Archive for May, 2011

Weekly News Roundup (29 May 2011)

Sunday, May 29th, 2011

I’ve had a busy week, with not one, but two days worth of work being done! On the first work day, I managed to write up that Blu-ray sales analysis I’ve been promising since the start of May, which looks at Blu-ray sales stats in the past 12 month (since the last analysis of the same kind). You can read it here.

Feeling pretty happy I’ve done enough work for the day, I suddenly realised that I haven’t written an article, guide or tutorial in ages. Well yes, I did write the PowerDVD review recently, but that doesn’t really count. So I decide to take a whole day and write a tutorial for a software that I’ve been growing fond of recently, VidCoder. Based on the Handbrake encoding engine, VidCoder tries to make converting to MKV and MP4 simpler, which suits someone like me who gets easily frustrated. And best of all, it supports Blu-ray conversions too, something that I must admit that I haven’t really tried until now. And so if you want to find out how to convert video files, DVDs and Blu-ray discs to MKV or MP4, then read my new tutorial here. The MP4s produced, if you follow my guide, will work on the Xbox 360 and PS3 (and the MKV should too, after you use my mkv2vob guide).

And of course, there’s the news. I’ll try to keep this WNR short, because I’ve already written something like 10,000 words this week, and my keyboard needs a rest. So let’s get started.

CopyrightIn Copyright news, a new study in the UK, commissioned by the Prime Minster no less, gives us hard evidence of what we’ve suspected all along – that political lobbying is influencing copyright legislation too much.

The study looked at how copyright legislation came to be in the UK, and found that politicians are under increasing pressure from copyright lobbyists, and that the pressure is working, with ministers more likely to listen to lobbyists, than their own impact studies. Everyone knows that political lobbying is much more of a serious problem in the US, and so if British MPs are under this kind of pressure, you can imagine what US politicians are experiencing. Of course, this is the kind of pressure that most people don’t mind, you know, the kind where you end up with a new holiday house at the end of it. But it just shows that there is this force working against consumers and sensible copyright legislation, and what we need now is an opposite force to counter the excessive copyright lobbying. Come on Google, Microsoft, Facebook and all the Internet and tech companies that are really the ultimate targets of the copyright lobby, put your money where your mouth is and create the biggest, most well funded, lobbying organisation on the planet to safe our rights (and your bottom line). Of course, in a perfect world, we wouldn’t need financial based lobbying, but what can you do.

IPRC Seizure Notice

More domain name seizures this week by ICE

US Immigration and Customs, ICE, are back seizing domain names again, this time from websites that don’t even host pirated content. Apparently, simply linking to a YouTube video uploaded by someone else that may or may not contain infringing content is enough to get your domain seized. That’s exactly what happened to Re1ease.net, a website that linked to, alright infringing content, but uploaded and hosted by sites like Megavideo and Veoh. To be honest, if the admins of the website went to court, given the current copyright climate, they would still probably lose. But since ICE has decided that having a fair trial is no longer necessary these days when it comes to seizing domain names, I would think the standards should be higher than third party linking. Because, what would happen, let’s say, if there was a fan website for the TV show Community, and they had a web forum where users were posting embeds and links to YouTube/Megavideo/Veoh videos of full episodes. Should ICE then seize the domain name of the entire website, just to get the forum offline? Once upon a time, the DMCA, the very legislation that the entertainment industry lobbied for, would have been used to warn the forum admins, and probably put an end to the practice once and for all. But the same entertainment industry is now saying the controversial DMCA isn’t controversial enough any more. For the record, the admins of Re1ease.net says they’ve always complied with DMCA requests, and Megavideo in the past have said they do so too. Any again, pointing to the waste of tax payer money, the Re1ease.net website, minus the domain name, is now back up and running again less than 48 hours after the seizure. ICE Director John Morton says that it’s the educational values of these seizures that tax payers are paying for, not actual quantifiable actual results in reduction of piracy or anything silly like that.

The controversial PROTECT IP bill has been unanimously passed through the Senate Judiciary committee. It’s not a surprise, given the amount of lobbying cash being thrown around, but it’s still not acceptable. For those that don’t know, the bill aims to formalize what ICE has been doing recently, and then give the DoJ the power to file civil lawsuits against copyright infringers, to seize more domain names and screw up the Internet’s DNS system in the process, to force web hosts to remove websites,  force the likes of Google to filter out search results, and finally force financial providers to cut off support to offending websites. The MPAA/RIAA will also get a subset of these rights. But luckily, there are still politicians that put the country and its citizen’s interest ahead of their own financial interests and that of multi-billion dollar corporations. The Democratic Senator from Oregon, Ron Wyden, has put a hold on proceedings, which means that unless the Senate leader can marshal up the 60 votes required to defeat the hold, PROTECT IP will not be voted on in the senate. Wyden also put a hold on last year’s similar COICA bill. Wyden says that he did it because he doesn’t want to “muzzle free speech” using this “overeaching approach” to stop the legitimate problem of online copyright infringement. It’s sad that a US senator has to use a hold to protect free speech in what is supposed to be a democratic and free society.

Come back with a warrant

The RIAA and MPAA are lobbying for an end of the 4th Amendment, so police can search and seize suspected piracy operations without a warrant

But even with PROTECT IP, the DoJ and ICE will most likely still has to have some court involvement to allow them to seize domain names (but because the judge only ever gets to hear the ICE/MPAA/RIAA’s side of the story, it’s not exactly a fair judicial proceeding, is it?). So wouldn’t it be nice if ICE and other government agencies can simply just seize whatever they want without having to cross all the i’s and dot all the t’s? It would be nice, except for that pesky 4th Amendment in the US Constitution, you know, the useless one about unreasonable searches and seizures. So why not just ignore it, like what is current being proposed in California and fully supported by the RIAA and MPAA. Californian State Senator Alex Padilla wants the 4th Amendment waived in cases of disc piracy, so that law enforcement can enter, search and seize any place where CD/DVD/Blu-ray duplicators are present, all without having to obtain a warrant or having any hint of probable cause. The RIAA and MPAA, who are probably behind this idea in the first place, came out totally supporting it, once again doling out that old chestnut about saving jobs and benefits, despite the fact that the only people that have ever cut jobs and benefits for the hard workers of the entertainment industry are the same people running the RIAA and MPAA. So it’s clear now, the MPAA and RIAA will let nothing, and I mean nothing, get in their way when it comes to protecting their dying business model. If the MPAA and RIAA thought that bringing back slavery could help protect their business model, than that’s what they’ll be lobbying for, you can bet on it. And as for how law enforcement would even know if a premise had disc duplication equipment, I don’t even want to get into this, because this is exactly why things like probable cause and warrants are necessary, to ensure an investigation has already been made, that the police are not searching random places. And does having one of those desktop disc duplicators at home mean the police can enter, search and seize, any time they want?

It’s been a while since I mentioned the US Copyright Group, but they’re back in style this week, adding some 20,000 new IP addresses to the Hurt Locker lawsuit. That makes nearly 25,000 IP addresses that the USCG is “suing” for allegedly downloading The Hurt Locker, and I say allegedly because nothing has been proven in court, and if the USCG get their way, nothing will ever get proven. This is because the goal is not to catch pirates, but to make people who are afraid of court proceedings to pay up the thousands of dollars in “pre-trial settlement” fees. The people who say they’re innocent, and want a trial, can’t get one. It’s funny, because The Hurt Locker only made $17 million at the box office (don’t know about DVD and Blu-ray sales, but it was pretty popular at one point), but if the USCG gets their way and all 25,000 pay the $2,000 or more settlement fee, that’s $50 million, almost three times as much as the box office – is that really fair? But with ICE, PROTECT IP – the USCG is fast becoming the “good guys” in copyright enforcement, because at the very least, they’re not out there actively trying to destroying one of the basic tenets of liberty.

High Definition

In HD and 3D news, well, there’s obviously my Blu-ray sales analysis. The conclusion wasn’t really a surprise, that Blu-ray grew, while DVD shrank, but overall disc sale dropped as Blu-ray’s growth wasn’t enough to offset DVD’s decline.

Star Wars Blu-ray Cover

Star Wars on Blu-ray may just be the biggest release on the HD format ever

Although to be fair, the overall decline has much much more to do with the box office of the new releases, and Q1 2011 hasn’t been as good as Q1 2010. I’ve also noticed far fewer “big name” catalogue releases recently, but to be fair, most of the good ones have already been released. The Lord of the Rings Extended Editions and the Star Wars movies should help in this front, and particularly for the Star Wars movies, expect a huge bump in market share when this “Blu-ray exclusive” is released.

As for 3D, one analyst is convinced the 3D craze is near an end and that studios should stop investing in 3D productions. BTIG Research analyst Richard Greenfield made the call, based on recent figures which show a decline in 3D revenue. Greenfield cites recent ticket sale figures for Pirates of the Caribbean: On Stranger Tides, of which only 38% of ticket sales belonged to the 3D screening, down from the typical 50%+ expected of these types of movies. Greenfield says that the decline is mainly down to cost, and eye strain. On the cost front, with 3D tickets sometimes as much 40% dearer than the 2D counterpart, the extra cost may be driving people away from the cinema screening, or are making people spend less on overpriced popcorns and other treats, all of which is hurting the bottom line. And with more than 40 3D movies this US summer, perhaps there’s the case of “too much of a good thing” here, considering it was never really that good, not for your eyes, anyway.

Gaming

And finally in gaming, with the PlayStation Store still down the last time I checked (me wantey free games!), and with no ETA other than the vague “before the end of the month” quote from Sony some time ago, Sony’s Howard Stringer gave us a sneak peak of the mindset over at Sony HQ, and about the company didn’t expect to be hacked because PSN was a free service.

What?

His exact words were: “We have a network that gave people services free. It didn’t seem like the likeliest place for an attack.”

Yes, because nobody would ever want to hack Sony, not even when Sony declared war on hackers, first by removing the OtherOS feature that many paid for, and then by going after everyone involved in the PS3 hack, and then by suing several hackers. Sony didn’t really expect any blowback at all, and I totally believe them, because that’s how arrogant and out of touch they have become.

Alright, the red light on my keyboard if flashing, which means that I’ve nearly used up my weekly “key click” allowance. Better stop writing before I’m locked out, and unable to finish off this edition of the WNR. So until next week, have a good o

Blu-ray: The State of Play – May 2011

Friday, May 27th, 2011

It’s been just a bit over a year since the last “Blu-ray: The State of Play” article, and so it’s time to have a look again at how Blu-ray has performed since then, in what are still difficult economic conditions, and in a period where, particularly in the last few months, where there has been a dearth of new, hit releases.

Like the last article, the statistic that this “analysis” focuses on will be the market share figure. This figure tells us what percentage of disc sales belong to the Blu-ray format, and can be used effectively to gouge the growth of Blu-ray, even if general market conditions are not ideal.

The figures come from Home Media Magazine’s published data, which I have been analysing weekly, and because the calculation metric has been modified during the year, some of the graphs may appear different to what was published last year, but the differences are not significant enough to have changed the big picture.

The first set of graphs show Blu-ray market share through the three year period that I have tracked them, with the release milestones pointed out.

Blu-ray Sales Percentage - 4 May 2008 to 30 April 2011 - Click to see larger version

Blu-ray Sales Percentage - 4 May 2008 to 30 April 2011 - Click to see larger version

Just by looking at the graphs, you can see that Blu-ray market share has indeed grown. However, from looking at the number of milestone releases, the last 12 month has produced fewer such titles than the preceding 12 month. For one, there’s no Avatar, which still sets the benchmark when it comes to Blu-ray releases, with only Harry Potter and the Deathly Hallows Part 1 coming close this year. But even with fewer milestones, the bar has already been raised by the 2009/2010 performance, where back then, apart from Avatar, there was only one week that managed to break the 18% market share mark, whereas about half of the weeks were above 18% than were below it in 2010/2011. Also interesting was that quite a large percentage of milestone releases were from Disney, some titles such as Beauty and the Beast, and Bambi benefited from being time limited Blu-ray exclusives. And pretty much all of this past year’s milestone releases were combo releases (combo releases, for the benefit of the stats, are counted only as Blu-ray releases).

The next set of graphs show the market share as one continuous graph, as well as the growth rate when comparing one week’s market share with the market share figure of the same week a year ago (so if week 32 in 2010 had a Blu-ray market share figure of 15%, and week 32 in 2011 had a market share figure of 20%, the growth would be: (20 – 15) / 15 => 33%).

Blu-ray Market Share - May 2008 to April 2011

Blu-ray Market Share - May 2008 to April 2011

Blu-ray Market Share Growth - May 2008 to April 2011

Blu-ray Market Share Growth - May 2008 to April 2011

The first graph shows the fairly steady upwards trajectory of market share growth, which a slight dip in growth during the middle of 2010, but picking up again towards the end. The second graph shows this more clearly, and shows growth slowing down and picking up again (but seasonal factors probably account for this). But you cannot escape the fact that three years ago, Blu-ray market share was at 5%, and it is now above 20%.

The last graph below shows a comparison of weekly market share figures with the same figure from a year ago, with 2 year’s worth of comparisons based on 3 years of data.

Blu-ray Sales Percentage: 2008/10 versus 2009/11 Comparison (May to April)

Blu-ray Sales Percentage: 2008/10 versus 2009/11 Comparison (May to April)

Unlike the same comparison I did last year, there were a few weeks in the last 12 month in which the week’s Blu-ray market share actually shrank compared to a year ago. This is largely to do with the timing of new releases, but overall, most weeks showed growth.

While we’re not specifically looking at revenue figures, which are much more volatile as it largely depends on the box office of new releases, we can still take a look at the first part of 2011, and how it compared to the same period in 2010. Including the period last year where Avatar was released, Blu-ray revenue averaged $29.21m. For the same period this year, it’s $32.54m. Not quite that impressive, but considering the overall drop in disc revenue and the poorer box office of the new releases this year compared to the last, Blu-ray is not only holding up, it’s growing (market share for the same period was 20.26% on average, compared to 14.89% a year ago). Highlighting the volatility of using revenue figures, percentage growth in this period ranged from 205% in one week, to a decline of 29.41% in the week immediately after … again, confirming that using market share figures yield a more consistent comparison.

So in summary, Blu-ray is still growing, albeit at a slower pace than previously, and raw revenue has not increased significantly, although that’s largely due to the calibre of new releases.

Weekly News Roundup (22 May 2011)

Sunday, May 22nd, 2011

A fairly quiet week this one, I guess there’s not really much of a point to write news when the world is ending today. I guess there’s also not much point in writing this WNR, but I can’t think of a better way to go out than in a blaze of angry, angry ranting. There’s no time to waste, as the apocalypse may be upon us any second, and I’d hate to write all this and not have time to send it out. So let’s get started.

CopyrightLet’s start with copyright news. The French have enjoyed their three-strikes system for some time now, although I’ve yet to actually hear any good news about a reduction in piracy or rise in consumer purchasing or anything like that, which is the whole point of the exercise, non?

TMG hacked server directory

This screenshot shows the contents of TMG's "hacked" server

Anyway, one of the private firms the government pays to spy on its own citizens, to gather IP addresses for warning notifications and all that, has had a security breach this week. Trident Media Guard had one of its test servers “hacked” into, with data and tools stolen. From what I gather, it’s not much a case of hacking, as a case of very very lax security, which allowed anyone to browse the contents of the server. A lot of stuff turned up, which ironically made its way to P2P networks in short order, and it includes things like IP addresses that the company uses to track users, plus tools to create fake peers (again, for data collection). Basically stuff that hackers can take a look at and find a way to block TMG from being able to conduct their activities successfully. But the bigger issue is that whether a company tasked with handling sensitive data should be held to higher standards when it comes to security, because while no personal data has been leaked so far, it could very well have if TMG maintains their other servers in the same manner.

But by far the biggest story of the week was a response to last week’s big story, which was the proposed PROTECT IP act, which will give the government power to shut down any website it deems “unacceptable”, including messing with the domain name system (DNS) at the very core of the Internet, as well as forcing search engines to adopt censorship. And as expected, a search engine company, the biggest in fact, has come out fighting against the proposed act. Google’s Chairman, Eric Schmidt, says the company will fight PROTECT IP even if it becomes law. While Schmidt was primary talking about the government messing with DNS, I’m sure Google is even more concerned about the forced search engine result filtering. But messing with DNS is extremely dangerous, because the DNS system is probably the most important Internet protocol, as it maps domain names to the IP address of the servers that hosts the website. The current system is like a huge peer-to-peer network, where an authority server shares information with the rest of the world, and data propagates to every other DNS server. But if the US starts messing with the DNS records in the US, and then Europe does the same, and every other country, then this could very well break down the very thing that is essential for visiting websites. Prominent engineers and Internet pioneer have already warned the US against this, but the RIAA/MPAA lobbying was just too great (and they could care less if the Internet breaks, and it’s probably something they’ll welcome).

And make no mistake, the push behind PROTECT IP is all RIAA and MPAA. This is why, following Google’s statements, both the RIAA and MPAA came out attacking Google, one accusing the search giant of benefiting from criminal activities, and the other saying Google is acting as if they’re above the law. Last week, I ranted about the aim of copyright, which is to protect the public’s right to have access to information, as well as to promote creativity. What the RIAA and MPAA want almost the exact opposite of what copyright is all about, and so if anyone is acting as if they’re “above the law”, it’s the movie studios and record labels. And even if they’re right about copyright and the need to censor certain websites, then why should the tax payer, search engines like Google, ISPs, pay for this? And all for something that will probably be easy to bypass anyway. The RIAA and MPAA thinks they’re entitled to their business model and large profits forever, and want everyone else to pay to ensure they keep their entitlements.

Protest brick

One of the lovely packaged bricks being sent to Nintendo HQ to protest the 3DS's DRM

Moving on now to gaming. The Free Software Foundation (FSF) is launching a protest against the DRM regime of Nintendo’s new 3DS, which actually allows Nintendo to brick anyone’s 3DS console if it detects that it has been modified in any way. So instead of waiting for Nintendo to brick their consoles, they decided that Nintendo should be the one that’s “bricked” first. The FSF has started an  innovative protest, with people donating money to the recognized non-profit organisation, and for every $10 donated, they will send a brick to Nintendo’s CEO (presumably via mail, not via a projection through a window). For those that want better bang, or bricks, for their buck, they can donate $250, the cost of a 3Ds, and have 30 bricks delivered to Nintendo HQ. The campaign was set to end once 200 bricks had been delivered, but due to popular demand, it’s still going on at the moment, and if you want Nintendo to get the message that we are buying the hardware, not just merely licensing it (and so we should be able to do whatever we want with it), go here and donate.

High Definition

Not much in HD or 3D news, but I’ll try to jam in something almost unrelated here just to take up some space. It’s not to unrelated, as Netflix does do HD, and I’m sure they’ll offer 3D sometime soon as well.

The good news is that Netflix is finally coming to Android. The slightly bad news is that it won’t be available on all phones, and Netflix are individually testing each and every phone to ensure compatibility. This is necessary because of the lack of a standardized streaming platform for Android phones, something Google really needs to look at. But I’m also pretty sure this has something, or maybe everything, to do with DRM, something the Netflix has hinted before when asked why it’s taking so long for the Android app the arrive. To try and do anything innovative on the Internet these days when it comes to entertainment, companies have to jump through hoops to meet the paranoid demands of entertainment companies, the rights holders, and in this case, Netflix has to get DRM nice and tight before the movie studios would allow Netflix to deliver content on Android phones. I guess the studios are worried that somehow people will crack the app, and capture the video stream and distribute the SD YouTube quality footage online. Yeah, I’m sure that’s likely, considering how hard it is for people to rip DVDs and Blu-ray’s. Almost as likely as people ripping movies via HDMI, now that HDCP has been cracked. Luddites. Interestingly, he original Luddite movement was borne out of fear of the Industrial revolution, with Luddites destroying machines and anything that represented progress. Sound like anyone to you? The only difference is that the RIAA and MPAA have the government on their side, which the original Luddites did not.

Gaming

And finally in gaming, yep, the PSN is back baby. Well sort of. Some of the functions are still not, um, functioning, but at least gaming is back.

Of course, it’s another week, and another set of security breaches being discovered at Sony and their affiliates. The most annoying of all was that a rather stupid flaw was found in the very system that was supposed to bring security back to the PSN – the password reset function. With Sony forcing everyone to update their firmware and then change their PSN password before they’re allowed back on, you would think that Sony would at the very least ensure this process was secure. But alas, that was too much wishful thinking. The flawed password reset system would allow anyone who had your birth date, and PSN email address (which at this point, is about everyone), to reset your password, and hence gain access to your account on the “new and secure” PSN. And so while Sony went about fixing the flaw, the password reset system was down, and so people like me, who had not reset their password yet, were left without PSN for another couple of days. A lot of people would have been able to reset their passwords on the console it self, but many, who like me, that didn’t create the account on my current console had to use the web version (my original died and was replaced by Sony, more on that below), which was down. There were also other stories about Sony owned ISPs also revealing user information, but I suppose these kind of stories will be plentiful as Sony conduct a full security audit of all their systems.

Dead Nation

Zombie killing fun in Dead Nation - one of the free games available in selected regions as part of the PSN "Welcome Back" package

Sony also detailed the goodies people will get once the PSN store, one of those non-functioning functions, comes back. People will be able to download two games from a list of five, including inFAMOUS, Wipeout HD + Fury, and Little Big Planet. Different regions will get slightly different sets of free games, and there are also PSP games that PSP gamers can download. I think I’ll get Wipeout HD + Fury for my 3D TV, and so far undecided between inFAMOUS, LittleBigPlanet, or Dead Nation (I just can’t resist Zombie games).

One slight problem, that doesn’t affect me, is that at least in the EU and here in Australia (and NZ), only those that had PSN accounts before the network went down on the 20th of April are eligible for the freebies. Which kind of sucks, because I would have thought that the people who got new PS3s after the 20th would be even more deserving of a “we’re sorry” gift, as the last thing you want after forking out a lot of money for a PS3 is for half the functions to not even work for weeks. I mean how much could it actually cost Sony to allow all PSN users, up to say today, to be eligible for the welcome back package? This is exactly why people hate Sony.

Thinking about the earlier 3DS protest thing, one lesson I hope Sony learns from this incident is that people *buy* their console, not license them, so you can’t just take away features without repercussions. And if we’re really just licensing the hardware, then the hardware should be a lot cheaper, and we should receive refunds for outages (just like anything you can license, if you can’t actually use the licensed service of feature, then you should get your money back). Without these checks and balances, what’s to stop Sony from removing a core feature, like say AVI/DivX playback or DLNA support to stop pirated files from being played on the console? I mean, if they are allowed to remove “OtherOS” for “financial reason”, then they can use the same argument to remove other features as well. Of course, it’s not in Sony’s interest to remove either of these features, but that’s now, who knows what will happen in the future.

For Xbox 360 owners, you should now be getting the “Spring” update notice, or will get it soon. There’s misleading information around that this update will brick certain Xbox 360’s, which is not true (at least not yet). What had happened was that a previous update, and not the Spring update, had caused some Xbox 360’s to fail, and Microsoft has already promised to replace all failed 360’s due to that other firmware update  (mostly older Xbox 360 60GB Pro’s) with brand new consoles. You see, that’s the right thing to do. The PS3 is actually more notorious for firmware induced bricking (or at least a drive that no longer reads any discs – something that I’ve experienced personally – luckily, my PS3 was still in warranty at that time, as otherwise I would have had to pay $AUD 250 for the repair), and the only response from Sony was to respond to the various class action lawsuits launched against the company for this alleged fault. This is also exactly why people hate Sony.

Alright, that’s it for this week. See you next week (if the world hasn’t ended by then).

Weekly News Roundup (15 May 2011)

Sunday, May 15th, 2011

I’ve had a busy week. Early on, I finished writing the review for PowerDVD 11. You’ll have to read the review to find out whether the new version of PowerDVD is worth it or not, but I really like the Android/iOS remote app, which basically turns your touch device into a touchpad for your computer. And being able to stream content from my phone to my PC through my home Wi-Fi is a lot easier than connecting via USB or Bluetooth. Pity the streaming doesn’t go the other way, from the PC to the smart device, but I’m sure Cyberlink will be sued into oblivion by the entertainment industry if they ever tried something as innovative and useful as this.

Not only that, I managed to get the April 2011 NPD US video game analysis up yesterday. That’s right, the feature is back, big time. Well, not big time, since I suspect it will go missing again next month as Sony tries to hide the PS3 sales figures. It’s actually quite funny, because if you read the April 18th edition of the WNR, I made a joke about the possible reason why Sony did not want to release PS3 sales figures for March, where it goes “This can only mean one thing, and that is that PS3 sales for March was negative – more people returned PS3s in March than people who actually purchased one #NotIntendedToBeAFactualStatement“. Not only did I write that *during* the PSN intrusion, which nobody, not even Sony, were aware of at that time, what I wrote is actually coming true, with lots of stories of people returning their PS3s. I had nothing to do with the hack, I swear! I barely even know how to use Internet banking!

And so before the FBI breaks down my door, here’s this week’s WNR, which doesn’t feature as many news stories, because there probably hasn’t been any really interesting news stories (and considering the fact that I’m not the only one writing the news these days, I’m much more certain this is the case, as opposed to everybody suddenly getting a case of the lazies).

CopyrightSo staring with copyright news, and while there are only three real news stories covered this week, the second one is a real doozy. What exactly is a doozy? I have no idea. But the second story is a real one.

LimeWire Logo

LimeWire settles again, this time with rights holders, for $105m. It's a much better result for LimeWire than the billions and trillions the RIAA had wanted

The first story is LimeWire’s settlement of one of their remaining lawsuits, or is this the last one, I don’t know, there are so many! LimeWire has settled with copyright holders, after settling with publishers back in March (for an undisclosed amount). Copyright holders hold the copyright on the song, while publishers hold the copyright on a recording of the song. Of course, with the way the studio system works, the same label is sometimes both the copyright holder and the publisher, so basically even with two possibly nine figure settlements, the actual artists that created the songs will probably get nothing, or if they do get something. You know, this is where I think copyright laws have gone completely out of control. If you ask an average Joe on the street,  “Hey Joe, who do you think copyright laws are really meant to help?”, that person will probably say “My name is not Joe”. And then he or she will say that copyright laws, with the way they’re being used, are obvious created to help rights holders make money, and prevent nasty pirates from sharing their works without permission. But you know what Joe, you’re absolutely wrong.

The aim of copyright has always been to promote freedom of expression, the spread of culture and to promote creativity. It is not solely, as the RIAA stated when commenting on the LimeWire settlement, to help “rewards creators”, and even if that were the case, the creators are not the RIAA or the four major labels it represents. Copyright is very much a balancing game. If you don’t have copyright protection, then original works will be disseminated in a much freer fashion, and so ticks the first two of the three criteria I mentioned above. But the problem is that, and I hate to agree with the RIAA here, if the original creators are not properly rewarded for their efforts monetarily, then there is less incentive to create, especially in today’s money obsessed society. I mean, yes, some artists do art not for money, and you might even say that these are the real artists. But even real artists need to eat. And as a society, we value art and creativity, and so it’s only natural that there is a financial aspect to it.

But if you take copyright the way it is currently being used, or rather, abused by the rights holders, then you have things like DRM, DMCA take-downs, mass lawsuits, and all with the aim to lock in the profits, and not usually on behalf of the artists themselves either. It’s not a very expensive process to publish your own Blu-ray movie, due to licensing, the need to purchase DRM keys, and so how does this foster creativity for the public good. And with the major studios and labels controlling the scene, unless you’re a major artists that can negotiate your own terms, others have to put up with giving the studios and labels a large chunk of the money earned on their works, and so the current system doesn’t really “reward creators” either. Fortunately, the Internet and computing technology in general has helped to level the playing field a little bit, allowing consumers to do more with their purchased content, allowing independent artists and publishers to distribute their work without having to rely on the majors’ connections. And it’s true, piracy do hurt the independents as well, but with piracy, comes publicity, and if your work is good, really good, than you can make fans of pirates, and fans will provide financial reward, either through live performances, or a iTunes purchase to show their support for the artists (even if they’re already downloaded his or her songs). If anything, piracy means creative works are being judged on their merits more than ever now, and only the really good works will benefit financially. And isn’t that a good thing, to promote good work over bad? And it’s almost these points, the level of playing field, the greater access to the market by independents, and having to actually produce good work, that is most worrying the entertainment industry, not the money *directly* lost through piracy. They don’t want to lose their monopoly, so that artists can distribute and promote their own songs without the need for the labels and studios, and end up keeping all of their money (which is why the RIAA ordered Homeland Security to close down blogs that artists were using to leak songs and promote their music). They’re afraid that one day, artists will wake up and realise that “We have the Internet now. We don’t need you any more”, and so they’re trying protect their position by law, using copyright and piracy as an excuse. What the major studios and label want is against the public interest, against what copyright stands for, and they are the real abusers of copyright laws.

US Department of Justice

If PROTECT IP is passed, the DoJ can use tax payer money to help movie studios and music labels sue websites

And they want to abuse it more, and create more laws that makes it easier to abuse copyright, which brings us to our second story. The PROTECT IP act, currently being considered in the US congress, will tip the copyright scale even more in favour of the multi-billion dollar corporations that are calling themselves “creators” these days. The details are scary, to say the least. If the bill is passed, it will authorize even more domain seizures by Homeland Security and ICE. The Department of Justice will now be authorized, to use tax payer funds, to file civil lawsuits on behalf of rights holders, to save the billion dollar corporations even more money, time, and effort, and even if the domain name or website is not hosted in the US, the Attorney General can step in and force US based search engines to remove results for the website (“site:thepiratebay.org” -> no results found), ISPs to stop providing access to the website and even financial companies to stop providing services to those websites, all on the say so of the rights holders. If the recent domain name seizures as part of Operation In Our Sites are anything to judge by, the “defendants” will have almost no way to defend themselves until their businesses have been ruined, and even after that, it will be extremely difficult. In other words, a judge is now required to make a judgement on a one sided story, presented by the full might of the US government and billion dollar corporations, and represented on the other side by nobody, and this is what due process has become. So if the RIAA spots another website that is threatening its control over artists, all they have to do is to make a phone call to the politicians that are already in their pockets via lobbying money to get exert pressure on the DoJ and the AG to act, and then that website will exist no more. That’s what due process will become, if PROTECT IP is passed (and given the lobbying cash being thrown around to both sides of politics, as expected, there’s already a lot of support for the bill).

And sometimes they don’t even have to make that phone call, because PROTECT IP will grant corporations governmental powers (hey, if they’re already people, or so the US Supreme Court says, and people run the government, why not let corporations have the powers of government as well?). Corporations can force financial service providers to cut services for websites they don’t like, much like how the government “convinced” the likes of Amazon, PayPal and Mastercard to cut service to Wikileaks. They don’t yet have the powers to force search engines to remove search results or the force ISPs to cut service to websites they don’t like, but give it time.

So if you don’t like the way PROTECT IP overreaches, now is the time to contact your congressman and senator. It probably won’t do much good, because most of them can’t understand the technical ramifications of what they’re voting for, or what they’ve already been paid to vote for, but it’s your only weapon against this monstrosity of a bill, and it is still supposedly the best weapon in a supposedly democratic society.

Google Music

Google Music will anger music labels because it helps consumers too much

Another great weapon is innovation. The Internet is so innovative and allows so much innovation, the TPTB are incredibly afraid of it. And Google now follows Amazon’s lead and taking music to the cloud, much to the chagrin of the music industry. I dislike the way Google is trying to take on everything and everybody, often forgetting their core responsibilities, but putting my opinions aside, innovation is always welcomed. The service is currently in beta, and only open via invitation in the US, but like Amazon’s service, you get GBs of space online to store all your music, and the music will then be accessible everywhere there is an Internet connection, and also on Android devices of course. The music industry don’t like it because it means they can’t make people re-buy the same music half a dozen times, one for each device, so they’ve used the excuse that the service will be used to host pirated songs by individuals. So? If people have already stolen your songs, then how they play those songs should be the least of your concern, I would think. On the other hand, if the music industry had embraced the Internet instead of being afraid of it, they could have launched their own similar service, charged people for it, and kept a lid on copyright issues through policing. And make a bundle out of it as well. At least the movie industry are looking at UltraViolet, which would do something similar with movies, but even better because you don’t even have to download anything if you don’t want to (stream it right after you buy it), which is kind of a necessity with GB sized movies really. But the RIAA will sue Amazon and Google, and probably Apple too, and anyone daring to give consumers more freedom as to what they can do with the purchased content.

Not much happening in HD news, and I’m already over my word count with only three stories covered, so I’ll skip this section for the week.

Gaming

But there’s still gaming, and of course, there’s still the PSN thing. The story out now is that the PSN is slowly coming back online, and so we’ll start to find out just what kind of compensation Sony will be providing for the more than three weeks of downtime.

It will most likely be a free PSN game or two (and I really hope they don’t make it so people have to input their credit card numbers to get the free games, because that would be kind of perverse), free identity theft protection for a year (it’s never a good thing when a company has to do something like this), and a free trial of PlayStation Plus. Sony, during the week, sent letters to game publishers which provided a bit more information on how the hack went down, including the interesting fact that they company didn’t even know they were being hacked until the servers went down from too much hacking (or data transfer, probably), and that hackers managed to hide their tracks by deleting logs, which probably didn’t have real time log monitoring and offsite log retention, which could have allowed Sony to detect the problem earlier, and to have clues as to what the hackers had done.

Of course, for some, nothing can make up for the lost in trust, from comments right here on Digital Digest, to comments I’ve read in other public and private forums, this latest incident appears to be the straw that breaks the camel’s back (except it’s more like a bale of straw, given the magnitude of this f***-up). The same comments have people saying they’re trading in their PS3s for Xbox’s, and there are news reports floating around with retailers also reporting the same thing, but you know, for every person that does the trade in, there are probably tens and hundreds that are not keeping their PS3, but every little bit hurts Sony, especially since they’re locked in a bitter battle with the Xbox 360 for global dominance, even if they’ve appeared to already have lost the battle in the US (the PS3 is now comfortably third in total sales in the US).

If Sony wants to get back into the game, if you excuse pun, then they have to admit that it isn’t just this single incident that has made people reconsider Sony, as a brand. It’s the DRM rookit, the alienation of the hacking community that was once your greatest supporter, thanks to OtherOS. If is the same community that you should have embraced instead of sued, after they discovered your flawed security system, to help you make your system more secure, and perhaps bring OtherOS back as a open source project that will require no financial commitment from Sony (if that was what they were really worried about). And it’s also the arrogance, in their advertising campaigns and slogans. “It only does everything?” Yeah, it did do everything, except a lot of the things you wanted it to do, and it was just unfortunate that it did a lot of things for hackers too. The whole Sony Knows Best attitude has to go, they have to become a much humbler company that truly puts customers first. To go back to the Sony that fought bitterly for our rights in the Universal vs Betamax case, the same Sony that revolutionized portable music via the Walkman, the same company that ended the Nintendo/Sega hegemony with the PlayStation. Do all of that, and they can stop becoming one of the most hated companies in the world. If you make Microsoft look like the good guys, and if you lose to a console that used to have a 1-in-3 fault record, then you’re doing something really really wrong.

Speaking of the devil, the Xbox 360 may be getting a dashboard update next week, which only seems to add PayPal support. But with Netflix Kinect support, Hulu Plus (with Kinect), and Avatar Kinect all coming recently, perhaps the good old “Spring Update” isn’t as an important occasion as it used to be. Either that, or Microsoft are too busy reinforcing their online security to bother with adding more features. I suspect many web companies that hold a lot of credit card info have done the same in the last few weeks, and so I guess that’s the silver lining out of the PSN fiasco (the silver lining is for other companies though, not for Sony).

Alright, already too much ranting this week. Got to save up something for next week, so until then, have a good one!

Game Consoles – April 2011 NPD Sales Figure Analysis

Saturday, May 14th, 2011

We’re back! Well, for this month anyway. Following last month’s lack of PS3 numbers because Sony didn’t want people laughing at the fact that PS3 sales was actually negative for the month (Not Intended To Be A Factual Statement), the monthly NPD analysis had to be temporarily suspended. But we’re back, stronger than ever this month (erm, sort of), largely thanks to PS3 numbers not being so miserable that Sony decided to release some numbers again. It still didn’t really matter because the Xbox 360 still solidly outsold the PS3, but to be fair to Sony, given the month they’ve just had, everything looks like good news these days. For those that are new to this, this analysis looks at US video games sales figures compiled by NPD, unreleased by NPD due to pressure from the gaming companies, but then leaked by various sources, including gaming companies, if/when it suits them.

The figures for US sales in April 2011 are below, ranked in order of number of sales (April 2010 figures also shown, including percentage change):

  • Xbox 360: 297,000 (Total: 27 million; April 2010: 185,400 – up 60%)
  • PS3: 204,300 (Total: 16.7 million; April 2010: 180,800 – up 13%)
  • Wii: 172,000  (Total: 35.4 million; April 2010: 277,200 – down 38%)
NPD April 2011 Game Console US Sales Figures

NPD April 2011 Game Console US Sales Figures

NPD Game Console Total US Sales Figures (as of April 2011)

NPD Game Console Total US Sales Figures (as of April 2011)

My prediction from last month was:

I didn’t make a prediction because I didn’t do a NPD analysis last month because of those ******* at Sony (possibly)

Note that some of the figures above are extrapolated, and somewhat based on guestimates. For example, I gave Sony the benefit of the doubt and gave the PS3 350,000 units sold for last month, so I could have an estimate for the total sales figures graph. And this month, Sony only said that the PS3 grew by “nearly” 13% compared to April 2010, and so I again gave them the benefit of the doubt and made the growth exactly 13%. But these figures have always been rounded up and down, and so they’re not that accurate, but accurate enough in terms of providing a general feel of what’s going on, allowing “analysts” like myself to extrapolate the data and make things up, basically.

So the Xbox 360 was the winner again, just like last month (the PS3 numbers weren’t present, but the Xbox 360 and Wii numbers were present, and presented in the gaming section of the April 24 edition of the Weekly News Roundup). In fact, Xbox 360 sales are 60% up compared to the same month last year, which is quite a result. This makes for the best month-to-month-a-year-ago result since last November, when the Xbox 360 recorded 67% growth. It’s hard to explain where the result comes from, but (and this is where the “make things up” thing comes in), with software sales higher than in April 2010 thanks to some a-list releases, and most of them, while being multi-platform, sold better on the Xbox 360 than any other console, and this probably helped hardware sales as well. Microsoft also said that Kinect sales were promising, with Michael Jackson: The Experience the pick of the Kinect new releases for the month.

And as mentioned earlier, the PS3 numbers were good enough for Sony to release figures for this month. This time last year, the Xbox 360 and PS3 were neck and neck (with the Wii way ahead in the lead … more on that later), but the Xbox 360 managed to outsell the PS3 comfortably this month, despite the PS3’s “near” 13% growth figure. Sony would point to this figure showing that the PSN outage for the last ten days of April did not really have a profound effect on sales, but we’ll only know the full scale of the damage in May’s NPD (no doubt if the numbers don’t go well, Sony will withhold the figures again, so we may never find out), when it is revealed that millions of PSN account details and some credit card numbers were leaked. Various sources are already posting information which shows increasing number of PS3 to Xbox 360 console trade-ins at retailers, an increasing number of gamers switching pre-orders from PS3 versions to Xbox 360 versions (for those that presumably owns both consoles), and Sony’s share of game sales dropping from 37% from before the PSN outage, to only 21% with the most recent data.

The Wii was the worst performer out of the home based consoles this month, with sales being 38% down compared to the same period last year, a somewhat consistent decline. Which is probably why the Wii has just received a price cut, and that Nintendo plans to announced the Wii 2 at E3 in less than a month’s time. Nintendo’s other consoles, including the new 3Ds, aren’t doing much better though, with the original DS once again outselling the more expensive 3Ds.

For games, Mortal Kombat was the best seller, followed by Portal 2. Mortal Kombat sold 900,000 copies on the two platforms, the Xbox 360 and PS3, on which it was released, and the Xbox 360 version most likely led the PS3 version in sales (as otherwise Sony would have mentioned that the top selling game of the month did best on their platform). Same with Portal as well, according to GfK-ChartTrack, despite the PS3 version having several exclusives, including a free PC version of the game, plus cross-platform gaming (according to released figures, the Xbox 360 version outsold the PS3 version by about a 1.5-to-1 margin). Michael Jackson The Experience also made the top 10, despite only the PS3 Move and Xbox 360 Kinect SKUs of the game being new in April (the other SKUs were released ages ago). Another game that didn’t make the top 10, but would have if a bundled version had counted as software, as opposed to accessories, sales was SOCOM 4. The “Full Deployment” bundle consisted of a Move controller and the Sharpshooter accessory, and had this bundle been included in the software numbers, SOCOM 4 would have made the top 10. As it is, the bundle was the highest ranking new accessory for the month. Here’s the full software sales chart for April:

  1. Mortal Kombat 2011 (Warner Bros. Interactive, Xbox 360, PS3)
  2. Portal 2 (Electronic Arts, Xbox 360, PS3, PC)
  3. Lego Star Wars III: The Clone Wars (LucasArts, Xbox 360, PS3, Wii, NDS, 3DS, PC)
  4. Call of Duty: Black Ops (Activision Blizzard, Xbox 360, PS3, Wii, NDS,PC)
  5. Tiger Woods PGA Tour 12: The Masters (Electronic Arts, Xbox 360, PS3, Wii)
  6. Crysis 2 (Electronic Arts, Xbox 360, PS3, PC)
  7. Just Dance 2 (Ubisoft, Wii)
  8. Michael Jackson The Experience (Ubisoft, Xbox 360, PS3, Wii, NDS, PSP)
  9. Pokemon White Version (Nintendo, NDS)
  10. NBA 2K11 (Warner Bros. Interactive, Xbox 360, PS3)

I don’t really want to make a prediction next month, because if I’m right, and that the PS3 number falls due to the PSN outage, then Sony won’t release the figures, and we don’t have an NPD. Regardless, I think the Xbox 360 would still be the top selling console, so it’s just a matter of how much the PSN outage hurts the PS3, and how much the Wii price cut helps the Wii. The biggest game new releases for May are L.A. Noire, Brink and LEGO Pirates of the Caribbean.

See you next month, hopefully.