Piracy is Just Part of the Film Industry’s Problem

by Mielle Sullivan, Janus Networks

Last week the Swedish creators of file sharing community The Pirate Bay were convicted of copyright violation and given a one year jail sentence. The story once inflamed the ongoing debate about copyright and ownership of information. Both the studios and the “pirates” are sticking to the same familiar arguments of lost revenues and freedom versus corporate greed respectively. But after everything that has happened in the music and newspaper industries in the last ten years, it has become clear that how content is consumed online and how money can be made from online distribution is more nuanced than these tired talking points.

What the movie studios must come to accept is that regardless of any single file sharing site, they– like the music and newspaper industries–will be radically altered by online distribution. The internet was designed to distribute information, and it performs this function very well. Digital information is also designed to be distributed, so it will be. Movies are digital information. Legally or illegally, file sharing is here to stay. The bigger realization is that even legal, online film distribution will cause a huge market disruption.

While revenue from theater showings may hold steady, the sales price of media for private consumption will continue to decline–a trend that precedes the internet. Through streaming and downloading, the net has made a much wider variety of films and TV shows immediately available to consumers instantly. Every film, TV show etc. available on the web must compete with every other movie, TV show etc. available on the web–more options means less market share for any one product. It is this sudden market expansion that has been so much trouble for newspapers.

Having said that, the film industry is different from the news industry. One news article may contain the same basic information as the next, but one movie is unique enough that it wont compete head to head against another movie as easily. Neither is the film industry completely analogous to the music industry. We listen to individual songs more often than we watch individual movies, which is why we never rented songs. With complete convenience achieved, access to a large selection is increasingly the determiner in how people watch movies at home.

There are two factors that are keeping online movie selection down. 1.) Licensing. The studios are scared to death of cannibalizing DVD rental and sales revenue, which account for tens of billions dollars and the majority of its revenues. Exactly how much revenue is something of an industry secret, but in 2005 it was 85.5% and growing 2.) Connection speeds. Downloading large files at slow connection speeds isn’t viable. Obviously, both of these situations are changing quickly. Broadband adaptation and speed are rising rapidly, making video streaming and downloading available to more people. Content licensed for online distribution is growing as well. Hulu and Netflix have had several new streaming content deals in the past few months, but the selection is still painfully small.

More and more consumers have the ability and desire to view films online, but find no legal sites with a compelling selection. This does push some people towards piracy. And it’s a bit of a catch-22 for the studios, if they distribute their content online, they lose life-sustaining DVD sales. If they don’t distribute their content online, they encourage piracy.

The industry will loose some revenue, but Netflix and Blockbuster have already proven that the subscription model for film distribution is profitable and popular. Illegal file sharing sites also leave a lot to be desired in selection, so it is possible to compete against them. I do believe people will pay for a dependable video on demand site with a very good selection. Despite their hedging, the sooner such sites exists, the better for the movie industry. Subscribers rather than sales are new revenue source.

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The Future of the Web: It is All About Usability

by Mielle Sullivan, Janus Networks

Last week I found out about Vysr’s Firefox extension RoamAbout and it made me excited. Why? Because finally I discovered a highly-customizable toolbar to bring me the best of the internet whatever site I am on. RoamAbout widgets are mini windows to the web.

RomAbout, is a vertical “shelf” that lives on the far right side of your browser. It houses widgets of your choosing from a variety of popular websites including Wikipedia an YouTube. Using RoamAbout, you can look up a term or watch a video without having to navigate away from the page you are reading.

So far, RoamAbout has done more to facilitate my browsing than any other toolbar or plugin or bookmarklet. In fact, I hope the amount widgets available for RoamAbout increases and eliminates the need for me to download any more browser extensions. As Doriano Carta said in his Mashable.com article about RoamAbout, “At first glance, one might think this is just another browser plugin or extension but it’s far more than that. Providing access to apps and services, no matter where you are online, is an innovative process.”

RoamAbout makes websites truly portable. It can do for reference, video even shopping sites what RSS feeds did for news sites – provide a portal for users without them actually having to visit the site. I think RoamAbout or something very similar to it will catch on with a lot of users and change the way we surf, or stay put, on the web.

The future of the web is user- rather than site-centric. Thus the killer websites of the future will be portable or at least have a portable component. Designers, start building your widgets because users want the best of your information, but not necessarily the whole interface.

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Android Comes to Your Home

by Mielle Sullivan, Janus Networks

Last week I wrote about Verizon’s plans to make netbooks. On Sunday, another news story broke about the convergence of cell phones and computers. Confidential documents from T-Mobile have revealed that the company will release a home phone in early 2010 and, sometime after, a tablet PC– both powered by Google’s OS, Android.

T-Mobile has confirmed it has Android opperated devices in the works, but did not comment on details. However, the documents state the phone will have a docking station and come with another device that synchronizes data. The tablet PC will have a seven-inch touchscreen instead of a keyboard and basic web functions like email, weather checking and the capability to “manage data across different home devices.”

All in all, the functionality of these devices is not incredibly tantalizing, but the news does point towards a trend of more interconnected home devices. AT&T already has the HomeManager and Verizon has the Hub, both of which do about the same thing for home phones as these T-Mobile devices would. The addition of the Android OS makes these new gadgets more interesting. Android allows for much more flexibility and probably much smoother communication between devices, especially as they evolve to do more. T-Mobile might be dreaming of a home with several smart devices, all communicating seamlessly. Such devices could include digital cameras, televisions, computers and security systems. The company’s Cameo photo frames already receive pictures via email.

As demand for wireless data and management across different devices increases, it will be interesting to see how far wireless carriers, and Android, will be able to push themselves into different spaces like the home and personal computing. The open source flexibility of Android may aid T-Mobile in its expansion into these spaces. But I expect competitors, particularly AT&T and Apple, to offer their own solutions as well. Ironically, home may be the new telecommunications frontier.

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The Cloud Is Safer Than You Think

by Mielle Sullivan, Janus Networks

When you think of cloud computing you probably think of millions of devices, many of them wireless, communicating and spreading information around the globe. If you are more pictorially minded, you might think of a huge cloud of information that can be accessed from anywhere. Both images bring to mind the mystery and danger associated with cloud computing. Where is all the data, exactly? Who has access? But, some experts say the cloud can be safely used for even the most secret of information.

A few of these experts have formed the Cloud Security Alliance, a new non-profit organization that promotes best practices and security assurance within cloud computing. Paul Kutz, founding member of CSA, says the cloud is already being used by large enterprises for mission-critical tasks. Kurtz, who has been consulted on information and infrastructure security by both Bush and Obama, says the cloud is even ready for the security needs of the federal government. “The real question,” he noted, “is whether the federal government is ready for cloud computing.”

Kutz argues there are certain security benefits from using the cloud, such as faster software updates and, under some circumstances, multifactor authentication. These and other features have convinced top-level security experts of the cloud’s viability. Defense Information Systems Agency, a defense contractor, even supports the formation of a single entity to provide computing services to all of the federal government. Federal CIO, Vivek Kundra, is also a vocal advocate of the cloud.

While not all questions in areas like data retrieval and identity management have been answered, there is reason to believe that the CSA will help speed along solutions. Even as the technology matures, with the help of some expertise, many small businesses may find better efficiency safely in the cloud.

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