Archive for March, 2012

Weekly News Roundup (25 March 2012)

Sunday, March 25th, 2012

Welcome to another edition of the WNR. Two weeks ago, I mentioned I was working on a project for Digital Digest that should be ready in about two weeks time. Unfortunately, the same is still true today, as I’m still working on it, and it’s still (at least) two week away from being ready.

And the delay is totally unrelated to Skyrim, or the fact that I unceremoniously passed 100 hours of play time this week. Most of what I’ve been doing in the game this week has been very “chore-ish”, having spent most of yesterday’s playtime moving from my house in Whiterun to Riften – meaning multiple trips carrying the assortment of goodies and junk that I’ve been hoarding at my old house, fast travelling the many miles between the two hamlets, all the while not wearing any clothes as to clear up as much carrying weight as possible. Trust me, it’s not as fun as it sounds.

A couple of interesting stories to go through this week, so let’s get started.

Copyright

Google has dragged itself into the Megaupload affair by coming to the defence of Hotfile, or rather, the defence of the DMCA’s “safe harbor” provision.

The MPAA is currently suing Hotfile, and one of the argument that the industry trade body has made is that Hotfile should not be afforded the protection of “safe harbor”, due to the “rampant” nature of piracy that goes on on the file sharing website. Another argument is that Hotfile has not been cooperating with the MPAA fully in terms of providing the technical anti-piracy measures that the MPAA studios want. Google says both of these arguments are invalid because current case law does not strip away “safe harbor” based on “generalized awareness that unspecified (or even ‘rampant’) infringement is occurring”, and that there’s nothing in the law that says Hotfile must implement the type of content filtering that the rights holder requests, as the decision is mostly left up to the service provider.

Both of these arguments have been made against Megaupload too in the government’s criminal case against the file hosting website. And another key argument in the government’s case, which was also employed by the MPAA in the case against Hotfile, is that the website operators only removed content that had been specifically listed by the rights holder, and deliberately kept similar or even the exact same content on their network. Google argues that this is perfectly in-line with the spirit of the DMCA, with the burden of identifying infringing content belonging to rights holders (the only people that can decide which content should  be removed and which should be kept). The argument works a little better for Google’s assets, such as YouTube, than for Hotfile/Megaupload though – it’s often in the rights holder’s interest to keep some “infringing” content active on YouTube due to promotional reasons, while at the same time removing others (even if it’s the same video, re-uploaded). With Hotfile/Megaupload, it’s unlikely that, for example, Warner Bros. would want to keep a copy of The Dark Knight available for download, but in Google’s view, Hotfile did exactly what the DMCA demanded it to do, nothing less, but certainly nothing more than what’s required, such as removing content that was not specifically listed.

Rapidshare, in a German court, is also facing similar accusations, and as a result, it could be forced to implement drastic site-wide filtering for all uploads.

The issue of how proactive a service provider should be is at the heart of the DMCA “safe harbor” argument, with content holders now accusing Internet companies of “abusing” the protection afforded to them by the provision, by deliberately turning a blind eye to ongoing infringement just because it has not be specifically named. But the alternative is for service providers to “second guess” the intentions, and the legal rights, of content holders, to take a “better safe than sorry” approach, the collateral damage from such actions which will mean a lot of harm to innovation and creativity (and is ever more the problem on YouTube, with its automated “Content ID” system and false positives). I don’t know what the answer is, but draconian blanket bans and filtering can’t be the best solution out there, not when there’s still so much that content holders can do to make the legal option the more enticing one. The DMCA, conceived by the likes of the MPAA, is already far too biased towards rights holders at the expense of innovation and creativity – but it seems it’s still not biased enough, hence the “need” for PIPA/SOPA/ACTA.

Megaupload Copyright Demand

A letter is floating around in Europe "suing" users for uploading and downloading stuff to/from Megaupload

And the not so subtle bias in current copyright laws has also produced a climate of fear and uncertainty, with most people unaware of their actual rights when it comes to these kind of disputes. This has led to mass copyright lawsuits that use the fear, and sometimes the embarrassment, to “encourage” users to pay a pre-trial settlement fee to make the matter go away. It’s no wonder it’s been referred to as “legal blackmail”. But if you take this just one step further, something that many consider ethically suspect turns into an outright scam, and report this week suggest that Megaupload users are now being targeted. A fake mass copyright style letter is being sent to potential Megaupload users demanding a settlement fee, or the threat of a 10,000 euros lawsuit. The small matter of the law firm responsible for these letters not actually existing should be the first clue as to the validity of these claims, and also the fact that payments being made is going to a Slovakian bank account, for a law firm that’s supposed to be based in Munich.

Unfortunately, the MPAA’s actions may have only added to the believability of these scams , when they requested the web host of Megaupload to retain data, including user data, for future potential lawsuits. But even the MPAA knows the public’s distaste for this kind of thing, so they did make it clear that individual user lawsuits are not on the cards. A civil case against Megaupload and its “intermediaries”, on the other hand, now seems more than likely.

Moving on, Ubisoft this week hinted that the company might be suffering from a split-personality disorder when the company’s VP of Digital Publishing, Chris Early, spoke about intrusive DRM and how it’s doing paying customers a disservice. Not only that, Early says that Ubisoft really really wants to make DRM “go away” (I’ve got an idea where Ubisoft can put their DRM), and they think the best way to do it is through adding value to the legitimate gaming experience (they can start by not making the legitimate gaming experience a pain in the butt, thanks to their DRM). But what Early may be hinting at is the business model of MMO’s and how Ubisoft can learn from it, by incorporating some of the elements that keep people coming back (and paying) into the single player experience. I’m not sure ham-fisting MMO elements and the subscription model into single player games, along with a MMO’s requirement of always being online (which, for a single player game, is nothing more than a DRM. UbiDRM to be exact), is the best idea to be honest. Making better games, lowering the price, and providing online features, ongoing support, and exclusive content, might all be better solutions.

High Definition

Flags of truce came out this week in the HTML5 vs Flash vs H.264 vs WebM/Theora war, as Mozilla signaled their surrender. Sort of.

A little bit of background: The issue surrounds HTML5’s new ability to allow videos to embedded and played without the need to install third party plug-ins, like Flash. But just which video format HTML5 video would work with has been up for debate for a while now, with H.264 being the obvious choice (as it is the ones most used with Flash based videos today, and also an industry standard), but also the valid argument that the royalty and patent encumbered H.264 format isn’t ideal, especially since some of today’s most popular browsers are the open source variety. Mozilla, in particular, was strongly objected to H.264 support being made mandatory for HTML5 browsers. Google, sensing an opportunity, stepped up and produced the VP8 based WebM format. But the format failed to gain any traction, and so this week, Mozilla has had to do the unthinkable: start supporting H.264.

Browsers

Firefox will soon join Chrome, IE and Safari as browsers to support H.264

Mozilla made the announcement this week that they would have to now offer H.264 support, especially for their mobile based products, as they see no other way forward without supporting a format that’s even more entrenched in the mobile market than on desktop/standalones. While Mozilla would not be providing a built-in decoder, they would allow their Firefox browser to use existing software and hardware capabilities to decode H.264.

In my opinion, this was always going to be the likely outcome. Google’s half-hearted support for WebM, some say hypocritically considering their Android platform offers H.264 decoding as standard, was never going to be enough to out-muscle H.264, especially since none of the major hardware makers were even interested to offer WebM support. And with Apple firmly behind H.264, and everyone else trying to out-Apple Apple, WebM had little or no chance to succeed.

So what does this mean for the average user? It means that HTML5 video now has a greater chance to succeed and become a true replacement for Flash, and that’s probably a tick in the win column for everyone, even if this is a set-back for open-source video standards. MPEG LA, the licensing authority for H.264, for what it’s worth, has promised not to charge royalties for this type of H.264 usage for the foreseeable future, so H.264 is free for the time being without being “free”, if you know what I mean.

The Girl with Dragon Tattoo DVD disc art

A real disc or a pirated one? You decide ...

And finally, a story that feels a bit “PR-ish” to me, where Sony’s DVD disc art for their remake of “The Girls with the Dragon Tattoo” is confusing people into thinking they’ve been sold a pirated copy of the movie. The disc art resembles a home made Sony DVD-R with the title of the film printed on to make it look like it was written on with black markers, and it’s supposed to be a reference to the main character of the film, Lisbeth Salander, and her hacking ways. Those that purchased the Blu-ray+DVD combo version might be even more confused, since the Blu-ray disc art is fairly traditional, which makes the “DVD-R” stand out even more.

But a closer look reveals the MPAA rating, region info, and even some copyright text on the supposed home made “DVD-R”. And the “DVD-R” being a Sony branded one, of course alludes to the fact that they were the studio behind the movie. So would it really have fooled people into calling up Redbox or whoever to complain, as was claimed by some of the news articles? Maybe a surprise at first, sure, but to be completely fooled? I don’t think so. All has happened though is that this story has given the DVD set some free publicity, which is why I’m cynically leaning towards PR campaign on this one.

Alrighty then, that’s pretty much the week as I remember it. Must get back to my “move” in Skyrim, still got 90+ each of dragon bones and scales to move, as well as my assortment of 400 iron daggers. This could take a while … see you next week.

Weekly News Roundup (18 March 2012)

Sunday, March 18th, 2012

Welcome to another issue of the WNR. As promised, I put up the February US video game sales analysis earlier in the week. Nothing too surprising, just your usual “everything is doomed” set of stats. Is this a case of having a new normal, with the previous normal having been exaggerated by the success of the Wii, or something more sinister? With Microsoft saying this week they won’t be showing a new Xbox at E3 this year, and Sony in a similar state of mind, it will be up to the Wii U to save the coming holiday season it seems.

Work meant that my Skyrim adventures had to take a back seat this week, although I still had time to kill a vampire or two, a couple of giants (now much more easily dispatched via my legendary enchanted Daedric weapons), and the odd chicken via collateral damage.

Oh, it was also my birthday last week. I wonder at what age do you stop looking forward to your birthdays, and start dreading them because you’re getting older? For me, this happened on my 7th birthday.

Let’s get started with this WNR.

Copyright

Big news for US web users this week, as from July onwards, your ISP will officially start spying on your net activities for big content (ie. the RIAA and MPAA).

With very little evidence showing “graduated response” actually works to increase revenue, remembering that this, and not reducing piracy, is the ultimate goal, it will be interesting to see what the American version can amount to. It will be different to the French version though, in that each ISPs can decide to take whatever action it deems necessary, including no specific action and just a continuing series of warnings – with permanent account suspension not being considered so far.

It marks an important milestone in the war against piracy, and along with the RIAA’s victory over LimeWire a couple of years ago, the closing of Megaupload (and others) this year, you’d expect that piracy rates would start dropping, if it hasn’t already. Yet, all you continue to hear is how the industry is still losing billions of dollars every year, and how the problem is getting worse. With the RIAA and MPAA getting what they wanted this time, yet again, would it then be safe to conclude that, if a year from now and with revenue still not up significantly, that enforcing copyright may not actually lead to increased revenue? I’ve always found the idea of people hoarding tons of money saved from piracy, instead of simply spending the money on something else, quite funny. As is the idea of people spending more money than they actually have, when their supply of pirated content is cut off (which is an impossibility in itself).

But according to the likes of the RIAA and MPAA, piracy is a $58 billion dollar a year problem, and that if the piracy problem is magically solved somehow, creative industries would suddenly gain most of that back in revenue. But with the RIAA and MPAA already equating every single instance of copyright infringement to be worth at least $150,000,  via their much publicized lawsuits against students and single mothers, $58 billion may even seem a conservative figure. This “Copyright Maths” is the topic of a new TED speech by Rhapsody founder Rob Reid, a short must-watch video that shows how crazy the figures being thrown around really are. That an iPod classic can hold $8 billion worth of pirated songs based on the $150,000 calculation show how ridiculous it all it (a figure almost as ridiculous as the $40,000+ people are required to pay to fill up the same iPod with legal purchase).

And after the speech, Reid was asked what would be the best way to combat piracy. The answer was basically “give the people what they want”, by building legal services that people wanted to use, that makes piracy seem not worth the trouble. Do that, and the piracy problem will solve it self. Why go to the trouble of finding and downloading each song, when you have Spotify and millions of songs for instant gratification, for example. The same is probably even more true for movies, which are harder to download due to their larger file size (which also limits the amount of archived content that’s made available).

Kaleidescape

A full Kaleidescape set-up is for serious movie lovers, people unlikely to pirate movies (and more likely to overpay for them)

The problem is though that instead of giving people what they want, the movie and music industries are actually pursuing the opposite agenda. It cannot be better demonstrated than by the legal decision this week which banned Kaleidescape from selling its DVD and Blu-ray media servers. Piracy was just a convenient excuse for the body responsible for DVD copy protection, the DVD CCA, to legally pursue Kaleidescape, despite the core audience of Kaleidescape’s servers not being pirates at all. In fact, Kaleidescape demonstrated the amazing fact that, on average, each of their customers had a legal movie library of 500 titles or more. Considering the cost of these server set ups, it’s not hard to understand why this is the case, because their product is one for serious movie lovers with the required expendable income – and these people are not movie pirates. In fact, they’re probably the movie industry’s most hard-core customers.

So what does the industry have to gain by denying their biggest fans what they want?  The answer is of course “control”. They’re perfectly happy to let you “convert” your DVDs to a purely digital format, with Wal-Mart this week offering a “DVD to Ultraviolet” service for $2 (or $4 to “upconvert” your DVDs to a HD digital version). But as always, it comes with a catch. You’ll have to use the movie studio’s preferred platform, live with their DRM system, which then controls how you’ll be able to use your digital copy (which may even expire in time). It will invariably mean a worse user experience than something for enthusiasts like Kaleidescape, but a better experience may mean a loss of control, and that’s just not acceptable. And if all of this means they can charge you again and again for the same thing, then that’s just a sweet, sweet bonus.

High Definition

With the new iPad still making headlines, I thought I would jump on the bandwagon and write something about what could be considered Apple’s first HD tablet (1024×768 is not HD, as if it was, then it meant that I had HD on my first 486 computer).

With the new iPad resolution coming in at 2K, or 2048×1536, that’s a resolution higher than your average HDTV. Of course, a true enthusiasts won’t just see the fact that the screen would perfectly render a 1920×1080 resolution video with a couple of pixels to spare, they will of course wonder if you could expand the resolution of the video from 1920 to 2048 and use up all of the available pixels for a 2048×1152 video.

iTunes vs Blu-ray @ 1080p

iTunes 1080p compares well to Blu-ray, according to tests done by Ars Technica

But what may be more interesting is how Apple plans to distribute 1080p movies to the new iPad, as streaming of 25GB+ movies is not ideal, even with 4G. Ars Technica took the time to test several of iTunes’ new 1080p encodes, and compared it to the Blu-ray equivalent, and what they found was rather surprising – that somehow, a 5GB iTunes file isn’t 5 times worse in quality than a 25GB Blu-ray. By supporting the “High” H.264 profile, as well as increasing the “Level” support to 4.1, all now possible on the faster hardware of the new iPad (and iPhone 4S, as well as the updated Apple TV), the decoder can now be made to do more work, and the result is a more efficient encode. VUDU’s HDX does something similar to allow 1080p streaming on your average 10Mbps connection (Blu-ray, on the other hand, may require 30Mbps just for the video). Sure, you’ll lose a lot of fine detail, there will be banding and other aberrations, but that’s all moot on a 9.7″ screen. On a large screen TV connected via Apple TV, this may be an issue, but only for those serious about their movie watching, in which case, they would probably never consider Apple TV or iTunes 1080p anyway. For the rest, it’s “good enough”, and the convenience of it all makes up for everything else.

Mac Observer did similar tests but found wildly different results, so either Ars Technica did their test wrong, or Mac Observer did (or maybe video quality varies too much from movie to movie).

And with that, we come to the end of another WNR. See you next week.

Game Consoles – February 2012 NPD Sales Figure Analysis

Tuesday, March 13th, 2012

The monthly NPD video game sales analysis makes a return this month, after last month’s absence. Today, we look at the US video game sales stats for February 2012, based on figures compiled and “released” by NPD. With January’s rather poor showing, all eyes were on the February results, to see if January was just an aberration, or the start of a new downwards trend. Last February was a great month for game sales, with hardware unit sales up for all consoles compared to a year before – but given the bad January results, nobody is expecting the same this time round.

As NPD no longer releases full hardware sales figures, this feature is reliant on the game companies, namely Microsoft, Nintendo and Sony, to release their set of figures and based on “statement math” (that is, arithmetically calculate missing figures based on statements made). For February 2012, these are the statements made by the gaming companies:

  • Nintendo revealed that 228,000 Wiis were sold in February (via PR email)
  • Microsoft revealed 426,000 Xbox 360 units were sold, with 42% of the home based console market share (source)
  • Sony did not reveal any figures for the PS3

A little bit of “statement maths” tells us that 360,000 PS3s were sold, a good enough result for Sony that I thought they might have wanted to publicize a bit more.

And so the figures for US sales in February 2012 are below, ranked in order of number of sales (February 2011 figures also shown, including percentage change):

  • Xbox 360: 426,000 (Total: 33.3 million; February 2011: 535,000 – down 20.4%)
  • PS3: 360,000 (Total: 20.3 million; February 2011: 403,000 – down 10.76%)
  • Wii: 228,000 (Total: 39.1 million; February 2011: 454,000 – down 49.8%)
NPD February 2012 Game Console US Sales Figures

NPD February 2012 Game Console US Sales Figures

NPD Game Console Total US Sales Figures (as of February 2012)

NPD Game Console Total US Sales Figures (as of February 2012)

There was no prediction last month, as there wasn’t a full analysis.

While sales of all the consoles were up compared to the dismal January, all consoles continue to sell much less than the same time last year, but for different reasons.

For the Xbox 360, still relatively comfortable as the best selling console of the month, the decline has a lot to do with the dissipating hype over Kinect, and the novelty of the new Xbox 360 form factor, which was still in play last year. With Kinect Star Wars not coming until April (and even then, it doesn’t look as if it will make a huge impact, sales wise), the Kinect unlikely to lift Xbox 360 sales beyond helping it stay ahead of the PS3.

For Sony, the PS3 had the smallest year-on-year decline of the home based consoles, and comprehensively beat the Wii by just over 130,000 units, both facts that I had assumed Sony would have wanted to promote, but they remained oddly silent on PS3 figures, only commenting on the PS Vita, which managed to sell 225,000 units. With nothing really hyping up PS3 sales this time last year, the 10% or so decline might be the one that best show the industry’s overall decline. Whether this is due to market saturation, the end of a generation cycle, economic conditions, it’s all hard to say.

But it’s definitely the end of a cycle for Nintendo’s Wii, and the Wii U can’t come soon en0ugh for the company. A near 50% decline year-on-year is a bad result no matter how you look at it, and in terms of hardware, and innovation, the Wii now looks like a very dated piece of tech. With no multimedia and very little online functions to prop up the console’s usefulness, as is the case with the Xbox 360 and PS3, the Wii was always more prone to the “gathering dust in the closet” effect.

Software wise, it was another slow month as the lack of any A-list releases probably also hurt hardware sales. Final Fantasy XIII-2 was the top selling new release, despite technically being released in January (but counted in the February reporting period). Modern Warfare 3 remained the top seller for the month. The only platform exclusive to make the top 10 below was Sony’s update of Twisted Metal, coming in at 9th. Here’s the full software sales chart for February (new releases for February 2012 in bold):

  1. Call of Duty: Modern Warfare 3 (Activision, Xbox 360, PS3, Wii, PC)
  2. Final Fantasy XIII-2 (Square Enix, Xbox 360, PS3)
  3. UFC Undisputed 3 (THQ, Xbox 360, PS3)
  4. Kingdoms of Amalur: Reckoning (EA, Xbox 360, PS3, PC)
  5. Just Dance 3 (Ubisoft, Wii, Xbox 360)
  6. NBA 2K12 (Take-Two Interactive, Xbox 360, PS3, PS2, PSP, Wii, PC)
  7. Soul Calibur V (Namco, Xbox 360, PS3)
  8. Elder Scrolls V: Skyrim (Bethesda, Xbox 360, PS3, PC)
  9. Twisted Metal 2012 (Sony, PS3)
  10. Battlefield 3 (EA, Xbox 360, PS3, PC)

Time to make a prediction. March is traditionally a slightly slower month than February, so while the year-on-year downward trend may continue, there is the release of an A-list title in Mass Effect 3. The hardware sales order should remain the same.

See you next month.

Weekly News Roundup (11 March 2012)

Sunday, March 11th, 2012

Welcome to another edition of the WNR. I hope you’ve had a good week. Me? I’ve been busy with a secret project for Digital Digest, something I hope I can unveil in a week or two. Well, it’s not really a secret, but it’s not ready for public consumption just yet. It will be a relatively small change on the scale of things, but hopefully one that will make navigating the website a little bit easier.

As such, I haven’t really been playing much Skyrim this week. I might also be playing the game the wrong way, because I now have quite a backlog of major and minor quests that’s going to be a pain to clear (and I keep on picking up new ones). Sometimes having too much to do in a game can be a frustrating experience too.

The New iPad

It's better, but what I want to know is what are the new things I'm able to do with the new hardware, that I couldn't do on the iPad 2

I suppose I should also mention the iPad 3, oops, I mean the “new iPad”. It seems I’m not the only one that’s under-whelmed by Apple’s new tablet offering (and not the only one to cringe at the “resolutionary” pun either). There’s really nothing wrong at all with the new iPad – it’s faster, it’s a little bit heavier than the iPad 2 but does not affect usability, the screen is a beauty and the price is right too. So why am I under-whelmed? For me, it’s the lack of “the new things you can do with it” that’s under-whelming – a sharper screen is better, but how does that translate into a new way to use the iPad?

Apple’s strength has always been in selling what you can do with its hardware, rather than the hardware itself (which traditionally hasn’t been state-of-the-art – see Mac vs PC debate). For example, Apple didn’t sell the fact that the iPad 2 had a front facing camera, it sold the concept of FaceTime. The iPod also wasn’t the first digital music player, but Apple sold it, alone with iTunes, as a new way to buy music. I won’t even need to mention what the iPhone meant, but even the incremental 4S upgrade introduced Siri, a new way to use your smart device that unexpected failed to make the transition to the new iPad (not yet, anyway). Imagine if Apple had launched the iPhone 4S without Siri – that, to me, is what the new iPad feels like.

With that said though, the new iPad still looks like a no brainer for people who want an easy to use tablet, so it will sell in droves regardless. But I just think Apple could have marketed it a bit better, to at least give us a glimpse of what the faster processor, better screen is capable of, that makes the iPad 2 obsolete. But maybe that’s not the strategy this time, as perhaps the major change this time is the introduction of a new budget iPad model – the old iPad 2. Good enough for most people, and at $399, it will offer serious competition to budget Android tablets.

Anyway, let’s get started on the news roundup.

Copyright

The impact of the Megaupload seizure continues to reverberate this week, as the MPAA now wants to use the seizure as proof of guilt in its own court case.

Back when the Mega-seizure happened, I mentioned the MPAA’s civil lawsuit against Hotfile, and how Hotfile and Megaupload’s business models were very similar. I suggested that if no criminal case had been brought up against Hotfile, and that the matter was largely proceeding on civil grounds, then what makes Megaupload so different that the FBI needs to get involved. This week though, the MPAA made the same argument, but the one on the other side of the coin, that because Hotfile and Megaupload were so similar, Hotfile is just as guilty, and so the court should hand down a summary judgement on the matter. The MPAA is using the fact that because a court has granted federal prosecutors the right to take such drastic actions against Megaupload, that there is already enough evidence to suggest that their business model would not stand up to scrutiny in a court of law. There’s is some merit to the argument, but the government has yet to prove its case against Megaupload in a court of law, no matter how convincing their (one sided, it has to be said) arguments have been so far.

The curious thing is that if the MPAA is granted a summary judgement against Hotfile, then this decision could be used in the Megaupload trial as some sort of precedent, even though the summary judgement may have only occurred due to the Megaupload case. It’s a kind of circular logic that could very well have been orchestrated by the MPAA (since the MPAA are one of the key instigators of the Megaupload takedown), to kill two birds with one stone.

The scale of the Mega-takedown has also had consequences for other governments and law enforcement agencies not wanting to look weak on copyright (I’m sure the likes of the RIAA and MPAA have been pressuring them to match the efforts shown by the US government). The Swedish government has no doubt been under a lot of pressure to take action against “Swedish” website The Pirate Bay, particular now that the website has switched to using a Swedish .se domain name. What the Swedish government wasn’t aware of was that investigative notes were being leaked to the operators of The Pirate Bay. And from those leaks, it appears a new series of raids and arrests might be occurring soon. Having already been raided once, which took the website down for a whole three days, the new Pirate Bay seems to be designed to be much more resilient, much harder to take down (and easier to get back up again). The cat and mouse games between the authorities and TPB has only managed to create a stronger mouse – the cat simply hasn’t been able to keep up.

Hadopi Logo

French "three-strikes" has been working for two years now, but where's the evidence it's actually "saving" the music and movie industry?

Staying in Europe, last week, the UK High Court handed down a ruling that paves the way for ISPs to block access to The Pirate Bay. This week, another ruling against ISPs paves the way for the UK’s own version of “three-strikes” to go ahead, as the Court of Appeal upheld the legality of such a system. Not that there’s any evidence to suggest that  graduated response, the technical term for “three-strikes”, actually works. I recently read that the French version of three-strikes, nicknamed Hadopi (after the government agency responsible for it) is costing as much as $90 million per year to run. Whereas the only evidence of the program’s success so far, that has been presented by rights holder, is a measly 5% increase in revenue for iTunes over a 2 year period. Considering that iTunes sales worldwide (and with most countries not having a three-strikes regime) went up 36% year-on-year based on Q3 2011 results, the measly 5%, over a 2 year period, seems quite insignificant, and might even point to the opposite conclusion if we’re being cavalier with our statistical analysis. To me, graduated response simply isn’t worth it from a financial point of view, and it’s definitely not worth it when you factor in loss of privacy and other rights.

Losses due to piracy has always been a debatable subject. Whether someone who pirated software ever intended to buy the same thing is almost impossible to predict, as it’s really hard to know what people are wiling and unwilling to pay for. Take Warner Bros. latest idea, their “Disc to Digital” program. The program asks DVD owners to drive to a retail store, hand their original disc to a clerk, who runs the disc through a special machine that eventually produces a purely digital version of the disc, for use on iPads and whatnot (complete with DRM, of course). WB thinks people are willing to not only go to the trouble of doing this, as opposed to simply ripping it at home, but that they’re also willing to pay for the same movie twice. And so if people are not doing it WB’s way, and they’re not making this extra profit, then WB will simply count this as “lost” revenue, and blame it all on home DVD ripping.

Public Knowledge - "Legal DVD Ripping" alternative

Warner Bros. "Disc to Digital" program vs traditional DVD ripping, compared

If you think WB’s legal DVD ripping solution is convoluted, then you’re not alone, because public interest group Public Knowledge also think it’s ridiculous to suggest that consumers would embrace this “alternative”. PK is currently petitioning the US Copyright Office to legalize DVD ripping, and one of the arguments put forward by movie studios, against the idea, is that legal alternatives exist – WB’s “Disc to Digital” being one of the examples referenced by the MPAA. There’s obviously a demand for DVD ripping, even the movie industry accepts this is the case, as otherwise, they wouldn’t be offering their own solution to the problem. But if this is the industry’s idea of adapting to consumer demand, then it really just highlights again how out of touch they have become, and how we really shouldn’t trust their idea of “lost revenue”.

And finally in copyright, a story about our good friends Righthaven, and possible one of the last ever stories on the infamous copyright firm. This week, a judge granted the request to auction off most of Righthaven’s existing copyrights, including the very rights they obtained for sue-for-settlement purposes. Without having any rights to the content they’re pursuing bloggers and non-profits for copying, it really puts an end to all of their pending lawsuits (and appeals), and this, more than anything, is a mortal blow for the firm. Unless Righthaven can manage a revival of Lazarushian proportions, I suspect the next story I write on the firm will be its obituary.

Gaming

In gaming news, the NPD stats for February 2012 are out, and it looks like I *will* be able to write an analysis for it thanks to there being enough data.

The Xbox 360 won the month again, although both the PS3 and Wii recovered from the January lows. All are down compared to the same month last year though. The lack of any really good releases, and the fact that we may be getting towards the end of the current generation’s sales cycle (or at least well past the midway point), suggests that sales won’t be picking up until the next-gen comes out.

Speaking of next-gen, the latest rumour says the Xbox 720 or whatever may in fact be disc-less. So definitely no Blu-ray playback if that’s the case, although I think physical media are still very much needed to distribute multi Gigabyte games to millions of gamers given the current state of high speed (ie. 40Mbps or faster) broadband saturation. The same argument exists for HD movies, which is why Blu-ray discs will still be around for a while yet.

I think that covers everything for this week, so have a nice one and see you in seven.

Weekly News Roundup (4 March 2012)

Sunday, March 4th, 2012

As promised, the WinDVD 11 is up. WinDVD and PowerDVD have long been competitors, but with Cyberlink deciding to make PowerDVD into more than just a multimedia player, it seems Corel has gone the opposite direction and has decided to focus on the core features, and compensate by reducing the price. It’s not a bad strategy, since while the new version of PowerDVD does do a lot more, especially as a media hub, there are better, more dedicated software available. That’s not to say PowerDVD’s core features are being ignored – it’s more of a case of them being very good already and having little room for improvement and Cyberlink having to seek other ways to improve their software and justify the price of the upgrade. WinDVD, on the other hand, still has room to improve everywhere, and they’ve made some good progress in the latest version (which only took me 5 month to review).

If I seem a bit obsessed with the PowerDVD/WinDVD rivalry, it’s because I am, having done the reviews for both many many times over the last decade. You know you have to be obsessed over something when your other, more current obsession, had to take a back seat to it. Which brings us to …

Skyrim Update: Having mastered Alchemy, Smithing and Enchanting, I made myself some awesome Daedric armor and weapons. Am now able to slice and dice my way through almost any levelled enemy. Yes, even giants!

As for news, it’s been pretty quiet, with a lot of the focus on stories already covered previously (like The Pirate Bay’s transition to Magnet Links on the day that Leap Day William visits), or more incremental updates on the whole Megaupload prosecution (with just the right dash of character assassination against Mr. Dotcom, although he does make it easy).

Copyright

Again, it’s a week where we only have a couple of copyright related news items, we start with a real world example of why Internet censorship can be very hard to get right, and very easy to get very very wrong.

Apparently, users of at least one ISP in Denmark were denied access to 8,000 legitimate websites, including Facebook and Google due to a SNAFU with the country’s voluntary Internet filtering scheme. Apparently, the legitimate 8,000 strong list of “good” websites was uploaded in place of a list of “bad” websites, due to operator error and poor operating procedures. The problem wasn’t corrected until 3 hours, and many complaints later. Now, it has to be said that the filter is predominantly used to block access to websites containing indecent images of children, a noble intent and something that’s worth doing (although my understanding is that these filters are often easily bypassed anyway). But if the rationale behind the filter changes to be about protecting the business interests of the likes of Sony and Universal, then not only would it detract from the more serious work of preventing access to child pornography, there’s also more room for error, as the sheer number of websites that needs to be blocked will increase incrementally from day one. And the biggest fear is not that 8,000 legitimate websites get blocked, but rather, just the odd couple of less than popular websites getting incorrectly blocked – a small enough error that’s hard to notice and even harder for the affected websites to rectify, without any sort of  due process.

YouTube GEMA Notice

Germany's music performance royalty collection organisation, GEMA's disagreement with YouTube means legal, official music content on YouTube are often inaccessible

There are two more SNAFUs to go through this week, one intentional, and one not so much. We start with the intentional one in Germany, in which (and I’ve only been made recently aware of) the country’s performance royalty collection organisation, GEMA, has apparently been waging a bitter way against YouTube (that’s *so* 2007). The repercussion from the dispute means that people in Germany have been missing out on access to a lot of legal YouTube music content. Not that any of this is that new, but it was brought up again this week by a Twitter post, in which one user complained about having to use Chinese web proxies to access Sting’s new official music video, a situation the user describes as “f*cked up”. The irony here of course is the use of Chinese web proxies, not exactly a country well known for its Internet freedoms.

The short term greed and irrational fear of the Internet by some content holders (and those seeking to profit from content) is exactly why, in my opinion, web piracy is such a big problem today. For every user that resorted to a Chinese web proxy, more will have probably went onto their favourite BitTorrent network and downloaded the music video. And as a result, YouTube is denied profit, Sting is denied the ability to connect to fans via official channels, and nobody really benefits. It’s such a problem that even some of the music labels have started complaining about GEMA’s actions, because revenues are starting to be affected.

The Oatmeal: Game of Thrones

Trying to watch "Game of Thrones" online, without resorting to illegal means, is almost as hard as trying to rule the Seven Kingdoms without getting your head chopped off

As many smarter than me have already said, access is the key problem, and it’s a key driver behind the web piracy. It might have been possible in the past to deny access to content in order to reap better financial rewards, but that’s when people didn’t have the tools at their disposal to seek alternative, and illegal, access to the same content. The same strategy doesn’t work any more, basically. This web comic (note: rude words present), which explains the process of trying to watch Game of Thrones online, tells the whole story about access problems better than I ever could with words. And it’s even worse in places outside of the US, as the “Game of Thrones” situation is repeated for pretty much every TV show, and without access to cable and network TV options either. There are huge financial opportunities being missed right now due to content being made unavailable due to short term greed – instead, money is being wasted on anti-piracy, and our rights are being trampled in order to fight the ultimate futile fight. Make content available, and at for a reasonable price (not $40 for a season pass, when the Blu-ray set can be had for the same price), then the piracy problem will solve itself!

From the absurd to the, um, even more absurd – how about getting your YouTube video flagged for using copyrighted music, when the only “songs” on your video’s soundtrack is that of birds? That’s exactly what happened to one YouTube users, whose video about collecting wild vegetation for making a vegan salad turned out to be a controversial one. Music licensing firm Rumblefish made not one, but two claims on the video’s soundtrack, first after YouTube’s automated system flagged the video, and second when the user’s appeal (something along the lines of “it’s just birds singing”, most likely) was turned down. And I bet it’s not an isolated incident either, and it probably wouldn’t have been resolved to the original user’s satisfaction without the attention it garnered online (and unfortunately, not all incidents gets reported or gets the attention it needs). With the copyright claimed, Rumblefish were free to make money off a video that they had no rights to, so isn’t that the very definition of copyright infringement? And isn’t it a lot worse than what many YouTube “pirates” are doing, considering many of them are not doing it for money?

The silly DRM news of the week goes to Microsoft, Google and Netflix’s attempt to add DRM to HTML5 videos. HTML5 videos have been designed to allow browsers to offer native support for streaming videos without the need for a separate plug-in like Flash. But Flash supports DRM, and so the likes of Microsoft, Google and Netflix would like to see some form of DRM added to the HTML5 standard. It’s unworkable though, as one Google engineer points out, because this would mean open source browser makers would have to use proprietary, closed sourced code for the DRM component, or fail to fully support HTML5. The cynical side of me can see why Microsoft and Google, who make competing browsers to the open source Opera and Firefox, would want to see this happen. But I can forgive them because I know deep down, they don’t want DRM either – they have to implement them in order to satisfy the wishes of paranoid content holder though.

And we really get back to the core problem – paranoid content holders.

Nothing else to cover this week, so it’s time to say goodbye for now (and hello again to the world of Skyrim). See you next week.