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HP vs. Dell: Showdown at the Windows 7 upgrade corral
Here's a tale of two PC titans: HP and Dell. One executes well every quarter. The other doesn't. Both see big PC upgrade cycles ahead. Both are looking to ride... Continued »
Category: Hollywood on Demand
November 19th, 2009
The future of...remote controls
How often do you lose the TV remote? ZDNet correspondent Sumi Das explains why the days of digging under couch cushions may be numbered thanks to sensors and chips that can “see” and “understand” hand gestures.
November 13th, 2009
Smart Planet: Interactive TV builds literacy skills among low-income kids
Carlin Llorente, a researcher at SRI International discusses recent findings that shows low-income pre-school kids benefiting from a curriculum that includes public media content inside the classroom. The study confirms that kids are better able to learn letters and sounds when watching educational videos and actively participating with their teachers. SRI International partnered with the Corporation of Public Broadcasting and the Education Development Center on the study.
November 9th, 2009
WSJ: NBC Universal valued at $30 billion; Stage set for Comcast-GE deal this week?
A report posted to the Wall Street Journal’s Web site said that GE and Comcast have come to an agreement on how to value NBC Universal, a key element of reaching a deal that would let Comcast acquire the television and movie arm of GE.
The Journal, citing unnamed sources, highlights details of the complex deal, which could take a year to gain regulatory approval and could take several years to transition,complexity of the deal. The Journal’s report notes that, while the talks have gained momentum, discussions could still break down for other reasons, including the role of French media and telecom company Vivendi SA, which owns 20% of NBC Universal but has reportedly expressed an interest in shedding its stake.
The current deal being hammered out calls for Comcast to contribute cash and merge its cable networks with NBC Universal to get an initial 51% stake of the expanded company, the Journal reports. But it’s not that simple. From the WSJ report:
Comcast had pushed to lower the value of the existing NBC Universal and raise that of its own cable networks to minimize the cash it would need to inject to reach 51% of the combined entity, people close to the talks say. To resolve the impasse, GE and Comcast created a mechanism that would base Comcast’s cash payment, in part, on NBC Universal’s financial performance before the deal closes, said people familiar with the matter. If NBC Universal’s performance worsens in the months between signing the deal and when it receives regulatory approval and finally closes, Comcast could end up paying less, these people said… Comcast and GE have also resolved how to value the new entity in the years after the deal closes, people close to the talks said. That is important because, under the deal, GE’s remaining 49% would be bought out over seven years after closing, primarily using NBC Universal’s cash flow and borrowing ability, these people said.
Reports surfaced in early October that Comcast was reportedly in talks with GE to cut a deal that would help shape Comcast’s online-content strategy. In his own post at the time, Larry Dignan acknowledged that the chatter around the would be centered around big media but that the Web reach shouldn’t be ignored. Comcast-NBC would have a number of assets to push it deeper in the online world, including the Comcast broadband network and ranked NBC-U properties such as Hulu and iVillage.
November 2nd, 2009
iTunes TV subscriptions: Sure, it could happen - and probably will
Apple is reportedly working on a subscription model that would open television viewing through iTunes - sort of. We’re not talking about some sort of service tied to the Apple TV product or even a standalone TV with iTunes built-in (at least not yet.) The Media Memo blog today cited several unnamed sources who say that Apple is pitching the TV networks on a subscription model - though no deals have yet been reported.
Currently, television shows on iTunes are available for purchase, either by the episode or the full season. This model, from what I can tell, would allow users who pay $30 per month for a subscription to watch them without “buying” them.
Sure, the $30 subscription rate is far cheaper than monthly cable or satellite bills. But that doesn’t mean the cable or satellite folks should be running scared just yet. When iTunes first made the leap into video programming on iTunes, Disney was the first to jump on board. The others followed, but not right away. Today, the programming lineup looks much better - but surely, Apple would have to cut new deals on a different distribution and revenue models with the networks.
Would the networks be on board with a model like that? It’s hard to say. I can’t imagine they’d want to disrupt relationships they already have in place with the big cable and satellite providers. But at the same time, it’s hard to ignore the influences of not only the programming being streamed over the Internet itself, but more importantly Apple, a powerhouse with a history of dominating and accelerating the growth of digital media in a “legal” marketplace.
For now, this subscription model chatter is all just rumor. No one, including Apple, has confirmed it. But I don’t put it past Apple. It sounds like something Steve Jobs and company consider. I also trust the reporting and sourcing of Media Memo’s Peter Kafka, so that makes it a bit easier to swallow.
Plus, it’s Apple - which, of course, means the rumor mill kicks into high gear again.
October 26th, 2009
Netflix lands Sony PS3 distribution deal; Bolsters streaming footprint
Netflix’s streaming movie and TV service will be made available to Sony’s 9 million PlayStation 3 customers under a distribution partnership announced Monday.
Netflix said it will begin streaming through the PS3 next month (statement, Techmeme, PlayStation blog). The move gives Netflix another leading game console for streaming—it also has a deal with Microsoft’s Xbox.
The Sony pact could be a double bonus for Netflix. For starters, the PS3 is also a Blu-ray player so its users may be more inclined to also use Netflix’s DVD-through-the-mail service.
On Netflix’s third quarter conference call, CEO Reed Hastings hinted that the company would announce a big deal with a leading consumer electronics company.
One potential complication for the Sony-Netflix pact is that it will require a “streaming Blu-ray disc” that will need to be in the PS3 to show the movies and TV episodes available. The disc uses Blu-ray’s BD-Live technology to get to the Internet and activate Netflix. Simply put, the disc isn’t as smooth as a straight embed of the Netflix service. Netflix subscribers will have to order the disc—it’s free.
Netflix has been on a roll. The company’s third quarter earnings report last week revealed a company that’s largely recession proof, growing rapidly and setting itself up for streaming as its dominant business model. Netflix has a DVD-rental business that’s doing well and a streaming service that’s expanding its footprint.
The company reported third quarter earnings of 52 cents a share, 7 cents better than Wall Street estimates. Netflix ended the third quarter with 11.1 million. Revenue for the quarter was $423.1 million, up 24 percent from a year ago.
The company’s third quarter conference call has a bevy of notable nuggets. Among the notable quotes from Hastings:
- “Of the 115 million estimated households in America, 9.6% now subscribe to Netflix. In the greater San Francisco Bay Area, which we believe is a leading indicator of Internet behavior elsewhere in America, 21.2% of households now subscribe to Netflix, up 13% from one year ago.”
- “Our rollout of Saturday shipping is now complete across our 58 distribution centers, and we have been working on automation of our distribution centers for many years, and shortly, we will place a roughly $40 million automation order for rental return machines that can accept the returning DVDs, open them, clean them, inspect them, and prepare them for reshipment. These machines will save us some money and improve the quality of our service. They make financial sense because our DVD shipment volume is still growing and we expect to be renting DVDs until 2030.”
- “One year ago, approximately 22% of our subs instantly watched a TV episode or movie in Q3. Most of those 22% watched more than one TV episode or movie, but all 22% instantly watched at least 15 minutes. For Q3 of this year, that figure has grown to about 42% of subscribers.”
September 29th, 2009
Akamai aims to bring HDTV to the Web
Akamai on Tuesday unveiled a network for high-definition video designed to deliver content via Adobe Flash and Microsoft Silverlight and Apple’s iPhone. The goal: Deliver an HDTV experience online.
The company, which delivers video and applications, via a 50,000 server network that moves content closer to Internet users, said Akamai HD will support live and on-demand HD streaming with personalization features.
Akamai’s HD platform, which will be demonstrated later today, will be designed for what the company calls “the most popular runtime environments”: Adobe Flash, Microsoft Silverlight and the iPhone.
Among the key features of Akamai HD:
- Adaptive bitrate streaming: The network adjusts its HD bitrates and monitors bandwidth levels for uninterrupted playback.
- Immediate response: Viewers can interact with the video player and shift times instantly.
- HD video player: Akamai is offering an open standards player.
- Player authentication: Ensures only authorized players can access content.
In a statement, Paul Sagan, CEO of Akamai, said that the Internet is quickly moving to HD-quality video and needs to hit broadcast-size audiences quickly.
September 21st, 2009
Should Apple buy Sonos?
Apple should ponder acquiring Sonos in a move to tackle the home audio networking market, a small niche with big potential, according to an analyst.
That’s the takeaway from a research note penned by William Blair analyst Ralph Schackart. The report makes a lot of sense. The logic goes like this: Read the rest of this entry »
September 11th, 2009
RealNetworks: It can get worse
RealNetworks’ business is struggling and it can get worse. That message was delivered by a J.P. Morgan analyst who pooh-poohed any initial euphoria over the fact that RealNetworks’ Rhapsody app is now on the iPhone.
On the surface, J.P. Morgan analyst Vasily Karasyov pans the Rhapsody iPhone app’s prospects and gives Realnetworks an “underweight” rating. If you recall, RealNetworks broadcast its intentions to bring its Rhapsody music service to the iPhone Aug. 24. Apple approved the app on Thursday.
Karasyov writes:
We see only limited potential for new subscriber acquisition: in our view, Rhapsody’s subscriber base (750K as of Q2 ’09, a decline of 50K sequentially) reflects the existing demand for a subscription based music service irrespective of the device on which it’s available. We don’t expect the new application to reverse the challenging trend.
That’s not news. But Karasyov’s other key point may be worth noting. Karasyov said that RealNetworks could wind up paying a hefty penalty to VeriSign over a 2001 alliance. VeriSign alleges that RealNetworks interfered with its plans to sell certain business units. The two parties are in arbitration.
Indeed, in an SEC filing RealNetworks says VeriSign is seeking “a material amount in damages.” Karasyov reckons that:
“Every $10M of the potential payment would drive 7c per share impact—or 2% of the stock price—and we think the payment could be in the range of several dozen million dollars.”
And this is for a company that is already blowing millions defending itself—and losing—against Hollywood over its RealDVD software.
Karasyov’s note also reveals that RealNetworks’ primary selling point—for Wall Street at least—was its cash position. Sure, RealNetworks music, media and games businesses were struggling, but shares were selling for roughly its cash position.
The problem: That cash position is trending down. And if VeriSign wins and RealNetworks remains stuck in that RealDVD quagmire that cash hoard will shrink further. To wit: Piper Jaffray estimates that RealNetworks has spent more than $10 million on RealDVD litigation fees over the last two quarters. Simply put, Piper Jaffray analyst Michael Olsen says “RealDVD has proven to be a costly venture for the company, with no offsetting revenue.”
Simply put, these million dollar distractions are adding up. For the second quarter ending June 30, RealNetworks reported a net loss of $188.3 million on revenue of $135.7 million, down 11 percent from a year ago. Here’s a chart from Karasyov showing RealNetworks’ cash cushion:
From a Wall Street perspective, RealNetworks cash hoard is a floor for the stock. However, if that floor keeps falling—and it will given RealNetworks court problems—things could get materially worse for the company.
August 31st, 2009
Analyst: Apple to offer iPhone on U.S. carriers within a year; replace cable with iTunes subscriptions
The exclusive single-carrier deals Apple has struck worldwide may be nearing an end. In his latest note to investors, Piper Jaffray senior research analyst Gene Munster suggests the iPhone could be available for carriers other than AT&T in the U.S. within a year.
Munster takes on 14 “unanswered questions” of Apple (AAPL) in his note, addressing the company’s finances, iPhone, iTunes, iPods and Apple’s retail stores, according to AppleInsider. While much of this may be answered with Apple’s planned September music-themed event — in which a new iPod lineup is widely expected — one of Munster’s notes suggests that Apple will add new iPhone carriers in the U.S. with the debut of a new product in the summer of 2010.
Munster writes:
August 26th, 2009
Hollywood studios offer 'download to own' DivX movies online; Film Fresh the new iTunes?
For the first time ever, movie titles from Lionsgate, Paramount, Sony and Warner Bros. will be available for download online in the DivX format.
DivX, Inc. and movie site Film Fresh on Wednesday announced that Film Fresh will offer titles such as The Da Vinci Code; Spider-Man; Reservoir Dogs; Crouching Tiger, Hidden Dragon; Religulous and the Harry Potter franchise in the “download-to-own” DivX format, beginning today.
The move marks the first time the major Hollywood studios are linking up with DivX to offer their films, which can be viewed on DivX-certified digital TVs, Blu-ray players, Sony’s PlayStation 3, and phones from LG, Philips and Toshiba, among others.
But will it put Apple’s iTunes on high alert?
ZDNet sat down with DivX content services director John Greene, DivX technical architect Eric Grab and Film Fresh CEO Rick Bolton to discuss the move toward media-less movies.
August 19th, 2009
Time Warner, YouTube ink distribution pact
Time Warner and YouTube said Wednesday that they have signed an online video distribution deal.
Under the pact, YouTube will distribute Time Warner short-form video content, including movie clips, television shows and news. Time Warner properties—Warner Bros. and Turner Broadcasting System—will program YouTube videos via an embeddable player.
According to a statement (blog), YouTube will get access to CNN news, the Cartoon Network and shows such as Gossip Girl. Time Warner video will appear across Google properties. Time Warner can also create separate channels on YouTube and sell ad time. The two parties will split ad revenue.
Time Warner CEO Jeff Bewkes said the YouTube deal was a good way to monetize short-form content.
The deal appears to be a win-win. YouTube gets more professional content and Time Warner is allowed to sell ads and control channels.
Also see:
August 18th, 2009
CDs still sell: Who are these people?!?
Apple’s iTunes music juggernaut accounts for 25 percent of music sold. The rub: Sixty-five percent of you are still buying CDs for your music in the first half of 2009, according to research firm NPD.
The big question today: Who are these people still buying CDs? Sam Diaz notes even his dad has gone digital. NPD allays the digerati by noting that digital downloads will represent half of music sales by the end of 2010 (statement, Techmeme). Great, then we’ll all get to ask who is still buying CDs all over again.
So who are these CD lovers?
- They’re the same bunch still subscribing to AOL dial-up.
- They’re the same folks that still like albums.
- They’re the same people that read liner notes.
- They’re also a lot like me once in a while—People that would rather have the source material instead of screwing around with various formats (I also buy from Amazon’s MP3 store).
Among the notable NPD statistics:
August 12th, 2009
Court upholds RealDVD injunction; supports outdated laws and Hollywood business model
I have to admit that I am blown away by a judge’s decision to grant a preliminary injunction on sales of RealDVD, RealNetworks’ controversial software that allows consumers to rip DVD movies into a computer much the same way that CDs can be ripped.
Even though I didn’t like it, I understood why Judge Marilyn Hall Patel agreed back in October to grant a temporary restraining order against RealDVD. She wanted to review the facts of the case and discover what I’ve been saying for some time: the Motion Picture Association of America - which is representing the Hollywood studios - is using this case to stifle innovation, preserve an outdated business model and keep consumers from fair use of products that they own.
Now, the Wall Street Journal reports that the judge granted the studios a preliminary injunction, pending a full trial - which isn’t expected to begin for another year or two. In her 57-page ruling, quoted in the WSJ, the judge weighed issues such as fair use in her decision. According to an AP report, the judge said that RealNetworks failed to show that the RealDVD products are to be used by consumers primarily for legitimate purposes. She wrote:
The court appreciates Real’s argument that a consumer has a right to make a backup copy of a DVD for their own personal use… While it may well be fair use for an individual consumer to store a backup copy of a personally-owned DVD on that individual’s computer, a federal law has nonetheless made it illegal to manufacture or traffic in a device or tool that permits a consumer to make such copies.
One might think that RealDVD is just a free-for-all piece of software that immediately enables consumers to rip, burn and resell copies of the DVDs. But that’s not what the software does. RealDVD was supposed to address concerns about piracy because the software preserved encryption to block widespread distribution and digital rights management software to restrict what could be done with the content.
The MPAA - and the courts - make an assumption that consumers could abuse the software and find ways around its restrictions to pirate movies. I hate to break it to anyone, but movie piracy is alive and well - even without RealDVD. To punish honest consumers who could use the software for its intended use just because others might - repeat, might - misuse it is just plain wrong.
Also see: RealDVD hearing: Don’t block the software because of what-ifs
July 31st, 2009
Dead-Finger Tech: The DVR continues to be a life-changer
Several years ago, I proclaimed my kids - then ages 4 and 7 - to be pioneers of the TiVo generation. I even wrote a newspaper story about it, complete with pictures of these little kids managing the remote and demonstrating the ability to pause and rewind live television.
Fast forward to today and the Diaz household now has three digital video recorders, though only one is a TiVo-branded device that comes with a few extra bells and whistles. The others are DirecTV’s not-as-good-as-TiVo DVRs.
Still, I ask myself: Could we ever get along with the mighty DVR? The answer is simple: No way.
The DVR, obviously, is my Dead-Finger tech selection - that is, the DVR is the one tech gadget/device/service that you would have to pry from my cold, dead fingers for me to give up.
Back in the early years of a $400 TiVo, I remember being initially most impressed with the abilities to pause and rewind live TV. Today, that’s less impressive as it is expected. What has stayed with me over the years is the ability to set up “season pass” recordings of my favorite shows so they’ll be waiting for me when I’m ready to watch. For some shows, I have no idea what day or time they’re broadcast on traditional television. I just know that every once in a while, there’s a new episode waiting for me.
So, how do they make the technology even better? They’re already doing it.
DirecTV and DishNetwork, for example, offer remote DVR scheduling from a Web browser or mobile device, which means never having to worry about missing a show. Likewise, I’m waiting for the satellite guys to follow what AT&T is doing with the U-verse service, which allows users to watch a recording on one DVR on second DVR in the house - regardless of where it was recorded.
Note to DirecTV: I was ready for this technology yesterday. But, alas, DirecTV is the only provider that offers the NFL Sunday Ticket - so I’m pretty much stuck where I am, even if the company forces me to watch recorded programs from the DVR that recorded them.
As a side note, the DVR has also forever changed the way I watch football. I have been a subscriber to DirecTV’s NFL Sunday Ticket for years so I have my choice of games to watch. I usually find the one game I really want to see, hit the record button on that one and then surf through the other games. I have become a pro at rewinding to make my own instant replays, pausing to see if the guy was really in-bounds and fast-forwarding through the same Miller Lite commercial they’ll air all season long.
The DVR - the technology, that is - changed my life forever. There’s no going back.
July 23rd, 2009
Netflix aims for 12 million subscribers by year end
The recession has been kind to Netflix as the company continues to post stellar financial results and adds hunkered down consumers to its subscriber base. Netflix also hopes to hit the 12 million subscriber mark by the end of the year.
Simply put, Netflix reinforced its recession-resistant image with a strong second quarter (statement). Netflix reported second quarter earnings of $32.4 million, or 54 cents a share, on revenue of $408.5 million, up 21 percent from a year ago. Non-GAAP earnings for the second quarter were 58 cents a share. Wall Street was expecting earnings of 50 cents a share on revenue of $409.7 million.
Among the key metrics:
July 17th, 2009
Google moves to show YouTube has 'a very credible business model'
Google on its second quarter earnings call went out of its way to say it was pleased with YouTube’s “trajectory” and indicated that the company would make money on the video site. The motive: Combat a bevy of worries about YouTube’s profit potential.
YouTube monetization has become a hot issue among analysts following Google’s second quarter earnings report. Some like Bernstein’s Jeffrey Lindsay and Piper Jaffray’s Gene Munster have talked YouTube implementing fees for uploads and all sorts of models. Fast Company call these fees a big awkward problem. Finding the business model for YouTube has become a bit of a parlor game these days. Munster reckons that YouTube will have $323 million in gross revenue in 2009, but that costs outstrip revenue. Munster writes:
July 15th, 2009
Hands on: Verizon FiOS TV launches 'Widget Bazaar': Adds Twitter, Facebook, online video
Verizon on Wednesday rolled out a Widget Bazaar on its FiOS TV service adding Facebook, Twitter, ESPN and Internet video services. And although I’ve been a big doubter of the interactive TV thing this could be handy.
Verizon is planning to make FiOS TV an development platform for additional widgets, but so far it has Facebook, Twitter, ESPN, Veoh, blip.tv and Dailymotion. The video downloads are available to DVR subscribers on FiOS TV. The effort is being portrayed as Verizon’s way to differentiate its FiOS from cable.
Also see: Gallery: Verizon FIOS opens Widget Bazaar with Facebook, Twitter
Since I have Verizon FiOS I took Facebook and Twitter for a spin. First, there are two quibbles: You need parental controls (small hassle) and the second is that the only status updates focus on what you’re are watching. It would be better if you could do live commentary from the TV on what you’re watching. Nevertheless, I found the widgets to be something I’d come back to.
But the real killer app for me will be fantasy football so the Widget Bazaar is likely to get a heavier workout in the fall. For now here’s a quick tour.
July 13th, 2009
Rumor mill: Netflix would be a good fit for Amazon, but...
Options traders are betting that Amazon will buy Netflix and the idea makes a lot of sense.
According to Bloomberg, Netflix shares jumped on speculation that Amazon will buy the company. The rumor at this point seems pretty thin and some analysts doubt the move because of sales tax and distribution center overlap. That said distribution centers can always be closed.
For now, the Amazon-Netflix combo may be just option pit chatter, but here are a few reasons why a deal would make sense:
- Amazon (AMZN) gets a digital distribution strategy: Amazon already delivers content (music, books and video) digitally, but Netflix (NFLX) turbocharges the effort. The Netflix on demand streaming is ahead of Amazon’s efforts.
- Amazon understands Netflix’s current business. On the efficiency front there would be no drop-off if Amazon were to consolidate Netflix’s distribution centers.
- There are savings there. That back-end overlap could be rationalized into real savings.
- Culturally, there’s a match. The companies weren’t separated at birth, but both companies are customer-first operations.
Thoughts?
July 8th, 2009
Judge puts kibosh on YouTube copyright damages dogpile
The world can’t sue YouTube for copyright damages—especially if they never registered the copyrights, according to a U.S. district judge.
The ruling (Techmeme), issued by U.S District Judge Louis Stanton July 3, curbs a class action suit brought by a laundry list of foreign entities looking for YouTube damages. The suit rides shotgun with Viacom’s $1 billion lawsuit against Google over YouTube copyright infringement.
Download Judge Stanton’s rulling (PDF)
Stanton ruled that plaintiffs couldn’t request damages for videos that didn’t have U.S. copyrights attached to them.
The ruling, however, doesn’t address the elephant in courtroom—whether YouTube should have allowed the videos to be posted in the first place. That issue is front and center in this class action and the Viacom suits. Neither trial has been scheduled.
July 7th, 2009
Internet Radio agreement: Good enough for now
Hollywood and Silicon Valley have reached an agreement on Internet radio - an experimental payment structure that is far from perfect but much better than the alternative rate system that threatened to put Web-based streaming sites out of business.
The agreement creates a tiered-system for the radio sites, based on their sizes and revenue. It will effective 2006 through 2015 for the larger sites and expires in 2014 for the smaller ones. In exchange, webcasters will provide more detail about the songs they play and the audience sizes to SoundExchange, the non-profit agency that manages royalties on behalf of the music industry.
In its news release (Techmeme), SoundExchange noted on several occasions that this structure is experimental. Said Executive Director John Simson:
Time will tell if revenue sharing is the right move for both the recording community and webcasters but we’re willing to take the risk in the hope that artists, rights holders and webcasters can all benefit.
The two sides have been battling for years over rates for online radio streams. But even agreements reached earlier this year between SoundExchange and the National Association of Broadcasters, Corporation for Public Broadcasting and others weren’t well received. Simson also said:
We believe the rates the CRB set were appropriate and fair. However, by incorporating an experimental approach whereby artists and copyright holders share in the growth of pureplay services, it gives certain pureplay webcasters the opportunity to flesh out various business models and the creators of music the opportunity to share in the success their recordings generate.
That sort of willingness to negotiate and experiment over something like royalty rates is huge. For a long time, the music industry has had its head buried in the sand when it comes to the influence of the Internet on their business models. The Recording Industry Association of America, for example, has taken a public relations beating over its handling of music download services and piracy. Mostly, the RIAA sued.
Related coverage: RIAA’s $1.92 million victory: more about message, less about money
The details of the agreement are laid out by SoundExchange, with the important parts noted below:
This agreement accommodates the specific characteristics of a distinct class of webcasters whose predominant form of business and revenue generation is the streaming of sound recordings under a government license — hence the term “pureplay.” For these webcasters, the agreement provides for three rate classes, under which webcasters can opt for an alternative rate structure.
The three rate classes are large pureplay webcasters, small pureplay webcasters (defined as those earning $1.25 million or less in total revenues with a cap on music streamed) and pureplay webcasters that provide bundled, syndicated or subscription services. SoundExchange views these newly negotiated rates as an experimental structure intended to provide an innovative
approach for a particular genre of webcasters and does not consider these terms indicative of fair market rates. “Time will tell if revenue sharing is the right move for both the recording community and webcasters,” Simson commented, “but we’re willing to take the risk in the hope that artists, rights holders and webcasters can all benefit.”Larger pureplay services will pay the greater of either a per performance rate or 25 percent of total revenue, and will agree to provide more comprehensive reporting about the sound recordings used than regulations currently require. Through 2014, small pureplay webcasters will have the option of paying the greater of a percentage of revenue or a percentage of expenses, and in certain circumstances have less stringent play list reporting requirements in return for payment of an additional “proxy fee.” Bundled, syndicated or subscription services will pay per-performance fees that are the same as those contained in an agreement concluded earlier in the year by SoundExchange with the National Association of Broadcasters. All pureplay webcasters would pay an annual minimum fee of $25,000 that can then be applied to their royalties owed.
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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- Building the Virtualized Enterprise with VMware Iinfrastructure VMware VMware virtualization software has been adopted by over 120,000 enterprise ... Download Now
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- Why Isn't Server Virtualization Saving Us More? A Few Small Changes May Dramatically Increase Your Efficiency VMware Companies have rapidly adopted server virtualization over the past few ... Download Now
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