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The end of the line for free content?

Valerie | 12 May 2009, 07:13

Rupert Murdoch’s recent announcement to News Corp analysts that the current model for content producing companies’ exploitation of the internet is dead has prompted a global debate.

The Observer reports that for more than a decade, “quality entertainment and culture, as well as mainstream sources of news, have been freely available on the web”. 

However, writing for the Huffington Post, political analyst Andy Ostrof argues that“culture has become a happy free-for-all” and “now may be the time to pay the bill.”

PaidContent reported last week that as publishers face ever declining advertising revenues, and with only modest online gains after a decade of digital investment, many are questioning the free model and turning to content monetisation.

Reportedly encouraged by booming online subscription revenues at the Wall Street Journal, Rupert Murdoch announced this week that News Corp is expecting to start charging for access to its newspaper websites within a year, to fix what he referred to as a “malfunctioning” business model, and citing that “the current days of the internet will soon be over”.  Speculation has followed that fees may soon be introduced at British newspapers such as the Times, the Sunday Times, the Sun and the News of the World.

Meanwhile, during a Q&A panel session at the FIPP World Magazine Congress in London, business to business publisher Incisive Media also said it would charge for all content “in some shape or form” in years to come, whilst Guardian Media Group also indicated it was leaning towards the paid for model, and is considering plans to charge for specialist areas of its website such as MediaGuardian.

The Guardian’s Michael Tomasky questions whether the Wall St Journal and Financial Times models are exceptions rather than successful examples of charging for content. He makes an important point, namely that whilst there is undoubtedly a healthy appetite for business-critical information, it is this kind of unique information decision-makers will pay for but which consumers may not.

The concept of value is at the heart of the debate with the challenge being that value will always be assessed differently by both providers and consumers. 

With this in mind, Wired’s Chris Long believes that free access to entertainment and infomation on the web is inevitable, but argues it doesn’t necessarily mean that creators will lose out because ‘people are already making lots of money charging nothing and that is because it brings them other things they want’.

This will be a key talking point at the c&binet forum in October, which will bring together business, governments and creative talent from across the globe to discuss future business models such as the hybrid free and paid for ‘freemium’ model in seeking to bring the two sides closer to a viable solution.

UK Media bosses call for piracy legislation

Valerie | 11 May 2009, 09:11

The Sunday Times reports that leading figures from Britain’s biggest media firms including c&binet ambassadors Lucian Grainge of Universal Music and Channel Four’s Andy Duncan have formed a “copyright sqaud” to advise Lord Carter on how to tackle online piracy ahead of publication of the Digital Britain Report on June 16th.

The six-man working group, which also includes Michael Lynton of Sony Pictures, Jeremy Darroch of Sky and Neil Berkett of Virgin Media are calling for draft legislation that will force internet service providers (ISPs) to collect data on repeat offenders which can be used to prosecute them, citing that uncertainty over legislation has delayed signing rights deals. However, ISPs have been reluctant to support legislation, arguing that that it raises privacy issues.

The news follows the recent Pirate Bay ruling which found the Swedish site guilty of helping to make copyright-protected content available to others, setting what many believe will be a precedent that will have far reaching implications in the content industry.

As the BBC notes:

“Content creators who are struggling to get consumers to pay for movies or music in a digital world are on the warpath. They’re telling ISPs and consumer technology firms that they must help plug the hole in the creative industries’ finances caused by file-sharing or copying. And they seem increasingly confident that governments will listen to their message.”

The message is clear that content creators believe ISPs have an important role to play in addressing internet piracy and must welcome the news that companies such as Virgin Media are championing this cause.

Internet leaders recognised in 2009 Webby Awards

Valerie | 08 May 2009, 08:18

The 2009 winners of the prestigious Webby Awards have been announced following 10,000 entries from more than 60 countries.

Presented annually by The International Academy of Digital Arts and Sciences, a 550-member body of leading Web experts, business figures, luminaries, visionaries and creative celebrities, the international awards are seen as ‘the Oscars of the internet’ where global giants rub shoulders with bedroom innovators. 

Among the top winners of the 13th Annual Webby Awards were microblogging service and rising star Twitter, which received the Webby Breakout of the Year award, previously awarded to MySpace, YouTube and Flickr, and innovative musician Trent Reznor of rock band Nine Inch Nails, who is cited for “trailblazing work on the internet that has set a new model for both distribution and how artists interact with fans”.

Awards were also given to The Guardian, which saw off international competitors including the New York Times to collect the coveted Webby for best newspaper website for the fourth time in five years.  BBC News picked up two awards – the official Webby and the People’s Voice award in the category of best news site.

The New York Times, YouTube Live, the Boston Globe, Digg, NBC.com, Huffington Post and Wired.com were also among those that received awards.

Economist live debate:  Copyright Laws – more harm than good?

Valerie | 07 May 2009, 09:14

“Copyright strangles creativity. Copyright rewards originality. It is a nuisance to the public that unduly enriches a few people. It is the backbone of our knowledge economy that fuels progress. Hate it, love it, break it, protect it; few people lack strong opinions about copyright and its place in society”.

These are the opening remarks from Kenneth Cukier, moderator of a live online debate being hosted by The Economist on the motion: “this house believes that existing copyright laws do more harm than good”.

Defending the motion is Professor William Fisher of Harvard Law School, who posits that “the copyright system has several important functions”.

Arguing against the motion is Professor Justin Hughes of Cardozo Law School, New York, who counters that “Intellectual property, like much public policy, is a matter of educated guesswork”.

To join the live debate, click on the following link: http://www.economist.com/debate/days/view/310

US copyright blacklist draws international criticism

Valerie | 06 May 2009, 08:39

A US report on some of the world’s worst piracy offenders has placed countries such as China, Russia, Chile and India at the top of the list, causing widespread international criticism.

In its annual Special 301 report which looks into the adequacy and effectiveness of IP protection by US trading partners, the US-based International Intellectual Property Alliance targets 46 countries which include the “usual suspects” such as Russia and China. Europe also comes in for heavy criticism with Finland, Norway, Spain, Italy, Greece, the Czech Republic, Hungary, and Poland all included in the ‘Watch list’.

The elevation of Canada from the regular “Watch List” to the “Priority Watch List” for the first time has incited national response defending its compliance with international copyright obligations. The U.S. trade report cited Canada’s weak approach to border policing and urged that Canadian customs officers be authorised to seize suspected pirated or counterfeit goods without a court order. Internet law professor Michael Geist however points out that grouping Canada together with high-piracy nations such as Russia and China “does not stand up to even mild scrutiny”.

Other countries singled out in the report include Israel, one of twenty countries to submit briefs to the US defending their laws and policies.

Writing for BBC News, Geist argues that whilst yielding predictable lobbyist support from groups such as the International Intellectual Property Alliance (IIPA) and the Motion Picture Association of America, the report has “undermined its (US) credibility and confirmed criticisms that the report lacks reliability or objective analysis”.

The Globe & Mail notes that the US action follows ongoing pressure from the IIPA, a group which includes companies such as Microsoft Corp., Apple Inc. and Paramount Pictures Corp and signals that President Barack Obama intends to take a much harder stance with offenders who are lax about Internet piracy and fail to protect copyright. The Obama administration recently voiced its supportfor the Recording Industry Association of America in a recent file-sharing lawsuit against a Boston University graduate student.

Pirate Bay defendants face potential Italian prosecution

Valerie | 05 May 2009, 10:06

Following the recent verdict received by the four Pirate Bay co-defendants, IGD News is reporting that the Swedish-based site may face further prosecution for alleged violations of Italy’s copyright law.

In what would be the first criminal prosecution outside their home nation, the Pirate Bay is currently being investigated by prosecutors in Bergamo over accusations that the Pirate Bay defendants assisted copyright infringement by hosting a service that searches and tracks pieces of music, movie and TV files on the internet.

Last August saw a crackdown of BitTorrent sites in Italy, with Internet service providers ordered to block access to the Pirate Bay site. The Pirate Bay appealed the block and eventually won the court case. The validity of the blocking order is due to be considered in September by the Court of Cassation, Italy’s top appeal court.

Enzo Mazza, president of the Italian Music Industry Federation was confident about a potential ruling:

“The charge is the same as the one in Sweden, so one can be optimistic about obtaining a similar verdict in Italy. The courts have already confirmed that they have jurisdiction and that Italian law has been violated. The problem is always that of achieving effective enforcement, but it’s becoming increasingly hard for copyright violators to find a safe haven.“

However, the Guardian notes that lawyers for one of the defendants believe that Mazza might be expressing optimism prematurely:

“The Italian case has many different peculiarities, starting with jurisdiction issues, which make the Swedish decision much less relevant than it could seem at first glance.“

The Guardian argues that although it is highly unlikely that the four would face jail if tried in Italy, they could face substantial fines over and above the ones already brought in Sweden.