice of consumer lawsuits, attorneys, musicians, and artist managers have joined forces to defend the interests of David Greubel and his family."
Nettwerk has agreed to pay legal fees as well as any fines should the family lose the case.
"My family owes a huge debt of gratitude to Terry McBride and his company and the artists they represent," said Greubel. "Every music fan, every citizen owes him. Mr. McBride has stood up and said, 'This is not right!' Thank God for people like him."
"Litigation is not 'artist development.' Litigation is a deterrent to creativity and passion, and it is hurting the business I love," concluded McBride.
Nettwerk Music Group is Canada's leading privately-owned record label and artist-management company, responsible for managing some of North America's biggest artists such as Sarah McLachlan, Avril Lavigne, and many others. Nettwerk has several offices located around the world including New York, Los Angeles, Boston, Nashville, and London. Its home office is in Vancouver, BC.
Coming Events of Interest
- New Technologies and New Media in Advertising Law Conference – January 30th-31st in New York. An inside look at hot topics in marketing, trademark and copyright law. In-depth assessments of areas in which technology has been driving rapid change, including privacy and data security. Not just an ordinary overview – topics at the forefront of how technology is changing the legal realm of advertising.
- Digital Commerce Summit 2006 - January 31st in New York. Digital Media Wire invites you to attend this one-day executive forum for content owners, merchants, payments & technology companies, banks & financial services institutions, ISPs, MSOs, P2P vendors, and wireless & mobile companies focused on payment solutions and commerce strategies for digital content, including games, music, film, television and video products.
- Media Summit New York – February 8th-9th in NYC. The 2006 Media Summit New York is the Premier International Conference on Motion Pictures, Television, Cable & Satellite, Broadband, Wireless, Publishing, Radio, Magazines, News & Print Media, Advertising and Marketing. The DCIA will participate with the CEA and MPAA in discussing "The Piracy Freight Train: As Entertainment, The Law & Technology Collide."
- Defining the Problem, Developing Solutions – The Anti-Spyware Coalition's first public workshop to be held on February 9th at the Capitol Hyatt in Washington, DC will address the impact of spyware on businesses and individuals and will include interactive panels on public education, policy and enforcement, corporate security, and industry guidelines. Confirmed speakers include FTC Chairman Deborah Majoras, Wall Street Journal Columnist Walt Mossberg, and Pew Internet and American Life Associate Director Susannah Fox.
- New Communications Forum 2006 – March 1st, Palo Alto, CA. NCF brings together the industry's leaders from around the globe to discuss the impact of participatory communications on media, marketing, PR, and advertising. This year the conference will examine how blogs, wikis, podcasts, and other emerging tools, technologies, and modes of communication are affecting organizations.
- Omma West Conference and Expo-Hollywood – March 27th-28th in Los Angeles. The rash of technology innovations and content syndication deals over the past year, coupled with consumer adoption of broadband, DVRs, VOD, and an unwavering insistence on media control, are taking the shape of an infrastructure the media industry's most forward thinking prophets have long heralded. The Internet is now becoming what it was meant to be – the distribution channel for all media.
- First Annual DCIA Conference & Expo – June 22nd, Tysons Corner, McLean, VA. Panel tracks at this first-ever global "P2P Media Summit" will cover policy, marketing, and technology issues affecting commercial development of the emerging file-sharing industry. Exhibits and demonstrations will feature industry-leading products and services. Plan now to attend. For sponsor packages and speaker information, please contact Karen Kaplowitz at 888-890-4240 or karen@dcia.info.
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