Archive for the 'Press' Category

Many Opinions, Not Much Information

I was asked recently to write a guest blog at UK national newspaper website, the Telegraph. Here’s the result.

In it I predicted, perhaps rashly but we shall see, some kind of breakthrough in the uneasy relationship between ISPs and the music industry. It’s long overdue: as anyone can discover with a few internet searches we have been working on building this bridge for the last five years. I was adding my voice to a small wave of comment about us, most of it ill informed about not only our own business model, but also about the enabling technology and the respective positions of ISPs and record labels.

One of our favourite comments was that our enterprise is ‘naive, flawed and doomed to fail’, which we liked so much that we thought we’d make a t-shirt with it.

And one of the reasons I liked that comment so much was that in some way you can apply it to all human endeavour, including blogging itself. It seems that we have created a proposition that some people struggle to accept as possible let alone probable or inevitable. Here’s Jupiter’s Mark Mulligan:

My take is that if they are close to announcing something, it will be significantly watered down from the proposition they’ve been trying to get labels to sign up to for years. (here)

and Paul Resnikoff:

the service represents a step down from current, free acquisition options (here)

You can’t please all the people all the time. I shall continue to predict a breakthrough, sooner rather than later, we shall continue to develop our platform (see the recent job advert on this blog), and we shall continue to make ‘no comment’ to public speculation about our business and partnerships.

Two Comments from the ISP World

At Telco 2.0 I met Keith McMahon who writes the insightful TeleBusillis Blog - I have linked to his comments about Playlouder MSP. The Telco 2.0 organisers have now posted about us on their blog under the title, MSP: ISP plus Content.

Many thanks to each.

The debate we are part of in the ISP world makes the music industry paroxysms look puerile. A quick summary of the latter. Major record companies have turned a very simple question - how to charge digital music companies for their use of the sound recordings - into an extraordinarily complex and fraught conflict. In return the world is giving their revenues a pasting, and the artists are finding ways to do without them.

ISP future business models are an altogether bigger and more complicated story. Ed Richards of Ofcom suggested at the annual lecture recently that broadband should start to be considered a utility, as so much of life depends on being connected. That introduces ideas about universal service which give a different slant to the European version of ‘net neutrality’, the ‘mere conduit’ status which protects the ISP from liability for the acts of its subscribers.

For sure there is a big difference between the two, but the essential principle that makes them both work is that the carrier should not interfere with the content on its network. ‘Mere conduit’ seems to me to be an acknowledgement that some behaviour will be undesirable - and certainly in the copyright industries we have seen that more bandwidth means more undesirable behaviour.

For Governments though, the great threat is that investment in new broadband capacity will lag behind other more adventurous nations, and broadband scarcity will bleed innovation out of services delivered over broadband networks. Now is not the time to be introducing greater risk to that investment, by opening service providers to new liabilities, or new responsibilities.

Our own view is that the content and services that broadband bring into people’s homes and lives are being undervalued by the very mechanisms that were designed to protect the carriers, and that until we all find a way to unlock that value both the broadband and content industries will remain blighted.

A Copyright Win Win for ISPs

Tomorrow (October 30th, 2007 for posterity) Playlouder has a chance to make its case at the ISPA’s annual conference. Paul Hitchman, along with other ISPs, regulators, commentators and Government will be discussing copyright. It’s a very good time to be raising our heads above the parapet, with relations between ISPs and the music industry looking set to take a far more corrosive turn.

To support our case I have written a short article for ISPA. If you can get past the local references it states our position quite well.

A Copyright Win Win for ISPs

Hearing Lord Triesman’s somewhat confusing description of data banks being matched to music being exchanged on the net was just as puzzling for us at Playlouder MSP (arguably the UK’s only specialist in this area) as it must have been for ISP observers and the more clued up members of the record companies.

With a foot in each camp we at Playlouder MSP can take a stab at how the thought might have got lodged in his head. The ’sue the fans’ strategy implemented by the BPI on behalf mostly of the major record labels, which has had no discernible positive effect on the growth of digital revenues and has been a PR disaster, has run its course. In search of a target other than itself the recording industry has stepped up rhetoric about ISPs being gatekeepers to illegal music, and was hugely encouraged by recommendation 39 in the Gowers report which seemed to agree with them that ISPs could and should do more. Boosted by the Belgian SABAM/Scarlet case, in which the Audible Magic Copysense appliance was mentioned, the BPI has been busy telling anyone who will listen that there’s a cheap and easy way to clear unauthorised music off the internet, and it’s only self-interested footdragging by ISPs that is stopping it happen.

I’m not going to rehearse the arguments, both technical, legal, and strategic, which make any such attempt an extremely bad idea for music companies as much as for ISPs. Instead, there’s a compelling case to be made that music can benefit the ISP industry even more that it currently does. There are a number of obstacles to be overcome, not least on the music industry side, but none are insurmountable. And, far from trying to achieve a ‘least worst’ settlement over copyrights on public networks, a bit of imagination coupled with some negotiation could see a settlement which flips the antagonistic relationship between music companies and ISPs into a model of co-operation and mutual value creation.

If this sounds like I have been drinking the ’special sauce’ (this is the music industry after all), well maybe I have. But Playlouder MSP has been building the model and it seems to us to stack up. First, consumers value music, very highly. For your hardcore music fans it might surprise you to know that music makes up a £10 per month value that they perceive in their broadband service. The real nutters can be stretched up to £20 per month. Even mainstream users reckon that £5 per month is a fair price to pay for broadband music. To us this says that anyone who was sitting on the now deceased OiNK.cd (RIP - looking forward to BOiNK.cd from the Pirate Bay) and its ilk was getting too much of a bargain.

While incremental revenue opportunities here might be limited except for a few niche players, we need now to turn to what broadband music lovers say about ISPs, none of which has so far managed to tap into the emotional relationship people have with music despite chucking a bit of money at ‘brand affiliation’ projects. Over 60% said that music would keep them loyal, and a huge 70% said that music on a competing ISP would make them consider switching.

Those of you with active product strategy brains will already be spinning this out into the future. Today BT’s Digital Vault includes ‘private’ music sharing (itself a bundle of copyright infringements which don’t seem to have bothered their corporate lawyers too much), but how about building public sharing, community, and internet radio right into every broadband subscription? All the value of that past music experience and music preference, coupled with the digital libraries of your customers, and the infinite future opportunities around finding and sharing new music would be stuck firmly to the broadband subscription, and every outreach by a customer to their music loving friends would be an invitation to switch ISPs and join the party.

Back to reality, though. What’s it going to take to stop both sides of the divide from doing all they can to destroy the value of broadband music? The answer is surprisingly simple. A licence and some money. No ‘big brother’ network monitoring, no DRM, no ‘unplugging’ customers, no compliance overhead, no invasion of privacy, and no compromise of the ISP’s ‘mere conduit’ status. I’ve called this a copyright win win. I’ll add another win - for the Government, which surely would prefer to see a private commercial settlement than a bundle of extra legislation that would end up not actually helping the music industry but would add an unwelcome element of risk to the next generation of ‘broadband Britain’.

All comments welcome!

Playlouder at the ISP Association conference

MSP (the company that owns the Playlouder ISP) is sponsoring the ISP Association’s annual conference on 30th October.

The focus of this year’s conference will be regulatory and commercial issues being faced by the ISP industry. Clearly online music services and P2P file-sharing directly affect both of these issues and Playlouder is at the forefront of delivering solutions to the problems faced by both the music and ISP industries. These are also issues which are of concern for the UK government as it tries to balance the interests of consumers with copyright owners and ensure that the UK has a viable and competitive broadband industry.

Stephen Timms, the Minister for Competitiveness in the Department for Business, Enterprise and Regulatory Reform is delivering the Keynote Speech, and I will be participating on a panel discussing Copyright. Until now ISPs have understandably reluctant to accept any responsibility for the flows of music over their networks and this has led to the antagonism between ISP and music industries. Playlouder MSP provides solutions to this problem by turning the relationship on its head and enabling a commercial partnership between the two industries whilst at the same time giving consumers what they want - unlimited access to music for a flat fee.

More Playlouder Invites

We’re happy enough with the site and the ISP ordering to start giving out more invites to people who want to be in at the start with the new Playlouder. Once you’re a member you get 3 invites you can send to your friends too. So I hope to see you in the site…