Archive for the ‘NPD Analysis’ Category

Weekly News Roundup (18 August 2013)

Sunday, August 18th, 2013

I’m finding it a bit difficult to come up with an intro to this WNR. Probably because I only slept about 5 hours last night. And that I have nothing of real interest, and on topic, to share this week (although I have to say I’m quite enjoying the Netflix original Orange is the New Black). But most likely the sleep thing.

Onto the WNR.

CopyrightThe anti-DMCA, anti-censorship, and pro gay rights movements combined this week to form the perfect storm. It all started when controversial heterosexual rights group (yep, you read it right) ‘Straight Pride UK’ used the DMCA takedown process to censor their own response to a Q&A.

Not happy at how their own answers looked on student and freelance journalist Oliver Hotham’s WordPress blog, Straights Pride UK threatened Hotham with a DMCA takedown notice if he did not remove the content voluntarily; a threat that was eventually carried out.

The Streisand Effect did its thing and the removed article got more attention than it might have ever had, had Straights Pride UK simply let Hotham publish it without interference. Even Automattic, the owners of WordPress, eventually had to make a statement calling the DMCA takedown a clear case of abuse and censorship.

Not going into details about Straight Pride UK’s assertions, this latest incident shows again why the DMCA is deeply flawed, and how copyright laws now hamper creativity and speech, when the whole idea behind copyright is to promote these things (by giving copyright owners incentive to continue to create and speak). Copyright is one of many things that have been co-opted by moneyed interests to work directly against its original intended purpose.

To put it in another way, piracy isn’t always an anathema to the creative industry. While all the others are hitching a ride on the Internet-piracy-is-to-blame-for-everything bandwagon, it’s much easier to see piracy more as a nuisance than a curse if you happen to have *the* hit show of the moment. And if take this a couple of more steps in the same direction, piracy is not only not harmful, it’s actually quite good. Or more precisely, it is the reflection, the response, to something quite good.

Game of Thrones: Giants

Piracy has not been a Giant problem for Game of Thrones (sorry)

At least that’s what the CEO of HBO’s parent company, Time Warner, thinks. Jeff Bewkes told investors during an earnings call that Game of Thrones’s piracy record is actually better than winning an Emmy thanks to piracy’s “tremendous word of mouth thing”. And word of mouth, or buzz, is what drives new subscribers, according to Bewkes.

Premium cable isn’t a stranger to piracy. Whether it’s the old fashioned illegal hook-up, or shared subscriptions, or the Internet, piracy is piracy. And in Bewkes’s experience, piracy eventually leads to paying subscribers.

It’s definitely an enlightened view from an industry that hasn’t always been very enlightened when it comes to the “nothing good has come out of it” Internet. It also makes sense. The reasons for people wanting to pirate something is also the same reasons that makes people want to pay for whatever it is. With desire taken care of, it’s just then a problem of finding out why people aren’t paying; whether it’s an issue of price; user friendliness; or availability.

It’s only when you have a poor product, or a business model based on poor value, that piracy then starts to play a bigger role in determining profitability.

As for Game of Thrones, it’s good to be the King (of television drama).

Gaming

Has the anti Xbox One DRM backlash been unfair to Microsoft? Veteran game designer Peter Molyneux thinks it has, as he says gamers have misunderstood the long term vision behind Microsoft’s ill-fated and now reversed changes. Molyneux not only thinks that gamers too harshly judged Microsoft for its bold vision, but that they continue to harshly treat the company even after it folded and gave gamers everything they wanted.

Xbox One Controller

Have we judged Microsoft too harshly for their DRM snafu?

Molyneux believes in Microsoft’s vision because he says that the future of gaming is indeed online, and being online almost all of the time. But he also adds that it is up to game companies like Microsoft to create the applications that take advantage of being online all the time, and to explain the benefits; something I think everyone can agree that Microsoft did a poor job of.

To me, everything Microsoft did seemed to be too reactive. They failed to anticipate the backlash and once it materialized, they continued playing a losing game of catch-up. For example, the whole used game trading scheme seemed like an afterthought, instead of being baked right into the design – either Microsoft didn’t explain it better, or it really was a reaction to the backlash. And the reversal was the ultimate reaction, some might say over-reaction.

Personally, I liked the idea of not having to use game discs. I thought that by allowing the re-sale and trading of digital purchases was a revolutionary idea (one that could have changed copyright law, for the good, forever). And I too agree that the future of game distribution lies online. But I also think that discs still have a place, and that gamers should have been given a choice of whether they wanted to do it the old way or the new. And at the very least, Microsoft should have lined up all of its re-sale/trading/sharing ducks before they unleashed their creation onto the world (and then failed to answer some very simple and expected questions).

It’s not what you say. It’s how you say it. Sometimes.

As for the latest NPD results, showing US video games sales in July, the only thing I can say about the Xbox 360 being the most popular (home based) console is that its sales were poor, but others were poorer. With only 107,000 Xbox 360 units sold in the whole month, this was 47% down compared to just a year ago. And the Wii, the Wii U and the PS3 all did worse as well.

Wii U sales are pegged at closer to (and probably under) 30,000, according to unofficial sources, and it is steadily dropping as well. The PS3 will have come closest to the 360 numbers, but not close enough.

But it is close enough to the end of this WNR. So close, that it could end at any moment. Like, right in the middle of this sente

Weekly News Roundup (21 July 2013)

Sunday, July 21st, 2013

I spent most of this last week watching Dexter on Netflix. I do worry though that binge watching a show about a serial killer might have a bigger impact on my psyche than your typical binge watching choice. Binge watching is great for killing a bit of time now and then, but if it cuts too much into your life schedule, then it can become harmful.

But it’s okay, I’m far too lazy to ever become a serial killer. Or a serial anything.

Onto the news.

CopyrightThe randomness of DMCA takedown submissions to Google has once again reared its ugly head, with HBO asking a page containing a download for the popular open-source VLC media player to be delisted from Google’s results.

With more than 14 million links being removed from Google’s results just in the last month alone, and with little or no consequence for submitting incorrect takedown requests, mistakes are going to happen. It’s likely that HBO outsourced the collation of these links to a third party, which then probably used an automated keyword based algorithm to locate suspicious links. If that third party failed to do some basic verification of the automatically gathered links, then this is what happens.

While Google probably has their own method to detect and ignore incorrect takedown requests, but mistakes still do happen. If it’s a popular domain or page, then the site owner might file a counter claim which will be successful and will get the URL reinstated. But on a page like this one, where it’s a legal download on a torrent site, it’s unlikely the site’s owner, or the people who make VLC, will make the effort to file a counter claim, and so once the mistake happens, it’s permanent. Just how many permanent mistakes have happened via Google’s DMCA process, nobody knows.

As for HBO, at least they didn’t try to remove their own webpages like they did last time.

Roll of money

The MPAA supports getting money out of piracy, but not if it has to do any of the work

Opening up another front in the war against piracy, Google (and Microsoft, Yahoo and other major web advertisers) this week announced new plans to stop the flow of money to websites suspected of providing infringing content. The new plan was brokered by the Internet Advertising Bureau with help from the White House, and will allow rightsholders to alert ad networks of potentially infringing sites and get them booted off the network.

With the MPAA harping on about getting money out of piracy, you’d think they would be the first to offer support to this new initiative. But surprisingly, or perhaps unsurprisingly, the MPAA wasn’t impressed at all, calling the new initiative too narrow, and saying that too much of the anti-piracy burden is being placed on rightsholders.

The “everyone else should do the work, not us” stance isn’t a new one from the film industry, but having just months ago praised industry-led efforts like this one, the MPAA’s dissatisfaction is a bit hard to understand. If I didn’t know better, and I don’t, it would almost as if the MPAA preferred the likes of Google and Microsoft to do nothing. This way, the tech industry can continue to be the scapegoats in all of this, the straw men in their bid to get continue the government subsidization of this billion dollar industry.

Whatever the reason is for the entertainment industry’s single-minded pursuit of a technologically-led solution, the technology sector is actually coming up with real and working entertainment-led solutions to the same problem. A newly published report from Norway shows that music piracy rates are now only a sixth of what they were in 2008, and it’s largely thanks to legal alternatives such as Spotify.

The report found that illegal music downloads topped 1.2 billion in 2008 in Norway, but is now down to only 210 million (as of 2012). Further proving that Spotify and platforms like it are solving the piracy problem, the report found that 47% of those surveyed used Spotify, with an amazing half of these people also choosing to pay for the premium version of the music streaming service. Just goes to show that people are willing to pay for music, as long as you give them a product that’s worth paying for.

Spotify Logo

Spotify helping to kill music piracy at least in Norway

Film and TV piracy in Norway also declined, but not by as much as music piracy. With Netflix only available in Norway from October 2012, we’ll probably see bigger declines when the 2013 figures are out.

But not everyone is happy with Spotify though. Thom Yorke and Nigel Godrich of Radiohead last week pulled their music from Spotify, criticizing the music streaming platform of being “bad for new music”. The musicians criticized Spotify’s royalty payment system, which they say ensures new musicians will never make it, while Spotify “shareholders will shortly being rolling in it”.

Spotify responded to the criticism by saying that $500 million in royalty payments have already been paid out to rightsholders, and that this figure is likely to reach $1 billion by the end of 2013, and that much of this money “is being invested in nurturing new talent and producing great new music”.

Note that payments to rightsholders does not always equal payment to artists. Music labels talk about artist rights, but the reality is that only a small slice of revenue actually goes to the artists. In the age of record stores and CDs, where labels did all the promotional work, this may have made sense. But in the age of self-publishing, perhaps it’s time for artists to take control of their own destinies, and get a bigger slice of the pie as a result.

Gaming

The June NPD stats are out looking at US video game sales in that month, and Microsoft’s Xbox 360 was again the top selling home-based console with 140,000 unit sales. This is the 30th month in a row that the 360 has been the best selling console.

Sony was their usual quiet self, despite the critically acclaimed The Last of Us being the top selling title of the month, the third highest selling game in June since 1995.

Nintendo did put out a PR statement, but it was exclusively focused on the 3DS, which did sell 225,000 units. No mention of the Wii U at all, which doesn’t bode well for the much-maligned console.

It’s definitely the calm before the storm at the moment, what with only a few more months left until the release of the PS4 and Xbox One. I just hope that with a new generation, the NPD and the gaming companies involved will be more generous when it comes to releasing sales figures. Wishful thinking, perhaps.

All right, that’s it for the week. Not too long, not too short. Just right. See you next week.

Weekly News Roundup (23 June 2013)

Sunday, June 23rd, 2013

Take the Xbox 360, go back 359 steps to get the Xbox One, but then do a 180, and you get the new Xbox, same as the old Xbox. Kudos to Microsoft for taking the risk in the first place, and then sense to reverse everything. I know some will say that going back to the old and safe is a coward’s way out, but for a company as big as Microsoft where the wheels turn very slowly indeed, I’m surprised they were able to reverse course as quickly and as decisively as they did. Anyway, more on this later, as we start this WNR with the usual copyright news first.

CopyrightThe White House was in full self-praise mode this week as the Obama  administration’s Copyright Czar released the 2013 Joint strategic Plan On Intellectual Property Enforcement (IPEC) report.

The Pirate Bay 3D Ship Model

3D printing piracy is on the White House’s hit list

The report highlighted the various controversial achievements the administration has made on the issue of IP enforcement, including the controversial Operation In Our Sites (which managed to seize a bunch of innocent domains by circumventing due process) and the controversial Megaupload raid (which is looking increasingly fishy as time goes on), and also welcomed new industry-led initiatives such as the controversial ISP six-strikes program and urged for more of the same.

Focusing not only on the past and present, the report also looked into the future and pointed out the areas in which new controversial measures can be deployed. Cloud computing, mobile computing, data storage and especially 3D printing were all singled out as areas that might need an urgent dose of anti-innovation.

3D printing is especially interesting due to the recent news involving the administration’s crackdown on 3D printable guns. Conservative and pro-gun groups were not impressed, as expected, but I wonder what their reactions would have been if people had been able to download and print copyrighted gun designs from the likes of Ruger, Remington and Smith & Wesson? Copyright and protecting the interests of gun makers might just out-trump their believe in the right to bear arms.

High Definition

Blu-ray revenue for 2012 was up 10%, with an even bigger increase in unit sales as the average price of Blu-ray titles dropped to just under $20, a new report shows.

Blu-ray sales and digital delivery helped to offset declines in DVD sales, and helped to produce a 0.25% rise in home entertainment spending in 2012. It doesn’t sound like much, but this was the first time in seven years that an increase, any increase, was recorded.

Reading the report, I also found that I’m in the top 10% of disc buyers, who spent on average $527 on movies in 2012. I spent nearly this much just on Amazon’s Black Friday sales last year, I think.

For more Blu-ray sales stats, have a look at my analysis from a few weeks ago, which indicated a 10% increase in average weekly revenue in the past year, so not too far off.

Gaming

Who says complaining on the Internet doesn’t work? Complaining got iTunes (and the music industry) to remove DRM. Complaining got SimCity buyers a free game that was actually playable and better than SimCity. And this week, complaining got Microsoft to turn the Xbox One into the Xbox 180, completely reversing the controversial DRM changes previously introduced.

Xbox One disc based games will now work in exactly the same fashion as Xbox 360 games (and PS4 games). No more once-every-24 hours Internet connection requirements, no more used game trading restrictions – status quo here we come! The downside of the reversal is that game discs will again be needed every time you play a game, which is a shame.

Xbox One Forza 5

It’s back to the future with the Xbox One – DRM will now be exactly the same as the Xbox 360 after Microsoft backs down

And almost lost in the good news, Microsoft is finally getting rid of regional restrictions, so no more PAL/NTSC nonsense when buying games overseas.

So does this make the Xbox One a contender again? Well to be honest, it always was. But the PS4’s $100 cheaper price tag and the fact that not everyone wants a Kinect, means the advantage is still with the PS4. Just not as big as it was last week. Now that the DRM distraction is over, Microsoft can concentrate on convincing gamers why the Xbox One is better than the PS4, how the built-in Kinect can allow for experiences that won’t be available on the PS4, and the benefits of having a system designed as a centerpiece of your home entertainment needs. Still a steep mountain to climb for Microsoft, but at least it’s no longer Mount Everest. Please vote in our post-Microsoft-DRM-backdown poll here to let me know if you’ve changed your mind on the Xbox One.

And I know people can get carried away with good news like this, but please do not refer to the PS4 or the Xbox One as having “no DRM”. I’ve already seen one article that describes the Xbox One policy change as “no more DRM”, and that’s just not true. There’s always been DRM on game consoles – it’s why you need to insert the disc to play the game even if you’ve already installed the game to your HDD – and they will most likely always be there. For the PS4 and Xbox One to be truly DRM free for gaming, discs should not be required after the initial install, there shouldn’t be any need for online checks, and there should be unlimited installs per disc (as to facilitate sharing, trading, etc…). There’s a better chance of a Halo game for the PS4, or a Uncharted game for the Xbox One, than this DRM-free thing happening unfortunately.

Still, I can’t help but feel a little disappointed in that the Xbox One will now basically be the same as the PS4. Some of the changes were actually good ideas (no more discs, and for the first time, having a system that allows for digital goods to be traded/sold …), but the actual implementation and the PR was just horrible. Had Microsoft stuck to their guns, it would have either revolutionized console gaming, or it would have been the worst fail in the history of gaming. Either of which would have been extremely interesting for someone who writes about these kind of things. Oh well.

And before I move on, I thought this was funny too.

Going back to the previous generation, there are reports that the latest PS3 firmware version 4.45 is bricking consoles. Or rather, the XMB will refuse to show up after the update on selected PS3 models. Sony are aware of the problem, but have yet to release a fix. They’ve temporarily pulled the firmware from the servers, but if for some reason you get prompted for 4.45 update, best to skip it if you want to be completely safe.

Those with already bricked consoles will have to wait for a fix (the latest is that Sony plans to release the fix next Thursday, the 27th), hopefully one that can be done over the Internet via a new update.

Xbox 360 Super Slim

The new Xbox 360 matches the design of the Xbox One

The May NPD report was also out this week. With only Microsoft providing hardware data, and not their usual “percentage of total console sales” figure, not much can be really drawn from the 114,000 Xbox 360’s that were sold in May. Other than the fact that 114,000 really isn’t a very big number at all. For comparison’s sake, 160,000 Xbox 360’s were sold in May 2012.

Even with the low number, the Xbox 360 outsold the PS3 and, the Wii and the Wii U in May in the US. No wonder the other companies no longer release solid hardware numbers.

Lost in the excitement of the Xbox One DRM fail was the news that a new Xbox 360 console, dubbed “Xbox 360 Super Slim” (despite not being any slimmer or smaller than the current Xbox 360), has been released. It’s designed like a baby version of the Xbox One, and could form part of Microsoft’s strategy to turn the 360 into their budget console (which may also be pluggable into the Xbox One’s HDMI input port for pseudo backwards compatibility).

Microsoft will hope the new Xbox 360, even though it doesn’t carry a lower price, will spur sales a bit.

And that’s another week done and dusted. See you next week.

Weekly News Roundup (19 May 2013)

Sunday, May 19th, 2013

Welcome to another edition of the WNR. I think I’m getting a little bit too excited about the new season of Arrested Development, coming exclusively to Netflix this time next week. I’ve got my unauthorised Netflix subscription up and running ready for the final countdown, preparing myself with a pre-launch binge watching of the previous season that I hope won’t turn out to be a huge mistake, and when May 26 rolls around, I’ll be ready to say “annyong” to all 15 glorious episodes of the new season.

Before I can do that, I’ll have to get through this week’s WNR.

CopyrightSo it’s “Hollyweb” here we come. The W3C this week formally approved the use of the Encrypted Media Extensions (EME) to the HTML5 standard, which opens the door for DRM to be officially infected into HTML5 videos. EME won’t actually handle the DRM itself, but it’s a standardized framework that allows third-party DRM support.

The W3C says this is actually good for the open web because since DRM isn’t going away, the alternative would be an increasingly closed off web reliant upon proprietary systems to DRM’d video delivery (so basically what’s happening now). Even without EMEs, someone will find someway to squeeze DRM into HTML5, but the framework won’t be standardized or open or managed by the W3C. Or worse, DRM’d videos like Netflix would simply move off the open web, and be confined to the “walled gardens” of apps.

Hollywood: Stop DRM in HTML5

It’s Hollyweb, here we come, as HTML5 given the DRM go-ahead

Opponents of the move would point out that Flash and Silverlight, the two main proprietary systems used for DRM’d video delivery right now, are dying a slow death and a DRM-free HTML5 video standard would have forced a rethink on the whole DRM thing, for better or worse. But perhaps the W3C does have a point, in that the current climate would never allow DRM-free copyrighted videos to be distributed by Netflix, Hulu and others. If Flash and Silverlight officially dies or no longer works, and if DRM isn’t a viable option in HTML5, then just like the W3C predicts, we will lose the ability to use Netflix and Hulu and others via the web.

As expected, a lot of anger is being directed at the W3C, and the proponents of EME, Netflix, Google, Microsoft among others. But it’s important to remember that given a choice, none of these groups actually want DRM. Only Big Content is obsessed with DRM, and as long as they’re in the powerful position of being gatekeepers for the content we want, we will always have DRM. Let’s not forget who the enemy is.

And the enemy this week has been busy promoting its vision for Hollyweb, and how if you ignore the problems of DRM, unskippable ads, the arbitrary and fleeting nature of what is and isn’t available, and the sometimes high cost of it all, then there’s no way anyone should ever want to pirate. The MPAA this week launched a new website WheretoWatch.org to promote all the legal alternatives to piracy, providing a summary for most of the online based video services available today. It’s a slight change in tactics for the MPAA in their CRusade Against Piracy (CRAP™), designed to counter the argument that legal alternatives aren’t present.

Except that’s not the argument at all. The argument is that the legal alternatives, while definitely present, aren’t nearly good enough.

The problems? Content, for one. Netflix is probably the best, and certainly the most popular of the legal alternatives, but can you really honestly say that it has all the content that a typical web pirate would be looking for? I would actually say it’s the opposite, in that what Netflix has is all the stuff that pirates aren’t looking for. This isn’t a bad thing though, because due to the way BitTorrent transfers work, the “nobody wants to download” stuff are usually the ones that are quite hard to pirate as there just aren’t enough seeders normally. And sure, Hulu Plus has a lot of recent content, but that brings us to the second issue: ads.

WheretoWatch.org

Plenty of options, but none that will satisfy people like piracy will, even if you don’t consider the pricing discrepancy

Now, advertising is needed, that’s not a question. But when you have to sit through four 30-second unskippable commercial breaks for every 20 odd minutes of content, and when the ads are pretty much just the same set, then it gets boring rather quickly. And this is despite having paid a monthly subscription fee for content you could have recorded on TiVo for free.

And that’s only when the service you want allows you to pay for it in a standalone manner. Try and get HBO Go without a cable HBO subscription, and see how far you get.

For the content that you really want, cost then becomes the biggest obstacle. For example, the HD version of Life of Pi on the Australian iTunes costs $29.99, but you could have purchased the limited edition Blu-ray 3D/Blu-ray/DVD/Digital Copy edition last week for less than $27. Where is the sense in this, and is it Apple’s fault, or the fault of 20th Century Fox, the distributor of the film? The regional price gouging is not new, and even government sponsored investigations into this issue seems to have had no effect on this greedy practice.

But the biggest problem with WheretoWatch.org is the fact that it is almost completely useless for someone, like me, who isn’t in the United States. Almost all of the services listed are US only, and only a couple out of the rest are actually available in Australia (and usually with reduced content). The fact that the MPAA went to all this trouble and still managed to forget anyone who isn’t in the US is precisely the reason why piracy rates outside of the US are much much higher. The MPAA being a US based organisation can be used to excuse the US-centric nature of WheretoWatch.org, but this misses the point that the MPAA are also representatives of the owners and gatekeepers of the content that those of us outside of the US want to watch. I’m sure we would all pirate less in Australia is we had HBO, or Hulu, or Netflix, without having to go down the geo-unblocking route.

The problem with legal access will be a key point in a new proposed reform of France’s copyright laws. With HADOPI three-strikes proving to be entirely ineffective in stopping piracy and hugely unpopular, a new report titled Culture-Acte 2 aims to re-balance copyright law to address the shortcomings of HADOPI. While “three-strikes” will be kept under the recommendations, the report also calls for making films and TV shows to be available on on-demand services far quicker than the current 36-month average. There’s also suggestion of a smartphone/tablet tax of 1%, to help fund the reforms.

In my mind, the current piracy problems are almost entirely due a supply and demand issue. Demand is high, but supply is limited and restricted, all of it intentionally in order to squeeze more out of a particular market. This would normally work to keep prices and revenue high, but once piracy becomes an alternative supplier, one that’s super cheap as well, then the artificial supply limitations and restrictions only end up driving more “customers” to piracy. And due to DRM, lack of interoperability and other issues, the legal product is often inferior to the illegal version, compounding the issue further. There’s also a deep lack of understanding into the preferred method of consumption, with the “all-you-can-eat” nature of the web naturally encouraging consumers to want the same with their video consumption needs, but with the option usually unavailable for the content that people actually want, the new release content.

I’m not sure if the government can or should legislate how the demand should be met by supply, but punishing consumers for wanting something better doesn’t seem like the solution to me.

——

A new study has found that the game industry’s own reported piracy figures may be magnitudes higher than the real piracy rate. Shocking! What a total surprise!! [INSERT SARCASM SMILEY].

The new study by professors at the Aalborg University and the Copenhagen Business School found that while piracy rates were still quite high, 12.6 unique downloaders in a 3 month period, it wasn’t nearly as high as the 10 million downloads per month that the industry has been touting.

The discrepancy is easy to understand though. The industry figures are often released by groups, like the ESA, whose main mission is to publicize the severity of the piracy problem. This kind of self-interest promotes biased conclusions, intentionally or otherwise. This new study aims present the most objective figures so far independent of any industry interests.

It was also interesting to note that the top piracy countries were the likes of Romania, Croatia, Greece, Portugal and Hungary – looking at the availability and price of legal alternatives in these countries may yield further clues as to why so many people choose to pirate games in these countries. Hey, maybe all these countries need is their own version of WheretoPlay.org [ANOTHER SARCASM SMILEY]

Gaming

The April NDP report is out, reporting on US video game sales for the month. As has been the trend recently, the report doesn’t make good reading.

The Xbox 360 was the most popular console yet again, but having only sold 130,000 units (45% down compared to a year ago), it was hard for Microsoft to celebrate this fact. Even with only 130,000 units sold, it still represented 42% of current generation home based console sales, meaning the Wii, Wii U and the PS3 added up to maybe less than 180,000 units. No matter how you split this (I’d say 35,000, 45,000 and 100,000 respectively), it doesn’t look good for any involved.

Wii U

The Wii U is dying a slow death. Will new Zelda and Mario games help?

The Wii, PS3 and Xbox 360 figures are forgivable, but the Wii U’s slow decline into obscurity is disheartening. EA, the biggest game publisher in the world, said this week that they did not have a single Wii U game in development, and one EA engineers even called the console “crap” and said that it was less powerful than the Xbox 360. It’s definitely not looking good for Nintendo at the moment.

Anyway, we’ll find out more about the Xbox 720/Durango/Infinity this week. Being the last of the “next-gen” consoles to launch, all eyes are on Microsoft to see if they can up the ante on what’s on offer from Nintendo (shouldn’t be too hard) and Sony (much harder).

On that note, we come to the end of this WNR. Hope you’ve enjoyed reading it. See you next week.

Weekly News Roundup (28 April 2013)

Sunday, April 28th, 2013

As part of a new project I’m working on for our Australian readers, I’ve been testing out the various US based video streaming services. Man, you guys are really really spoiled in terms of content and price. Take Netflix for example – if it had been launched here first in Australia, the price would never have been $7.99 per month. More like $79 per month, probably with less content and more restrictions as well. And it’s not just content and price, it’s also quality. To put it into perspective, Netflix Super HD’s maximum quality is probably better than anything we see in broadcast here in Australia, and that includes the $100+ per month HD cable I’m paying for.

I just hope I have enough bandwidth. I thought 300GB per month would be more than enough when I switched a month ago, but having used 15GB per day for 3 out of the last 5 days, I’m not so sure now.

Despite the Netflix (and Hulu Plus) bingeing, I did manage to get some work done (plus the bingeing was part of work, um, yes), so here’s the WNR.

Copyright

Microsoft, maybe. But Google, the BBC and Netflix as bad guys? Most people won’t think that. But when it comes to adding DRM to HTML5, all of them are indeed on the wrong side of the issue.

The reason these companies all want to ditch Flash or even Microsoft’s own Silverlight is that with HTML5 and native support by modern browsers, it makes writing video applications for PCs (and tablets and smartphones) that much easier. Instead of maintaining a dozen different apps for different platforms, you can build a HTML5 based one and customize that for each platform.

No DRM

It’s still not too late to stop DRM being added to HTML5

But in order for the switch to HTML5 to happen, DRM must happen too. To be fair, the requirement for DRM doesn’t come from these tech companies, but from the media companies that supply them with content. So once again, the story becomes “Hollywood wants DRM”, which isn’t really isn’t news is it?

Still, adding DRM to HTML5, the first HTML standard to have it if Netflix and co get their wish, is bad news. Not only does it mean an expanded proliferation of DRM, it also endangers the free nature of the web itself.

But since everyone loves Netflix, and hates Silverlight and Flash, it’s gonna be hard to get people worked up about WWW DRM. This petition is probably the closest we’ll get to an Internet protest.

I don’t really get it though. Netflix’s $7.99 per month makes pirating anything that’s already on Netflix quite pointless. And releasers usually takes the paths of least resistance, which for movies would be via DVD/Blu-ray rips, and HDTV recordings for TV shows. The only time people will bother ripping a Netflix stream would be for exclusive shows like House of Cards (and only when another source isn’t available). But then again, for $7.99 per month, the only people who end up pirating would be those that you really can’t squeeze any money out of, so where’s the loss in profit?

——

If a government mandated filtering solution isn’t going to happen, and I hope it won’t, then the next best thing for Big Content may be a commercial solution. Up steps McAfee, as a new patent application filed by the company aims to add an anti-piracy filter to the company’s existing SiteAdvisor service.

SiteAdvisor is right now mainly used to blocks access to search engine result links for malicious or adult content, but this new patent seeks to expand the tool’s functionality to include copyright infringing content. So even if Google doesn’t filter out links to sites like The Pirate Bay, SiteAdvisor will step in and do it for them, although the system administrator will have to option to still allow visits to these sites (after the user is forced to read a warning message).

And if the companies behind the major security software tools can all be convinced to implement something like this, patent permitting, it would be like Christmas come early for the likes of the MPAA and RIAA. It won’t stop what I would like to call “persistent pirates” (they would have turned off SiteAdvisor or the equivalent feature in their security software from day one I suspect), but for the “casual pirates” that Hollywood and the music industry insists are prevalent, those that are unaware of their “seriousness” of their activities or lack the technical know-how to bypass these kind of filters, it might just be enough.

The Oatmeal: Game of Thrones

Watching Game of Thrones can be harder than actually winning the Game of Thrones

But I think most pirates know exactly what they’re doing, and why. Just like Australians who download Game of Thrones know the exact rationale behind their actions. Which is why it was fairly undiplomatic for US ambassador to Australia Jeffery Bleich to post a long-ish rant on Facebook calling Aussies that download GoT no good thieves, making Ambassador Jeffery just as popular as King Joffery in the process.

Once again the tired, and plainly wrong, analogy of theft was used, admittedly a very clumsy one involving stealing a book from your neighbour’s home that I’ve not seen before. Apparently, downloading a *copy* of a Game of Thrones episode is just the same as breaking in to your neighbour’s home and stealing a book. This analogy would only be true if Australians were actually going into other people’s homes and stealing hard-drives full of pirated GoT episodes, which ironically would actually make people think twice about piracy for fear of an unwanted home invasion. Or if Aussies broke into HBO headquarters and stole the original and only copy of GoT episodes.

The correct analogy of course is one that involves your neighbour taking the time and effort to photocopy all of his books and then leaving copies on the street for anyone to take. By taking a copy, you’ve committed copyright infringement. If the right (or wrong) people took copies, it may lead to lost sales and hurt the rights owners. It may even hurt them so much as to bankrupt them. But it’s not exactly home invasion and burglary, is it?

And what if one of the people who picked up a photocopied copy, a person that never intended to buy the book in the first place, love it so much that he went to the bookstore immediately and purchased a copy? Doesn’t this count as a gained sale? Hasn’t the publishers, only in this one isolated incident to be fair, benefited from piracy?

As for the rationale behind taking and not buying, what if the bookstore was located really far away, like in another country? Or that for no particularly good reason, you had to wait months in order to buy the book locally compared to other countries, and that when it does arrive, it’s only available in an expensive, leather-bound, big print edition that weighs a ton, instead of an edition that you might actually want? That photocopied copy might then start to look like the much better deal, even without considering the pricing differences.

But no, it’s much simpler to just trot out the tired out analogies about stealing, shoplifting, and burglary apparently, and the equally tired and frankly dishonest lines about job losses and billions being lost every year.

——

The Pirate Bay has moved home again this week. That’s twice (or three times, if you count the temporary move back to the .se domain) in two weeks. This time it’s Iceland that becomes The Pirate Bay’s new port, with the new .is domain name. Unlike the Greenland domain name authority’s self-censorship of The Pirate Bay, the Iceland equivalent says that a court would have to decide on the fate of the new .is domain name before they would be willing to take any action. And quite rightly so, because it’s not the place for a domain authority to be judge, jury and executioner.

Gaming

I said last week that I wanted to wait another week to comment on the March NPD results, to see if more hardware numbers roll in. They haven’t, unfortunately. So analysis turns to a game of educated guessing. Thanks a lot, NPD!

But if I had to guess, I’d have to say that the Wii U probably didn’t sell very well in March. If you asked me to tell you why the Wii U is struggling, then I’d probably have to say that it was down to several factors.

Wii U Boxes

Wii U sales remain sluggish because it isn’t a huge improvement on the 360/PS3, nor is it cheaper or a better media device

One, the Wii U’s hardware, while an improvement on the Wii, is barely an improvement on the more than half-a-decade old PS3 and Xbox 360. If Nintendo wanted to go after the hardcore gamers, the Wii U isn’t going to do it.

Two, casual gaming has moved on from the days of the Wii. Now, it’s all smartphones and tablets and really really cheap games. The Wii U has a tablet, but can it really do things, in a standalone fashion, that the iPad cannot? Plus, Wii U games are still expensive.

Three, the cost. With the PS3 and Xbox 360 getting to the end of their release cycles, the Wii U is just too expensive by comparison. It’s just not good value, as it doesn’t play Blu-ray like the PS3, and its media streaming capabilities aren’t better than the Xbox 360’s. The lack of game titles surely can’t help, even with the presence of first-party exclusives.

So while more first-party games will help the Wii U, but by holiday 2013, the much more impressive PS4 and Xbox 720 will be out and I suspect the the Wii U will look even more outdated by then. Which is a shame, because had the Wii U been here just a year earlier, it might have been a completely different story.

Speaking of stories, I must get back to mine on Netflix. So many things to watch, so little time. See you next week.