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Weekly News Roundup (9 November 2008)

Sunday, November 9th, 2008

CNN's fake holograms were pointless

Obamania is sweeping the world. I watched the election coverage because I love elections, or anything where you get to find out a result at a set date (sports, exams …). I think I can be considered quite knowledgeable on the US election, at least this one, so once I saw PA go blue, it was pretty much all over for McCain. Ohio, Virginia, Florida all going Obama’s way just meant that, as I had predicted, the election will be called for Obama once the polls close in the west. I’m sure the networks would have preferred it to have lasted a bit longer, but there’s only so much one can take in regards to fake holograms. The most disappointing thing for me was that I had put some money on Obama winning between 311 and 338 Electoral Votes, but he got (it looks like right now) 365 EVs – it’s all Indiana and North Carolina’s fault (plus Nebraska’s single split EV). I did put money on Obama getting more than 338 to hedge my bets, so I didn’t lose any money, but I didn’t win any either which was a shame.

Better news is that it seems my third replacement PS3 (fourth overall) is problem free at last. Fingers crossed. I did go computer shopping, but I ended up buying a system that’s totally different than the one that I thought I would buy last week. That’s just so typical, isn’t it. And despite all the distractions, there happened to be quite a bit of news this week, so let’s get on with it.

Starting with copyright news. Following up on last week’s news about MPAA winning against the Chinese DVD manufacturer GoWell. Apparently what happened was that GoWell made a DVD player that played back copied CSS protected discs – not ripped discs, just discs that you copy with Windows Explorer or something which is still encrypted. Normal DVD players won’t play these files, but GoWell made one that did, which is why it got into trouble with the MPAA. GoNotSoWell, it seems.

Real Networks want the public's help in their fight against the MPAA

In the other MPAA case, Real Networks is appealing to the public for support. They are promising free licenses to RealDVD for all trial subscribers once they win the case. If a free license isn’t important for you, then making a stand against the MPAA is. They may have had a case against GoWell, but CSS in itself is a ridiculously crap encryption that can be broken just by sneezing on it, and to see so much money being wasted on licensing and defending just seems like such a waste. Also a waste is all the money the MPAA spends on lobbying politicians, and no sooner had Obama accepted McCain’s concession, the MPAA issued a statement to clarify their intent to work with the new administration on matters of copyright. The kind of people who voted for Obama, especially the younger generation, won’t stand for yet another administration that’s far too friendly and accepting of the MPAA’s position, and I hope President-Elect Obama stands firm on the principle of fair use.

BD+ broken?

Copy protection schemes, like Blu-ray’s BD+, are only effective when people aren’t actively trying to find ways to circumvent it. But people are, and they have, which brings the dream of Blu-ray playback on Linux systems one step closer. Remember that CSS was broken as a way to get DVD video working on Linux, so you would think that the BDA had learnt that lesson and officially licensed a Linux based decryption software to prevent people hackers from doing it the hard way.

There are two schools of thought when it comes to fighting piracy. Stick or carrot. The stick approach, like what EA has been doing lately and getting into trouble with, doesn’t seem to work too well. EA has had to back down time after time, but stories of more snafus won’t help. This time, EA forgot to print one character from the CD key for the game Red Alert 3 and their solution is for customers to guess it by entering all 36 possible options (or send in a picture of their improperly printed CD key for verification). If there was one company that could do without one more DRM related scandal, it was EA. The other approach, carrot, is to not try and prevent people pirating stuff, but work with it for everyone’s benefit. A new technique for online video sharing sites allows ads to be inserted into videos whenever copyrighted work is detected. Not the most ideal solution, but it’s better than having the video removed. One can also fight piracy on the pricing front, and that’s what Warner is doing in China with low-cost online rentals. Why can’t they do low-cost online rentals here? And even the lack of copy protection can be seen as a promotional tool, with DRM-free MP3s now getting a new “MP3 100% Compatible” logo to promote the fact. The anti-DRM movement has helped to fight piracy more effectively than DRMs, it seems.

High Definition Let’s move onto Blu-ray. Sony/Universal are coming out with a vending machines that sells Blu-ray movies and PS3 games. It’s funny that Universal is helping Sony out, because if you look at the companies that have contributed most to Blu-ray, it’s Paramount (Iron Man, Transformers), Warner (I Am Legend, The Dark Knight) and now Universal. All three were HD DVD studios, two of them exclusive until the very end. Interesting.

The Dark Knight on Blu-ray is set to break all Blu-ray sales records

The other HD DVD exclusive party was Wal-Mart, and now they’re bigging up Blu-ray too by devoting more shelve space to Blu-ray for the holiday shopping season. The low cost players that have started to arrive will suit Wal-Mart’s pricing strategy, something that wasn’t possible last year this time which forced them to go HD DVD exclusive for standalone HD players. The lower hardware prices, movie sales and in-store promotions are all part of the big holiday promotional push for Blu-ray, which is set to cost up to $25 million dollars. Money well spent, or waste of it during harsh economic times? Regardless, analysts all predict Blu-ray player prices will nosedive in the next month and a bit. HD DVD’s price crash was seen by probably the very same analysts as a sign that it was doomed, but this time without any real competitors around, the outlooks if fairly different. The Dark Knight on Blu-ray, which is predicted to sell by the truck load, and coupled with cheap Blu-ray players, should see uptake increase. If it works, this could be the most significant holiday season for Blu-ray – the one that decides whether it can replace DVDs, or merely supplement it as a niche format.

And as I normally like to do at the end of the HD section, there’s a bit of news about H.264. DivX 7 is nearly ready for release, with the first beta player being released with H.264 support.

And in gaming, PS3 sales bottomed out last week, but bounced back during the week thanks to GTA IV I think. Just goes to prove that games sell consoles, more than the other way around. Unfortunately for the PS3, it has the lowest attach rate (the average number of games people buy for the console) out of the big 3, with the Xbox 360 way in front followed by the Wii. The Xbox 360 being released earlier helps it, plus the lower prices of the console. The Wii and it’s fun (and hype) factor is helping it too. The PS3’s excellent Blu-ray and media hub functions, is making things worse when it comes to games attach rates. Console manufacturers make money off games more than consoles (that’s if they’re not losing huge amounts of it by selling them below cost, like Sony does with the PS3), so attach rate is everything (especially if your consoles has sold in greater numbers, like the Xbox 360).

In other PS3 news, firmware 2.52 has been released to fix problems with 2.51 which was released to fix problems with 2.50 (which was released to fix problems with …). Sony really need to do better release testing when it comes to their firmware, and there are more reports that 2.52 is borking PS3s by making the not reading disc problem appear after updates. It’s only a matter of time before someone launches a lawsuit, if Sony’s not careful. Sony is also patenting a Wiimote like controller for the PS3.

Will we ever see a slim, sexier Xbox 360?

The NPD October figures should be released next week, and it is widely expected that the Xbox 360 will do extremely well thanks to recent price cuts. But Microsoft is hinting that the last round of cuts will be the last round, period. It was always a matter of time before price cuts are so large that they no longer make any financial sense. The next logical step, at least in my mind, would be for them to make a more reliable and “sexier” version of the 360 – doing that, even for higher prices, will drive sales.

One company not looking to drive up more sales is Nintendo, who thinks they will have enough Wii stock for this holiday season, but you never know. If you want one for Christmas, for yourself or as a gift, please take my advice and buy one today, just to be safe.

And that’s all the news we have for this relatively busy week. Obamania will subside I think, as reality of the current situation sink in (two wars, global economic crisis, terrorism, disease, environmental disasters, and of course the big one, movie piracy). Those of us that have wasted countless hours following the election will now have to find something better to do, so the question is then can we fill our empty lives with something else to worry about? Yes We Can!

Update: The real picture of the Xbox 360 Slim, now that it's available

Update: Seems a lot of people are finding this page on Google or somewhere when searching for pics of the Xbox 360 Slim, so instead of providing just the pic for the prototype one, here’s the real one to the right.

Posted in Copyright, Electronics, High Definition (Blu-ray/HD DVD/4K), News Roundup, Nintendo Wii, Wii U, Switch, PS3, PS4, Video Technology, Xbox 360, Xbox One | Comments Off on Weekly News Roundup (9 November 2008)

Weekly News Roundup (2 November 2008)

Sunday, November 2nd, 2008

Only two more months to go before the year’s out. I just remembered that it’s now more than a year since I started the WNR. I really didn’t think I would keep this going for so long, since my attention span when it comes to these sort of things is pretty short. It’s been far longer than that since my last new computer though, so I’ve decided to get a new one this month, maybe even as soon as this week. I posted my buying specs in the “If I were to buy a new computer today” feature I wrote this week. Yet another refurbished PS3 should be arriving tomorrow, fingers, toes, arms and legs crossed that it’s finally okay this time.

Let’s start with copyright news. The Viacom vs Google legal battle continues with Google claiming that Viacom’s copyright cops are more than capable of controlling content on YouTube, so there’s no need for Google to intervene. It certainly does seem that media companies are surprising apt at providing and controlling content online, mainly for promotional purposes. You can’t really have it both ways though, to use the Net and it’s viral characteristics to promote your stuff, while clamping down on sharing and free expression.

21 months for doing this - fair sentence or too harsh?

Ever wonder what kind of punishment you get for camcording and bootlegging films in theatres? 21 months is the sentence for a guy who did just that and got caught. Was it worth it? Depends on how much money he’s made already and how much of it has been stashed from the sight of the police, I suppose. I don’t mind the authorities going after the providers/source of pirated content, it’s when they go after the users of it that doesn’t sit well with me. Those stupid “you wouldn’t steal a car” PSAs at the start of DVDs also don’t sit well with me, and apparently, it’s not just me. The latest movie length episode of Futurama features a spoof of the well known anti-piracy clips, which is ironic because I suspect these Futurama episodes are one of the most pirated shows around.

Can’t believe that the DMCA is now 10 years old. It seems it was only yesterday that it took its first steps to trample on consumer rights. The EFF has been keeping a document of all the unintended consequences of the DMCA is an updated document, and you can read it here. Lots of stories about how the DMCA has hurt not pirates but consumers, scientists, and legitimate competitors. At best, the DMCA has been ineffective. At worst, it’s one of the worst pieces of legislation to ever come out of Washington D.C, and knowing all the crap that comes out of there, that’s saying something. Digital copyright is an important issue, but surely there must be some common ground between content owners and consumers, because neither group can exist without the other. Will the “Change We Need” feature changes to the DMCA? Doubt it, not as long as Hollywood’s deep pockets are helping those in Washington D.C stay in Washington D.C. But we can always hope …

Further proof of the DMCA’s reach, as Hollywood this week successfully sued Chinese DVD player manufacturers for not complying with CSS copy protection. Now I don’t actually know what was behind all of this, just how a DVD player can help to break CSS. Was it because it upscaled DVDs to 1080i through DVI (against the CSS license)? Was it because it could play copied CSS encrypted discs across a network (also against the CSS license)? Or did it have a hidden menu setting that could allow CSS to be turned off (does nothing really)?

A Digital Copy standard for DVDs on the way?

But even Hollywood seems to be trying to find a way around CSS, by providing digital copies of movies along with the DVD. The DVD Forum is currently discussing this, and I think it’s a good idea. To try and stop people making digital copies is just plain silly and pointless. Might as well cash in and provide them with it in the first place. The problem now is that every studio have their own standard in regards to digital copies (Sony’s one plays on the PS3/PSP, Fox’s one is iPod compatible …). If the DVD Forum can sit down and add digital copy support to the official DVD specs, then that’s a move in the right direction. I just hope they don’t stuff the specs with DRM. At the very least have no more than tagging type DRMs, because anything more, and the digital copies are useless. The next logical step would be to have establish a similar standard for Blu-rays as well.

High Definition Speaking of Blu-rays, the format is apparently dead, according one slightly pessimistic blogger on ZDNet. The last few week’s worth of Blu-ray sales data has been very positive for the format, so I don’t really understand where all these “Blu-ray is doomed” stories are coming from.

Bringing back the free movies promotion may help Blu-ray this holiday season

But I can understand the frustration seeing Sony apparently trying very hard to ruin a perfectly good format, with lousy hardware pricing (only now becoming more sensible), marketing, licensing and many other things which helps to fuel Hollywood’s greed at the expense of actually getting Blu-ray into people’s homes. But I think things have changed a bit recently, and I think the fear that Blu-ray may be doomed has actually forced Sony’s hand somewhat. There are new hardware promotions (free movies are back), pricing deals that bring together studios and online retailers such as Amazon (see some of them here – lots of new hardware deals recently, like the Amazon/Warner $100 off deal). The range of good releases have been very helpful for the format as well. In fact, all of this reminds me of last year, except it was HD DVD doing all of this, which may or may not be a good sign. With the exchange rate problems here in Australia, and local high pricing, I haven’t purchased a Blu-ray movie in ages. The last one I got was the Godfather Trilogy Blu-ray, which I only purchased because the online store I got it from made a pricing error, so I got it for $USD 30 express delivered. Now that’s value for money.

Speaking of value for money, some Netflixsubscribers are not seeing it in the $1 extra per month that Netflix charges for Blu-ray rentals. I don’t rent that many movies, so I can’t comment, but $1 doesn’t seem too much for me.

Also some good news on the H.264 front, as Windows 7 Media Center will natively support the format that is now widely used on everything from cell phone video to HD broadcasts. I’m sure Microsoft originally intended their VC-1 codec to have taken over the industry in the same was as H.264, but it didn’t work out and so supporting H.264 is the only logical step left. It’s not the first time Microsoft tried to get people to use one of their proprietary formats, failing, and then go back to doing what they should have done in the first place which is to support the industry approved format.

And finally in gaming, Sony’s recent huge losses on the market means that the PS3 will not get a price cut, as Sony says they have a business to run. To be fair, the PS3 is selling well enough given the high price, and prices can always come down when desperation calls for it. Sony will just have to hope that by that time, the cost of manufacturing a PS3 will have dropped enough so they won’t have to lose their shirt to provide discounts, to prevent the PS3 falling further behind. In other PS3 news, a new hotfix firmware has been released to fix several problems with the 2.50 firmware. The forced 60 Hz output is what caused people to report the black & white display problem, for TVs that don’t support PAL 60 I guess.

Microsoft’s new Xbox Experience comes out this month, and there are several previews up for it already. One of the new features takes something from the PS3 playbook by offering HDD installs for games, and testing shows that it only shaves a few seconds off the loading time after the several minute long install process (plus all that HDD space used up). I would be more interested to see what effects it has on performance, as streaming from the HDD should be faster than from a DVD right?

So that’s another week over and done with. The US elections this week, so don’t forget to vote, even if you’re not actually a US citizen. Just write who you want to vote for on a piece of paper and send it to “Election Counting Place, Washington D.C., USA” – remember, every vote counts (except ones of this type, possibly). Also, this is the 58th WNR I think, which is just amazing to me because it only feels like the 55th one what with all the fun I’ve had writing it. I’m going computer shopping this week as well, so I may not have as much time to find and post news. At least that’s the excuse I’m going with this week … see you in 168 hours time.

Posted in Copyright, High Definition (Blu-ray/HD DVD/4K), News Roundup, PS3, PS4, Video Technology, Xbox 360, Xbox One | Comments Off on Weekly News Roundup (2 November 2008)

Weekly News Roundup (12 October 2008)

Sunday, October 12th, 2008

So I sent my PS3 back for repairs on Wednesday. I had to do it because the wireless controller/remote drop-out problem was driving me nuts. My old PS3 didn’t have this issue, so I’m hoping the next PS3 I get won’t have it either. Microsoft’s 6 day turn-around for my Xbox 360 repair is starting to look pretty good, especially considering that I got my own 360 back and not somebody else’s slightly broken, but refurbished, PS3. The news items are a bit light this week, no doubt the focus is still on the economic meltdown that is happening around the world.

And despite the economic uncertainty, I bought myself a new monitor this week, a 24″ entry level model from Dell. It’s not the best monitor, the 16:9 ratio is a bit weird compared to other monitors (as is the only 1080 line resolution), but it does have HDMI, is perfect for connecting 1080p devices such as PS3s and Xbox 360s, and of course, there’s the price. I only paid $USD 160 for it (current price is $399) due to a stuff up on Dell’s part, and for that money, I can’t complain too much about the monitor’s deficiencies (of which there are a few, but nothing that I can’t live with, even at the regular pricing of $399). Bargain hunting is now a small hobby of mine, and it feels great to pick one up.

Anyway, ket’s start with copyright news. The RealDVD vs MPAA case continues, and I wrote what I thought about it in a blog entry mid-week. I wrote my piece after the Judge in the case temporarily suspended sales of RealDVD, pending the outcome of the case perhaps. My opinion was that the case is more about the MPAA (and its members) trying to protect their own future marketing ideas on Managed Copy, and getting peeved because Real Networks beat them to the punch. I also went through the legal arguments about the legality of RealDVD, and I really can’t see why it is illegal at all.

Wal-Mart will have to keep on paying for their mistake of choosing to use DRM

And shortly after I wrote my piece, an article with similar opinions emerged from the Electronic Frontier Foundation, in which they also said that Hollywood’s hate for RealDVD is not due to piracy. I just hope the Judge in the case sees this point of view too, because I think it’s very important that Real Networks win this case. If DRM is really just to protect your licensing cash cow, then that’s more reason to kill it off ASAP.

Wal-Mart’s DRM fiasco, the latest of many, is taking a turn for the predictable. Wal-Mart has backed down and now will ensure their DRM authentication servers are kept online so that people’s DRM-infested files will remain working, no doubt after legal advice from their lawyers. The disadvantages of online based DRM is shown quite clearly here, because it’s not just the consumer that suffers from DRM infection, but the content sellers are obligated to maintain legacy DRM servers forever at a huge cost in the long run (and will have to continue paying license fees for it too, which I gather was the whole point behind DRM in the first place).

High Definition Onto HD news, I found this really interesting article on the process and cost of Blu-ray replication and licensing. What with various licensing fees for the A/V technology involved, the higher cost of replication, the AACS licensing fees, producing Blu-ray discs in small quantities such as 1,000 units could cost up to $14 (for BD-50 discs). This goes down to a much smaller figure for larger quantities, only $2.75, and so you start to wonder why Blu-ray movies cost so much more than their DVD counterparts. One thing is clear though, Blu-ray’s mandatory requirement for AACS (compared to DVD’s CSS and HD DVD’s AACS being optional), plus the higher manufacturing costs, means that Blu-ray is not friendly for independent producers, who will most likely have to rely on DVD even if they shoot their stuff in HD.

The higher cost of Blu-ray is forcing NetFlix to raise their monthly rental fees, but only by a single dollar. But in the current climate, every dollar counts I suppose. And Blu-ray discs could get even more expensive, although with much more storage space, if Sanyo’s 100 GB Blu-ray disc ever makes it to full production.

Iron Man Blu-ray is breaking all records

But cost of otherwise, last week was Blu-ray’s best week since launch, thanks altogether to the movie Iron Man. According to Nielsen VideoScan figures which I have posted here, Blu-ray sales shot up 145% compared to last week thanks to Iron Man, which out-sold the next most popular title on Blu-ray for the week by a ratio of 7 to 1. Blu-ray’s sales ratio to DVD was at a record high 15%, double that of normal weeks. The actual numbers for discs sold is a bit more sober in comparison though. Iron Man on DVD sold 7.2 million copies, while the Blu-ray version sold 500,000 – that’s a ratio of about 7%. This is an improvement compared to when HD DVD was still in the game, and I remember the disc volume ratio being closer to 3% back then. But Iron Man being only a single title, and one that propelled Blu-ray to a record week at that, so the average ratio may be closer to 4 or 5%. The Dark Knight already promises to beat Iron Man’s record, if the Amazon sales charts are anything to go by.

The Australian dollar crashing won't help Blu-ray sales

Not going too well though is Blu-ray sales in Australia. Australia is actually one of the few countries outside of the US and Japan to fully embrace Blu-ray hardware thanks to the PS3’s popularity and relatively low hardware prices (due to our proximity to Asia). But due to high movie prices (at one point, the retail pricing of Blu-ray movies were at $USD 50), importing movies from the US and even UK has been a cheaper way to get into Blu-ray. Not so anymore, after the Aussie dollar crashed this week, and with shipping, getting movies from the US is up from an average of $AUD 23 to now basically the same as local pricing ($AUD 40). A couple of months ago I even imported some Blu-ray movies from the US for sale here in Australia (on eBay), but that looks quite a silly thing to do now. If discussions on this issue in this Australian forum is anything to go by, Blu-ray imports will significantly drop in the foreseeable future. (But as someone who’s income in mainly in US dollars, it’s a good time for me!)

And finally in gaming, it’s another week so we had yet another story on Blu-ray coming to the Xbox 360, and yet another denial from Microsoft about it. I promised several months ago in the forum that I would never post another Blu-ray coming to Xbox 360 story, after the last ten I’ve posted have all turned out to be completely rubbish, just like this recent one.

This pic of an Xbox 360 Blu-ray player is as fake as the rumours about it

But this time I really believe it could be true, and once again, I was fooled. I once again question why people need to make up these stories, perhaps because PS3 fanboys would love the Xbox 360 to get Blu-ray to prove that Sony’s decision to include it was justified (that’s debatable because Blu-ray’s added cost and development time may cause the PS3 to lose the curr-gen console war, or at least not win it as dramatically as the PS2 did last-gen). The Xbox 360 has 11 million users in the US alone, so getting it to support Blu-ray would definitely be a major coup for Sony (but why would Microsoft want that?). I just can’t see it happening though, not until we see a sexier, quieter Xbox 360, because at this moment if the Xbox 360 gets Blu-ray, you only have to compare it to Sony’s effort and there is only one winner – the PS3. Why would Microsoft want to make this comparison anyway, unless they are coming out with a piece of kit that’s better suited to home theatre usage as the PS3. And then there’s the fact that the PS3 uses Blu-ray for games, and the Xbox 360 cannot, so that’s another point of comparison which the Redmond firm does not want. And with Blu-ray’s popularity not exactly making headlines (not the good kind anyway), it feels like Blu-ray needs the 360 more than the 360 needs it. So will Blu-ray come to the Xbox 360? I think it’s wishful thinking on part of many at the moment, but then again, wishful thinking has a way of becoming reality if enough people wish for it.

Okay, that’s all I’ve got this week. See you next week.

Posted in Copyright, High Definition (Blu-ray/HD DVD/4K), News Roundup, PS3, PS4, Xbox 360, Xbox One | Comments Off on Weekly News Roundup (12 October 2008)

MPAA vs Real Networks – Is RealDVD illegal?

Thursday, October 9th, 2008

By now, you should have heard about the MPAA’s lawsuit against Real Networks’ RealDVD software. To refresh, RealDVD is a DVD copying software from Real Networks. Unlike the many “illegal” DVD rippers around, RealDVD does not actually decrypt the CSS copy protection scheme on DVDs, and it even adds it’s own layer of DRM on top of that. The DVD files (with CSS encryption) are copied over to your hard-drive, and then with Real’s DRM, you are then limited to playback the copied files using Real’s DVD player software and only on the hard-drive that it was originally copied to (even if you clone the drive, or replace one drive in a RAID mirror array, the files will stop working).

Real Networks vs MPAA - the two parties involved (so far)

In other words, CSS is not broken, and no attempts are made to break it. The additional DRM means that copied files cannot be shared even with your other computer, let alone friends and sharing online. You could use RealDVD to copy the DVD to a portable hard-drive, which then can be shared between computers, but you would also need to buy a license for the RealDVD player software on each computer that you wish to watch the copied movie on. The only possible route to piracy is if you rent and copy, as the original disc is not required to be present after the initial copy process. Similarly, you can borrow discs from friends and copy them to your hard-drive. Whether RealDVD has some kind of measure to stop this kind of casual piracy, I’m not too sure about (since the software is no longer available due to legal action). And I think in the end, it is this functionality which has the MPAA all worked up.

So the MPAA has sued Real Networks, an injunction is now in place to prevent RealDVD from being sold, and it doesn’t look good for Real Networks. But the question is “Is RealDVD illegal?”

The DVD CCA is responsible for licensing CSS

The US DMCA legislation prevents circumvention of copy protection schemes such as CSS used on DVDs, regardless of whether the scheme is strong or not. In CSS’s case, it is not very strong at all, and any modern computer can crack the encryption in a matter of seconds/minutes through brute force methods. But despite that, breaking CSS is illegal in the US. However, RealDVD does not break CSS – in fact, it does not interact with CSS at all during the copy process, and only decodes it during playback like any other DVD player. The copied files are still encrypted, so CSS’s functionality remains intact. If what RealDVD does is considered ‘circumvention’, then you might say Windows Explorer’s Copy/Paste function is also ‘circumvention’, and file copying in general would be outlawed by the DMCA, which it obviously isn’t.

As for CSS, there is also a licensing agreement that goes with it. So instead of going after the copier component of RealDVD, the MPAA could go after RealDVD’s player component, which allows playback of CSS encrypted content without the original disc. You might remember sometime ago there was a court case involving a company called

Kaleisescape offers a similar system to RealDVD, but in hardware

Kaleidescape produces a hardware system that is similar to RealDVD, where DVDs are copied to a central server (with CSS intact), and the hardware player decrypts CSS encrypted movies from the hard-drive just as if it were from the original disc. The DVD CCA (the group behind CSS licensing) sued Kaleidescape and lost the case in court. An appeal is in progress as far as I know, but the current court ruling seems to favour RealDVD’s stance. Besides, it should be the DVD CCA launching the legal battle, not the MPAA.

RealDVD also adds its own layer of DRM protection, to prevent further file sharing (Kaleidescape’s system is encapsulated in hardware, so it has its own natural layer of DRM, but nothing on the same level of RealDVD). This should prove to the court that RealDVD is concerned about piracy as much as the MPAA. Because let’s face it, it takes all of two seconds to find an free DVD ripper software and once ripped, the files can be shared in any way you wish, so the DRM that RealDVD adds actually makes DVD copy protection stronger. It certainly doesn’t make it any weaker than it is, which is hardly possibly due to the weak encryption.

Managed Copy is here already, sort of, as "Digital Copy" on DVDs and Blu-ray movies

But what I feel is a very important issue in this case is the restriction of trade. The MPAA and movie studios have sounded out disc-less home theatre systems, and their own version of Managed Copy, which is still being planned for DVD (by Toshiba, the DVD Forum) and for Blu-ray (by the BDA, AACS LA). A Managed Copy system would be very similar to what RealDVD can do, and casual piracy would be hard to prevent. The studios have even said that the cost of casual piracy will be added to the cost of the package if MC is every introduced. So the only different between the MPAA’s solution to a disc-less HT is that the MPAA members would profit from such a venture, whereas Real’s solution means only Real profits. And I think this is why the MPAA is so worked up – Real is stealing their thunder and they don’t like it. The MPAA and studios have nobody to blame but themselves for this, because they’ve stalled on MC time and time again (despite heavy industry pressure from Microsoft, Intel, HP …), and MC is still a long way away from being a reality. If Real (and Kaleidescape) is smart enough to see the potential and make it a reality, then the MPAA really has no right to object, especially if no existing license agreement or law has been broken.

But I’m sure the MPAA won’t make this above argument, and instead, will concentrate on the point that RealDVD allows for casual piracy, and therefore, it must be illegal. Then again, casual piracy is also being enabled by devices such as VCR or DVD recorders, blank media, computers, even the concept of rentals, so where should one stop?

Suffice to say that a win for Real Networks would be to the benefit of consumers and the IT/CE industry in large, even if it is at the expense of movie studios. Instead of going to court, the MPAA and its members should be doing their best to produce an official alternative to RealDVD, a proper Managed Copy system that’s officially supported (and loss of revenue priced in). Discs are on their way out, and if the MPAA don’t realise this or don’t want to, then companies like Real should be free to satisfy consumer demands.

Posted in Copyright | 1 Comment »

Weekly News Roundup (5 October 2008)

Sunday, October 5th, 2008

I started last week’s WNR with news that my PS3 was fixed. I think I may have spoken too soon, as I’m now having problems with the wireless controller/remote. So my PS3 may be broken again, I posted earlier this week, but I may have spoken too soon, as the same problem hasn’t reoccurred yet. A lot to cover this week, so I’ll have to put my PS3 problems off for another week, until I’ve managed to replicate the problem again.

Starting with copyright news, Wal-Mart is the latest to abandon DRM. Normally, that’s good news, but because DRM is the world’s stupidest invention, it has grave consequences for users who did not pirate music and were honorable enough to buy DRM’d music from Wal-Mart. Wal-Mart will shut down its DRM authentication servers, meaning that the DRM’d music files will no longer play. As if people needed more incentive to pirate music.

Apple FairPlay Sued by Norway

And to prove how stupid DRM is again, Apple has been sued by Norway over Apple’s FairPlay DRM. DRM not only makes genuine consumers mad, it also prevents interoperability and fair competition, which is why Norway is suing. I’ve always thought DRM was more about proprietary technology and licensing fees, as opposed to piracy and all that. Sony agrees with me apparently, when the President of Sony Pictures Television said that DRM is one of the the major causes of piracy, although he has no intention of dropping it.

So not only does DRM cause consumer frustration, is anti-competitive, causes piracy, but it may also be killing Blu-ray. Apparently the prohibitive cost of implementing AACS (mainly licensing fees) means that it’s hard for independent producers may have to look elsewhere. Nearly $5,000 may be required to just publish one title on Blu-ray, and that’s for AACS licensing only. HD DVD’s specs said that AACS was optional, but the BDA insists on all Blu-ray discs to carry it, even if the content owners don’t wish to have it (so you can’t really say it’s all about copyright protection). The BDA’s insistence to push DRM onto consumers and producers equally is why I wish HD DVD had won the day, and I’m sure independent producers wished for it too.

So is piracy really that big of a deal in the movie industry? Sony, the champion of DRM and copyright control, is asking ISPs to once more become copyright cops. And yes, this is the same interview in which the Sony Pictures Television President also said DRM is a major cause of piracy and that they love DRM – therefore, they must love piracy. You know who also loves piracy? The MPAA. Despite the deteriorating economic conditions, movie ticket sales are up. Piracy is also up. So therefore, piracy helps movie ticket sales. The MPAA must be very pleased.

And following on the Spore DRM uproar, more and more gaming execs are turning away from DRM. Spore was a hit title that was always going to sell well, DRM or not, but for any other title, bad publicity caused by DRM could really just kill the title.

RealDVD: Not so legal, says MPAA

And finally in copyright, the big news of the week. The MPAA and Real Networks are now locked in a legal battle over the legality of Real’s RealDVD software. As reported earlier in the WNR, RealDVD is Real Networks’ “legal” alternative to DVD rippers, because it keeps the CSS encryption intact on DVDs and then add their own layer of DRM to prevent sharing of the copied movie. Despite this, the MPAA is not happy and wants RealDVD to be scrapped, and is suing Real Networks for breaching CSS licensing (again, despite RealDVD not touching CSS at all). This one will be worth keeping an eye on, as the legal decision could go either way. The way the MPAA is acting could be considered anti-competitive, not allowing a particular use of a product just because they’re not making money from it (I don’t think the MPAA is against this sort of “managed copy”, as long as they’re the ones to profit from it I suppose). And Real could have the capital to fight this all the way too. The Electronic Frontiers Foundation, champions of user rights and fairness in copyright protection, states in this article why they think the MPAA should lose this case. I’m not a fan of Real’s products, but I support them on this one 100%.

High Definition Onto HD news now, next week will be when the Iron Man Blu-ray sales figures filter through the Nielsen VideoScan figures. Early indication suggests that Iron Man Blu-ray will be the best selling Blu-ray title of all time, but I suppose that’s not really saying much. This week’s figures include the release of The Godfather Trilogy on Blu-ray, and as expected, it gave Blu-ray sales a bump to become the second best week (I think) ever (the best week being the Transformers bump). Next week should see Blu-ray break all it’s own records, although whether it will set records in terms of sales ratio to DVDs depend on how well the DVD version sells. With DVD users like myself preferring to buy movies a few months after their initial release, and Blu-ray owners (and early adopters) generally preferring to buy all the latest releases as quickly as possible, the figures should favour Blu-ray, but we’ll have to wait and see.

HD DVD in zombified form still selling well

The weird story of the week though is about HD DVD. Yes, that old thing. Apparently, HD DVD sales are still going strong, mainly due to the rock bottom prices that movies and hardware are being sold at. If anything proves that cheap will always outsell better, this is it (better in this case means a format which has a future versus one which definitely doesn’t). DVD will always outsell Blu-ray if this principle holds true, and DVD will never become a obsolete format as long as Blu-ray is alive (thanks to Blu-ray being backwards compatible with DVD). Toshiba is still not supporting Blu-ray, but they are adding PS3 technology to their TVs. I think the more accurate statement should be the PS3 using Toshiba technology, as the Cell processor that Toshiba will use in their LCD line-up is now a Toshiba owned product.

And as predicted a few weeks ago, prices for Blu-ray hardware will drop for the important holiday season. More reason not to buy a Blu-ray player until later this month or in November, December, when the sales really start. I’ll post any good Blu-ray deals I find in the usual place.

Although I’m quiet optimistic that Blu-ray will do quite well during this holiday season, mainly thanks to the major releases of Iron Man and especially The Dark Knight, it could always use a boost. Apple has always been a Blu-ray supporter, sitting on the board of the BDA, but it is strange why they haven’t announced support for Blu-ray in their computers yet. The theory is that Apple have their own plans in relation to movie distribution, and Blu-ray is not part of it (or you might even say that Blu-ray is against their plans).

Another way to promote Blu-ray may be to include the SD DVD version of the movie in the same package, like HD DVD combos (but clumsier in that you need 2 discs, but better in that the discs can be used at the same time). Disney is doing just this with the Sleeping Beauty Blu-ray version. The way I see it, if Blu-ray is to fully replace DVDs, then it will need a combo format of its own. If Blu-ray is happy to be the more expensive alternative to DVD, to exist side by side with it, then the current marketing strategy is working fine.

And in gaming, Xbox 360’s with the Jasper update may (or may not be) appearing in stores already. Jasper reduces the size of the GPU to 65nm, which will help reduce heat production and improve stability.

Will we ever see a slim Xbox 360?

The rumours of a “slim” Xbox 360 just won’t go away though, and there is definitely a new iteration of the 360 coming possibly early next year.

And that’s all the news for this week. I’m going to have to keep a close eye on the MPAA vs Real Networks legal battle, as I think the verdict of this case could prove quite important. If the MPAA wins, then unless they themselves come up with their own managed copy solution (which Real could then sue them for not allowing themselves to do the same thing), then the idea of a disc-less home theatre is dead. If Real wins, then we could see more and more products “circumvent” CSS legally. See you next week.

Posted in Copyright, Electronics, High Definition (Blu-ray/HD DVD/4K), News Roundup, Xbox 360, Xbox One | Comments Off on Weekly News Roundup (5 October 2008)

DVDGuy’s Blog @ Digital Digest

Archive for the ‘Copyright’ Category

Weekly News Roundup (9 November 2008)

Weekly News Roundup (2 November 2008)

Weekly News Roundup (12 October 2008)

MPAA vs Real Networks – Is RealDVD illegal?

Weekly News Roundup (5 October 2008)

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