Archive for July, 2012

Weekly News Roundup (29 July 2012)

Sunday, July 29th, 2012

So the Olympics are under way. Didn’t watch the opening ceremony myself, not really my type of thing really, but by all accounts, it was pretty good. It’s even better in 3D apparently, but 3D is not my type of thing either. If either or both are just your type of thing, then you’ll be in for a treat, and there’s nothing like a major sports event to help sell a load of TVs, this time, 3D TVs in particular. But by all accounts, the 3D hype has been steadily dying, and it definitely hasn’t turned out to be the “must-have” tech that TV makers envisaged.

Let’s get this WNR started …

Copyright

Having skirted the issue of whether the “always-on” Internet requirement for hit game Diablo III was for anti-piracy, anti-cheating/hacking, or was a genuine attempt to make a better game with better features, the makers of the game, Blizzard, this week finally admitted that the controversial “feature” is, at least partially, for anti-piracy. For the rest of us, this merely confirms what we thought all along.

Diablo 3 - Error 37

Anti-piracy is in fact one of the reasons why Blizzard chose to use always-on DRM for its game, Diablo III

For anti-DRM activists though, the worst thing about Blizzard’s DRM is that it actually works. Not so much as a way to stop cheating or hacking, but it has worked to help delay efforts to pirate the game, and that has contributed to the record sales figures the game has recorded. While the disastrous launch of the game, and subsequent gamer complaints (such as lag, even when playing a single player game), will have hurt the company, at the end of the day, it’s the bottom line that counts and Diablo III is a huge success whichever way you look at it. Of course, what works for Diablo III may or may not work for other games. Diablo III was a highly anticipated game, a decade in waiting, and so when you get gamers *that* desperate, *and* when you do produce a good game when looking beyond the DRM, it seems gamers are more than willing to jump through dozens of DRM encumbered hoops and still call the game great. Try and do that to, say, a new gaming IP, a less anticipated sequel, and then fail to actually produce a good game, then gamers *will* vote with their wallet. It seems for now, DRM is not so much a deal breaker, but it does add to the game’s list of existing negatives. Add those negatives together and if the positives don’t outweigh them, then you’re in trouble!

Japanese DVD Ripping Magazine

A DVD ripping magazine for sale in Japan has seen four journalists behind it arrested thanks to Japan’s tough new copyright laws

Now I’ve never wanted to live in Japan – too crowded and busy for my liking – but there’s now even less reason for me to want to move there, because it seems I won’t last too long in the land of the rising sun before I’m arrested for crimes against copyright. After the Japanese parliament passed laws that could see people watching the wrong YouTube video go to prison for 2 year’s time, this week, police arrested four journalists for the heinous act of writing and selling a magazine. A magazine that did feature guides about DVD ripping and a cover disc that included some commonly available DVD ripping tools, but nevertheless, just a magazine. This is also the same set of new laws sees most Linux distributions getting banned in the country, as most include the libdvdcss library, used to allow DVD playback, but can also be used for DVD ripping. It’s almost as if companies like Sony were given powers to write the country’s copyright laws, and along with Germany as you’ll read about below, both countries are doing their best to show us what a pro-copyright dystopic future lies in wait for the rest of us, if rights holders get exactly what they want.

And if you happen to own a smartphone in this future, then apparently, you’re a no good stinking thief of a pirate. At least that’s what a group representing German rights holders think, because it’s demanding a piracy tax on any and all storage mediums, including the memory built into your smartphone or tablet. The group, ZPUe, wants tech vendors to pay them €36 ($USD 43) per smartphone sold, and it wants retroactive payment dated back to 2008. It also wants €9 for external HDDs bigger than 1TB.

You can tell this has nothing to do with protecting the rights of content holders, and all having to do with a big money grab (made possible thanks to biased copyright laws), because it seems ZPUe is not calculating these “damages” based on the size of the storage and how people use that storage, but just the average price of the devices themselves. Otherwise a 16GB or 32GB iPhone should not attract 4 times as much “tax” as a 2TB HDD, and with the popularity of iTunes, I suspect the majority of iPhone users don’t even pirate music or movies. It’s also a blatant attempt at double taxing by charging for every copy of the same song or movie stored on different devices – someone who stores pirated songs on their external HDD and then transfers them to their iPhone will effectively get taxed twice.

I don’t know what’s going on in Germany, but it appears the country’s copyright laws are truly f*@ked up. There have been reports of people being forced to pay thousands for an unsubstantiated claim of infringement, GEMA, their music royalty collection agency, banning official music videos on YouTube from being watchable in Germany (with users having to rely on proxies servers in China, the land of Internet freedom, in order to view content on YouTube that’s legal everywhere else), threatening legal action against kindergartens and schools for using modern music for singalongs (GEMA again), and recently, hiking up music broadcast rates by up to 2000% for nightclubs and restaurants (again, GEMA).

Speaking of schools, Australia’s National Copyright Unit (NCU) says that schools are paying millions per year in unnecessary copyright fees due to draconian laws that makes school pay for materials that does not even have copyright. With fair use laws being fairly limited here in Australia, teachers and schools are forced to pay copyright fees for everything from printing a web page, to saving a web document, or even asking students to print something at home.

Copyright protects the right of content creators (or licensees) to profit from their works (or that of someone else’s that they’ve licensed), but copyright was also created with the intention of protecting society’s right to access content for its benefit (which is why copyright was made to expire). For me, the latter is far more important than the former, because the argument that people will stop being creative if they can’t make money from their art is, frankly, nonsense. With less emphasis on protecting profits, what we will have though may be less attempts at money grabbing (eg. most Hollywood films), and that can be a detriment to the economy and entertainment, but it’s wrong to say that creativity always have to equal monetisation.

And sometimes monetisation can happen without any real creativity, at least nothing recent or current. Music’s big names including Elton John, Simon Cowell, Roger Daltrey and Pete Townshend have put their names on a letter addressed to British PM David Cameron, lobbying his government to introduce tougher copyright laws  to allow artists to “earn a fair return on their huge investments creating original content”. Apparently, the availability of pirated content online is making people nervous about buying from legitimate places, despite recent studies showing that people who pirate stuff are also the same people who buy legal content (but they do it nervously, perhaps).

The Sky Is Rising Infographic

Some of Britain’s top musicians wants the government to crack down on copyright abuse to protect creativity, but creativity has been flourishing like never before, online

The stupid argument about piracy undermining buyer confidence aside, it’s interesting to note that the average age of the dozen or so people who signed this letter is 53. When was the last time Elton John, Roger Daltrey and Pete Townshend created anything even worth pirating (the odd remixes aside) – or are they blaming piracy for their increasing irrelevance to the music biz (which still creates new works and new stars at an amazing, almost hard to consume, pace)? Ageing rock stars believe they should continue to receive royalties for their ageing works, but when is enough enough? For an artists who has already made a large profit on their works, isn’t better now to let their works go free, so that it can be shared and re-mixed and re-used for eternity? It seems that, at some point, artists start caring less about what they’ve created, and start caring more about what they’re earning.

For me, the ease at which people can share stuff online, which the creative industries says is the catalyst for the piracy problem, has also been responsible for one of the greatest periods of creativity ever, and there are even studies and reports to prove this.

But again it goes to the definition of creativity, because what’s different about the Internet is that most acts of creativity there are not blatant attempts at monetisation. I think it has to do with the ability to publish, at almost no cost, on the Internet, versus the comparative high cost of traditional publishing – costs that have to be made back via monetisation. The thinking once upon a time was that creativity can only exists if there’s a financial incentive, but the Internet is proving this theory wrong, big time.

Just because Big Content can’t figure out how to make a buck out of it, it doesn’t mean that creativity isn’t flourishing online.

The quality of the created pieces, however, do vary quite a bit. You have well written blogs analysing the latest trends in copyright, HD and gaming. And then you have this one. But it’s free, so it’s probably worth the price of admission.

See you next week!

Weekly News Roundup (22 July 2012)

Sunday, July 22nd, 2012

Welcome to another edition of the WNR. I’m trying out a new way to write the WNR this week, as opposed to leaving everything until the last day, I’m writing a bit every day, mostly after one of the mentioned news articles has just been posted online. The advantages are obvious – having just written a news article, I’m still very fresh on the things I wanted to say but normally wouldn’t be able to in the article itself (the “news” versus “opinion” thing), and it also means less work on Sunday, which is always a good thing. On the other hand, it may mean the different sections, all written at different times, don’t flow as well. Not that they flowed well before, but it might be even worse now!

But then again, I get most of Sunday off, so that’s good enough a reason for me!

While I was plugging away at this WNR during the week, I also had time to write and uploaded the June NPD analysis, for video games sales in the US for that month. The big surprise for me was how far the Wii has fallen, down some 75% in sales compared to two years ago, and how badly the PlayStation Vita is doing (selling less than 100,000 units just a couple of months after its release – even the venerable, but ageing, Nintendo DS sold a lot more units, not to mention the 3DS). I just think Sony has misjudged the market again, and they don’t have killer titles that Nintendo has to attract the wider range of gamers that still rely on a dedicated portable gaming device (ie. not already using a smartphone or tablet to do the same thing). The Vita is a cool gadget, but do people really need another cool gadget?

Onto the roundup proper now …

Copyright

For a long time, Big Content has told us that people who pirate movies and TV shows, the no good thieving cretins, are only doing it because it’s free. But survey after survey shows that, at least in the minds of movie pirates, price is never the biggest issue. And this week, we have yet another such study which puts forward the theory that people are pirating because of service issues, and not one of price.

A new 2,000 user study in Denmark found that the majority of them would love to go legit if the conditions are right, with the conditions being the three C’s: Convenience, Choice and Content (the availability of it). The survey found that for movie downloaders, being able to watch the latest movies without having to jump through DRM hoops or register a billion times, is what makes piracy so attractive. For TV show pirates, having access to the latest shows hours after they originally aired is key. I’ve said it before, and I’ll say it again, for TV shows, a two day wait might as well be a two year one, because nobody is *that* good at avoiding spoilers online. For those in Denmark, and despite having a large percentage of English speakers, I would gather having speedy access to subtitles would also be helpful – the “scene” can get it done within about 2 days, but it being totally possible for official subs to be provided at release time, localisation of legit content often takes weeks and months.

So given the current inadequate levels of service, what can Big Content do to get people back on the straight and narrow? This is where pricing comes into it, according to the study. 72% of those surveyed said that lowering prices will entice them to go legit and ignore the service problems that currently exist. 47% also stated that if content was made available sooner, even the high prices might still make legit downloads and streams attractive.

But for me, the most striking data was the one that showed that 47% of 15 to 20 year olds that buy or rent legit content also pirate, suggesting that you can’t just separate pirates from paying customers into two neat groups. Which is why Hollywood’s attempt to kick pirates off the web might actually hurt them more, as they’re also preventing nearly half of their current online based customers from buying or renting more content. Knife meet nose, face spited.

Unfortunately though, it seems the industry’s propaganda machine is also working well, with three quarters of those surveyed believing that piracy rates are two-thirds higher than they actually are. 75% believed that 25% of all Danes pirated stuff, but the actual rate is closer to 15%.

LimeWire Website Closed

LimeWire was closed down ages ago, but the court battles continue – this time in a rather indirect way with David Alki suing CBS owned CNET for distributing the software

David Alki’s lawsuit against CNET, and its parent CBS, had some developments this week, with both sides claiming victory (as usual). CBS are claiming victory because two of the three claims made by Alki and his coalition of music artists have been summarily dismissed by the judge, while Alki and co. are claiming victory because the third claim has been left in the case. That claim is the one relating to “inducement”, in that Alki claims CNET induced people to download LimeWire and pirate music. The case continues, but it seems the judge is fairly certain CNET had not acted wisely in this whole affair, and so Alki’s team definitely have reason to celebrate.

Why Alki is doing what he’s doing still puzzles me. I’m fairly certain it’s to point out the hypocrisy that exists within large media conglomerates and their attitude towards copyright infringement – remembering that CBS sued Alki’s FilmOn for copyright infringement and won – but I just can’t be sure. Irony doesn’t translate well over the Internet, and it certainly doesn’t translate well from lawsuits. But I do agree with Alki – for a lot of media companies, nothing is sacred, not even copyright, as long its in their own interest. Remember when Sony were putting DRMs on CDs and DVDs, and at the same time, they were one of the major sellers of blank CDs and DVDs that people were using for piracy? Or how movie studio steal ideas and concepts from each other all the time, although not strictly a copyright issue, but not exactly in the spirit of respect for intellectual property that these same companies harp on about when it comes to suing downloaders.

But while I do support Alki’s mission to point out the hypocrisy within, I’m not sure I can actually support the idea that simply having guides and videos about LimeWire (while offering the download) constitutes “inducement”. For most of the time CNET were offering the downloads and content, LimeWire had not been proven in a court as being illegal. And if CNET is guilty, then what about all the other download and guide sites, including this one? Download websites would often have things that promote popular downloads (eg. top 10 lists, spotlights), and would these constitute “inducement” even though, most of the time, it’s done by an algorithm and not a person? Would Google then be guilty of the same thing if they returned the LimeWire website as a top result for the search “music downloads”, for example? What I’m saying is that a decision for Alki and co could have dramatic consequences for the web, and I’m not sure if that’s Alki’s intention, and I definitely don’t think it’s worth it just to get back at CBS.

UPlay

Ubisoft’s UPlay crashed because too many people had purchased their games – a problem the company had not faced before!

UbiDRM is back in the headlines this week, as once again we see why having online authentication for single player games are a bad idea, especially for companies not willing to invest in the infrastructure needed. What had happened was that the annual Steam Summer Sales event, and this particular sale now included a lot of Ubisoft titles that uses their Uplay online system. Uplay is basically Ubisoft’s answer to Steam, with their own added layer of DRM thrown on top (not always the “always-online” type though). With the sudden surge in sales that always happens with Steam sales, and the subsequent surge in the number of users trying to connect to Uplay, the servers crashed as expected.

Lack of planning, lack of redundancy and extra capacity, are all to blame. And the games that use always-online authentication are the worst when it comes to using up server resources, since instead of a connection at the start of each gaming session, we’re talking about one every second. And without an offline mode to occupy gamers while the Uplay servers were down, no surprise that gamers took to the Internet, specifically Ubisoft’s forums, to lodge their complaints.

See, what I don’t get is how Steam are able to handle the traffic of not only the Ubisoft games trying to authenticate, but all the other games as part of the sale, and Ubisoft can’t? I think the main reason is that for Ubisoft, Uplay has not been the highly profitable platform that they might have imagined (due to the “defeat” of piracy, as well as the value-added features), and so they’re unwilling to invest in enough capacity to handle relatively rare situations like this. Whereas the Steam platform is a revenue earner and so ongoing investment in it is a necessity. Uplay and similar platforms may simply be a cost for publishers. But as long as their internal books show the cost of Uplay is less than the estimated losses due to piracy, and with the sterling sales figures of games like Diablo 3, it’s likely we’ll have to put up with these kinds of systems and these kinds of problems in the future.

Gaming

Saddling the crossover between copyright and gaming news, this week, we have an interesting take on the whole DRM debate, but from the other side.

Ever wonder what those suits over at EA or Ubisoft are thinking when they saddle paying gamers with high prices, DRM, first day DLCs, and all the other things that game pirates use to justify their illegal actions? Kotaku wondered too, and so they invited an industry insider from one of the mega-publishers in the gaming scene to take part in an anonymous Q&A session online, and a lot of interesting tidbits were revealed.

Some were fairly obvious, such as the fact that 80% of all game sales happen in the first two month (although I wonder if Steam sales are taken into account). And this is perhaps why game publishers are so anxious to get their game locked down with draconian DRM, even if they know that, eventually, the DRM will be cracked. In fact, the insider, posting under the nick “AnonPublisher”, said as much. “Because they all get hacked sooner or later,” explained AnonPublisher, “If we can push that [the game’s piracy release] out a couple months, then we’ve protected the bulk of our sales”. Except most games get ripped on the same day, if not earlier, than its official release, so it again makes DRM kind of pointless.

Another interesting DRM related point was raised when AnonPublisher explained the industry’s rationale behind DRM, in that it’s not supposed to be used against hardcore and technically minded pirates, but the more average gamer who, in their opinion, will most likely purchase the retail copy if the piracy process can be made a bit harder. “At least that’s the theory,” posted AnonPublisher. While the theory might be sound, the reality is that DRM actually makes legally purchased games harder to purchase and play than pirated games. With piracy groups improving the convenience of game piracy all the time, anyone who knows how to use BitTorrent will probably easily get the pirated game to work. And as a measure of last resort, the “average” gamer can always rely on more technically gifted friends and family members to help them out.

One wonders though that if the industry knows and abides by this theory, then wouldn’t it be a more positive move to make the legitimate experience easier (or better, at least) instead of trying to make piracy harder? Buying and playing a game via Steam, for example, is easier than going to a shop and buying the game, inserting the DVD and installing it, and getting the patches, entering the serial … and that, along with good pricing, is probably why it dominates games sales at the moment (90% of the downloading business, according to AnonPublisher). Having to do all that on Steam, and then install Uplay, patch Uplay, patch the game, and then register, login, type in the serial again, and then finally being able to play a game that requires a constant Internet connection to work, by comparison, is actually making piracy seem a lot easier.

Mass Effect 3 - Day One DLCs

Day One DLCs for games like Mass Effect 3 have frustrated gamers, feeling they’ve paid full retail price for an incomplete game

On the contentious gaming issues of day one DLCs, AnonPublisher was quite forthright. Basically, according to AnonPublisher, as long as day one DLCs make more than it costs to produce, then that will be the formula to determine whether they exist. So for those that hate it – don’t buy it. That’s both mine and AnonPublisher’s advice, BTW.

Another interesting reveal is that profits are a lot thinner on consoles than on generic PCs, and if given a choice, publishers do still want to embrace PCs as their main gaming platform. But gamers are just not buying $60 PC games any more, and so things like free-to-play and MMOs are being tested, or hybrid single player online experiences like the commercially successful Diablo 3. I always did wonder if Microsoft wasn’t invested in the Xbox 360, would they have made more effort to standardize PC gaming – it’s harder without having control over the hardware, but it’s certainly not impossible. But if AnonPublisher is to be believed, Microsoft make more money licensing games for the Xbox 360 than for the PC (including the horrible Games For Windows platform), so there’s no incentive for them to do anything to “save” PC gaming.

And on that note, it brings us to the end of this perhaps rather disjointed WNR. Hope it wasn’t too bad, because I don’t see myself going back to the old way of doing things, not after a nice relaxing Sunday like this one.

Game Consoles – June 2012 NPD Sales Figure Analysis

Tuesday, July 17th, 2012

After a 2 month break, the NPD analysis is back!

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 then calculating missing figures based on “statement math” (that is, arithmetically calculate missing figures based on statements made). For June 2012, these are the statements made by the gaming companies:

  • “Nintendo sold more than 400,000 total hardware units in June and saw double-digit growth across each of its product lines compared to May. This includes more than 155,000 Nintendo 3DS systems, more than 150,000 units of the Nintendo DS family of systems and nearly 95,000 Wii consoles,” via Gaming Examiner
  • Microsoft revealed 257,000 Xbox 360 units were sold, with 47% 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 just under 195,000 PS3s were sold.

And so the figures for US sales in June 2012 are below, ranked in order of number of sales (June 2011 figures also shown when available, including percentage change – note that totals for the PS3/Wii are now only rough estimates, as exact figures were not available for all months):

  • Xbox 360: 257,000 (Total: 34.1 million; June 2011: 507,000 – down 49.3%)
  • PS3: 195,000 (Total: ~21 million; June 2011: 276,000 – down 29.3%)
  • Wii: 95,000 (Total: ~39.5 million; June 2011: 273,000 – down 65.2%)
NPD June 2012 Game Console US Sales Figures

NPD June 2012 Game Console US Sales Figures

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

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

This is the first time I can remember of the Wii numbers dropping below the 100k mark, but the 65% drop from the same time last year was probably not unexpected, considering how close the Wii U is to retail.

While the Xbox 360 continues to “impress” by winning the most popular home based console award, 18 month in a row now, its numbers were down a considerable 49% from the same time last year, which to be honest, was a fantastic month for the console (and the Xbox 360 was the only console then to record a year-on-year growth figure). A bit worrying is that the decline seems to have sped up in the last couple of months too, perhaps as a indirect response to the Wii U, but more so perhaps due to this time last year’s numbers being “above normal”.

The PS3 has the smallest year-on-year decline of all the home based consoles, but that’s not to say that it isn’t struggling itself. It’s still down some 36% compared to 2 years ago (Xbox 360 down 43% for the same period – although that’s comparing now to the then launch of the Xbox 360 Slim – the Wii is down 78%!), and it still doesn’t look like its ever going to beat the Xbox 360 unless the 360 is retired early by Microsoft.

It’s not exactly all doom and gloom, since we’re approaching the end of a cycle even if Microsoft and Sony don’t want to admit it publicly, but I think it’s safe to say that we’ve already seen the best of these three home based consoles, and the only way forward now is downwards for them all.

Numbers have also been made available for the PS Vita, which along with the PSP, only sold a combined 100,000 units. Compare and contrast to the Nintendo DS, which sold 150,000 units, and the 3DS, which sold 155,000 units, and you can see the Vita has been a disappointment for Sony so far. The sales figure also highlights a significant drop compared to the earlier sales figures for Vita, which can’t be a good sign either. I think once again, Sony has misjudged the market. Trying to get on the casual gaming bandwagon, while still offering hardcore gamers an exciting gadget, Sony might have ended up catering to neither market. They don’t have the expertise in making fun and casual games like Nintendo, everyone already has a smartphone or tablet that can do what the Vita does, and the high cost of hardware and software, proprietary formats and DRM, means that the Vita was already at a disadvantage before it was even launched. Still, the holiday period will be decisive and if the Vita can have a good one, and if it can have more linkage to the PS3 and other Sony devices, then it can still carve outs its own niche.

In game sales, it’s not exactly been another great month, with the top selling title on all platforms, Lego Batman 2: DC Super Heores, only selling 450,000 copies or so. Speaking of the Vita, what Sony also doesn’t have is a Pokemon like franchise to exploit like the DS/3DS is able to do this month with Pokemon Conquest, coming in at a high 7th for a single platform release (all other listed in the top 10 are multi-platform games). Here’s the full software sales chart for June (new releases shown in bold):

  1. Lego Batman 2: DC Super Heores (Warner Bros – Xbox 360, Wii, PS3, NDS, 3DS, PSV, PC)
  2. Tom Clancy’s Ghost Recon: Future Soldier (Ubisoft – Xbox 360, PS3, PC)
  3. Diablo 3 (Activision Blizzard – PC)
  4. Max Payne 3 (Take-Two Interactive- Xbox 360, PS3, PC)
  5. NBA 2K12 (Take-Two Interactive – Xbox 360, PS3, PS2, PSP, Wii, PC)
  6. Batman: Arkham City (Warner Bros – Xbox 360, PS3, PC)
  7. Pokemon Conquest (Nintendo – NDS)
  8. Call of Duty: Modern Warfare 3 (Activision – Xbox 360, PS3, Wii, PC)
  9. Battlefield 3 (EA – Xbox 360, PS3, PC)
  10. The Amazing Spider-Man (Activision Blizzard – Xbox 360, PS3, 3DS, NDS, Wii)
I don’t think I’ll bother to make a prediction. Firstly because I don’t think we’ll have enough figures to do an analysis next month, and secondly, the hardware sales order  will be pretty much the same as this month (and will be the case until the Wii U is introduced later this year).
See you next month?

Weekly News Roundup (15 July 2012)

Sunday, July 15th, 2012

Happy belated Bastille Day. I’m not French. I don’t speak French, and I don’t really know anybody from France, but 14 is my lucky number, and so that’s the connection I have with the French. That and their fries are a personal favourite.

A couple of real eye openers that I will be covering in this week’s WNR, so without further ado …

CopyrightStarting with copyright news, Wikipedia’s Jimmy Wales has once against caught the ire of the MPAA by, well, not saying anything everyone else hasn’t been saying all along.

Wikipedia Blackout

Wikipedia went black to protest SOPA/PIPA, and founder Jimmy Wales says the site may do it again if Hollywood insists on censoring the web to solves its piracy problem

Speaking at the Wikimedia conference, Wales drew upon personal experience in trying to legally watch the latest episode of Game of Thrones and criticized content holders for not giving the people what they want (and not just to see Joffrey’s head on a spike). Wales also warned that Wikipedia might go dark again if the entertainment industry continues to see web censorship as the solution to everything.

None of Wales remarks were that controversial in my opinion, but anyone who doesn’t agree with the MPAA’s line about pirates being thieves will always be savaged by the lobby group, and the MPAA didn’t disappoint on this occasion. Once again, the MPAA compared downloads to “stealing”, but went one step further by attacking those who only pirate out of convenience (like say if I didn’t feel like jumping through a dozen DRM’d hoops just to satisfy the studio’s piracy paranoia, or I had to download something even though I had already purchased it, just due to ease of use issues). But look at it this way: when your own customers would rather break the law and be called “thieves” than buy your product due to the sole reason of convenience, then maybe, just maybe, you have some work to do before you take a sledgehammer to the Internet. Just a thought.

Of course, even if Hollywood can’t get the government that they’ve already paid for to pass pro-censorship legislation, they can always rely on the threat of legal action to force other private companies to self-censor. PayPal is the latest to demonstrate what a good boy it is when it comes to all this anti-piracy stuff, and it has created a set of new rules for file sharing/newsgroup websites that, effectively, prevent these sites from using PayPal services. In what is surely another nail in the coffin for the once thriving cloud uploading industry (a shame really, since the legitimate services they do provide are invaluable in my opinion), the new rules basically allow PayPal (not even content holders) to dictate what can and cannot be stored on any file sharing website that uses its services. One service provider that has been in talks with PayPal even suggests that PayPal wants full access to all the backend tools to monitor al file uploads, even legitimate, private and confidential ones – a demand that is frankly insane. It would be like if a bank wanted to read all pieces of mail going through private post office boxes (which the bank handles payments for), just so it can reduce its liability in case something dangerous or illegal was sent. Of course, the bank would never be held liable for anything like this, but on the Internet and with the copyright lobby pushing hard, PayPal can become liable (so I guess it’s not all their fault).

At this point though, nothing from PayPal surprises people any more, everyone has had bad experiences with PayPal, and it’s worthwhile to remember that they were the same people who enthusiastically dumped Wikileaks over the tiny bit of governmental pressure. Part of SOPA/PIPA was to give content holders even more power to force private companies like PayPal to do exactly this sort of stuff, but it looks like existing laws and corporate bullying tactics are more than sufficient to ensure exactly the same outcome. So between this and Megaupload, it just goes to show SOPA/PIPA isn’t needed at all.

Napster Logo

The death of Napster gave the RIAA the legal precedent and confidence to engage in a campaign of anti innovation in the years following, according to a new report

Speaking of Megaupload, the decision from this case could very well lead to the kind of landmark decision that will reverberate for years to come. And we don’t even need to look back that far to find how much of a hit on innovation such a decision, or a new set of biased laws, could be. A newly released report goes into detail on how the established music industry profited from now more than a decade ago’s Napster decision. Interviewing 31 leaders of digital music, including CEOs of some of digital music’s biggest firms, the report by Associate Professor Michael A. Carrier of Rutgers University School of Law attempts to show just how much of an effect a copyright decision can have on innovation.

On a high after the victory over Napster, the major music labels, represented by the RIAA, allegedly went on a crusade against all things Internet-y and innovative. By using the funds “earned” from one lawsuit, other websites and start-ups would be sued, until the funds, or suable start-ups, ran out. Not only that, the report alleges that labels strung along start-ups with “good” (and potentially status quo threatening) ideas by refusing to license content to them until these sites had enough traffic, and once they did, sued them for massive copyright infringement. But at the same time, labels were happy to receive huge up-front fees for start-ups they knew would never make it, or made licensing agreements that allowed labels to slowly bleed these new companies dry, the report further alleges. And instead of going after companies, labels would go after individuals associated with the companies, to perhaps add further intimidation for force a favourable outcome in any legal proceedings (although to be fair, everyone does this). Some in the rap business even spoke of physical intimidation,  “being hung out of windows” and things of that nature.

For me, this show why Apple was so bloody clever with the iPod. By making the hardware first, instead of the software/website, Apple made a device that people wanted, loved, and one that the music industry *had* to accept. Had they gone with opening the iTunes store first (and by allowing non Apple devices to buy and play songs), it’s very likely that they too would have been hindered in their attempt to innovate.

With both Hollywood and the recording industry now strongly supporting (if not leading) the case against Megaupload, perhaps both feel another major decision is required to chill the next round of innovation, such as Megaupload’s very own “music label circumventing” Megabox. This mustn’t happen, and I hope it won’t.

As for the actual Megaupload case, the extradition hearing against Kim DotCom, a German-Finnish citizen that ran a Hong Kong based business and currently living in New Zealand and is now being extradited to the US for some reason, won’t be heard until next year, so this one could take a while. DotCom has offered to go to the US voluntarily to avoid the need for an extradition hearing, but only if he gets access to his own frozen/seized funds to pay for mounting legal expenses.

High Definition

People who visit my house often complement, or make fun of, my “oversized” DVD, HD DVD and Blu-ray collection, which I always explain is perfectly reasonable and nowhere near as big as a lot of other people’s.

And now, I finally have proof that my collection is actually perfectly reasonable and I’m not at all an obsessed movie nut that must buy movies even though I only ever watch most of them once. Having spent $500,000 Australian dollars (which is about the same in US dollars), avid collector Greg (you thought that I was talking about myself for a second there, didn’t ya) has now put his entire collection of 50,000 CD, DVD and HD DVD titles, and some 3,500 Blu-ray titles, up for sale for “only” $55,000. Just the storage systems cost Greg $5,000, covers and sleeves another $12,000, and he’s including it all as part of the sale, as well as a HD DVD player, and a region A Blu-ray player.

Greg's Movie Collection

Greg from Sydney Australia shows what a real movie collector is like, and you can be just like him if you pay $55,000 to buy his entire collection!

Greg is selling because his flat is no longer big enough for his, possibly still growing, collection. Ironically, the $500,000 he did spend on the discs could have gone a long way to buying a bigger house, which could have housed his collection in a more permanent fashion (or $445,000 on the house, and $55,000 to buy someone else’s 50,000+ title collection). But I’m sure Greg, like all collectors, regret nothing. Although, as one commenter, it looks like Greg might have spent $500,000 to do what an $8 per month Netflix streaming account can do. Ouch, but not really 100% accurate, since I’m sure he has tons of titles that Netflix doesn’t have, some of them in glorious high def that Netflix can’t provide (yet), but perhaps there’s a good point there too about a new more efficient way to have a movie collection ($8 per month for 50 years, the lifespan of DVDs and Blu-rays, still works out to be less than what Greg paid just for his shelves).

In any case, it does make my collection look rather small by comparison. I’m just hoping the saying “size doesn’t matter” also applies to movie collections!

Gaming

Good news everyone. The NPD analysis will be back for June, as some intern somewhere probably screwed up and actually released some sales figures to allow for a proper comparison between the three major home based consoles, as well as a look at the sales figures for the new Vita portable. Will cover the results in detail in the next few days.

By my calculations, the PS3 sold just under 194,000 units in June, that’s almost 100,000 units more than the Wii, but also 63,000 units less than the Xbox 360. While the Wii has clearly dropped out of the race for the home console market, not by choice really, the PS3 still has a chance to compete with the Xbox 360 and get its user base up in time for the PS4 or whatever it will be called.

While the PS3 is actually pretty good value considering its media credentials, where the PS3 has really struggled though is in the lower end of the market, where the Wii used to dominate, and now the Xbox 360 with its cheaper 4GB console. So the news that Sony might release a 16GB version of the PS3, according to recently leaked photos and documents in Brazil, might not sound too surprising. Still very much a rumour at the moment, so I wouldn’t, say, bet your $500,000 movie collection on the news being true, but it would make a lot of sense if Sony really wanted to extend the life of the PS3. There’s still a market for the PS2 today, and that’s proof the low price strategy works.

What also works though is quitting while you’re ahead, which might be good advice for Sony, but I was talking more about this issue of the WNR to be honest. Any excuse to stop writing! See you next week.

Weekly News Roundup (8 July 2012)

Monday, July 9th, 2012

I know I’ve been late with the WNR before, but never a whole day (maybe not strictly true). Sometimes life gets into the way of work, and for the few times when it’s actually good things interfering, then a little interruption to work here and there can be well worth it. This was one of those times, so I hope you’ll forgive me. Besides, by the time you get this, it might still very well be Sunday wherever you are, so hopefully it will still be the right day, even if it is the wrong time. Not a lot of news to actually go through this week to be honest, but we’ll make do as usual.

CopyrightIn copyright news, we have a couple (and using the more stricter definition of the term ‘couple’) of follow-ups to recent major stories I’ve been covering in this very section.

The Dutch ban on The Pirate Bay, while starting in February, has gained more recent attention due to a similar ban coming into effect in the UK, as well as the attention from the “IP switching” game TPB have been playing recently with the Dutch anti-piracy group, BREIN. But this week, one of the major ISPs participating in the ban has released data that questions the effectiveness of the block. Instead of making BitTorrent traffic decrease after the ban of The Pirate Bay in February, BitTorrent traffic has actually increased!

BitTorrent traffic graph from ISP XS4All

BitTorrent traffic since the Pirate Bay ban in the Netherlands (red line) does not seem to have decreased, despite 90% of the population now blocked from accessing the world’s largest BitTorrent indexer

ISP XS4All theorizes that the extra publicity the ban received may have actually help drive more traffic to The Pirate Bay and to other BitTorrent websites. For people that had relied on The Pirate Bay, it’s likely they’ve simply started using one of the hundreds of other BitTorrent indexers instead. And with the increasing use of magnet links, there’s a lesser need these days to have well run indexers that always have working .torrent downloads, which then allows more “competing” websites to be set up with lower technical requirements. All of this, and the numerous web proxies that still allow people easy access to the TPB, means the ban has little, if any, effect on torrent downloads. Of course, without looking at past trends, it’s hard to come to any firm conclusions about the data (for example, while BitTorrent downloads are still growing, perhaps it has slowed down thank to the ban – without looking at historical data, one cannot rule out this conclusion).

XS4All suggests that, instead of focusing on preventing people from downloading via technical means, the better solution is to offer them legitimate services that are just as enticing. You won’t get an argument from me about this, um, argument, but this is already kind of happening naturally via services like Netflix (more on that later).

Joe Biden Official Portrait

Did Vice President Biden order the shutdown of Megaupload as claimed by Kim DotCom – current evidence suggest that’s not the case

The Megaupload affair took a strange turn this week when owner of the defunct file hosting website Kim DotCom claimed that Vice President Joe Biden was the key man behind the Megaupload shutdown. The allegations surrounds a meeting which took place between the vice president and members of the MPAA, at which DotCom alleges (citing a “credible source”) that the Megaupload shutdown was one a topic of discussion – a suggestion that has since been shot down by the MPAA. So far, no evidence has been released by DotCom which backs up his claim, so based on what we know currently, it’s unlikely Biden was so deeply involved with the whole affair. This isn’t to say that Biden would not have been a big supporter of the takedown had the matter been discussed – Biden has always been known for his support for the copyright lobby.

There were also some grumblings about the timing of the Megaupload raid, happening just days after the defeat of SOPA/PIPA by the Interwebs. Some suggest that this was revenge for the failure of the legislations, or that it was a way for the administration to appear to be still strong on copyright, despite the White House’s wavering support for SOPA/PIPA towards the end. But this fails to take into account the time between petitioning for a warrant (even if it turned out to be invalid later on), and executing the search – the indictments against Megaupload were actually filed weeks before the planned Internet-wide protest against SOPA/PIPA. And an investigation like this would most likely have taken years, not weeks, so any direct links between SOPA/PIPA and the Megaupload raid would be tenuous at most.

High Definition

Going back to the earlier mentioned idea that legitimate services can compete effectively with piracy, we have the news this week that over 1 billion hours of content had been viewed by subscribers of Netflix’s net based streaming service in just one month.

This statistic comes from the usage stats for June, and means that each Netflix subscriber watched around 40 hours of streamed content for that month, or 80 minutes per day. That may not sound like a lot compared to normal TV, disc and cable viewing habits, but when you compare that to say your typical movie or TV pirate, then 80 minutes per day (which would be 2 “hour long” episodes with the ads removed) does seem quite significant. And this matches the fact that Netflix’s bandwidth usage, in the US at least, has grown to become much much greater than that of say BitTorrent, based on recent statistics. But due to the lack of unique and really new content, right now, I think Netflix is more of a complementary service to piracy, and a really competing one, if I had to be totally honest.

But with Netflix trying to bring more exclusive content to their network, including the highly anticipated return of Arrested Development, this particular viewing record could be easily broken again. It seems that, once again, the tech industry has stepped up to the challenge of giving people what they want, while the content industry lags behind and will ultimately be the losers (again) as they obsess over things like piracy and DRM.

Gaming

The next story is probably better located in the Copyright section, but it also holds great significance to me from a gaming (and nostalgia) point of view, so this is where it goes.

The Leisure Suit Larry games series’s protagonist, Larry Laffer, is coming back to a PC or a mobile device near you. The leisure suit wearing, socially awkward, sex obsessed and hair challenged Larry brings back great memories for me during my teenage years, when the Larry games were a great time occupier. The news that a remake in on the way is awesome, even more so because it’s being done via crowd funding with a series of hilarious rewards, but even more awesomer because the creator of the games, the legendary Al Lowe, also hates DRM with a passion.

Leisure Suit Larry in the Land of the Lounge Lizards - Original

The original Larry game in all its EGA glory

Going one step further than even myself, Lowe refuses to buy anything with DRM (so not a fan of Diablo 3 then), and has been trying to avoid DRM ever since his first involvement with it in 1982. Not that Lowe condones piracy – his Larry games were so pirated that more more hint books for the games were sold than the actual games themselves – but from a pragmatic point of view, he just doesn’t think DRM does anything other than “hassle people who paid for the product”. DRM is about as useful as pocket lint is in an adventure game.

I for one can’t wait for pay for the remake, especially knowing I won’t be hassled for doing the right thing. Plus free pocket lint!

And on that note, we reach the end of another, and very very late, WNR. See you next week.