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October 17, 2005
Volume 10, Issue 11

P2P Activity Doubles in Two Years

Excerpted from PC Pro Report by Simon Aughton

Peer-to-peer (P2P) activity has more than doubled over the past two years according to the latest figures from DCIA industry data resource BigChampagne.

In September the average number of people logged onto P2P networks worldwide was 9,284,558. In September 2003 the figure was 4,319,182. The increase in the number of users since the 2004 figure of 6,784,574 suggests that there is no slowing in the rate of growth.

Music remains the cornerstone of P2P activity accounting for just over 70 per cent of all traffic while the swapping of movies remains at low levels. However, as BigChampagne's tracking method does not measure BitTorrent traffic, the figures for the number of films swapped are likely to be lower than the actual level.

In the US, the rise in P2P usage mirrors the global trend.

Veoh Exports to Video iPod

Excerpted from Playlist Report by Peter Cohen

Veoh Networks last week announced plans to integrate its software with Apple's new video-capable iPod models. Veoh is an Internet television "peercasting" network.

Veoh launched a public beta of its software earlier this month. Using client software on the Mac and Windows PCs, Veoh users can view and publish video on a "virtual television network" that works over broadband Internet connections.

Veoh employs a P2P architecture, so publishers don't have to host their own servers or RSS feeds. The system was developed for approved content from publishers.

The company eventually plans to have in place a way for publishers to charge for their content, although that technology is absent from the beta release. It's also integrated with Google Video and RSS service.

Nettwerk & Palm Promote Mobile Music

DCIA Member Nettwerk Music Group and mobile computing leader Palm Canada last week announced a digital music alliance that will allow select Palm customers to download free digital music, screen images, and view videos by more than ten Nettwerk artists, including Sarah McLachlan, Barenaked Ladies, Swollen Members, and The Be Good Tanyas.

The exclusive Nettwerk-to-Palm channel creates a dynamic content offering for Palm customers and establishes a digital footprint for Nettwerk artists among Palm Treo 650 smartphone and Palm LifeDrive mobile manager users - a demographic typically defined as over 25 years old, frequent Internet users, and optimistic about new technology and entertainment vehicles.

"Nettwerk is excited to gain exposure for our artists among Palm users, a loyal group that is highly invested in music and open to new channels of entertainment," said Terry McBride, President & CEO of Nettwerk. "As a Treo 650 user, I know how seamlessly the device can manage communications and multimedia capabilities, and I'm excited to infuse Nettwerk artists into that mix."

"As converged devices continue to prove more popular than ever, access to digital music and entertainment is rapidly becoming a defining value-add for mobile customers," added Michael Moskowitz, GM, Americas International, Palm.

Telcordia Swisscom Mobile IMS-Based Service

DCIA Member Telcordia Technologies, a global provider of telecommunications software and services, and Sicap AG, a leading GSM application developer, are helping Swisscom Mobile, the largest mobile operator in that country, evolve to IMS (IP Multimedia Subsystem) by bringing increased functionality and flexibility of real-time charging to its network operations.

With the growing popularity of IP-based services and customers' increasing use of mobile data offerings, pricing and flexibility are critical success factors for customer adoption of new services. Real-time charging capabilities are gaining significant importance as carriers offer advanced services and customers demand flexibility and choice in payment offerings.

"IMS is clearly the engine of growth for the telecommunications industry and carriers must tend to their network operations first in order to benefit from all that it has to offer," said Scott Erickson, President, IMS Service Delivery Solutions, Telcordia. "Telcordia understands the profound impact that IMS will have on the industry and we are helping Swisscom transform its business model to introduce exciting new service offerings, realize new revenue, and stake an early leadership position as the industry converges."

Report from CEO Marty Lafferty

The United States Telecom Association (USTA) and the Alliance for Telecommunications Industry Solutions (ATIS) are to be commended for bringing together lead technology officers from BellSouth, Qwest, SBC, and Verizon to discuss future plans, including how to deploy IPTV, for the communications industry at TELECOM '05 next week in Las Vegas.

The session "What's NEXT: The Global Vision and Promise of the Converged Next-Gen Network" features some of the telecommunications industry's most influential players. This look at what will be required to accomplish large-scale deployment of next-generation services is a great addition to this major annual conference.

TELECOM '05 will draw key buyers, decision-makers, and communications leaders from around the world to view new technologies and learn more about all aspects of the telecommunications industry as lines between cable, wireline, wireless, and satellite platforms continue to converge.

The DCIA is honored to participate in TELECOM '05 with a panel entitled "Next Generation Peer-to-Peer – Where Do Telcos Fit In" as one of the IP Video Track Sessions.

Ken Pyle, co-founder of Viodi and Managing Editor of the Viodi View, has done a terrific job in assembling this four-day track with sessions including "On-Demand Success Stories;" "The Consumer As Producer;" "Look Ma, No Headend;" "Standardize This – Can't We Work It Out;" "Interactive TV: Is It IPTV's Edge;" "High Definition – A Must Have Or A Must-Carry;" and "Content Differentiation – What's An Operator To Do."

TELECOM '05 describes our session as follows: "The popular notion has been that peer-to-peer distribution of content is the domain of hackers and others who would use the web for infringing activities. The legitimate uses of distributed computing far outweigh the negatives as content rights holders are beginning to recognize. This panel will look at the ecosystems that have evolved to make peer-to-peer the content distribution system of the 21st century."

Senior executives of DCIA Members INTENT MediaWorks, Fun Little Movies (FLM), Digital Containers, RightsLine, and Telcordia will participate.

Les Ottolenghi, CEO, INTENT MediaWorks will introduce the current landscape of the rapidly evolving P2P marketplace, focusing specifically on IPTV. INTENT MediaWorks to date has attracted advertisers and developed turnkey solutions for marketing independent artists' content (free and for sale) through affiliation agreements with leading open P2P software distributors, which it now offers along with distribution through its new closed P2P application myPeer.

Frank Chindamo, President & CCO, Fun Little Movies (FLM) will talk about cutting-edge original content development for this new distribution channel. FLM is the first mobile channel to offer original, live-action comedy content. FLM's broadcast partners include Sprint, MSFT Windows Mobile, and Smart Video. FLMs have previously been made for networks including HBO, Showtime, CBS, PBS, Playboy, Comedy Central, and MTV. FLM has won 20 awards and honors including a finalist's place for Best Short at the Cannes Film Festival.

Chip Venters, CEO, Digital Containers will present an update on securing content for the IPTV P2P environment so that the promise of super-distribution can be fully realized. Digital Containers has developed P2P DRM solutions around its two patents for super-distribution to package and monetize digital media content, and is now conducting market trials with corporate content, e-books, radio shows, and classic comics packaged as digital collectors' items wrapped in virtual traveling stores.

Steve Stebbins, EVP, RightsLine will analyze issues associated with and automated solutions for managing multiple levels of rights, content offerings, and market segments. RightsLine has created application software that merges business rights management with online sales and licensing, providing solutions to businesses active in management of intellectual property (IP) assets, automating licensing of IP libraries in all territories for all rights 24/7 using web-based software.

Finally, Stan Moyer, Executive Director, Telcordia will discuss how the benefits associated with P2P IPTV can be maximized through a holistic approach to this revolutionary content distribution platform. Telcordia helps communications companies transform, manage, and grow networks by providing open, flexible, configurable software and services for IP, wireline, mobility, and cable, aggressively reducing costs by consolidating complex operations. Telcordia enables the addition of service offerings to generate profitable new revenue, including through emerging opportunities with P2P digital content services.

Other TELECOM '05 speakers include CEOs from some of the leading telecom companies, cable operators, content, and service providers in the world. The luminaries include: Ed Whitacre, Chairman & CEO, SBC Communications; Robert Clasen, President & CEO, Starz Entertainment; Jim Robbins, President & CEO, Cox Communications; and David Barrett, President & CEO, Hearst-Argyle Communications.

We hope to see you next week. Please feel free to contact me at 888-864-3242 or marty@dcia.info to schedule private meetings with DCIA Member companies at TELECOM '05.

Campbell Signs with V2 Records

Isobel Campbell has inked a long-term worldwide recording deal with DCIA Member V2 Records. The singer has spent the initial part of this year completing work on 'Ballad of the Broken Seas,' a collaborative album recorded with Queens of the Stone Age singer Mark Lanegan.

Although much of the album was recorded with Campbell in her native Glasgow, and Lanegan in Los Angeles, the two came together in the studio in LA in May to cut a number of new tracks for the release, including a new Lanegan-penned song, 'Revolver,' and a version of the traditional blues tune, 'St James Infirmary.'

The first release under the V2 deal will be a download-only and limited edition 7" single, due out in the UK at the beginning of December, comprising the pair's cover of Hank Williams' 'Ramblin' Man,' with a new Campbell song, 'Further Into The Night,' as the 7" B-side.

'Ballad of the Broken Seas' is scheduled to follow early in February 2006. Campbell plans to follow that up later in 2006 with a second album, the more folk-oriented 'Milk White Sheets.'

Apple Surprise: Video-on-Demand

Excerpted from Ad Age Report by Beth Snyder Bulik & Claire Atkinson

Apple's announcement last Wednesday yielded a video iPod and an updated version of iTunes that allows the purchase of music videos. But the big surprise – CEO Steve Jobs' "One more thing" – is downloadable TV shows available on the new iTunes 6.0, beginning with 'Desperate Housewives.'

Disney Channel and ABC shows, including 'Lost,' 'Night Stalker,' 'That's So Raven,' and 'The Suite Lives of Zack & Cody,' can be downloaded the day after they air (for $1.99) and can be auto-synced for iPod viewing. Along with 2,000 music videos will be six short films from Pixar Animation Studios, of which Mr. Jobs is also CEO.

"Disney and Apple are offering customers a new and exciting way to experience television," Mr. Jobs said, calling it "revolutionary."

"This initiative is a perfect example of us applying our strategic priorities, namely marrying great content with cutting edge technology to more effectively distribute our content," Robert Iger, CEO of Walt Disney Co., said in a statement.

"For the first time ever, hit prime-time shows can be purchased online the day after they air on TV."

The newest iPod will come in black or white, and sports a wider 2.5-inch display. The model is 31% thinner than the current version and will ship in 30 gigabyte and 60 gigabyte versions, which retail for $299 and $399.

The company shipped 6.45 million iPods in the quarter, a record quarterly number for the company. Apple said it has shipped some 30 million iPods worldwide so far.

Home Entertainment Network P2P

Excerpted from informIT Report by Terry Ulick

A P2P configuration works perfectly in a home entertainment network. If you have a number of PCs, this might be a good solution. Each PC has its own hard drive that can store media, and you can configure the network in a way that each computer can share the media files from other computers in the network.

P2P networks work essentially as a file-sharing solution. A number of PCs in one local area network (LAN) operate as self-standing PCs. When needed, the PCs in the P2P network can share files and even devices that are connected to them, such as printers.

When creating a file-sharing network, you can still use the strategy of making one PC on the network the primary location for storing media files. Although there are multiple PCs on the network, each with its own hard drive, it is still a good practice to use one main drive for storing shared media files.

File-sharing networks work best when all the devices in the network have a true "peer" status: They are fully independent computing devices that can function without a network present. In a home entertainment network, new types of devices on the network are essentially media players without data storage or even an operating system that require a host computer to act as a server to them.

P2P VoIP Next Revolution for SMEs

Excerpted from Internet News Report by Michael Kerner

P2P technology isn't just for file sharing; it can also provide a robust phone system – without the need to provision, deploy, or pay for a PBX. P2P VoIP may well be a revolutionary technology, bringing traditional PBX functionality to business at a fraction of the traditional cost.

The P2P VoIP space recently made headlines with Avaya's acquisition of Nimcat Networks. Nimcat isn't the only player in the space. Its acquisition has served to shine a spotlight on P2P voice technology, and has drawn attention to its competitors, including Popular Telephony and its Peerio platform.

"The acquisition of Nimcat by Avaya seems to have 'validated' our technology segment," John Appler, Vice President of Sales at Popular Telephony, told VoIPplanet.com. "We have received a tremendous amount of interest from major players since that event took place."

Appler figures that part of the reason for the attention Peerio has been receiving is that it is a second-generation enterprise P2P architecture. In his estimation, the current Peerio platform is an order of magnitude more scalable than previous architectures, and is protected by patents and patent applications.

Software Makers Supply Tools to Censor Web

Excerpted from NY Times Report by Tom Zeller

A new report from the OpenNet Initiative, a human rights project linking researchers from the University of Toronto, Harvard Law School, and Cambridge University in Britain, raises tough questions about the use of filtering technologies - often developed by Western companies - by autocratic governments bent on controlling what their citizens see on the Web.

Myanmar "employs one of the most restrictive regimes of Internet filtering worldwide that we have studied," said Ronald Deibert, a principal investigator for the OpenNet Initiative. Myanmar now joins several nations, including China, Iran, and Singapore, in relying on Western software and hardware to accomplish their goals, Mr. Deibert said.

Microsoft, Cisco, and Yahoo, for example, have all come under fire recently for providing technology or otherwise cooperating with the Chinese government to enable it to monitor and censor Internet use.

Among things forbidden by Myanmar's Web regulations are the posting of "any writings directly or indirectly detrimental to the current policies" of the government. The rules also forbid "any writings detrimental to the interests of the Union of Myanmar."

"There's a cat-and-mouse game going on between states that seek to control the information environment and citizens who seek to speak freely online," said John Palfrey, a researcher with the OpenNet Initiative. "Filtering technologies, and the way that they are implemented, are becoming more sophisticated."

Not surprisingly, repressive governments have been eager buyers of those technologies.

Consumer Group Opposes File-Sharing Lawsuits

Excerpted from Digital Music News Reports

The National Consumer Council (NCC) has recently criticized the British Phonographic Industry (BPI) for its "heavy handed" enforcement tactics, arguing that consumers don't have a reasonable way to share music legally. "There needs to be an affordable way of allowing music to be traded in the same way systems for downloading music legally have been developed," NCC director of policy, Jill Johnstone told The Scotsman. "Criminal sanctions for infringing copyright holders' rights must be applied only to organized crime - not to individual citizens making use of new technologies," Johnstone advised.

Most recently, the BPI reported that album sales notched up 8.9 percent during the third quarter when compared to 2004 figures. And the third quarter of 2004 was record-setting, with 51.5 million CD albums purchased by consumers. That begs the question of just what effect P2P file sharing has on British purchasing habits, and whether the BPI lawsuits are needed. For the BPI, the strategy of individual suits appears to be preventive maintenance, though it is unclear whether this market of dedicated music fans will ever devolve into a piracy sinkhole.

Across the Atlantic, US albums sales are lagging behind comparable 2004 levels by about 10 percent, a pronounced drop that comes at an already-depressed time for the business. And file-sharing levels have been increasing heavily over the past few years, even after 14,000 individual lawsuits from the RIAA. But the British story may never fall in line with those trends, and the blur between paying customers and file sharers may be far greater then anyone imagined. That could make the BPI strategy a harmful one, because the negative publicity generated by individual lawsuits could alienate existing music fans, and create the very problem the industry is hoping to avoid. In the US, that effect appears to already have taken hold.

Coming Events of Interest

  • Podcasting: The Next Big Broadcast Phenomenon – October 18th in NYC, sponsored by the PGA New Media Council and Emmy Awards Advanced Media Committee. Podcasting is a method of publishing files via the Internet, allowing users to subscribe to a feed and receive new files automatically. Weblogs Chairman & Co-Founder Jason Calacanis will speak with Shelly Palmer as moderator. Please click here to RSVP.

  • eMarketing-5 EastBoston, MA on October 18th. eM5 is the 6th annual eMarketing Association Conference. The event is open to both members and non-members, members receive a 10% discount off the registration rate. Topics include search, e-mail, banner, affiliate marketing, on and offline integration, rich media, legal issues, and more. These are high level presentations geared to experienced marketing and business professionals.

  • The Future Of Branded Entertainment – October 19th at the Grand Hyatt, New York, NY. What will state-of-the-art programs look like in the future? How do you measure them? What's fair market value for getting a product into a media vehicle? And does it all really work? Marketing in the 21st century demands innovation, creativity and the next "big idea." Success is in the hands of marketing professionals with vision, courage and commitment.

  • Search = MediaSan Francisco, CA on October 20th. From marketers to publishers to television networks, search has forced all players in the media industry to reconsider how they do business. Drawing on recently published work and experiences with blogging, this event will introduce the concepts of the database of intentions, the point-to economy, and intent-over-content - and how they can help media companies thrive in a Web 2.0 world.

  • Spirit of Life Award Dinner – The 2005 City of Hope award dinner honors Mark Mays, President & CEO, ClearChannel Communications, October 20th in Santa Monica, CA. City of Hope is an innovative biomedical research, treatment, and education institution, dedicated to the prevention and cure of cancer and other life-threatening diseases. It is supported by a national foundation of humanitarian philanthropy.

  • TELECOM '05Venetian Conference Center, Las Vegas, NV, October 23rd–27th, TELECOM '05 brings buyers and sellers together, in one place and at one time, to explore the full potential that the future offers our integrated communications industry. The DCIA presents "Next Generation Peer-to-Peer – Where do Telcos Fit In?" looking at the ecosystems that have evolved to make P2P the content distribution system of the 21st century.

  • Internet Telephony Conference & EXPO – DCIA Member Skype CEO and founder Niklas Zennström will deliver the keynote address at this major conference at the Los Angeles Convention Center, CA October 24th–27th. His address, which will be delivered live from London via Internet Telephony Videoconference, will take place Tuesday, October 25th at 12:15 PM PT. Click here to register for the show.

  • The Blogging Enterprise – November 2nd in Austin, TX. A one-day conference that will explore blogging, podcasting, and video podcasting and their potential benefits and value in building brands, educating prospects, making sales and cultivating customer loyalty. Attendees will depart with new ideas and a better sense for how to implement this new technology successfully.

  • P2P Litigation Summit - November 3rd at Northwestern University Law School, in Chicago, IL sponsored by Electronic Frontier Foundation (EFF) and Privacy Resolutions. This conference brings together public and private defense attorneys, clients, investigators, advocates, and academics to discuss the latest developments in P2P litigation. Please click here for more information and to register for the conference.

  • Digital Hollywood at CES – January 5th-7th, Las Vegas Convention Center North Hall. The Consumer Electronics Show will have over 140,000 attendees; 2,500 exhibitors; 4,000 press representatives; and keynotes by Bill Gates, Chairman, Microsoft; Howard Stringer, Chairman & CEO, Sony; Paul Otellini, CEO, Intel; and Terry Semel, Chairman & CEO, Yahoo. The DCIA will moderate the "Next Generation P2P" panel on January 7th.

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