On 2/1/07, Stephen Miller <[EMAIL PROTECTED]> wrote:

What needs to be developed is new distribution systems, not excuses for
old methods, nor seeing any form of global market as a problem. If
content is available at a fair price globally and simultaneously, the
advertising markets and audiences should greatly expand.


"Fair price" - nice phrase, except we need to state who it's fair to.

For example - the music companies want internet broadcasters to pay the
equivalent of 0.1p per track per listener to play a song on interactive
internet radio (a service like the US's Pandora, for example). That means
that, typically, an internet radio station will pay 1.3p an hour per
listener (if they play 13 songs an hour). All fine so far; and it appears,
at first glance, quite fair.

But after 30 years of commercial broadcast radio in this country, experience
appears to suggest that we can expect an equivalent revenue of 2p per
listener per hour. Further, broadcasting interactive internet radio isn't
cheap: it demands unicast streams (which currently can cost more than 1p per
listener per hour in bandwidth charges); and that's before we factor in the
cost of staff for the station, and the fact that a radio station which
reaches a few thousand people isn't even going to get on the advertising
orders when compared with stations with many millions of listeners.

So, as it currently stands, the 'fair price' ends up meaning that the costs
to run an internet radio station far outweigh any possible revenue from it.
Yet the content owners clearly believe that the rights costs are fair
(unless you're claiming that the record companies want to stop ANY
broadcasting on the internet).

The 'global' issue is one here, too. Webcaster rates in the US are very
different, and in some areas of the world, there are no rates at all.
Currently, internet radio is a global phenomenon; but I'm unaware of any
time where the UK record companies have earnt money from broadcasts
emanating from non-UK places on the internet.

I focus mainly on visual arts, TV and
movies, as due to product placement and adverts, these offer the most
viable free distribution options with current methods of funding. I
think the internet should be looked upon as a place to expand the free
to air television market, with funding provided solely through site and
media advertising. I do not view this as wishful thinking, and do not
think that bittorrent downloading precludes this.

All the above problems currently occur without any DRM at all: precisely
the kind of environment you're looking for - and, as you can hopefully see,
it's anything BUT viable. Should content owners suggest similarly 'fair'
pricing for broadcasters for on-demand content to place on BitTorrent, then
it simply won't happen.

However, a system like Joost - which uses Content Restriction And Protection
to a certain degree, since you can only stream not download, has more of a
chance, potentially.


I do realise who you work for, but don't think that is hugely relevant
to the debate. As mentioned in my last email, I'm not saying that people
like you do not exist in commercial companies, merely that research is
seen more as an interesting aside and future possibilities, as opposed
to something that can be realised within the next year or so.


You didn't say that at all. What you actually said was that media
institutions were not forward-looking and had nobody with any say who
understood new technologies - and who I work for and who funds this mailing
list is highly relevant to that, since it shows that you're, to put it
bluntly, wrong. To claim that nobody within the media is looking to the
future is ever-so-slightly insulting, you know. In fact, I challenge you to
a fight. Outside, now.

--
http://james.cridland.net/

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