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Strategery: Defeating The Online Enemies
September 29, 2006
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"There are already tough international laws already protecting copyrights on software, yet the world's largest software company, Microsoft, loses billions annually because their most popular programs are pirated globally. P2P websites multiply like rabbits globally and the RIAA still tries to legislate what technology should or should not be able to do."
-- From DISC&DAT, 'And So On, And So On, And Scooby Dooby Doo-bee', 4/21/05This week, in yet further evidence that, as I've said here too many times to mention, "anything done digitally can be undone," Microsoft filed a federal lawsuit against an alleged hacker who broke through its copy protection technology, charging the mystery developer somehow gained access to its copyrighted source code. (See story below ' Microsoft Sues Over Source Code Theft ' )
Two weeks ago in the newsletter in the news article titled 'Hackers Crack Apple, Microsoft', both Apple Computer and Microsoft saw their music protection technologies come under attack as separate programs emerged to strip away the digital rights management (DRM) tools that the two technology giants use to protect music from unauthorized duplication.
The new story is really an extension of the story from two weeks ago, but when Bill Gates and company go after the bad guys, they usually win. Well okay, they don't really "win." They just temporarily plug another hole in the digital dike that's supposed to contain the copyrighted content and source codes that are floating in the cyber-waters out there in the great wide-open Internet.
Of course, the same temporal plugs that apply to trying to protect software, apply to the efforts of the RIAA and the industry to stop CD piracy and illegal P2P usage, file-sharing, and illegal copying of copyrighted content. While every effort should be made to try and stop piracy, the fact is, it can never be eliminated because it's simply too easy (and too profitable) a business for too many bad guys to get into. There's lots of gold in them there bootlegged CDs, and as long as the pirates can load up their chests with cash from such efforts, the best the industry can hope for is putting out a few fires here and there while others start anew elsewhere around the globe.
Every problem is supposed to have a solution. But, when it comes to digital technology things are a bit different. As ex-Intel chief Andy Grove said, "A fundamental rule in technology is that whatever can be done will be done " Translation: Ain't no stopping all those ones and zeroes in all those programs from undoing anything they did in the first place.
So Microsoft, Apple, et al, fight on against the hackers. They've been doing that for a long, long time now. So far, I'd say the war against the hackers/downloaders/file-sharers, etc. is about as successful as the alleged 'war on drugs.' Both are noble battles for good causes. But both are wars that can never be won because the "strategery" is flawed.
What might be better strategery? Well, General George Patton said to win any war, you need to "Make your plans to fit the circumstances." I wonder just how many executives in the music, entertainment, software industries, and how many of our legislators down in Washington, D.C. have attempted to draft plans to fight the enemies that exist in the digital circumstances of today's world.
What's needed for the industry is a not an "exit strategy" from fighting these threats, but an "existence strategy" for the future.
Streaming Music For Smart Phones
Though discussion has lately revolved around whether Microsoft will elbow Apple Computer off its lofty perch in the portable music sector, a mobile software maker is trying to position itself as a threat to both.
The 3-year-old Internet radio service Mercora on Monday introduced "M," the first wireless, over-the-air mobile media application for smart phones. The software gives phones running Windows Mobile 5.0 the ability to play music wirelessly from a PC without compromising sound quality.
Read more about it by clicking here.
Review: TheApple iPod (80GB)
The latest version of the iPod has a few enhancements, including longer video battery life, support for some cool games, a brighter screen, a search feature, and larger capacity (up to 80GB). And the price drop is nice too.
Read more about it by clicking here.
Warner Music's YouTube Pact Raises Rights Issues
Warner Music Group's much-hyped licensing deal with viral video giant YouTube doesn't go into effect until later this year. But when WMG-controlled music and video does surface on the site, it's unclear how much content actually will be available.
The deal, in theory, clears all of WMG's recorded music and music video catalog for use on YouTube. In practice, that's a complicated goal. The easy part for WMG is delivering its existing catalog of videos for on-demand viewing through the site. Similar deals are already in place with the likes of AOL and Yahoo.
But making its recorded music available in user-generated videos created by the YouTube community is a much thornier proposition.
Read more about it by clicking here.
Retailers Betting on LCD TVs, iPods for Holidays
Although the holidays are still months away, major retailers like Best Buy and others go through their own holiday buying season in September and early October, stocking inventory in anticipation of "Black Friday," the day after Thanksgiving, which kicks off the holiday buying period for consumers. For now, products like LCD TVs and music players are already assumed to be among the top sellers.
It's never too early to plan for your holiday shopping list. So what's going to be hot this year? Well, it's not just Apple's new iPods, either. What's the perfect stocking stuffer?
Read more about it by clicking here.
Sirius Launches Portable Satellite Radio
Sirius Satellite Radio on Tuesday introduced its first pocket-size portable radio that allows subscribers to listen to live broadcasts and to digital music from their personal collection.
Sirius' Stiletto 100, which will compete with a similar portable line from rival XM Satellite Radio Holdings, will sell for about $350, Sirius said. It also has a short-range wireless Internet link that connects to Web radio, Sirius said.
Read more about it by clicking here.
Lime Wire, Squeezed, Files Countersuit
One of the last remaining peer-to-peer havens is fighting to stay alive.
Lime Wire, which was hit with a lawsuit in August by Warner Bros. Records, Virgin Records America, Sony BMG Music Entertainment and other music labels, filed a counterclaim in U.S. District Court in New York on Monday. The software company alleges in court filings that the record companies have engaged in unfair business practices to scare away its users.
In its countersuit, Lime Wire states that the record labels launched their own digital-distribution Web sites and alleges that the labels joined forces to be the sole recipients of any financial benefit.
Read more about it by clicking here.
MSN To Air Live Webcasts Of Concerts
MSN, Microsoft's Web portal, said on Tuesday it will make a big push to stream live concerts to its users after signing an exclusive global partnership with Control Room, the company behind the Web broadcast of last year's Live 8 event.
The move to offer major live performances online is the latest move by Microsoft to drive both consumer and advertiser growth on its sites with a range of new entertainment and media features to challenge or differentiate itself from rivals including Yahoo, YouTube and News Corp.'s MySpace.
As part of the multiyear agreement, MSN will exclusively air 36 different live events which will also be available for on-demand viewing for an agreed period afterward. The shows will be available on MSN's 42 sites around the world.
Read more about it by clicking here.
MySpace Trumps YouTube In Video
It didn't take long for MySpace to rule the digital video world.
The social networking juggernaut, owned by News Corp was the No. 1 video site in July, trouncing popular YouTube, seasoned Internet companies, like Yahoo, Google, and granddaddy media outfits like Viacom.
This is pretty significant considering that YouTube and Google Video have gotten all the press when it comes to who's garnering the biggest video-viewing audiences. But now that third-party figures are available for individual sites, we're beginning to see who's actually attracting those coveted eyeballs.
According to a new video report that comScore Media Metrix will begin offering starting Tuesday morning, 37.4 million unique individuals watched a video on MySpace in July. All told, they collectively watched 1.4 billion videos.
By comparison, the audience on Yahoo watched 812 million video streams, making Yahoo the No. 2 most popular video site as measured by video streams. Yahoo ranks No. 1 as measured by unique streamers (similar to unique visitors), but barely beats out MySpace.
Read more about it by clicking here.
Zune Details Unzipped
Microsoft's 30GB Zune digital-media player will sell for $249 when it hits store shelves on Nov. 14, the company said Thursday as it released more details on the device. The Zune's price will put it in direct competition with Apple Computer's latest 30GB iPod, which also costs $249.
To introduce the companion Zune Pass music service, the device will come preloaded with songs, music videos and film shorts from the store. A Zune Pass will cost $14.99 a month, or $44.97 for three months.
Read more about it by clicking here.
Microsoft Sues Over Source Code Theft
Microsoft has filed a federal lawsuit against an alleged hacker who broke through its copy protection technology, charging that the mystery developer somehow gained access to its copyrighted source code.
For more than a month, the Redmond, Wash., company has been combating a program released online called FairUse4WM, which successfully stripped anticopying guards from songs downloaded through subscription media services such as Napster or Yahoo Music
Read more about it by clicking here.
THIS WEEK'S 'WHO CARES?' NEWS ITEMS
ITEM#1: CBS reached a deal with the Southern California band Supernova, who sued the network for unfair competition and trademark violation when 'Rock Star: Supernova' kicked off in July. The band no one's heard of will no doubt earn more from the lawsuit than they ever could selling CDs.
ITEM#2: Almost two months after he made anti-Semitic comments when arrested for driving drunk in Malibu, Mel Gibson made a surprise appearance last Friday at Fantastic Fest, an event in Austin, Texas. According to The Hollywood Reporter, he presented a work-in-progress screening of his Mayan adventure tale, "Apocalypto," and then went on to say America (like the Mayan culture he shows in his film) is a civilization in decline. Gee...Mel, you'd better hope the civilization doesn't decline much further...you do want to sell tickets at the box office, don't you? I guess getting cited for a DUI and making anti-emetic comments is evidence of YOUR decline.
ITEM#3: Yusuf Islam, the singer formerly known as Cat Stevens, speaking out against Pope Benedict XVI's comments on Islam that called Muhammad "evil and inhuman." Yo Yusuf, go back and listen to a song you wrote decades ago called "Peace Train."
ITEM#4: In the case of Wacko vs.Wacko, a New York judge on Monday dismissed a $10 million spousal abuse suit against Liza Minnelli filed by her estranged husband David Gest, who claimed the entertainer assaulted him in a drunken rage. The plaintiff complaint must be dismissed in its entirety.
ITEM#5: Lindsay Lohan. Nothing specific...but why do we need to know anything about her?
CONGRATS
CONGRATS TO: Jimmy Kimmel tapped to return as host of the American Music Awards, airing Nov. 21 on ABC.
CONGRATS 2: To Bob Seger, who kicked ass on David Letterman on Wednesday night, and announced he'll be hitting the road in November. If you've never seen Bob in concert, don't miss this tour.
GETTING BETTER
Aerosmith lead singer, Steven Tyler, admitting he was diagnosed with Hepatitis C three years ago, but telling 'Access Hollywood' that after a year of interferon treatment, "which almost killed me," the disease is "nonexistent in my bloodstream...it's like a complete cure."
IT'S GOOD TO BE THE KING, DEPT
David Geffen, George Lucas, Steven Spielberg and Donald Trump all making Forbes' annual list of the 400 Richest Americans.
'CSI' PEAKED?
Overnight ratings last week showed that the 'Grey's Anatomy' season premiere bested its competition, with 25.15 million viewers to 'CSI's 22 million. Gee, maybe the reason is because there's 'CSI,' 'CSI-New York,' 'CSI-Miami,' so the public really doesn't care which CSI they watch?
YOU MEAN HE DID THREE ALBUMS LIKE THIS BEFORE THIS ONE?
Paul McCartney's fourth album of classical compositions, Ecce Cor Meum (Behold My Heart), to be performed at London's Royal Albert Hall Nov. 3.
I DOUBT IF ANYONE IS GOING TO COLLECT THIS REWARD
The Los Angeles City Council reinstating a $50,000 reward for information leading to the arrest and conviction of whoever gunned down the Notorious B.I.G. nine years ago.
'IDOL' NOT IDLE WHEN IT COMES TO AD DOLLARS
Advertising Age reporting that for the third year in a row, Fox's ratings winner, American Idol, will command the highest advertising prices on television, with a 30-second spot going for $500,000 to $700,000.
SE HABLA ESPANOL CON MUSICA
MTV launching yet another cable channel today, MTV Tr3s, with music and programming aimed at the Latino community.
KATIE IS #2
According to Nielsen Media Research Fast National data, "NBC Nightly News with Brian Williams" was the No. 1 network evening newscast, winning all five nights in total viewers and placing first in all categories for the week of September 18 - 22, 2006.
For the week, NBC attracted 8.182 million total viewers, 6% more (+492,000) than second place CBS "Evening News'" 7.690 million, and an 8% advantage (+602,000) over ABC "World News'" 7.580 million viewers. viewers.
FILE THIS UNDER POSSIBLE HIGH MAINTENANCE
TMZ.com reporting exclusively that Jennifer Lopez parted ways last weekend with her manager of over a year, Hollywood heavyweight Jeff Kwatinetz, head of management company The Firm.
SURPRISE, SURPRISE
Michael Jackson has parted ways with Two Seas, the Bahrain-based record label he signed to earlier this year after announcing it would release his first album since 2001. Is there anybody or anything that hasn't parted ways with Jackson in recent history? Two wives, countless attorneys, Neverland, most of his industry friends, his face...he's parted with all of them.
GEE, I WONDER WHY?
Janet Jackson telling Oprah Winfrey that she hasn't spoken to Justin Timberlake since the 2004 Super Bowl wardrobe malfunction seen 'round the world, saying he left her hanging. Literally.
BUT DID SHE HAVE FUN?
Olivia Newton-John sat in as a guest judge during the third round of 'American Idol 'auditions in Los Angeles this past Tuesday.
IT'S NOT TV, IT'S HBO
Bono set be the first guest on former Eurythmics member David A. Stewart's untitled interview show for HBO, described as "musicians on musicians."
JAY MAY STAY IN SOME WAY, AND NOT GO ALL THE WAY AWAY
Jay Leno could remain at NBC beyond 2009 when he cedes his "Tonight Show" desk to Conan O'Brien. NBC Universal Chairman-CEO Bob Wright said the network will try to craft a new role for the man who succeeded Johnny Carson. "We will do our best to entice Jay to do any number of things, and he'll make that call," Wright said this week at an Advertising Week event in New York.
KILLERS DO TRIPLE SET ON KIMMEL
The Killers will become the first band to perform for three consecutive nights on Jimmy Kimmel Live Oct. 3-5, to pimp out their forthcoming album,' Sam's Town.'
EVEN THOUGH THE HOUSING MARKET IS DOWN DRAMATICALLY
Billy Joel putting his 14.26-acre Long Island estate up for sale for $37.5 million.
IF YOU MISSED IT THE FIRST TIME AND WANT TO SEE A QUINTUPLE PLATINUM ARTIST IN THE MAKING, HERE'S YOUR CHANCE
'American Idol Rewind' is a brand new look at the very first season of this TV phenom- featuring new episodes, behind-the-scenes trivia, updates, and plenty of never-before-seen footage ... including some from the auditions. Now you can see Kelly Clarkson before she sold over five million CDs. The Season One Premieres this weekend. Check here for the time and station in your hometown if you want to check it out.
COMING SOON!
- The Killers, Sam's Town (10/2)
- Evanescence, The Open Door (10/2)
- Beck, The Information (10/2)
- The Decemberists, The Crane Wife (10/2)
- My Chemical Romance, The Black Parade (10/24)
- John Legend, Once Again (10/24)
2006 Industry Conferences
Date Name Location CMJ October 31 - November 4 New York
A Highly Recommended Read
'Convergence Culture', by Henry Jenkins. The book deals with the collision of popular culture and technology and in my opinion is a must read for anybody who wants some great insights into what might emerge from the outcome.
Quotes of the week
"I did it to encourage mankind to help one another and to see the world as a unified whole. I believe in my heart that if Jesus were alive today, he would be doing the same thing."
-- Madonna, defending the mock-crucifixion she staged at the end of each concert during her $193.7-million-grossing Confessions tour. Hey, Ms. Material Girl, you really think Jesus would get back up on the cross to sell concert tickets???"ABC's 'Dancing with the Stars' was on last night. Apparently, the object is to try and find the star."
-- Comedian Alex Kaseberg"How's the new car, Mom and Dad? Maybe I'll be a jerk and buy you a new house!"
-- Steve Carell, on how he responded to his parents' inquiry as to why he never plays "someone nice," to Jay Leno."I make black records. I write records like I speak, and I don't try to change my songs so everyone else likes them."
-- Beyonce, to Blender magazine. Well, excuuuuuse us, Beyonce! I thought music was the one thing that didn't have a color attached to it."I thought I was going to throw up or pee in my pants. I didn't know which one I was going to do."
-- Jessica Simpson, on being nervous about the reception of her film Employee of the Month at the screening. Uh, if you're nervous now Jen babe, wait until the critics get to see it."I'm not a promiscuous girl like I talk about in 'Clumsy,' I'm always the girl with the boyfriend in serious relationships, but I do like to play with my sexuality. I don't think that means I have to live in a morgue."
-- Black Eyed Peas singer Fergie.
The B-Side - 'Blips'
NOR RAIN, NOR SLEET, NOR SNOW, NOR SUSPICIOUS PACKAGES SHALL STOP THE MEN IN BROWN...OOOPS, THEY WERE REALLY MEN IN BLUE: SARASOTA, Fla. -- Police said two Sarasota men were behind bars for what they received in the mail: 48 pounds of marijuana.
Antonio Camacho and Danny Cruz were charged with trafficking in marijuana over 25 pounds.
The Sarasota Police Department Narcotics Unit received a tip that a suspicious package was being shipped from Houston to a house in the area.
Detectives disguised themselves as United Parcel Service workers once the packaged arrived and delivered it. Police later searched the home and found the drugs inside.
Box Office
Check The Daily & Weekly Box Office (and more film info) at: www.boxofficemojo.com.
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