September 17, 2007
Volume 19, Issue 3
P2P Could Cut Video Hosting Costs by 95%
Excerpted from Tech Digest Report
A new study suggests that video publishing services such as YouTube and MSN Video could save up to 95% of their bandwidth costs by implementing some kind of peer-to-peer (P2P) file sharing system.
Researchers from Microsoft in collaboration with the Polytechnic University in New York analyzed nine months of video downloads from their MSN service, and then simulated what would happen if it was shared among users with peer-to-peer television (P2PTV) software.
They found that users would only have to use a small portion of their upload capacity for videos to be available just as quickly via the P2P network as directly from MSN.
Companies choosing to implement this kind of technology would need to ensure that any shortfall in the sharing network was covered.
To allow Internet service providers (ISPs) to also cut their costs, a system could be implemented whereby only those people using the same ISP could share video. This would offer less cost saving for the original provider, but pass on some savings to the ISP.
Microsoft is said to be very interested in the possibilities of P2PTV and P2P networking.
QTRAX Names CTO, Teams with BigChampagne
QTRAX, the world’s first ad-supported P2P music service and a subsidiary of Brilliant Technologies Corporation, has appointed J. Christopher Roe as Chief Technology Officer (CTO). Roe comes to QTRAX from Interpublic Group’s AFG Interactive, where he managed multiple information and communication systems across its global network. Prior to AFG Interactive, he served as Chief Information Officer (CIO) of NewYorkCity.com.
In his new role, Roe will guide QTRAX through its launch later this year by structuring the implementation of the state-of-the-art technology essential to the company’s unique business model, which will exploit the dynamic nexus between interactive advertising and intellectual property.
“To build the largest virtual record shop in the world requires exceptional imagination, talent, and experience,” said Brilliant President & CEO Allan Klepfisz. “Chris’s well-established reputation as a leader within the tech community makes him an extremely fitting match for QTRAX and our pioneering music discovery service.”
“I am extremely excited to join QTRAX at this critical moment in the company’s development stage,” said Roe. “QTRAX offers a unique and very exciting opportunity to alter the landscape of the entertainment industry and effect real change for the benefit of both the creative community and the consumer.”
Brilliant also entered into a data provision partnership agreement with BigChampagne Online Media Measurement, the DCIA’s official industry data resource, under which Brilliant will provide download data from QTRAX, and BigChampagne will provide online analytic tools integrating consumer data from the world’s leading digital media companies.
BigChampagne’s data provision features charts and deep analysis of data provided by best-of-breed partners, including Yahoo Music, AOL Music and AOL Radio, MTV Networks, ClearChannel Online, Napster, RealNetworks’ Rhapsody, Movielink, MusicIP, SNOCAP, and now QTRAX. BigChampagne is committed to continually developing new relationships to help ensure that the company’s products and services are always forward-looking and accurately reflect the marketplace in its great variety.
“We are delighted to commence this partnership with BigChampagne. We recognize that we will be generating unique and highly valuable data in the P2P arena regarding search, download, play, purchase, response to ads, etc. Our data, combined with BigChampagne’s enormous data resources, will help us provide our licensing partners with the best information available,” said Allan Klepfisz.
“Courting the online consumer is no longer the future of the entertainment business, it’s the present. The traction Brilliant has generated with the major and independent labels marks it as a leader in an ad-supported space designed to help monetize previously lost revenues to creators and rights holders, and we are pleased to measure and report on Brilliant’s progress in advancing this model,” added BigChampagne President Eric Garland.
Report from CEO Marty Lafferty
 We renew our call to leaders of the music industry to work cooperatively with the DCIA and P2P software developers.
Together we can develop innovative commercial solutions that take full advantage of the potential of P2P and social networking distribution, building on the promise of breakthrough services like QTRAX.
There is no reason why the excitement surrounding the growing number of P2PTV services, which already offer an astonishing range of competitive approaches, cannot yet be developed around music. What is needed more than anything is a greater willingness to experiment with promising new approaches.
A host of P2PTV services now represent several innovative ways to present licensed content genres, new business models – most of which center on free-to-the-user advertising support, and technology differentiation.
The P2P marketplace for music needs the kind of creativity that the video file-sharing phenomenon has unleashed. It also needs less aversion to informed risk-taking.
It has become increasingly evident during 2007 that total P2P and social networking music revenue could increase enormously, with content still by-and-large free to consumers, if major and independent labels would license a critical mass of popular and emerging music for ad-supported P2P and social networking distribution industry-wide and support a displacement initiative such as the one outlined below.
This would not foreclose the possibility of then layering premium subscription offerings and paid downloads as tiered services on top of ad-supported offerings to further increase revenue, but would satisfy consumer demand and expectation for choice and convenience of a broad selection of free digital music options, and therefore have a greater likelihood of success than many alternatives, including the much less popular offerings to date that are not based on P2P or social networking.
Reducing infringement clearly remains a priority, with the most promising approach one that would accompany an industry-wide initiative to displace unauthorized versions of copyrighted music with licensed ad-supported versions of such works massively seeded into the channel at the head of search results across all P2P networks and similarly infused into social networks. This can be readily accomplished now using available and affordable technology.
This approach would involve the optimization of protection technologies at the file level, filtering at the client level, and forensics at the network level – the three “Fs” that are needed to operate in tandem in order to secure the P2P and social networking distribution channel.
For new content, the greatest promise lies in digital watermarking, and for legacy content, acoustical fingerprinting should play a parallel role.
In the analog world, the record industry makes payments for shipping costs to entities which transport CDs from manufacturers to retail outlets, and pays shelf-stocking fees to retailers for in-store placement-and-promotion. In short, in the highly mature CD distribution channel, each participant in the value chain is compensated for its contribution to the secure delivery of product to the end user.
In the P2P and social networking distribution channel, that is not yet the case. While P2P software developers and distributors are finally emerging in consumer-facing roles comparable to that of CD retailers, ISPs are also clearly part of the digital conduit of music to the consumer, but have neither clearly defined commercial responsibilities nor compensation mechanisms such as CD transporters do in the physical realm.
ISPs are uniquely qualified to perform an infrastructure role in the three “Fs” of P2P content security (file protection, client filtering, and network forensics) with their combination of ubiquitous data delivery systems and off-premises facilities.
Working with router manufacturers, for example, ISPs could install and maintain P2P protocol traffic-metering services at each point-of-presence (POP) to help ensure the integrity of copyrighted music files and their usage rules. For this they would be compensated with a percentage of each consumption transaction whether monetization takes place through advertising, subscription, paid download, or other means of revenue generation.
The DCIA, which has examined additional alternatives for potential ISP participation in what promises to be a very robust commercial marketplace for content delivery via P2P and social network file sharing, is willing to serve as a forum to further explore such private sector conflict resolution.
We encourage qualified music industry leaders and ISPs to work with us to help complete the work to define missing parts of this, the most productive and efficient channel available for distributing copyrighted music. We will continue to reach out to these entities and urge all interested and qualified parties to reciprocate by contacting us for more information.
There is the real possibility for exponential growth in commercial development of the P2P and social networking distribution channel, with revenue finally approaching the pace of this medium’s continually expanding consumer adoption, advertiser acceptance, and technological advancement.
Key to continued progress will be practical recognition by major music companies of the realities of both the online consumer marketplace and file-sharing technologies, and the potential advantages available to rights holders based on fully embracing and harnessing this most widely accepted and uniquely efficient distribution channel. Share wisely, and take care.
The Music Industry’s Pickle
Excerpted from Online Spin Report by Cory Treffiletti
The music industry contends that digital music distribution has cut into the revenues they were used to making through album sales. But what digital music sales have actually done is expose the fact that the majority of what the labels issue are filler: albums with a couple of great songs and a bunch of mediocre ones. Digital music sales allow the consumer to buy only what they like, thereby forcing the musicians to put out the best of their work, or all of it, regardless of quality, just to make sure they see revenue somewhere!
For example, Ryan Adams has released more than 250 songs and four albums in the last three years. His model has been to release it all, free or purchased, and see what the audience likes. Of course his label doesn’t like that, for obvious reasons.
The funny thing about the so-called effects of digital music on the industry is that they’re in direct conflict with the fact that much of the innovation and evolution of the web centers on music! MySpace use took off as a result of the influx of musicians using it as a tool for building a fan base – and now MySpace has a record label.
Mobile and text messaging have taken off as a result of ring-tones and ring-backs, and the other various ways that bands use mobile.
Internet radio has benefited from Pandora and the Music Genome Project that spawned it.
Social networking has blown up and sites like Imeem and Mog are creating groups based on music tastes and preferences.
Zude is a new social computing tool, with many of its pages devoted to music and the musical tastes of its users.
IUMA was way ahead of its time, as was Artist Direct. These sites had millions of users in their heyday, but due to opposition and non-cooperation from the music industry, they faltered. Remember the buzz around MP3.com? That was huge, but not so much anymore.
So why can’t the music industry understand this?
The artists and the fans see the ways that digital media are allowing them to share and become exposed to more music than they previously could.
Musicians are trying new ideas and testing new ways to interact with their fans while they perform more, realizing that their primary method for generating revenue is live shows – which are more successful with a strong Internet fan base!
Digital media consultant Ty Braswell mentioned that mobile can be a powerful tool for artists. Why not create live ring-tones at a show, and allow the audience to buy them immediately using mobile pay methods? Zude’s Steve Poppe and Jim McNeil have asked, why not revisit the models of web rings and let like-minded consumers interact with like-minded consumers and link together all their social networking pages on topics of interest to them?
The music industry, in spite of itself, gravitates towards digital media because it breaks down regional differences and allows for music to be spread beyond where it previously was stuck. If the product is good, and the industry is willing to try something different, then success is practically inevitable.
News Corp Chief Calls for More Risk-Taking
Excerpted from Variety Report by Steve Clarke
News Corp. topper Peter Chernin has urged TV chiefs to adopt innovative, risk-taking strategies and embrace new media – or risk extinction.
Speaking at the Royal Television Society’s Cambridge Convention, Chernin, President & COO of News Corp., said the world of multi-platforms had created a truly Darwinian entertainment industry where only those who are fleet-of-foot will thrive.
He said, “There are huge rewards for those who innovate and death to those who do not.”
Chernin highlighted the move from a business where big players called all the shots to a world of infinite choice enabling audiences, users, and consumers to exercise power.
He explained, “There has been a fundamental shift that has completely democratized our business, and democracy can be scary, especially when you have been living in a totalitarian state for decades when we were the dictators. The great thing about this democracy is that it’s Darwinian. If you are not innovating and coming up with new ideas, you are toast.”
Nonetheless, the News Corp. chief said there is a “golden opportunity” for media companies to make money from this new consumer-driven model. In a world of such choice, audiences face “infinite confusion,” so the role of “master brand builders and packagers” will be crucial.
He said, “We possess the world’s most recognized and loved brands, and have the opportunity to leverage them in new ways.” Chernin insisted that traditional media companies had to take notice of new platforms and adapt their businesses to stay in touch. The knee-jerk reaction is to take potshots at what you don’t understand. To dismiss user-generated content (UGC) as crap and blogs as unauthoritative is not only unproductive, but a waste of time.”
Contemporary consumers will not tolerate workaday content. “The middle is dead and that’s the greatest thing that has ever happened. The bland, safe, central, middle is never coming back.”
Chernin said that in such a complex market, creative, risk-taking strategies were more important than ever – and that it was high time the suits were regarded as creatives.
He said, “It’s not just the producers that are creative… the breakthrough strategies may come from a salesman. It is a mistake to regard one set of people as creative and another as support drones. We need to treat every single person in our company as a creative.”
Firefox Gets BitTorrent
Excerpted from Internet News Report by Sean Michael Kerner
BitTorrent is one of the most popular mechanisms for P2PTV. For the most part, BitTorrent client applications have been standalone tools, but now, thanks to open source start-up AllPeers, Firefox users can take advantage of BitTorrent inside of their browsers.
“With AllPeers, you just click on a link for a torrent and it’s just like downloading a normal file; you can download it right in the browser,” Matthew Gertner, AllPeers CTO, told Internet News. “With a feature called Social BitTorrent, which is totally unique to AllPeers, when I start to download files from a torrent, I can use the same drag-and-share feature to share with others. It’s the path of least resistance for sharing files.”
AllPeers has been providing P2P file sharing for over two years already, though until now the company was limited to its own private network for peers. With the BitTorrent capability, the technology has now expanded the number of files available to its users.
The BitTorrent capabilities are not, however, as full or complete as many standalone BitTorrent clients. AllPeers does not allow its users to create their own torrent trackers, instead making them rely on existing torrent tracker files.
Instead of one file download, the BitTorrent protocol separates the file into multiple chunks, which are then shared and downloaded via multiple sources. The system is also set up so that while users are downloading a file, they are sharing it at the same time by uploading chunks they’ve already downloaded to others in the torrent swarm. In order to share the files through a torrent, a “tracker” file is needed.
The reason AllPeers doesn’t allow for the torrent tracker creation, Gertner said, has to do with both regulatory and technical reasons. Essentially AllPeers is concerned with the potential risk it might be exposed to if one of its users created a torrent tracker for a file they were not authorized to share. It’s the same reason AllPeers doesn’t include a torrent search capability.
That being the case, AllPeers users do have their own friend networks that Gertner expects will also become discovery networks for torrents. It is the social aspect that Gertner expects will set AllPeers apart from its competitors.
Among those is the Opera browser which has integrated BitTorrent capability for two years. Gertner noted that, while the AllPeers client is free like Opera is, it’s open source, which Opera is not.
He added that when they began development of AllPeers, they had no contact with Mozilla whatsoever. That’s turned into a partnership of sorts, which has AllPeers distributing a customized version of Firefox that includes the AllPeers extension that users can load themselves.
“We’re doing some new things that have a potentially positive effect on Firefox’s market share,” Gertner said. “As AllPeers grows its user base, people will want their friends to use Firefox so they can connect.”
Though AllPeers is all about Mozilla, it does recognize the fact there are other browsers out there, namely Microsoft’s Internet Explorer.
“We still see a lot of potential to grow in the Firefox community,” Gertner said. “But I’m sure one day we’ll have an IE version.” Gertner said he even knows how he would build one.
An AllPeers for IE extension would be based on Mozilla’s XULrunner, which is a standalone version of the Mozilla Framework, which could then interface with IE.
Though AllPeers is open source it isn’t run as a non-profit. The goal is to make money eventually. “Right now we’re venture financed,” Gertner said. “The goal is to build the business model after we build our user base. We’re not immediately trying to monetize.”
LiveStation Previews Live P2PTV
Excerpted from Web TV Wire Report by Michael Garrett
LiveStation is a new P2PTV service that lets you watch television online using Microsoft’s new Silverlight technology.
The service, which just debuted at IBC 2007 in Amsterdam is another addition to the growing list of P2PTV services that allow broadband users to watch television programming through the Internet.
LiveStation has some key differences that make it unlike any of the other services available, which actually make it more like traditional television. LiveStation is all about delivering live radio and television channels to your computer through the Internet, hence the chosen name.
Matteo Berlucchi, CEO of LiveStation partner Skinkers explained, “LiveStation is based on real-time P2P distribution technology exclusively acquired from Microsoft. This allows broadcasters to take advantage of a managed peer network to reach large online audiences with live radio and television and reduce their distribution costs dramatically.”
Essentially, the LiveStation P2P network collectively uses the bandwidth of active users, which results in reduced traffic among networks. Skinkers also noted that the use of Silverlight has allowed LiveStation developers to mix high-quality video with animated vector graphics and text overlays.
Gabriele di Piazza, Director of the Media & Entertainment Group at Microsoft added, “LiveStation is a great example of the power of Silverlight, created using familiar tools and technologies, and enabling even lower delivery costs. Silverlight enables rich interactive applications such as LiveStation to enhance end-user experience by seamlessly combining video with interactive graphics.”
Look for LiveStation to initially be available as an invite-only beta trial within the next month with limited programming choices, although as the service matures, it is sure to acquire many more broadcasters. If LiveStation is successful, it could show how much of a potential threat Silverlight can be for Adobe’s Flash format.
Depending on how well it is able to build a variety of programming, LiveStation could also be a competitor to Sling Media’s hardware-based options, which allow anyone to connect their television to the SlingBox and view any of their programming over the Internet, from anywhere.
It’s too early to tell if LiveStation will be the best of the new P2PTV services cropping up, but it is definitely aimed to provide some fierce competition, and for more companies than just Joost.
Joost Partners with Paramount Pictures
Excerpted from E-Consultancy Report
P2PTV service Joost has announced a deal with Paramount Pictures that will see the studio’s movie output being shown via the P2P service.
The deal initially covers the UK, France, Spain, and Germany, but Joost said more countries would be added in the future. As with the rest of its content, the movies will be free but supported by advertising.
This is another good deal for Joost, which has already partnered with several large content providers, including Viacom, CBS, and Warner Bros.
UK Joost users will get the biggest selection at first, with 35 Paramount movies being offered, including “Breakfast at Tiffany’s,” “Star Trek,” and “Fatal Attraction.”
The move is significant because, up until now, most of the content being offered has more appeal to US audiences, with UK audiences restricted to shows like “Fifth Gear.”
The addition of Paramount movies may help to increase the number of European users of the service, which now has to compete with the range of content being offered through the BBC’s new iPlayer.
Babelgum Courts Factual Indies
Excerpted from C21 Report by Jenn Kuzmyk
With its March 2008 consumer launch looming, P2PTV start-up Babelgum is intent on making its mark against competitors such as Joost and Vuze by going after factual and documentary content from small to mid-size independent producers and distributors around the world.
You need a lot more than a catchy name to become a player in the present day Wild West of Internet TV start-ups; you need content, and lots of it. So like its competitors, Babelgum, which is currently in beta test mode, has been steadily clocking up content agreements and bulk library deals with industry players in order to fill its online coffers.
Set up by Silvio Scaglia, founder of FastWeb, Babelgum has already signed with major partners such as IMG-owned sports specialist TWI; ITN for daily news, showbiz, and weather feeds; Reuters, which will offer current affairs content; Associated Press, to feature daily news feeds, entertainment, and weather content; and BBC Motion Gallery, which will contribute documentaries.
“We want to have a huge library of content devoted to passions,” said Valerio Zingarelli, CEO of Babelgum. He noted that although the company will have programming from major players in the TV and film world, content from smaller sources will differentiate the service. “The majors are already present across different platforms, so the viewers and customers have plenty of opportunities to get their content. However, content from the small independent producers is not so common,” said Zingarelli.
Indie producers and distributors that have signed up with Babelgum include Journeyman Films and France’s Zed for documentaries; Off The Fence for nature docs; Canada’s Rethink Entertainment for factual-entertainment product; and 3DD for music content.
Deals have also been sealed with Film Chest, Breakthrough Films, and Entertainment Rights, which will offer “Saturday morning TV” and retro cartoons. The company attracted attention at MipTV in the spring by announcing it would feature Spike Lee’s Unicef-commissioned HIV film “Jesus Children of America” on an exclusive basis for three months. Other content offerings will come from sources such as the Kiteboard Pro World Tour and Ministry of Sound TV, a major UK-based dance music aggregator and distributor.
Much more content is needed, however. “When we start the commercial service in March 2008, we will need to have a huge library of content - at least 50,000 hours,” says Zingarelli, noting that, out of this, about 80%, or 40,000 hours, will have come from indies that have voluntarily uploaded their wares. The remaining 10% will be curated or sought-out directly by Babelgum as it strives to reach an ultimate target of somewhere around 100,000 hours of independent and mainstream content from around the world.
The company concept is to offer video not easily available through traditional platforms - on-demand and free-of-charge to web users/consumers. The work of established filmmakers and newcomers will be promoted side-by-side via P2P technology, a system by which content is broken up into packets and delivered through a network of computers. Competitors such as Joost and Vuze also use this technology, which Babelgum says will combine “the immersive viewing and high resolution of traditional TV with the interactive capabilities of the Internet.”
Content is searchable by topic or keyword, but Babelgum is also publicizing the fact that it will allow people to have personalized content streams programmed per their own individual interests - something it calls “smart channels.” The third prong of the offering is the facilitation of communities, allowing people of similar interests worldwide to converse about their passions.
Zingarelli pushes the fact that producers can use automatic upload tools to offer their content via Babelgum. “We will sign contracts with these producers but since we need a huge library that has to be refreshed very frequently, we cannot analyze each single minute of content. We will just have a framework contract describing the types of content we want, and then it is up to the producer to load their content through automatic upload and refresh it frequently according to the contract,” he explained.
Drookit Dogs Do Selfcast
This week, the rising stars of the post-punk/new-folk scene, Drookit Dogs, entered a flat in Brighton to become the subjects of RockPad, the first-ever 24/7 live P2PTV broadcast made entirely of user-generated content (UGC).
This is real reality – not the edited construct seen on more traditional platforms. For three months, RockPad will follow the band’s scrapes and exploits as it records, produces, and prepares to release its first album.
Drookit Dogs have been set-up in a designated flat where they’ll live together and be filmed 24 hours-a-day, seven-days-a-week.
With live P2PTV streams from the living room, bedroom, kitchen, bathroom, and the studio – 24/7 – viewers will see Drookit Dogs taking all the necessary steps towards getting their album released, including recording sessions, production meetings, photo shoots, and appointments with stylists and label A&R, as well as all the daily banter and mischief you’d expect.
Drookit Dogs will also be given DV and webcams to broadcast live from all their gigs and rehearsals. Viewers will also be able to interact with the band directly through the live-chat facility, blog, and interactive “dog-house,” created to allow v-casts of individual band members.
There will be competitions for viewers to win prizes including webcams, free gig tickets, and much more...
Lead vocalist of The Drookit Dogs, Matt Oldfield, said, “The bit we’re most looking forward to is getting to play and make music full-time. The bit we’re least looking forward to is… well nothing, we’re looking forward to it all.”
The recently launched broadcasting portal for UGC, Selfcast, enables anyone to create their own live TV or radio channel for free. All you need to get started is an Internet connection and a video device such as a DV or webcam.
Mikkel Dissing, CEO of RawFlow, the company behind Selfcast, commented, “We set up RockPad to showcase what aspiring musicians can do with Selfcast and live Internet streaming. The Drookit Dogs are an amazing band, so when their manager approached us, the choice was easy!”
Already dubbed the “YouTube Killer” and “Live YouTube,” Selfcast has been the subject of intense debate. It has the functionality and accessibility to be an important tool for democratizing live broadcasting – previously reserved for professionals due to complexity and cost. So all you aspiring directors, camera operators, producers, presenters, musicians, and artists can finally show your talents to the world – LIVE!
Ex-Viacom Duo Invests in Veoh
Excerpted from Variety Report by Steven Zeitchik
Former Viacom honchos Tom Freston and Jonathan Dolgen are signing up as investors in P2PTV company Veoh. The duo joins Michael Eisner, as well as investment entities such as Goldman Sachs, Shelter Capital, and Spark Capital, in putting money into the venture.
Amounts Freston and Dolgen are investing were not disclosed. The influx from Freston and Dolgen caps a new round of funding for the company that has brought in about $25 million.
Veoh topper Steve Mitgang said the pair, along with Eisner, would help “build bridges” to Hollywood. Veoh execs said the company is continuing to negotiate for content with studios and nets.
Freston is investing via Firefly3, which is both investing in and consulting for media companies. The exec has kept a low profile since ankling his post as Viacom CEO last year.
Dolgen, a former Chairman of Viacom and a vet of studios such as Sony and Fox, is a principal in media investment firm Wood River and still serves as an adviser to Viacom.
Veoh is seeking to increase its competitive position under Mitgang, a Yahoo vet who came in several months ago to revitalize the company. Veoh touts content from Paramount Pictures, Lionsgate, and a host of other entertainment providers, but has been battling to increase its profile in a crowded online-video marketplace.
SEAS Team Launches File-Sharing Program
Excerpted from Harvard Crimson Report by Christian Flow
A team from the Harvard School of Engineering and Applied Sciences (SEAS) is currently collaborating on an electronic marketplace for file sharers that would increase the efficiency of P2P networks by providing individuals incentives to contribute to the system.
Made available for free download on August 29th, the most recent version of the video-sharing software – known simply as Tribler – appears to be gaining something of a foothold. Ten thousand downloads were recorded in the first week alone, according to Sven Seuken, a second-year graduate student in computer science who works with the Tribler team.
One of the distinctive features intended to give Tribler a leg up on the competition is its use of an electronic “currency” to address the inefficiencies that have plagued other P2P systems. Time-honored adages aside, people appear to favor receiving over giving on P2P networks. And given the cooperative nature of such systems – everything downloaded has first to be uploaded by someone else – such selfish asymmetry can be crippling.
BitTorrent, which Seuken identified as the most commonly employed P2P protocol, attacks the problem of incentivizing downloaders to give by employing a “tit-for-tat” system of barter, in which downloaders are required to share pieces of a file with each other.
Seuken said he believes this bartering aspect of BitTorrent promotes fairness, but when users are done with their immediate downloads, they stop contributing to the network.
Among Tribler’s distinctive features is a decentralized accounting system that tracks a user’s uploads and downloads to the network, creating a strong incentive to upload in order to accumulate currency that can later be translated into faster downloads in the future. A user may choose to leave his computer on at night, uploading material, so that he can “afford” faster downloads later.
Loeb Associate Professor of the Natural Sciences David Parkes said that the increased efficiency afforded by Tribler and its allowance for users to pool their “currency” to help each other achieve quicker downloads makes the new program an apt choice for college students.
“Presumably, most Harvard kids are using file-sharing clients,” Parkes said. “I can only imagine that everyone is, and the idea here is to be able to do much richer, higher bandwidth conferences over file-sharing systems.”
But Tribler’s “currency” feature and its coincident efficiency gains may not be enough to unseat BitTorrent, according to Chen Fang, who worked last year as a User Assistant for FAS Computer Services. Fang says he first encountered the news about Tribler a few weeks ago, while on the popular content-aggregation site digg.com.
Fang, who conceded that “Tribler looks pretty,” said he doubted that students already using stripped-down versions of BitTorrent would make the switch based on the supposed advantages of the currency approach.
Swedish Firm Newest P2PTV Entry
Excerpted from The Local Report by Paul Omahony
A Swedish company believes it may have discovered a lawful solution to the movie industry’s long-running file-sharing quandary. By merging P2P sharing methods with advanced watermarking technology, Stockholm firm Headweb hopes to beat the Internet pirates at their own game and offer consumers a legal alternative.
Customers will be given the opportunity to pay for movies, download them using BitTorrent technology, and view them using a regular DVD player.
Prior to setting up the company, Headweb’s Chief Operating Officer (COO) Peter Alvarsson spent over three years working in the DVD production business. Everywhere he looked, digital rights management (DRM), or copy protection, seemed to present an insurmountable obstacle to the establishment of a consumer-friendly downloading service.
“Apart from iTunes, all the authorized downloading options were based on a Windows platform, and none of them would allow users to burn DVDs,” he told The Local.
But then Alvarsson came up with the idea of watermarking data files rather than restricting their reproduction. Like many good ideas, it came to him in the shower.
“This was back in February 2006,” he said.
Once the idea took root, Alvarsson decided it was worth taking a financial risk and set about creating Headweb.
The company, which has grown to encompass 15 staff members, intends to begin selling movies in Sweden before the end of September.
The Headweb client is a four-pronged mechanism, which includes a payment system, downloading client, media player, and DVD burning software. Although limited to Windows at first, it will eventually also be compatible with Mac and Linux systems.
Customers can choose either to view films on their computers or burn them onto a DVD. The length of time it takes to download a movie will of course depend on a user’s Internet connection speed.
“But we can roughly say that if you have a connection offering 8-10 Megabits per second it will take 90 minutes to download a 90 minute film. With 24 Mbits/sec it will take 30 minutes,” said Alvarsson.
“We will also offer other video formats that do not require as much space, such as Xvid and DivX, both of which can be played on newer DVD players,” he added.
As for the end-user cost, Headweb is “aiming for 20 to 25 percent less than a physical DVD.”
Unlike its unauthorized file-sharing rivals, Headweb is able to guarantee that its movies have not been shot from the back of a cinema.
And the film industry can rest assured that eventual copyright infringement will be traceable.
“Every download will have an individual watermark, like a serial number embedded in the picture. It’s better for consumers, as it will allow them to make DVD copies of their films. It’s also better for the film industry, which can trace unauthorized uploaders,” said Alvarsson.
The file-sharing community has also been more receptive to the idea than he had anticipated.
“The overall reaction has been very positive, which surprised me a bit. People have been saying: ‘Finally, just what I was waiting for. Now I can stop downloading poor quality films’,” he said.
One drawback, however, is that stocks are limited to just 500 titles. But Headweb’s founder envisages more industry players coming on board soon after the launch.
“Distributors have told us they think it’s a great idea and they want to get involved if they see that it works. We’ve been talking to big American companies. It takes time to convince them, but they know they have to change. It’s just a matter of time before they start using this kind of downloading technology,” he said.
More Big Hollywood Talent Piles into P2PTV
Excerpted from Broadband Video 360 Report by Will Richmond
This week’s splashy NY Times piece profiling Edward Zwick and Marshall Herskovitz’s new series, QuarterLife, again highlights how big name talent continues to embrace broadband video, and especially P2PTV, as a key focus of their activities.
This list continues to grow. Here are some of the names that are on it, and their activities: Michael Eisner, “Vuguru” and “Prom Queen;” Stephen Bochco, “MetaCafe;” Ben Silverman, “Reveille;” William Morris, “Narrowstep;” Spike Lee, “Babelgum’s Online Film Festival;” Herb Scannell, “Next New Networks;” and Albie Hecht, “WorldWide Biggies.”
What do all these big names see? In two words: colossal opportunity. Broadband is a wide open playing field. They all understand that a classic paradigm shift is happening in the video industry and are rushing to understand the medium and its new rules. How to engage audiences? How to monetize most effectively? How to optimize the formats? How to retain creative control?
This activity is only going to accelerate. As early successes get more publicity and the business models crystallize, expect even more big Hollywood talent to jump on the P2PTV bandwagon.
Chambers Touts Virtualization
Excerpted from MarketWatch Report by John Letzing
In a keynote address the VMworld conference in San Francisco, Cisco Systems CEO John Chambers said virtualization is spearheading “a second phase of innovation,” in an identical replay to what happened in the mid-90s, when the number of Internet users skyrocketed.
Virtualization technology enables the use of multiple operating systems on the sort of server computers that companies use to store Internet user data and to manage communication. That in turn allows companies to get their servers to do more with less costly physical infrastructure.
More generally, the fostering of a larger base of Internet users both here and in emerging markets could boost demand for Cisco products that form the necessary infrastructure for Internet networking – a boost similar to what the company experienced in the 1990s.
Chambers cited the recent growing popularity of consumer Internet services such as social networking websites and the downloading of video clips.
Such services “will come straight into business with a vengeance” in coming years, Chambers said. “This is where IT becomes sexy again.”
Chambers demonstrated virtualization technology that can let businesses measure usage of their online services, and automatically call up additional server space as needed via the Internet.
“It’s the CEO’s dream, to just say, ‘make it so’,” rather than wait months for the addition of server storage space, Chambers said.
Free Mobile Calls with P2P
Excerpted from Trusted Reviews Report by Gordon Kelly
Free mobile calls? It may take some time to reach first-world countries, but - more importantly - developing ones have been given a boost this week by Swedish company TerraNet, which has devised a way to bring cheap calling and wide-scale networks to underprivileged masses and those living in remote locations.
The ingenious discovery works without a base station and uses a twist on P2P technology with handsets adapted to function as peers that can route data or calls to other phones in the network. Consequently, the mobiles also work as nodes extending the reach of the entire network by approximately 1km per handset.
Data charges? Not really, the collaborative routing of calls means there is virtually no detectable usage between handsets and, besides, users are the network!
Everyday usage is simple too: switch a TerraNet adapted phone on and, like P2P software, it begins to search for other TerraNet phones. When found, they connect and expand the network allowing more and more TerraNet capable mobiles to be added.
Consequently, the theory is that phones can form their own networks in remote areas and third-world countries and - in direct opposition to the usual way of doing things - the more handsets in use the better the call quality and wider the coverage.
Limits to the technology, however, are that only TerraNet’s specifically developed handsets work with the system and the predictable opposition from large networks worried about the potential impacts on their GSM based business models. On the upside, Sony Ericsson has lent its backing to the scheme which certainly sounds like it has legs.
Music Lovers Tune in for Nettwerk
Excerpted from Vancouver Sun Report by Kelly Sinoski
More than ten-thousand music lovers downloaded a new digital album this weekend.
The “Seriously Westcoast” Volume One compilation, created by The Vancouver Sun and Nettwerk Music Group, was downloaded 10,712 times as of 4 PM Sunday – eight hours before the exclusive offer ended.
The album includes tracks from Sarah McLachlan, the Barenaked Ladies, and the Be Good Tanyas, as well as other Nettwerk bands.
“We all knew that the digital revolution is the way people get their music,” said Sun Arts & Life Editor Dominic Patten of the download’s success so far. “Now we are seeing it in action, and it looks pretty good.”
Newspapers and other publications have given away or offered music to readers in the past, as the Daily Mail did recently in the UK with the new Prince CD, Patten said.
But the collaboration between Nettwerk and The Vancouver Sun is the first time a specifically compiled digital collection has been given away by a major media outlet.
Nettwerk CEO Terry McBride said he was pleased with the hits, which should raise the profile of some of the artists and hopefully lead to more sales, not just in music but in concert tickets and T-shirts. He noted the province’s number one album next week in Vancouver would likely sell 1,000 to 1,500 units and, by comparison, the free download figures are “not too shabby.”
“It’s not just about the selling of music; it’s about the artists and bands,” McBride said. “It’s awareness. Everybody gains from it.”
The move comes as the music industry struggles to gain a foothold among younger music fans, who prefer to download music or share it through P2P exchanges rather than buying a CD.
The Canadian Recording Industry Association (CRIA) said earlier this year that the net value of wholesale physical music sales fell 35 per cent in the first quarter to $68.7 million, down from $105.6 million a year earlier.
SFU marketing professor Lindsay Meredith said many younger bands wouldn’t even get exposure without free downloads on the web.
“When you’re talking about this younger crowd, the word goes like wildfire,” he said. “This is how they talk – this is their milieu.”
Judge Issues RIAA Setback
Excerpted from Digital Music News Report by Alexandra Osorio
A federal judge recently criticized the Recording Industry Association of America (RIAA) for issuing “boilerplate” evidence against an accused infringer, a setback for the organization.
Judge Rudi M. Brewster of the US District Court for Southern California denied a motion for summary judgment by the RIAA in Interscope v. Rodriguez, and pointed to a complaint that failed to adequately address the specific defendant.
“The complaint is simply a boilerplate listing of the elements of copyright infringement without any facts pertaining specifically to the instant defendant,” Brewster opined. ”The Court therefore finds that the complaint fails to sufficiently state a claim upon which relief can be granted and entry of default judgment is not warranted.”
In response, the RIAA quickly challenged the ruling. “Although we respectfully disagree with the Court’s conclusion, which is inconsistent with the treatment of the issue by courts around the country, the record companies have amended their complaint to respond to the Court’s concerns and will continue to actively pursue their original claims,” an RIAA spokeswoman told Digital Music News.
Whether the judge is swayed by the revised complaint remains unclear, though if unsuccessful, the recent ruling could have broader implications for RIAA legal initiatives.
Coming Events of Interest
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Broadcasting 2017 – September 27th in London, England. What do the leading players in television and new media across Europe predict for the future of broadcasting? Find out during “Broadcasting 2017” at BAFTA. Join industry giants such as Silvio Scaglia, Founder & Chairman of Babelgum for a day of stimulating sessions.
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Digital Music Forum West – October 3rd–4th in Los Angeles, CA. The seventh annual Digital Music Forum event now at the newly renovated Hollywood Roosevelt Hotel. Several DCIA Member company executives will be featured speakers and the DCIA will present a special session on “The Evolution of P2P and Music” with BUYDRM’s Christopher Levy, FTI Consulting’s Roger Scadron, Javien’s Leslie Poole, PeerApp’s Mark Strangio, and VeriSign’s Stuart Cleary.
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PT/EXPO COMM – October 23rd-27th at the China International Exhibition Center in Beijing, China. The largest telecommunications/IT industry event in the world’s fastest growing telecom sector. PT/EXPO COMM offers DCIA participants from all over the world a high profile promotional platform in a sales environment that is rich in capital investment.
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P2P ADVERTISING UPFRONT LA – Sponsored by the DCIA October 29th in Los Angeles, CA in conjunction with Digital Hollywood Fall. The industry’premiere marketplace focused on the unique global advertising, sponsorship, and cross-promotional opportunities available in the steadily growing universe of open and closed P2P, file-sharing, P2PTV, and social networks, as well as peer-assisted content delivery networks (CDNs).
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Streaming Media West – November 6th–8th in San Jose, CA. Streaming Media conferences have become the premier online video events in the world. Streaming Media West is totally focused on the business and technology of online video. The DCIA will participate featuring industry leading P2PTV providers and support services.
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P2P MEDIA SUMMIT LV – January 6th in Las Vegas, NV. This is the DCIA’s must-attend event for everyone interested in monetizing content using P2P and related technologies. Keynotes, panels, and workshops on the latest breakthroughs. The Conference will take place in N260 in the North Hall of the Las Vegas Convention Center and the Conference Luncheon in N262-264. This DCIA flagship event is a Conference within CES – the Consumer Electronics Show.
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CCNC 2008 – The Fifth Annual IEEE Consumer Communications & Networking Conference, January 10th-12th at Harrahs, Las Vegas, NV. Now co-promoted by the DCIA. The latest research developments and technical solutions in the areas of home networking, consumer networking, enabling technologies (including middleware), and novel applications and services. See www.ieee-ccnc.org for details.
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P2P ADVERTISING UPFRONT NY – Sponsored by the DCIA March 11th in New York, NY in conjunction with the Media Summit New York (MSNY). The industry’s premiere marketplace focused on the unique global advertising, sponsorship, and cross-promotional opportunities available in the steadily growing universe of open and closed P2P, file-sharing, P2PTV, and social networks, as well as peer-assisted content delivery networks (CDNs).
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