February 6, 2006
Volume 12, Issue 3
MusicDish Network Expands P2P Distribution
DCIA Member MusicDish Network announced the addition of new music videos from R&B singer Kieran and Pop artist Jann Klose to its peer-to-peer (P2P) viral distribution campaign.
The videos, encoded with fellow DCIA Member INTENT MediaWorks' proprietary technology, are being pushed through search placements in major file-sharing applications such as Kazaa and eDonkey, which are also distributed by DCIA Members.
The campaign is being supported by an online marketing campaign conducted by the MusicDish Network, which has already garnered over 1 million downloads for Ms. Cherry's music video "It's Whatever."
Please click here to learn more about MusicDish Networks' P2P viral distribution.
In2Movies Exploits P2P for Warner Bros.
Warner Bros. Home Entertainment Group (WBHEG) announced the formation of a joint venture with arvato GmbH, a Bertelsmann company, to launch "In2Movies," using arvato's GNAB digital download platform, for the electronic sell-through of motion picture and television content in Germany, Austria, and German-speaking Switzerland.
In2Movies will be the first P2P-based download-to-own platform to offer consumers licensed content day-and-date with the German language DVD release. With the initial rollout, consumers will be able to download movies and television shows to their personal computers. The second version of the service will expand on consumers' download options and enable them to download programs to DVD recorders and other portable devices.
"One of the most effective weapons for defeating online piracy is providing legal, easy-to-use alternatives," said Kevin Tsujihara, President, WBHEG. "Our initial efforts will focus on the German market, but in the months ahead we will leverage this technology to better serve markets around the world."
"In2Movies is built on our pioneering GNAB technology that brings together the controlled security that copyright holders demand of a digital distribution channel, with the convenience, community interaction, and speed of a decentralized network that consumers desire," added Dr. Kurt Smit, Managing Director of GNAB.
Skype Harnesses VoIP for Warner Music
Warner Music Group (WMG) announced an agreement with DCIA Member Skype, the global telecommunications company, to provide ring-tones within the Skype software application, which allows users to make free calls anywhere over a broadband connection.
WMG is licensing master ring-tone recordings to Skype of tracks by Green Day, Mike Jones, Paul Wall, D4L, and TI. Madonna will lead the effort with a slate of new ring-tones, including classics like "Holiday" and recently-released songs like "Hung Up." WMG ring-tones will be available within Skype's dedicated e-commerce area accessible to its base of 74 million users.
"Warner Music Group is pleased to partner with Skype as it launches the first music personalization products in the Internet voice calling category," said Alex Zubillaga, EVP of Digital Strategy & Business Development at WMG.
Report from CEO Marty Lafferty
 Our Members and other industry participants are now making progress in their preparation and introduction of new business models and technologies – real market solutions – that will enable peer-to-peer (P2P) file sharing to reach its full potential as a mainstream channel for the distribution of copyrighted works.
This is particularly important because the consumer marketplace has shown a remarkable absence of change in direction since the US Supreme Court's ruling on MGM v. Grokster.
Overall the growth in usage as measured by average concurrent users and monthly cume P2P universe, both domestically and globally, has continued steady and substantial growth.
Market share shifts among leading P2P applications have also continued along the trend lines that were well established before the High Court decision, with virtually no perceptible differences.
We plan to discuss the most current usage data as well as other developments and trends at Media Summit New York this week.
Among leading established open-P2Ps, for instance, there has been strong movement towards negotiating good-faith settlements with major content providers and undertaking business-model conversions.
It is critical to distributed computing industry progress to resolve with leading entertainment rights holders alleged past liabilities for copyright infringement by P2P users and to migrate such user bases to sanctioned business models, such as the examples of iMesh and Grokster itself.
There has also been the start of an equally important movement led by Nettwerk Music Group to end consumer lawsuits, the elimination of which, arguably, will be the single most positive sign that substantial progress is being made in commercial development of the P2P channel.
Swarming technologies, which compliment P2P by exponentially increasing delivery efficiency while simultaneously decreasing distribution cost – particularly of larger and more popular files – now exhibit encouraging signs as well. The BitTorrent.com website, for example, is preparing to offer DRM-protected content and block unauthorized content.
There have also been very exciting launches of new P2P models, some of which take advantage of swarming protocols, such as Warner Bros.' implementation of arvato GmbH's white-label GNAB as "In2Movies," BSkyB's Kontiki-based "Sky by Broadband" system, Wurld Media's "Peer Impact," and INTENT MediaWorks' "myPeer."
Overall, P2P functionality, with attractive easy-to-use interfaces, expansive depth and breadth of available content, efficiency of discovery, integration of complimentary features, and speed of discovery and delivery, continues to improve.
The greatest hurdle remaining to be overcome is that still, more than three years after open-P2Ps surpassed instant messaging as the largest category of web-based software applications, there has been no significant licensing of music tracks by major labels for authorized distribution in this most popular online environment.
What is needed is real adoption by major music labels of well-conceived P2P business models that will be accepted by consumers, with well-thought-out digital rights management (DRM) solutions optimized for P2P that do not expose users to risks.
On the motion picture side, MovieLabs has received commitments totaling $30 million from the major studios and management is being recruited. Meanwhile, the ever-growing number of portable, mobile, and in-the-home networked devices is fueling an increase in the digital distribution of video content.
There is not yet an established system for protecting against the "analog hole," exposure to which will be widened by these trends. The P2P Digital Watermark Working Group (PDWG) is actively engaged in addressing this issue; and new forensics solutions, such as the protection services of Friend Media Technology Systems, will help tremendously.
The narrowing of the theatrical window for motion pictures ultimately will reduce online movie infringement, provided that file-protection, filtering, as well as forensics – the three Fs of file-sharing security – can be deployed with care.
With properly balanced deployment, it will be possible to begin evolving towards such future practices as condensing the window for DVD and even offering day-and-date delivery of theatrical features for a premium price at home, to eliminate infringing-only windows that now represent growing gaps in the digital video marketplace.
DRM is still in its infancy and must be developed with caution. Consumer privacy must be respected; fair use in the digital realm must be clearly defined and provided for; and security exposure must be circumvented in DRM implementations. DRM should be transparent to consumers.
Meanwhile ad-supported licensed content delivery can generate enormous revenue – much as broadcasting grew to generate billions-per-year free to consumers before ever adding the equivalent of DRM to charge for subscriptions and pay-per-view (PPV) and its successor video-on-demand (VOD). Share wisely, and take care.
Kamen Entertainment Selects Javien
Kamen Entertainment Group, an award-winning entertainment company, has chosen DCIA Member Javien Digital Payment Solutions to provide the e-commerce solution for MARINA's Podcasts, scheduled to launch this month.
Roy Kamen, Kamen Entertainment Group President said, "We were looking for a micro-payment solution for MARINA's MP3 audio workout digital downloads. We chose Javien because their ASP solution offered us functionality, flexibility, and overall value. Their customer service has been excellent – very personalized."
MARINA's Podcasts will offer a variety of packages including multiple subscription options and single download purchases creating an online equivalent of a virtual fitness workout center.
"We are pleased to be the chosen provider for MARINA's Podcasts," noted Leslie Poole, Javien CEO. "Our company fits their needs perfectly because we can leverage both our technology and experience to help MARINA establish a thriving e-commerce business."
Digital River Enables Telltale E-Commerce
DCIA Member Digital River, a global leader in e-commerce outsourcing, last week announced that it is providing services for Telltale, an emerging pioneer in interactive adventures and entertainment.
Digital River is managing the online sale and digital and physical delivery of select Telltale products purchased through its website and hundreds of online retail, content, and portal sites in the Digital River oneNetwork online sales channel.
"Through the e-commerce expertise and best practices we have developed, we can advise our clients on how to expand into new markets and efficiently promote and sell their digital products on a global basis," said Dave Alampi, Digital River's VP of Marketing.
"We are leveraging our e-commerce services and world-class infrastructure to help Telltale sell through multiple online channels, which is one of the most effective strategies companies can use not only to generate a high level of exposure for their products, but also to expand their sales opportunities."
Artists Back Nettwerk's Anti-Lawsuit Campaign
Excerpted from Calgary Sun Report by Angela Pacienza
A prominent Canadian record executive helping a Texas family fight a downloading lawsuit says he has the support of all the artists he manages, including Avril Lavigne, Sarah McLachlan, and the Barenaked Ladies.
Terry McBride, who heads DCIA Member Nettwerk Music Group, a label and management company, is backing efforts by David Greubel of Arlington, TX to fight a lawsuit filed last August. Nettwerk will cover all of Greubel's legal costs as well as any fines should the family lose the case.
"It's time to step up and say 'This is crazy,' " McBride said. "My hope is that Nettwerk's support will create positive conversation among artists, their managers, and the record labels as to what the future is. The fan is the future. Suing the fan is like shooting yourself in the foot."
The case came to McBride's attention after Greubel's 15-year-old daughter wrote an e-mail to MC Lars, a punk-rap performer managed by Nettwerk. Elisa Greubel wrote that she identified with MC Lars' track "Download This Song."
Calling the letter the "tipping point," McBride said he wanted to take the fear of fighting a suit launched by a big association out of the equation for ordinary people.
"We have to stop this," said McBride, adding that he's received e-mails of support from several US Congressmen, a US Senator, and record label presidents.
He doesn't think suing is a solution because, "People have been sharing music for decades. We can sue into the ground; this behavior is not going to change."
McBride's solution includes a system where Internet, mobile, and digital service providers collect fees on behalf of the industry.
Barenaked Ladies' Steven Page added, "You can't say 'See you in court and then we'll see you at Massey Hall next year.' It's one or the other. Labels have made everybody feel like music is a product. Music isn't pants. It's something people respond to emotionally. People who download music, trade music and share it, are people who love music. I think the labels have forgotten that. They keep pushing people away."
Some have hailed McBride as a hero for his support for the Greubel family. "What he's doing is really terrific," says Jon Newton, who runs P2PNet.net, a digital media news website. "This is how things should be - producers and performers working with, and for, the people who keep them alive."
PlayFirst Grows Portfolio with Plantasia
DCIA Member PlayFirst, the leading full-service publisher of popular games, last week announced the launch of Plantasia, a new downloadable game from the creators of the best-selling hit, Diner Dash. Plantasia, developed by gameLab, immerses players in a magical world of gardening delight where flowers come to life, enchanted gardens grow, and love blooms. Plantasia is free to try for sixty minutes or purchase for $19.95.
"PlayFirst is committed to broadening the casual games space by fostering innovation and invention," said Kenny Dinkin, VP & Executive Producer, PlayFirst.
"With Plantasia, gameLab and PlayFirst are breaking new ground with remarkably fresh game-play, fantastical settings and an unprecedented dedication to quality storytelling. The game perfectly blends the quick hook of a classic action game with a beautifully rich world full of luscious, enchanted gardens."
City Canyons Records Releases New EP
DCIA Member City Canyons Records last week announced the limited release of a long awaited new EP, "Here's Us," from acclaimed artist Sara Wendt.
Sara Wendt's songs are a study in contrasts, rocking yet delicate and nuanced, tough yet tender, and reflective yet electrifying, featuring haunting overtones that make her music both vivid and dreamy.
The music of the New York recording artist has been described as alternative pop rock with a light sprinkle of Celtic seasoning; but that description leaves volumes unsaid. Sara's music, both exhilarating and aching, goes straight through the ear to the heart.
P2Ps Negotiate with Labels
Excerpted from Digital Media Wire Report
File-sharing software programs, such as eDonkey, developed and distributed by DCIA Member MetaMachine, are nearing a time when they will likely switch to paid services in order to avoid record industry litigation, CNET News reported last week.
Many P2P companies were sent cease-and-desist letters by the record labels in the wake of last summer's landmark Supreme Court ruling on file sharing and, while some have shut down, others have converted to sanctioned models, and still others continue to negotiate with the labels.
"I honestly had expected everything to move more quickly," said Sam Yagan, Chief Executive of eDonkey parent MetaMachine.
"We look forward to a settlement with the record industry very soon." Yagan hopes eDonkey's average of 3.5 million simultaneous daily users will be attractive to the labels and other file-sharing providers alike.
"If you compare us shutting down versus us converting, there's a heck of lot more value in us converting versus scattering those users," Yagan said.
Free Beats Pay by Three-to-One
Excerpted from Center for Media Research Report
According to new research from Points North Group and Horowitz Associates, consumers would prefer to get free on-demand TV programs and endure commercials rather than pay $1.99 for programs without commercials, by a greater than three-to-one margin.
62% of all survey respondents said they would prefer getting their favorite TV show for free with commercials, versus 17% who chose paying $1.99 for online, cable, or satellite without commercials. 21% are undecided.
Broadcast networks, cable programmers, and other content providers are joining with computer industry players to make replays of programming available for download through the Internet, with commercial-free prime-time hits priced at $1.99 each.
Craig Leddy, a Points North Group analyst, said, however, "Consumers will grow tired of having their credit cards charged $1.99 every time they download a rerun."
Among consumers aged 18-34: 68% chose free, ad-supported versus 26% who favored paying and 5% were undecided.
Please click here for the complete release.
File Sharing Outlook
Excerpted from BNA Report by Alexei Alexes
Supporters of P2P file-sharing software say that 2006 could mark a significant turning point for the technology, which has been the subject of Congressional hearings and a major litigation campaign by the entertainment industry.
Copyright concerns surrounding the technology were largely resolved by a US Supreme Court decision last June, according to commentators.
In a unanimous ruling, the High Court said that companies can be held liable for distributing devices with the intention to promote copyright infringement (Metro-Goldwyn-Mayer Studios Inc. v. Grokster Ltd., U.S., No. 04-480, 6/27/05).
Marty Lafferty, CEO of the Distributed Computing Industry Association (DCIA), told BNA it was difficult prior to the Supreme Court ruling to bring entertainment industry and file-sharing companies to the table.
"Frankly, until the Supreme Court ruled, things were at a standstill," Lafferty said. "There were potential explorations, but the parties weren't able to be serious because they weren't sure what the outcome would be."
The DCIA, based in Arlington, VA, has been trying since its inception in 2003 to get the two industries talking. Lafferty said the Supreme Court decision was a positive development for his organization because the ruling removed uncertainty.
"We believe 2006 will be the year in which we see a conversion of P2P from a technology that has caused concerns for major rights holders to one that is finally embraced by them," Lafferty said.
The technology is designed to allow Internet users to locate and exchange files, including digitized computer files of sound recordings and motion pictures. Programs offered by companies such as Grokster are different from the previous generation of file sharing, such as the original version of Napster, which operated a centrally stored index, serving as a contact point for all users.
The new generation of file-sharing software avoids the need for a central file server – users are dealing directly with each other without the need for an intervening party.
Gigi Sohn, president of Public Knowledge, a Washington-based advocacy group that supports legal file sharing, agreed that the Supreme Court decision has set the stage for increased dialogue between the two industries.
"The entertainment industry got its victory in court," Sohn said. "They have no excuse anymore not to build a better business model."
Lawmakers also appear to be satisfied with the outcome. Sen. Orrin G. Hatch (R-UT), Chairman of the Senate Judiciary Subcommittee on Intellectual Property, is not expected to reintroduce legislation that he offered in 2004 – dubbed the "Induce Act" – to create a new cause of action targeting companies that "induce" consumers to infringe copyrights.
Hatch's bill died after a number of groups raised concerns that it would have a chilling effect on new technologies. Commentators said the legislation that Hatch proposed is no longer needed. Hatch is not planning to offer any file-sharing legislation this year, a spokesman said.
So far, Rep. Lamar S. Smith (R-TX), Chairman of the House Judiciary Committee's Subcommittee on Courts, the Internet, and Intellectual Property, is planning oversight hearings on file-sharing this year, according to a spokeswoman.
She said Smith is interested in examining whether there has been an increase or decrease in illegal file-sharing on college campuses and to what extent students are taking advantage of legal services.
A spokeswoman for the Recording Industry Association of America (RIAA) indicated that the group was no longer interested in legislation to address file-sharing concerns.
"Those who still claim that the law is not clear are few and far outside the mainstream," said RIAA spokeswoman Jenni Engebretsen. "This is now a settled question."
The Supreme Court did not affirmatively say whether the specific parties sued by the entertainment industry were liable for copyright infringement; that was left for lower courts to decide.
In September, the RIAA began sending "cease and desist" letters to leading file-sharing companies. The letters demanded that file-sharing companies immediately refrain from "enabling and inducing the infringement of RIAA member sound recordings" and offered the opportunity to discuss a pre-litigation resolution, according to a copy of the letter obtained by BNA.
Last November, the RIAA announced that Grokster had agreed to shut down operations, as part of a settlement with the entertainment industry. Similar agreements have been worked out with other file-sharing companies named in the lawsuit, according to the RIAA. For now, the Grokster website does not allow the downloading of file-sharing software. Grokster hopes to have a legal service available soon.
The fact that Grokster and others have agreed to settle does not necessarily constitute an admission of guilt, according to Lafferty. He noted that at least one of the companies, eDonkey, decided to settle because further litigation would have been too costly.
Meanwhile, Lafferty said last year's legal developments are clearing the way for more open discussions between the entertainment industry and companies interested in offering legal file-sharing services.
"The entertainment industry is now much more actively involved in looking at business models and solutions," Lafferty said, as exemplified by progress in the development of a company called INTENT MediaWorks, which offers content owners the opportunity for wide distribution of their works through P2P in a "safe and secure manner."
In a December statement, the RIAA said music companies were engaged in "continued aggressive licensing to an ever-expanding array of legal digital services," including download and subscription services, and legal file-sharing services.
"Without question, the peer-to-peer landscape will look dramatically different in the months ahead – a good thing for not only the music industry but for all those in the intellectual property community, including movie studios and the developers of software and games," the association said.
Licensed to Steal
Excerpted from Op Ed Piece by Nic Garnett
The content industries were immensely relieved in 2005 to receive the Supreme Court's landmark opinion in the Grokster case. But there's at least one feature of the decision that should cause the content owners to take notice.
Both the drafting and application of copyright laws now place great importance on technological protection measures. It is logical, therefore, that the Supreme Court took the same common sense approach in Grokster. It made specific reference to the absence of filtering technology as supporting a finding of culpability.
But what if the "absence of technology" argument is a two-way street? What happens when reasonable technical protection measures are not used to prevent piracy? Does the copyright holder forfeit his legal rights and remedies? Content owners who ignore rights protection technologies now do so, I suggest, at their peril.
As Prof. Richard Walter, head of the UCLA Film School's graduate screenwriting program, and court-authorized copyright expert, opines: "Talmud preaches that silence is consent. Content providers who serenely default in the warmth of the Grokster decision engage in a self-defeating prophesy. Congress and the Court require them to take action. They must make every reasonable effort to install state-of-the-art filtering technology. Copyright owners who wallow in inaction forfeit their property. They give it away freely – and legally – not only to those who actively seek it but also to those who merely stumble upon it."
Clearly, the market requires more than ever the deployment of content protection and rights management technologies. If legitimate content providers don't adopt the necessary and available technical solutions they may find the courts less willing to apply copyright laws in their favor.
Coming Events of Interest
-
DCIA Networking Event – The DCIA cordially invites registered Media Summit New York attendees to a Grammy Screening Party sponsored by INTENT MediaWorks and featuring live music by Scooter Scudieri, the Internet's First Rock Star. The event will be held February 8th from 8:00 PM to 11:00 PM at the Social Bar & Grill & Lounge at 795 8th Ave. Please RSVP to Karen Kaplowitz, DCIA Member Services leader, at 888-890-4240 or karen@dcia.info.
-
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.
-
Search Engine Strategies Conference & Expo 2006 – The premier event for search engine marketing and optimization February 27th-March 2nd in New York City. The conference features presentations and panel discussions that cover all aspects of search engine-related promotion. The program includes sessions for beginners and new content for Search Engine Strategies alumni. Barry Diller, Chairman & CEO, IAC/InterActiveCorp, is the keynote speaker.
-
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.
|
