November 2, 2009
Volume XXVIII, Issue 6
QTRAX Announces Asia-Pacific Roll-Out Schedule
QTRAX, developer and distributor of the world's first free-and-legal P2P music download service, this week announced its roll-out schedule for the Asia-Pacific region.
The service will launch in Australia and New Zealand on November 5th, in Singapore on November 12th, in Malaysia on November 19th, in the Philippines on November 26th, in Indonesia on December 3rd, in Hong Kong on December 10th, in China on December 17th, and in Taiwan on December 24th.
QTRAX showcases an innovative ad-supported music delivery model that easily directs revenue back to artists and rights-holders. The company has successfully signed licensing deals with major labels, music publishers, and leading indies. QTRAX will provide fans with access to a colorful and diverse catalog with millions of high-quality, high-fidelity digital music files.
QTRAX intends to continue its roll-out to other territories beginning in the New Year. It is now accepting e-mail addresses from consumers who wish to preview its new product.
"We think our product has evolved very well over time. As the only global free-and-legal download service, we have been committed to creating a great consumer interface to allow very efficient search, download, and play. We will also be introducing a series of unique up-sell features," said Chris Roe, Chief Technology Officer (CTO) of QTRAX.
"We don't think that the ad-supported model has been well represented in the music arena. Indeed, we think its potential is huge, but there has been a basic lack of understanding as to how to make it work optimally. We intend to do things very differently," said Lance Ford, Chief Marketing Officer (CMO) of QTRAX, and President, Rebel Digital.
"A lot has been accomplished, some of it groundbreaking. And a lot more needs to be accomplished and will be. Our vision is clear and our team highly skilled. We are dedicated to providing the best music service to consumers worldwide while creating substantial revenues for rights-holders and our shareholders," said Allan Klepfisz, President & CEO, QTRAX.
The company will hold an audio press conference regarding other developments on Monday, November 2nd, at 2 PM US ET.
Based in New York, NY, QTRAX is a subsidiary of Brilliant Technologies Corporation.
Joyent Launches Cloud Computing Platform in China
Joyent, a leading vendor of enterprise-class cloud computing, this week announced the expansion of its cloud-computing business to China. Joyent becomes China's first cloud-computing vendor at a time when computing infrastructure is in very high demand. The company's data center is located in the Qinhuangdao Economic and Technological Development Zone (QETDZ), Hebei Province, China.
"China is the world's fastest growing economy and Joyent is there with the country's first local cloud-computing offering", said David Young, CEO & Founder of Joyent. "This is definitely a very exciting and positive move for Joyent. We would especially like to thank our partners, QETDZ and Intel, for their support in making this expansion possible. We are looking forward to providing the Chinese developer community and China's enterprises with world-leading cloud-computing technology."
"Intel is pleased to announce its strategic technology collaboration with Joyent at the launch of its cloud-computing platform in China," said Jason Waxman, Intel's General Manager for High Density Computing. "Joyent's innovative infrastructure, based on the Intel Xeon processor 5500 series, will bring both the efficiency and performance that's needed to meet the growing demand for cloud computing in China."
In 1984, the State Council approved the QETDZ as one of China's first state-level economic and technological development zones. It is currently the only development zone in the Hebei Province. During 2008, QETDZ has endeavored to develop the data industry and coined the name of the region as "Data Valley."
Joyent is immediately launching its base public cloud product, the Joyent Accelerator, and plans to expand its product line over the next two quarters. To find out more, please click here.
Online Games Developers in China Look Overseas
Excerpted from NY Times Report
Armed with cash from recent listings, Chinese online game makers are gearing up to play in Western markets, challenging the industry's leaders, Electronic Arts and Activision Blizzard, on their home turf.
Having prospered at home, companies like Changyou and Shanda Games want to join China's export machine by sending their wares abroad.
Changyou, which raised $120 million in a Nasdaq initial public offering (IPO) in April, is in the final testing stage for a martial arts massively multiplayer online game (MMOG), "Dragon Oath," for the US market. It plans to start selling the game at the end of 2009 or early 2010. The company began testing the game in Europe in August.
Many game players in the United States still prefer consoles like the Microsoft Xbox and the Sony PlayStation to online play.
However, analysts said a slow but sure shift toward online gaming, which allows for flexible formats and multiple players, and can be played at Internet terminals and on cell-phones, is taking place, and should benefit Chinese online game developers.
"The Western markets are changing; it is a console-driven market but I think MMOGs are the next wave," said Atul Bagga, an analyst at the research company ThinkEquity. "EA and Take Two Interactive are strong on the console side, but online gaming is a very different animal."
With more than 50 million online players, China is expected to have more than 40% of the global market by 2011, according to Samsung Securities.
Where Asian game operators have a head start is in their micro-transaction business model, where players get the game free but pay small fees each time they want an upgrade for their character, like a map or a weapon. This differs from the business model in the United States and Europe, which is subscription-based.
Analysts said Chinese computer game companies like Changyou and Percent World have the operational expertise and business model to take on global rivals. In September, Shanda Interactive spun off its gaming unit, Shanda Games, to expand overseas.
The US console market makes up about half of the global gaming market, with console software set to bring in an estimated $26 billion in revenue in 2009, according to Samsung Securities and UBS.
The online game sector is growing rapidly, with revenue expected to grow 21% to more than $13 billion in 2010, according to Samsung Securities.
South Korean game makers like Nexon and NCsoft have had success in overseas markets, but Chinese companies may find it tougher because of the competitive landscape, high entry costs, and cultural baggage.
Report from CEO Marty Lafferty
 Thank you again to all who contributed to the success of our first-ever P2P & GAMES CONFERENCE at Digital Hollywood. In last week's report, we highlighted conference keynotes, many of which are now posted online here. This week, we will focus on the panel discussions.
Also, we would like to remind games publishers and P2P/cloud software distributors that they are welcome and encouraged to join the P2P-for-Games Working Group (PFGWG) Co-Chaired by Solid State Networks' Rick Buonincontri and PlayFirst's Rich Roberts. Please call +1-410-476-7965 or e-mail PFGWG@dcia.info to sign-up or for more information.
The CONSUMER PROTECTION panel examined issues associated with "P2P Gamers - what key user concerns must be addressed." Panelists included Russell Frackman, Partner, Mitchell Silberberg & Knupp; Robert (Beau) Hunter, Digital Rights Consultant, Entertainment Consumers Association (ECA); Steve Masur, Managing Partner, MasurLaw; and Seth Shapiro, Principal, New Amsterdam Media. Laura Tunberg, DCIA Member Services and Principal of We Get It Consulting, moderated.
Russ underscored the importance of minimizing consumer concerns in order to foster commercial development. Elements of control with digital distribution methodologies such as P2P and cloud computing differ from physical methods such as CDs and cartridges - in areas of privacy, security, access reliability, resource contributions, liability, etc. - and gamers need to be made aware of relevant differences.
Success will require a cooperative effort among games publishers and P2P software developers and may require legislation as well as voluntary initiatives. What happens when the gamer steps out of the cloud? What data is redistributed and how? Who owns user-contributed elements? Consumers need to know what they are making available and how to stop making it available if they wish.
Beau suggested that consumers could benefit from a "Cliff-Notes" version of matters covered in such instruments as end-user license agreements (EULAs), which can be technically complex for digital games. Games publishers themselves also face greater challenges managing data on clouds and in P2P environments than with other distribution systems, and this is exacerbated as consumers are enabled to develop and contribute components to games and as consumers seek to takeover more-and-more control.
Gamers need to know the source of content and software. Who is it from? Who made it? Is it safe? The reputation (or "street cred") of consumer-facing entities becomes even more important in this space. The Entertainment Software Rating Board (ESRB) ratings may serve as a model in developing a similar neutral perspective for software, possibly with its own associated icons. Patch notes such as those WoW uses for disclosures may also provide a useful example in this regard.
Steve raised the issue that because new technologies tend to cannibalize older methods of content distribution, this creates an additional layer of difficulty. P2P and cloud computing are much more efficient technologies for games distribution. But for both publishers and gamers, especially those who invest time-and-effort in creating new elements, the posting of new versions "to the cloud" and leaving control of data "in the cloud" can be scary propositions. Complex issues associated with "being connected" need to be explained simply and quickly. The Children's Online Privacy Protection Act (COPPA) may be instructive here.
Seth cited his relevant experience including at Davidson & Associates in its acquisition of Blizzard Entertainment. There is historical precedent for which metrics should be applied to new media models in situations like this. Reducing friction is important to commercial success in this area so that consumers stay engaged. Building up benefits is a key to doing this. The dynamism of quick updates and revisions, with accompanying consumer communications, is a good tactic. Trying to close down access, by contrast, will engender a negative backlash.
The CONTENT PROTECTION panel explored the topic "Game Publishers - what key intellectual property (IP) concerns must be addressed." Panelists included Jim Burger, Member, Dow Lohnes; Rich Roberts, VP of Sales & Business Development, PlayFirst; Mark Isherwood, Senior Consultant, Rightscom; Lawrence Low, VP of Product Management & Strategy, BayTSP; and Max Davis, Director, DataRevenue.Org. Laura Tunberg moderated.
Jim discussed his extensive relevant background as IP counsel, including at Apple. He also offered attendees (and DCINFO readers) a report on the Federal Communications Commission (FCC) meeting on net-neutrality rulemaking that took place on the day of our conference, and urged the DCIA and industry participants to be particularly vigilant and proactive on this critical issue.
He reminded delegates of the fundamental importance of providing users with a good experience with licensed versions of content. Jim noted that France has just approved a graduated-response (aka "three-strikes") anti-infringement Internet-disconnection law, but meanwhile in the UK, a report has just been released disclosing that 70% of consumers oppose such a measure. Of enormous concern is what legal steps would be required prior to a disconnection for unauthorized file sharing. If two hostile households object to a neighbor's shining exterior lights at night, should that household's electricity be turned off?
Rich described his early experience in distributing games using P2P at Atari, noting the relative security advantage of games versus other forms of content, because games typically rely on executables. Nevertheless, the greatest issue with P2P has been copyright infringement taking place through abuse of file-sharing programs. More sophisticated P2P applications and cloud computing have come a long way in alleviating these concerns and may hold promise for file sharing as well.
Echoing a point made in the earlier panel by Seth Shapiro, disabling unauthorized games or blocking their redistribution is not as beneficial to commercial advancement as perfecting ways to accomplish conversions from these game modes to authorized revenue-generating versions of games. Digital rights management (DRM) solutions inevitably seem to be hackable, but closer partnerships among games publishers and P2P software distributors, based on revenue-sharing of licensed content distribution, can mitigate that.
Mark described Rightscom's capabilities in rights management. A key to protecting content is to be able to accurately and persistently identify it; and metadata is at the heart of this. In the EU, there is a notice-and-takedown regime comparable to the Digital Millennium Copyright Act (DMCA) in the US, and now graduated-response ("three-strikes") laws are being added as an overlay on top of this in some nations. Unique identification systems are vital and standardization is also critical.
Lawrence outlined BayTSP's work in monitoring, interdicting, measuring metrics, and helping to develop new business models in this space. The fundamental issue of copyright infringement continues to plague open networks, with the notification and take-down regime stipulated by the US DMCA, or its counterpart in other territories, not implemented in all jurisdictions globally. Graduated-response approaches are now also being introduced as an alternative (as well as an overlay) in some regions. New business models that do not rely on up-front "shrink-wrapped" DRM are showing promise.
An example of this is Facebook's FarmVille, where basic access is open, but revenue is generated through sales of various add-ons and in-game advertising, which can be topically fresh, location-aware, and highly targeted. New paradigms for viral distribution are in the process of being developed that link monetization with game-play, including enabling gaming skills and special powers. Personalization of game content and republishing add both challenges and opportunities to the mix.
Max introduced DataRevenue.Org's mission to develop a statutory rate as a baseline for multimedia content, including games, distributed to mobile devices by wireless carriers, which would essentially be based on the amount of bits delivered. There is an opportunity with mobile to put in place a revenue stream that still represents a missed opportunity with Internet service providers (ISPs) for tethered-network content delivery.
This would apply to all multimedia content - games, video, music, etc. Charges would be determined for data packets based on their type and size. Fees would be collected by mobile operators and distributed to rights-holders by a qualified neutral entity.
Many of the themes introduced at the P2P & GAMES CONFERENCE and related topics will be explored in greater depth during our seminal industry event, the P2P MEDIA SUMMIT at CES, on January 6th. Please click here for more information and click here to register. Share wisely, and take care.
Mitosis in Action: Cloud Computing and The Cloud
Excerpted from CNET News Report by James Urquhardt
Lori MacVittie, of application delivery networking vendor F5, wrote a post recently that summed up what a lot of us realize: the word "cloud" is now being used in two increasingly divergent senses:
"Thanks to the nearly constant misapplication of the phrase 'The Cloud' and the lack of agreement on a clear definition from technical quarters I must announce that the cloud is no longer a synonym for 'Cloud Computing.' It can't be. Do not be misled into trying; it will only cause you heartache and headaches. The two no longer refer to the same thing (if they ever really did) and there should be no implied - or inferred - relationship between them. 'The Cloud' has, unfortunately, devolved into little more than a trendy reference for any consumer-facing application delivered over the Internet. 'Cloud Computing,' on the other hand, specifically speaks to an architectural model; a means of deploying applications that abstracts compute, storage, network, and application network resources in order to provide uniform, on-demand scalability and reliability of application delivery."
In other words, "the cloud" is a consumer concept. It represents a way of looking at the seemingly (but not really) new concept of using commercial Internet applications to create, update, and delete personal and/or professional information. It represents a tactical decision on the part of the consumer to trust third parties with data access, management, and security.
On the other hand, "cloud computing" is a systems concept - an operations model that is mainly visible to those who build, deploy, and/or operate applications. End-users do not see cloud computing.
William Vambenepe may have explained a relationship between the cloud and cloud computing months ago, but in slightly different terms. In a post titled Exploring IT Management in a Changing IT World, Vambenepe described an interesting way to conceive of the different facets of the term "cloud:"
"There are two main parts in the 'cloud' buzzword: the 'technical cloud' and the 'business cloud.' The technical cloud is where we take virtualization and standardization (of machines, networks, and application infrastructure) and turn that mind-boggling complexity into a manageable system that can be programmed to deliver applications (Cisco recently called it "Unified Computing;" HP, IBM and others have been trying to describe and brand it for a long time). Building on these technical capabilities comes the second part of cloud, the business cloud. It is the ability to use infrastructure owned by a third party (presumably one able to leverage economies of scale) and all the possibilities this opens in the business realm."
That's what "cloud" started as, back when it was known as "Utility Computing" and before it was applied to everything under the sun.
Vuze CEO on TV Everywhere Competition
Excerpted from Washington Post Report by Cecilia Kang
Gilles BianRosa, CEO of industry leading peer-to-peer television (P2PTV) service Vuze, is surrounded by start-up carnage.
He's seen the failure of many entrepreneurs trying to create online video distribution sites. Others have had to rewrite their business plans as providers of video content resisted working with them. GigaOM concluded that a starvation of content hurt P2PTV pioneer Joost, started by Skype's founders.
Here's the problem as BianRosa sees it: content providers remain locked in arrangements with cable and satellite cable service providers - a trend that could become worse if Comcast takes over NBC Universal, BianRosa said.
In addition, those upstarts are facing a steep uphill battle against cable giants Comcast and Time Warner, who are reportedly close to launching a project called TV Everywhere that would keep its online video content strapped to bundled broadband and cable television service plans.
"Video is at a fork in the road and they have to choose which path to take," BianRosa said.
And so far, it looks like cable and satellite service providers and the broadcast and cable content companies that give them ESPN and "Sex in the City" and Project Runway episodes, are choosing to cling onto the past, BianRosa said.
That runs contrary to efforts in Washington to open communications networks so that innovative applications such as Vuze, Joost, and Boxee can provide alternatives ways to give consumers video entertainment.
Today, Comcast, Time Warner, and Cox have ultimate say in what consumers are getting from their living room televisions. The Federal Communications Commission (FCC) is forming rules that would open broadband Internet networks from the grip of carriers.
But the cable carriers' biggest allies so far are content providers who continue to sign contracts with cable companies because they can't yet get the same returns online as they get when they sign licensing deals with cable firms, who have massive consumer reach.
"The cable industry is ultimately trying to prevent its business from being disrupted regardless of what consumers want," BianRosa said.
Vuze, launched in 2007, allows users of the web to directly swap video files. The company works with content companies for videos and distributors like gaming consoles and TiVo to get their services to customers.
Recently, BianRosa has seen more resistance from content companies to work with online entertainment video start-ups.
It's a short-sighted view, BianRosa said, because if you offer consumers more choice and innovation and ways to access content overall, you'll see better services and better content emerge.
Is Cloud Bigger than the Advent of the Personal Computer?
Excerpted from Information Week Report by Charles Babcock
Eric Schmidt, Google CEO, says "the cloud" is a phenomenon that is bigger than the advent of the PC.
According to a Reuters report this week, he told the 900 technology executives at the Utah Technology Council's Hall of Fame event in Salt Lake City, UT that cloud computing is a phenomenon that's bigger than the advent of the PC.
There's a strong relationship between cloud computing and the PC. Once you get away from the big server point of view, cloud looks a lot like a vehicle for picking up on and extending the PC revolution, both to new users and new devices.
The PC revolution was born of the end-user's desire for more computer power and the difficulty in obtaining it. IBM didn't invent the PC because it had the mainframe, and the mainframe ruled an orderly, top-down world of computing in which IBM profits rolled in with predictable regularity.
Once computers built from mass-produced parts were put in the hands of end-users, they showed what they could do with them. Ever since that day, end-users have desired connection to their fellow workers, to their counterparts around the world, and to the big servers holding crucial information on specialized fields. Many barriers were established to deny this access, sometimes for good reasons.
Thank goodness Tim Berners-Lee (now Sir Tim) came along with the World Wide Web through his work at the CERN accelerator. It gave end-users access to powerful servers on the Internet through a few simple HTTP communication commands. Now cloud computing is bringing not just information but powerful applications and computing infrastructure to end-users, whether they are individuals in an attic or IT staff in an enterprise.
The mainframe and the early Internet both represented client/server computing where the client was nothing and the server everything. The client was not supposed to think; it was in a master/slave relationship. In the cloud, there's been a power shift where the client (whether PC, netbook, or smart-phone) thinks for itself and tells the server what program to run or even to run a program that it sends the server.
This is the start of the second phase of the PC revolution, but it ought to be called the end-user revolution, or better yet, the cloud revolution. In this latter upheaval, end-users, especially businesses, will come to the fore and use big server farms on the Internet in ways we can still barely imagine today. But remember, that server farm is now made up of low-cost PC parts, and the business user is benefiting from something the original PC user always lobbied for - to tell the server what to run and how it could go to work for him.
The cloud enables a redistribution of power in the direction of the end-user, and Internet users are excited about this. Companies that want to supply cloud services are excited as well. They know they can offer something that hasn't been available before, based on new cloud architectures, at prices that many of those end-users are going to find cheap and reasonable.
Maybe that explains Eric Schmidt's emphasis on the cloud as a server phenomenon. He knows end-users have both the means and the appetite to sample what Google servers will offer next.
World's First BitTorrent Powered Live Streamed Concert
Excerpted from TorrentFreak Report
The Far North Living Lab was started by the Northern Research Institute (Norut) and aims to create a platform for digital creativity. Earlier this year, the lab kicked off with a spectacular experiment in which it used the Tribler BitTorrent client to stream a 2K resolution film onto the big screen.
For that experiment, the stream was only broadcast to a select group of people and not the entire Internet.
This week, the lab's researchers launched their second BitTorrent streaming experiment on a much larger scale, broadcasting a live stream of a music performance for all the world to see.
"The set-up was very simple at the cinema - we have a standard computer connected to audio and video mixers, which then feeds the P2P network," Dr. Njal Borch, a senior researcher involved in the project, told TorrentFreak.
The software used to stream the performance is from the EU-funded P2P-Next project and several of the partners also donated bandwidth for the experiment to make sure that everything ran smoothly.
The performance took place at Aurora Kino in Tromso as a part of the Insomnia electronic music festival. To spice things up, the lab also sent a live feed to the Notch festival in Beijing, which is running in parallel with Insomnia, and to Skjervoy Kulturhus in the far north of Norway.
However, since the broadcast was public this time, everyone with an Internet connection could tune in.
The only thing required to watch the stream was the Swarmplayer software, or a browser plug-in (Windows only). Both were linked-to on the project's website.
According to Borch, this BitTorrent live streaming experiment is not just a proof of concept, it might eventually play a significant role in the future of live streaming on the Internet.
"If the scalability is good for live streaming, this can increase the amount of viewers without massive bandwidth bills. Another effect, which I am currently very much a fan of, is that adding more bandwidth is very easy - put up a seed-box and hand it the torrent. No administration otherwise necessary," he told TorrentFreak.
TaffyBox Makes BitTorrent Easy for Newbies
Excerpted from TechWhack Report
BitTorrent might be responsible for the majority of data transfers on the Internet, but it still can get complicated for new users to understand.
Services like TaffyBox come in handy in these circumstances.
TaffyBox provides a search-engine and a browser-based BitTorrent client to download files.
When you visit the service, you see a search box. You simply enter the name of the file you are looking for.
TaffyBox connects to torrent search engines to provide you with a list of results. From the results, you can click and start downloading the torrent from within your web browser using a Java applet.
It cannot get any simpler than this!
The service can come in handy for users who are not comfortable using a dedicated torrent client. It can also come in handy for downloading smaller files or when you are using a guest machine.
uTorrent Portable Puts BitTorrent on a USB Drive
Excerpted from Lifehacker Report by Kevin Purdy
You've always been able to grab uTorrent's program folder and drop it onto a thumb-drive for portable BitTorrent handling. Now the PortableApps.com suite has packaged our favorite torrent client and integrated it with its application menu.
If you wanted to try out uTorrent with no commitment, this portable download would be a handy download for any Windows system.
More likely, however, is that you'll grab uTorrent Portable for a stand-alone installation on your USB drive, or integrate it into your existing PortableApps.com USB installation.
All the same, features that you've come to love about uTorrent, like remote web control and organized downloads, are present in the portable version. In short, you'll never be stuck away from home without a means to access crucial content again.
uTorrent Portable is a free download and runs from anywhere on Windows systems: uTorrent Portable from PortableApps.com via Download Squad.
Access Files from Anywhere with Dropbox
Excerpted from Switched Report by Terrence O'Brien
Dropbox is an online storage service that holds your files (up to 2 gigabytes) for free, and automatically syncs them among several PCs.
It also allows you to access your files from any web-connected computer. Dropbox offers 2 free GBs of storage to all users, but you can upgrade that to 50GB for $9.99 a month, or 100GB for $19.99 a month.
If you want a slight boost in storage, but don't want to pay for it, you can gain an extra 250 megabytes of free storage for each new user you refer - up to a 3GB limit.
Dropbox is very simple to use. Simply download the application and then install it. The installer automatically creates a Dropbox folder where you can save any files you want to sync and share. Whether you run Windows or have a Mac, or even if you use Linux, you'll find a version of Dropbox that will work.
There is also a newly released iPhone app that will let you access files from your phone, and a web interface that lets you pull them up from any device (computer or smart-phone) with Internet access.
Dropbox isn't just another folder, though. It can be transformed from a storage space for your photos, music, and documents to a powerful tool that makes shifting from PC to PC a seamless experience.
You can sync passwords among your devices with KeePass, start BitTorrent downloads on one PC from another one, and even run portable versions of apps, like VLC or Firefox. Many of you are probably logging on to a PC at home, a PC at work, a netbook on the fly, and also staring at the screen of a smart-phone for much of the day.
Dropbox is one of the only services out there that makes your files accessible to you from all your gadgets - and does it for free. There are other cloud-based (i.e., online) storage options, but none can match the set-it-and-forget-it simplicity of Dropbox. We give it a solid thumbs up. Download Dropbox here.
Spotify Offers Lower UK Subscription
Excerpted from Billboard Business News Report by Richard Smirke
Sweden-based P2P music streaming service Spotify has lowered its premium subscription rate in the United Kingdom (UK) from $16.30/month to $10.60 for certain customers over a six-month period.
The reduced pricing structure is effective immediately and is a one-off deal for existing customers who opted-in to receive special promotions upon joining.
The promotion results from a sponsorship deal between Spotify and online car insurance brand Swiftcover. The period for taking up the offer, which provides subscription holders with unlimited ad-free music and mobile access, expires November 2nd.
The move follows the recent launch of the BSkyB-owned Sky Songs service into the UK digital market. However, a spokesman for Spotify insists that it is "an advertiser promotion, pure and simple - there are no dots to connect."
Sky Songs went live in the UK and Ireland on October 19th and offers unlimited ad-free streaming at two price points: $10.60, including an additional 10 DRM-free downloads per month; or $13 per month for unlimited streaming and 15 downloads.
Spotify launched in Stockholm in 2006, offering on-demand music streaming in both free (ad-supported) and premium services, and now claims to have more than 6 million users in Sweden, Norway, Finland, France, Spain, and the UK.
According to comments that Spotify CEO Daniel Ek made at a London conference earlier this year, less than 10% of its user base are premium service subscription holders, while Spotify recently restricted its free version to invited guests only in the UK.
The Swedish company is now preparing to enter America and is currently in negotiations with labels for a targeted fourth quarter or early 2010 US launch.
Medical Researchers File Share for Access to Journal Research
Excerpted from TechDirt Report by Mike Masnick
When you hear about file sharing and unauthorized access to information online, the view pushed by many copyright maximalists is that it's just a bunch of morally corrupt kids who don't want to pay for stuff gleefully "stealing" music and movies from those hard-working entertainment industry employees.
Of course, the real picture is a lot more complex. For example, apparently there's a growing community of medical researchers using file sharing to exchange information and research reports that they have trouble accessing otherwise.
In the past, we've talked about the growing effort to get scientific research published in open access journals, rather than locked up in ridiculously expensive (especially given that they don't have to pay writers or even the peer reviewers) old-school research journals.
While open access journals are certainly becoming a lot more popular and useful, there's still plenty of useful research that's very difficult for many to access. At least in the medical field, it looks like some researchers took a page from various private file-sharing communities.
Christian Zimmerman points us to a report looking at one such community that had over 100,000 registered users sharing scans and uploads of medical research reports from non-open journals via some basic forum-type software. The community that was looked at contained nearly 300,000 postings, with people requesting certain reports, and others delivering them.
Apparently, the system was quite effective, with nearly 83% of requests for certain articles resulting in delivery of the requested article. The analysis notes that the 83% is probably low, as there would likely have been a higher success rate if people making the requests followed the stated rules for making a request (some did not). The analysis also noted that people weren't doing this to get back at the journal publishers, but just to help each other out:
"From the participants' comments made in the forums, there does not appear to be any vindictiveness on the part of the participants against the journals or holders of copyright, but a mood of togetherness, of openness and sharing, and of communal assistance. Most remarkable, is that the activity described in this paper did not occur within closed, secure, password- and firewall-protected environments, but within open environments, easily publicly accessible, and easily searchable and referenced by general search engines such as Google."
It should be noted that this particular forum apparently later did go behind a private wall. Still, it's interesting to see the parallel between this and other types of file sharing - showing, again, that people of all types are recognizing that access to information that's out there should be a given.
The Pirate Bay Closure Slowed Infringement Temporarily
Excerpted from Billboard Business News Report by Glenn Peoples
According to a white paper by DtecNet, a provider of copyright-infringement detection services, the closure of The Pirate Bay (TPB) disrupted global file sharing, but volumes are recovering to previous levels.
In With Pirate Bay Foundering, Where Have File Sharers Gone? the company describes a sudden, sharp decrease in BitTorrent traffic and a gradual rise in the time since.
On August 24th, the Black Internet service provider (ISP) cut-off service to TPB. According to DtecNet, file trading on the BitTorrent protocol dropped by nearly 80%. The disappearance of TPB's tracker servers meant BitTorrent programs did not know where to look for files.
But as replacement BitTorrent trackers have appeared in their place, file sharing has resumed. Users did not immediately gravitate toward other services.
"Instead," says the paper, "file traders remained on BitTorrent, and over time, infringements through that network began to rise again as new trackers became available." Jonathan Lamy, spokesperson for the Recording Industry Association of America (RIAA), told Billboard he is not surprised that TPB users are likely to transition to other services. "This report is nonetheless an indication that the industry's 'anti-piracy' efforts can make a difference," he said.
The RIAA hired the Danish firm DtecNet after ending its relationship with MediaSentry in late 2008. MediaSentry collected evidence the RIAA used in its lawsuits against file sharers. Although BitTorrent traffic is not back to pre-TPB levels, DtecNet concluded that reduction in file sharing is likely to be short-lived.
"Though such concentration of traffic would appear to present yet another enforcement opportunity, similar to the TPB shutdown, it will be more difficult as BitTorrent technologists continue to adapt. Torrent sites now point to multiple trackers, so if one is disconnected or overwhelmed by traffic, users can still find the files they seek without stopping to find another tracker."
New Pirate Bay Acquisition Chatter Afloat
Excerpted from PaidContent Report by Patrick Smith
Global Gaming Factory's (GGF) much-hyped and now defunct bid to buy BitTorrent tracker The Pirate Bay (TPB) was a ship that never sailed. But more bidders could be on the horizon.
Swedish games download site Gamersgate.com and, bizarrely, GGF CEO Hans Pandeya are among them, according to DI.se (via Thelocal.se).
TPB Co-Founder and chief agitator Peter Sunde has, DI reports, invited four bidders to make an offer for the site through the Bay's ownership foundation.
Gamersgate CEO Theodore Bergquist tells DI, "We look at many potential deals. All I can say is that TPB is an interesting brand loaded with great potential for dealing with it properly." Perhaps mischievously, Sunde tweets that he's never heard of Gamersgate.
Pandeya's bid is scarcely credible: he singlehandedly led the bungled acquisition process and told us he could make $40 million a month just from advertising on a legal TPB.
But then his company was thrown off the Swedish stock exchange and he was hit by a bankruptcy claim as former GGF board members and associates queued up to stress the unlikely nature of the deal.
British Cops, Spies Oppose 'Three Strikes'
Excerpted from DSL Reports Report by Karl Bode
Internet service providers (ISPs) and consumers aren't the only ones against the UK's new plan to kick repeat offenders off of the Internet.
TechDirt notes that Britain's law enforcement and intelligence agencies are coming out against the proposed "three-strikes" idea, arguing that it would make tracking criminals more difficult.
How? The threat of losing their broadband connection is as likely to make file sharers use encryption as it is to get them to stop using file-sharing software.
The result would be a whole lot more encrypted traffic, and according to the UK Times Online, that makes Britain's spies particularly annoyed.
One law official said, "It will make prosecution harder because it increases the workload significantly."
A source involved in drafting the bill said that the intelligence agencies, MI5 and MI6, have also voiced concerns about disconnection.
"The spooks hate it," the source said. "They think it is only going to make monitoring more difficult."
There's already a growing number of organizations who don't think "three-strikes" laws are a good idea for a laundry list of reasons.
You can now add "annoys James Bond" to that list.
Coming Events of Interest
Cloud Computing Expo - November 2nd-4th in Santa Clara, CA. Fourth international conference on this subject. Cloud computing is a game changer. The cloud is disrupting traditional software and hardware business models by disrupting how IT service gets delivered.
Future of Television East - November 186h-19th in New York, NY. Join television industry leaders including senior decision-makers from major broadcasters, production studios and cable networks, social networks, producers, creators, mobile companies, online content producers, distributors, technology companies, and association heads - for the industry's most prestigious event.
P2P MEDIA SUMMIT at CES - January 6th in Las Vegas, NV. The DCIA's seminal industry event, featuring keynotes from top P2P and cloud computing software companies; tracks on policy, technology, and marketing; panel discussions covering content distribution and solutions development.
2010 International CES - January 6th-10th in Las Vegas, NV. The industry's largest educational forum to help companies expand their businesses and understand new technology. Over 200 conferences and more than 300 expert speakers encompass International CES.
MIDEM & MidemNet - January 23rd-27th in Cannes, France. MIDEM is where music professionals from across the industry meet face-to-face to do business, analyze trends and build partnerships. MIDEM brings together music leaders looking for concrete solutions and insights. MidemNet’s renowned digital business conference program is now included free with your MIDEM registration
Media Summit New York - March 10th-11th in New York, NY. MSNY is the premier international conference on media, broadband, advertising, television, cable & satellite, mobile, publishing, radio, magazines, news & print media, and marketing.
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