May 15, 2006
Volume 13, Issue 5
Warner Rolling with BitTorrent
Excerpted from Hollywood Reporter Article by Chris Marlowe
Warner Bros. Home Entertainment Group (WBHEG) will be distributing movies and television programs via BitTorrent, marking the first time a major studio has embraced open peer-to-peer (P2P) technology.
Kevin Tsujihara, President of WBHEG, said the content will include video-on-demand as well as sell-through day-and-date with their DVD release.
"BitTorrent has made the leap in creating a legal partnership that respects the value of intellectual property," Tsujihara said. "This has provided us with a next-generation platform for the distribution of our films and TV programs."
Using this P2P platform is far less expensive for content owners because its connected web of users shares the bandwidth costs among themselves in a proprietary architecture BitTorrent calls file swarming.
BitTorrent President and Co-Founder Ashwin Navin said recent technological developments have eliminated most of its negative aspects by adding highly sophisticated filtering to block illegal content and a network of servers to ensure speedy and reliable delivery.
Navin said this method of delivery is the first peer-assisted network in the US that combines guaranteed availability, high-quality video, and rapid download rates. He expects to sign deals with other content owners soon.
Tsujihara said the agreement became possible after BitTorrent took significant steps to block infringing content. The service is scheduled to launch in the summer with an initial slate that includes "Harry Potter and the Goblet of Fire," "Tim Burton’s Corpse Bride," and "North Country."
More than 100 million people have BitTorrent software on their computers, many of whom spend several hours a day using it, Navin said.
"The challenge is going to be converting users who have been getting content for free," Tsujihara said. "That’s a battle we’re going to have to face with BitTorrent."
Warner Bros. already distributes via In2Movies, a P2P network selling Warner films and TV shows in Germany, Austria, and Switzerland. That service uses the GNAB download platform developed by DCIA Member arvato mobile, a subsidiary of German media giant Bertelsmann. Similar closed or authorized P2P networks such as DCIA Member Altnet and Peer Impact operate in the US.
PlayFirst Partnering with Nickelodeon
Nickelodeon, the number-one entertainment brand for kids, has joined forces with DCIA Member PlayFirst, the leading full-service publisher of casual games, to launch a new, downloadable SpongeBob SquarePants Diner Dash game. It is the latest title to join PlayFirst’s portfolio of innovative original and licensed casual games.
"Joining one of the top properties for kids – SpongeBob SquarePants – with one of the top casual games in the market – Diner Dash – is a significant step in the expansion of Nickelodeon’s casual gaming business," said Paul Jelinek, VP of Digital Media Products, Nickelodeon Networks. "PlayFirst has demonstrated that they understand how to tap the exploding mass market interest in interactive entertainment. This launch will continue to grow the kids’ demographic for casual downloadable games."
"SpongeBob SquarePants is one of the most popular properties in the world, and we are thrilled to bring it into our family of engaging, accessible downloadable games," said Rich Roberts, VP of Sales & Business Development, PlayFirst.
Nick Arcade games are available for download on a try-before-you-buy model priced at an average of twenty dollars. A first-ever kids’ downloadable games subscription for $7.95 per month – the "Nick Arcade Pass" – is also available. The pass offers members a new downloadable game of their choice each month that is theirs to keep, a variety of discounts on other games, and discounts on clothing and other items available in the Nick Shop.
Report from CEO Marty Lafferty
 Online registration and discounted hotel rates have been activated for the June 22nd–23rd P2P MEDIA SUMMIT, and the DCIA is continuing to add exciting speakers and special sessions.
Particularly topical, given this week’s announcement from Warner Bros. and BitTorrent, will be an in-depth case-study presented by principals involved in the BBC-BitTorrent-CacheLogic-NTL trial in the UK.
Early-bird registration ends on May 16th so please act now to take advantage of especially attractive rates. We are very pleased this week to announce these new speakers.
Joining the Policy Track will be Joshua Wattles, of counsel with Dreier LLP, whose impressive career spans representation of clients from the film, television, music, and Internet industries. Josh previously served as Deputy and Acting General Counsel of Paramount Pictures, where he was a key architect in creating anti-piracy programs. He began his career as an in-house litigator for the American Society of Composers Authors and Publishers (ASCAP). Josh also participated in MGM v. Grokster as counsel to LimeWire and to the developers of Gnutella protocols.
The Technology Track is proud to add Mediaguide’s VP of Business Development, Paul Wright. Mediaguide provides advanced encryption and monitoring systems to the distributed computing industry, harnessing the most effective management of operations to deliver the lowest-cost provision of resources. Paul is responsible for identifying and implementing new business initiatives and strategic partnerships, as well as driving the development and expansion of Mediaguide’s products dedicated to the support and discovery of independent artists.
Participating in the Marketing Track will be Ultramercial Founder & President Dana Jones, the innovative advertising expert who recognized an opportunity for monetizing trial access to premium content while providing real value to end-users and advertisers. Ultramercial ads are full-screen, two-way, interactive commercials that users choose to watch as payment to access premium services. The Ultramercial model bridges the gap between free and fee-based content by providing advertisers with a guaranteed audience and good will for sponsoring access.
Also new this week: in conjunction with the first annual DCIA Conference & Exposition, DCIA Government Relations leader Doug Campbell will lead a delegation to the Hill to update key legislators and other federal agencies on the latest advances in commercial development of P2P as a viable distribution channel. Interested parties should call 888-864-3242 or e-mail doug@dcia.info to participate in this additional activity.
Also, as noted earlier, the P2P Digital Watermark Working Group (PDWG) will hold its quarterly meeting during the P2P MEDIA SUMMIT and publicly report on its progress to date. The PDWG is planning to organize and conduct a pilot study and, based on its results, recommend voluntary best practices. Please call 888-864-3242 or e-mail pdwg@dcia.info for more information.
P2P MEDIA SUMMIT keynotes will include P2P program distribution executives representing the world’s largest file-sharing networks, the best-connected P2P service offerings, and the most advanced file-sharing software applications available today, plus stimulating panels featuring diverse leaders from this emerging high-growth industry.
Our special sessions will feature Friend Media Technology Systems’ (FMTS) new P2P information system, the Jun Group's highly innovative "Stageside" – an original P2P music video series sponsored by Coke, and Alston & Bird's P2P-firm value optimization workshop.
Live showcase entertainers for the June 22nd DCIA Conference networking cocktail reception will include Drew Gonsalves, Kirsten DeHaan, and Scooter Scudieri.
The June 23rd DCIA Exposition is being held in conjunction with the Digital Media Conference, and your registration for the full DCIA Conference & Exposition includes that event as well.
Now in its third year, the Digital Media Conference is a "must-attend" event for media, entertainment, and technology businesses, educational institutions, and government agencies involved in the digital distribution of media.
Exhibits and demonstrations will feature industry-leading products and services. Additional exciting speakers and special sessions will be announced in coming weeks.
Don’t miss the opportunity to participate in this 2006 inaugural event. You may register online or call 888-864-3242 to register. For sponsor packages and speaker information, please contact Karen Kaplowitz, DCIA Member Services, at 888-890-4240 or karen@dcia.info. Share wisely, and take care.
Future Distribution of Games
Excerpted from Gamasutra Report
An E3 panel this week focused on the future of games distribution. Moderating was Gabe Zichermann, Chief Marketing Strategy Officer of Boonty. Panelists included Exent Technologies’ Yoav Tzruya, Game xStream’s Royal O’Brien, GoGamer.com’s Jason Williams, and EA’s Eric Hartness.
Yoav said, "Companies will start treating games like other media – movies and music. Turner Broadcasting and its GameTap, and maybe Google or Yahoo, will take the lead. It probably will be swamped with ads, but..."
Gabe asked why traditional media companies are a factor. Royal said, "If you don’t have the marketing, the content doesn’t matter. And it’s been proven that these big companies know how to get product noticed."
Yoav countered, "Traditional media companies have the funding for the service, but they don’t have the infrastructure for direct consumer contact." Royal quipped, "If you don’t have the talent, you buy it. Like what happened with MySpace."
Jason opined, "I’m not sure if gamers want to go to Turner Broadcasting or News Corp. to get the hottest PC game. I’m not sure these gigantic media companies will know how to market games. Digital distribution is definitely coming... but who’s going to be best at it remains to be seen."
Gabe asked if a distribution model for casual games would be significantly different from a model that targets dedicated gamers. Royal summed it up, "I think it will still be split. The only cross-proliferation will be a service that actively provides both."
Eric added, "I’m surprised by talk about hardcore versus casual. The older woman who plays Pogo will play it for twenty hours a week and customize her avatar, which is just like what the ‘hardcore’ Xbox live player does."
As discussion continued, Gabe categorized what he saw as the six major models of online distribution discussed by the panel: sell the games themselves, sell the games along with a subscription, sell a pure subscription that’s title agnostic, games relying on in-game advertisements for revenue, micro-transactions, and episodic content.
Warner Music & SK Telecom
Excerpted from Inside Digital Media Report by Phil Leigh
Warner Music this week announced a joint venture with Korea’s largest telephone company, SK Telecom. The venture will sell music from Warner’s Korean artists to mobile phones as wireless downloads.
In general, digital media developments in Korea may well be a good indication of future trends in the United States and elsewhere. This is because the country is perhaps the most digitally connected place in the World with 62% of households receiving broadband Internet service. The comparable ratio in the US is under 40%. Moreover, broadband speeds in Korea are even faster than in our country.
In our analysis, the music CD market in Korea is the "canary in the coal mine" that tells us what can be expected here in the States. Since 2001, CD sales in Korea have dropped by 75% to a mere $80 million.
But digital technology has not been a net detriment to the industry. On the contrary, according to the Wall Street Journal, "Sales to mobile phones of songs, ring-tones, and the like grew to more than $530 million last year" which is 65% greater than the sales of ALLmusic CDs in Korea when they began in 2001 the 75% drop noted above.
In time, nearly all electronic media will become digital media.
Centale Launches WiFi Radio
As planned, DCIA Member Centale this week introduced WiFi Radio, a wireless entertainment network available to consumers worldwide. The WiFi Radio platform has been specifically designed and developed by Centale to integrate its capabilities with the newly launched Windows Mobile Platform and the Windows Desktop Platform.
WiFi Radio users will have easy access to over 10,000 channels and connections to worldwide media, news, and entertainment. This content is available from commercial and independent sources around the globe. WiFi Radio allows any user to become an instant broadcaster or publisher to an entire global audience, with the requirement that each publisher must acquire a ".fm" or ".am" domain name from Centale.
"Giving our users free access to a growing global network is very exciting because users will be able to distribute and promote their independently produced content on a network that will parallel the reach of major commercial carriers. This freeware entertainment network truly levels the playing field and could become the driving force for deregulation of mainstream media," said Moses Johnson, Vice President of Centale and creator of WiFi Radio.
eBay Rings in Skype Technology
Excerpted from Adotas Report
eBay CEO Meg Whitman announced this week at the company’s "Analyst Day" that the popular auction site will begin to incorporate DCIA Member Skype's Internet voice technology. Skype’s services will both facilitate easier communication between buyers and sellers on the site and generate new revenue streams with a pay-per-call advertising system.
This move has been anticipated since eBay bought Skype last year for $2.6 billion, with an additional $1.5 billion on the line if the company meets its financial goals by 2008. The company followed a similar template of acquisition and integration with secure monetary services provider PayPal in 2003.
"PayPal created a simple yet incredibly powerful way to handle payments on the Web. Likewise, Skype found a whole new way to deploy voice technology to create the simplest online communications product in the world today," Whitman said. "This allows us to mine new opportunities for years to come."
The new pay-per-lead system will likely welcome advertisers in a variety of vertical categories, such as auto, real estate, and travel.
Indie911 OLTV Series Debuts
DCIA Member Indie911 has debuted a groundbreaking online TV series comprising a series of fast-paced minute-long episodes.
Indie911 created "Kindred" specifically for the small screen through its relationship with production company Scopotone. Viewers can see the first episode of the noir-ish thriller right now on www.indie911.com. Over each of the next seven weeks a new episode will be made available.
"The web is fast becoming a worldwide TV network for audiences seeking fresh entertainment – so long as it’s short and compelling," Indie911 Founder & CEO Justin Goldberg said. "Indie911 caters to the creativity that thrives outside of the mainstream –the best artists and audiences usually do. Podcasting and streaming videoare media with unlimited worldwide distribution; it’s a very exciting time."
Geared toward younger, tech-savvy consumers, Indie911’s programming will be distributed directly to mobile devices with the ability to display original video and audio programming via cell phones, video iPods, and Sony’s Play Station Handheld.
Seamless P2P Tests Phenomenal
Excerpted from TMCnet Report by Eric Linask
DCIA Member Seamless P2P provides networking solutions using proprietary, private, secure P2P technology, allowing companies and individuals to easily and cost effectively create P2P networks among PCs over LANs, WANs, VPNs, WiFi, and the Internet.
With the maturation of P2P networking, the technology has begun to gain credibility in the corporate world. Now, Seamless P2P has successfully completed testing of the voice and video transmission capability of its Phenom 3.0 P2P Virtual Private Network software.
This latest testing represents the final step before the company launches the alpha and beta testing program for Phenom 3.0 scheduled for August 1st.
"We are very happy with our new video algorithms. Our team has done a wonderful job modifying the captured video before compression to provide the clearest and crispest image possible," said Chris Akins CTO Seamless P2P.
Phenom 3.0 allows transparent transmission of data in conventional IP networks such that information can be shared among participants even if one or more are behind proxies, firewalls, or NATs. Phenom’s SPN Layer is a fully extensible platform that will be integrated into Phenom 3.0 as well as future Seamless products.
YouTube to Go
YouTube, a consumer media company for people to watch and share original videos through a web experience, this week launched a service that allows people to upload videos directly from their mobile phones and PDAs to the YouTube website.
There has been an explosion of mobile devices that capture high-quality video. Now, people can share important experiences as they happen and where they happen – breaking news can be uploaded immediately, bands can share tour footage with their fans from the road, and curiosities captured can be viewed across the globe instantly.
"Helping our members share their experiences on YouTube anytime and anywhere furthers our goal of providing the best video experience on the Internet. We continue to listen to our users, taking their feedback and building innovative features into the site," said Steve Chen, CTO, YouTube.
Uploading and sharing video requires a mobile device that can take video and send Multimedia Messaging Service (MMS) messages (a technology that allows people to create, send and receive text messages that also include an image, audio and/or video clip), Internet access or a data plan from a service provider (YouTube currently supports Cingular, Sprint, T-Mobile, and Verizon wireless networks), and a YouTube member account.
Tribler’s Social-Based BitTorrent Net
Excerpted from Torrent Freak Report
Tribler is a new P2P network based on BitTorrent. Tribler allows you to create groups of friends and supports tags and profiles. Tribler is based on the source code of the ABC torrent client.
Most current P2P file-sharing systems treat their users as anonymous, unrelated entities, and disregard social relationships among them. However, social phenomena such as friendships and communities of users with similar tastes may be exploited to increase their usability and performance.
In this paper we present a novel social-based P2P file-sharing paradigm that exploits social phenomena by maintaining social networks and using these in content discovery, content recommendation, and downloading.
Based on this paradigm’s first-class concepts such as taste groups, friends, and friends-of-friends, we have designed and implemented the Tribler P2P file-sharing system as a set of extensions to BitTorrent.
Peers from the same group can speed up the downloading by engaging in cooperative downloading. Peers can donate bandwidth to their friends and act as collectors or helpers.
A collector is the peer that is interested in obtaining a complete copy of a particular file, and a helper is a peer that is recruited by a collector to assist in downloading that file.
The software will be launched next month.
P2P File-Sharing Hardware
Excerpted from Daily Tech Report by Purav Sanghani
Patoh, a single-product company, has announced the launch of a networked storage device that not only connects to other networked devices but also to a number of P2P file-sharing protocols.
The RochiP2P-250 LinkStation is a 250GB network attached storage device which features a 10/100Mbps LAN interface and dual USB 2.0 ports for connectivity to a networked environment or a single PC set up.
In a sense it is similar to other network attached storage devices, but what sets the RochiP2P-250 apart is the ability for it to interface with six file-sharing protocols including eDonkey2000, Overnet, FastTrack, FileTP, Kad, and BitTorrent.
The RochiP2P-250 also features a user interface to allow users to share files directly from the device instead of a networked PC. This means a local PC is not required to manage the connections and files on the NAS device. Additionally, the device supports managed backups, has a built-in print server, and can be scheduled to shut down.
The RochiP2P-250 has been launched in Europe with a price tag of approximately US $380.
As LimeWire Negotiates, Alternative Emerges
Excerpted from Digital Music News Report
Ultra-popular file-sharing application LimeWire is eventually expected to undergo changes in its architecture, part of an ongoing negotiation process with the RIAA.
The belabored deliberations follow an industry clampdown in September 2005, which took the form of several RIAA-generated cease-and-desist letters.
Regardless, LimeWire currently remains a free-for-all for music swapping, and a timetable for a conversion into a paid, protected service remains elusive. Still, most agree that some sort of announcement is ahead, despite the sluggish discussions. And ahead of any potential changes, the slippery internet is already making adjustments.
Called FrostWire, the LimeWire variant is already filling a hole that could appear in the near future. "FrostWire is a fork of the very popular LimeWire Gnutella client," the frostwire.com website explains. "From what we understand, LimeWire LLC intends to implement a DRM filtering technology into their client."
The FrostWire developer group, which appears closely connected to the LimeWire team, indicated that it will borrow heavily from the LimeWire architecture. "If LimeWire ever decides to implement this DRM technology, we will be prepared to remove it from our code and distribute the client under our own branding." And moving forward, the group appears committed to an untouched application.
"FrostWire, although very much like LimeWire, will never offer a paid version or a subscription service for the download or use of the FrostWire application," the team asserted.
Manolito Strikes Back
Excerpted from Slyck.com Report by Thomas Mennecke
Pablo Soto has reinvigorated the MP2P project. MP2P fans were surprised this week to see the Piolet.com homepage renovated with the release of a new product: Manolito.
Currently, the Manolito client contains no appreciable differences from the latest version of Piolet. Many changes are coming, however, as Pablo now has a team of developers working on the project with him. In addition, the Manolito homepage promises anonymity for the end user – details of which should be released by the development team soon.
The new Manolito client maintains many of the attributes of its predecessor, such as being free from spyware and adware – an attribute that it will maintain throughout its future. Like LimeWire or BearShare, there is the standard free version and the more enabled $19.99 version.
The current Manolito homepage lacks the community feel of the old Blubster.com. Manolito shows promise, yet if it wishes to fulfill its potential, it needs to reestablish this community architecture.
Sharing Still Divisive
Excerpted from LA Times Report by Charles Duhigg
Depending on whom you ask, Lala.com — a new website that helps song lovers trade entire compact discs for less than the cost of a single iTunes video download — is either the music industry’s salvation or yet another nail in its coffin.
Those in the pro-Lala camp like to tell the story of its founder, Bill Nguyen, a Silicon Valley wunderkind who sold a previous start-up for $850 million and set out to use some of the proceeds to help music aficionados like himself discover new tunes. He and a few superstar programmers spent a year and more than $1 million designing an online community where users can list the CDs they own and those they want.
Lala.com, which was launched last month, pairs those who want with those who have and facilitates a trade, collecting $1.49 per disc.
That fee doesn’t quite cover Lala.com’s costs. But executives think that eventually the company will earn big profits, both by selling CDs at retail prices and by selling the demographic details it gathers about its users to record labels.
"If we know what CDs you keep and don’t keep, we can spur purchases of new albums," said Michael Krupka, a Lala.com board member and a managing director at Bain Capital, which along with Ignition Partners invested $9 million in the start-up. "The more we know about you, the more effectively we can encourage you to buy."
But those who subscribe to the anti-Lala viewpoint, many of them music executives, say Lala.com is nothing more than quasi-legalized piracy.
"This is a nudge-nudge, wink-wink way to get around the law," said Ted Cohen, senior vice president of digital development at EMI Music. "It makes it easier for people to copy CDs and steal music. Why would the music industry do anything to encourage a company like this?"
Cohen and others like him shudder when they hear Lala’s goal of attracting at least 2.5 million regular users within the company’s first two years.
Coming Events of Interest
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Internet Dating Conference – May 18th in Beijing, China. A business conference covering the online dating industry and the social networking industry in Asia and the Far East. Topics include management, marketing, and technology. It will be attended by the owners and top executives of the major Asian online dating firms.
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First Annual DCIA Conference & Expo – June 22nd-23rd at the Intercontinental Holiday Inn, Tysons Corner, McLean, VA. The first-ever global P2P MEDIA SUMMIT will cover policy, marketing, and technology issues affecting commercial development of this emerging high-growth industry. Exhibits and demonstrations will feature industry-leading products and services. For sponsor packages and speaker information, please contact Karen Kaplowitz at 888-890-4240 or karen@dcia.info. DCIA Members Music Dish Network and Javien are our media and e-commerce partners respectively. Plan now to attend.
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Washington Digital Media Conference – June 23rd at the Ritz-Carlton, Tysons Corner, McLean, VA. DCIA Conference & Expo attendees can attend this executive briefing on emerging business, policy, and technology issues & opportunities at half-price. This is a must-attend event for media, entertainment and technology businesses, educational institutions, and government agencies involved in the digital distribution of media. The Washington Post calls the event: "a confab of powerful communicators and content providers in the region."
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