Kalypso Media Launches ‘Digital First’ Label - KOBALT GAMES

The Kalypso Media Group has further strengthened its portfolio of digital entertainment with the creation of the new Kobalt Games label. Released under the tag line: ‘Digital. First. Quality. Gaming’ Kobalt Games will publish high quality titles for PC, XBLA, PSN, MAC and Linux at a mid-price level, with a maximum price of £24.99, €29.99, $29.99, primarily via digital distribution channels.

The first title in the Kobalt Games line-up will be ‘Blood Knights’ from the renowned developer Deck 13 Interactive, whose worldwide distribution rights were recently acquired by dtp entertainment AG. The distribution rights include all planned platforms: Windows PC, XBLA and PSN with a release scheduled for Q4 2013.

"With the founding of our new ‘Digital First’ Division, Kobalt Games, we create a clear and direct-to-consumer purchasing channel,” said Simon Hellwig, Global Managing Director of Kalypso Media.. “The Kalypso brand will continue to publish premium full-price titles such as ‘Tropico 5’ and ‘The Dark Eye – Demonicon’ which will be released simultaneously via digital distribution and boxed retail, while Kobalt will offer mid-priced, high quality titles to our audience.”

"With ‘Blood Knights’, we have our first title in the Kobalt Games line-up. We are sending a clear signal that we are committed to publishing high quality titles in the mid–price range, “added Stefan Marcinek, Global Managing Director of Kalypso Media

Reference: http://www.gamasutra.com

Rumors of Apple New Radio Shakes the Internet Radio Market...Starting with Pandora Radio

    

Shares of Pandora Media plummeted as much as 21% on Friday after word leaked out that Apple has been in discussions with record labels to launch a competing streaming radio service.


Apple's proposed online service, first reported by the Wall Street Journal, would have the potential to disrupt both Internet and traditional radio providers.

Cupertino, Calif.-based Apple is seeking a more flexible type of music license from the record labels than the one Pandora has. It would allow Apple to select whatever song it wants to play next and tailor selections based on albums in listeners' iTunes music libraries, according two industry executives with knowledge of Apple's plans for the service.

Such features would give Apple the ability to customize its music to individuals, which traditional radio can't do, without having to ask them what they like or restrict how often a single song can be played, as Pandora must.

Pandora's stock plunged as much as 21% in trading Friday, dipping below $10 in the morning before recovering slightly. It closed at $10.47, down 16.7%.

Apple's stock, meanwhile, marched up $4.17 Friday to close at $680.44 -- a new all-time high for the company.

A Pandora spokeswoman declined to comment, and Apple did not return calls seeking comment.

Why did Wall Street have such a dramatic reaction?

"This is Apple," said Michael Pachter, an analyst with Wedbush Securities. "If Apple wants to compete with you, then you got a problem."

For years, Apple and Pandora had a symbiotic relationship. After launching its Internet radio service on Apple's iPhone in 2008, Pandora's application skyrocketed in popularity, becoming one of the most-downloaded applications for the device.

Pandora, which had struggled to reach listeners on personal computer Web browsers, saw its audience explode, enabling the company to stem its losses by selling more advertising on its service.

Apple benefited from having one of the most well-liked entertainment services on its phones and tablets without having to spend a cent to develop the product. Now, however, Apple is negotiating deals with music labels for its planned radio streaming service.

"The big open question is: Why is Apple doing this now?" Pachter said. "The answer is that they fully intend to make a lot of money from this, and the way to do it is to sell more songs. The record labels embrace this because they see Apple can integrate iTunes downloads into the radio offerings in a much more compelling way than Pandora can."

Still, Pachter said, if Apple proceeds with launching a radio service, Pandora isn't necessarily toast.

"They have a big install base, and they’re on Android," he noted. "They’re not going to just lose all their customers overnight. I’m sure they’ll keep at least three-quarters of their customers or more, if Apple follows through. It'd be more of a setback as opposed to total devastation, but they’ll recover."

Pandora, which had a rocky time since going public last year, looked as if it may be turning the corner last quarter. Its shares jumped as much as 12% immediately after it reported that second-quarter revenue. That was up 51% from a year earlier to $101.3 million in the quarter that ended July 31.

Executives of the Oakland, Calif., company also said that third-quarter revenue probably would come in as high as $118 million -- higher than the $114 million that financial analysts had expected -- and that it would probably break even in the third quarter or even make a penny a share.


Reference: www.latimes.com

Gaming and Digital Distribution

For most people who grew up with games, getting the latest title generally meant queuing up at the shop to grasp that shiny box in your mitts. To a large extent, this is still true, but equally many games are now being played without the user ever touching a plastic container, or browsing an instruction manual. Xbox Live Arcade, the PlayStation Network and Nintendo Wii Store are all growing in prominence, but also Facebook, Apple's iOS, Google Android and OnLive are fast coming front-and-centre. So what does this all mean? Is games retail as we know it about to die a slow death?

Well, UK revenue from sales of software, hardware and accessories was down 13% in 2011, at £2.52bn, but it's rather premature to call in the bailiffs. Instead, we are seeing a step change in the industry, in which the old model of publishers making boxed products and selling them to customers (via retailers) is being challenged by new routes to market. Developers are increasingly 'cutting out the middle man' and taking their games direct to the players. Digital Spy investigated how Finland is at the cutting edge of the latest innovations in video gaming distribution.


Finland has one of the fastest growing games industries in the world, increasing its revenues from 105m euro in 2010 to 165m euro last year. Famous Finnish studios include Max Payne and Alan Wakedeveloper Remedy Entertainment and social games maker Playfish, which was bought by EA in 2009 for £160m. But what has most dramatically put the country on the map is Rovio, the company that became a multi-million dollar behemoth on the global success of Angry Birds.

So how has this tiny Nordic country of just 5.4m people become such a player on the global gaming scene? Well, perhaps the situation is best summed up best by Timo Koski, the late chief strategist of Finnish mobile phone giant Nokia in the 1970s and '80s. Koski once said that when an aspiring US inventor opens his door, he sees the biggest technology market in the world. But when a Finnish entrepreneur does the same thing, all he sees is snow.

This witty adage demonstrates that developers and technologists in Finland have had to work harder to innovate. A studio like Rovio would have had little chance to challenge the video games giants in the days of purely physical products. But the new means of digital distribution on mobile, social networking and online allow the firm to compete. For example, Zynga - the US maker of Facebook games such as Farmville and CityVille - recently floated on the stock market, attracting a value that made it the third-biggest American games company based on stock market value, just behind EA and Activision.


Ville Vesterinen is the co-founder and chief executive of Grey Area, the Finnish developer behind Shadow Cities, an iOS game that turns mobile maps into real-time battlegrounds. The game is essentially an MMOPRG, involving two teams of players fighting a fantasy war for territory, engaging in weekly battles to earn XP, unlock spells and take more of the map.

"What we have done is combined mobile gaming with the real world," said Vesterinen. "Shadow Cities pushes what games are in the modern age by turning the world around you into a battleground." Vesterinen feels that we are now seeing a "paradigm shift" in the way games are delivered, as the previous concept of purchasing a boxed product in a shop increasingly feels outmoded for many people. The same trend is being seen across music, film and TV; users have sophisticated devices such as smartphones and tablet computers that are always connected to the web, and they expect to access entertainment, content and games on them.

Speaking at a recent event arranged by Nokia in London, Vesterinen said that a crucial part of gaming on these new digital platforms is the concept of shared emotions. He pointed to the most watched non-music video on YouTube, a short clip called 'Charlie bit my finger...again', featuring a baby biting a boy's finger, which has been watched a staggering 394m times. It seems strange that such a simple video should attract such attention, but Vesterinen feels that is missing the point.


The video is popular because it connects to such a broad range of people, in whatever way. This, says Vesterinen, is what is making some online games work. With Shadow Cities, he said that location is the "shared anchor" that brings people together, but also crucially keeps them playing. "They form relationships through the gameplay," he said. "There is regional rivalry between people, which makes it feel alive and real. They can level up, unlock spells and keep competing in weekly battles. But it is the social that brings them together."

The success of Finland's gaming industry has not gone unnoticed by investors. Rovio recently attracted $46m of fresh investment and Supercell, creator of the Gunshine browser-based game, has pulled in $15m. A note should be made here, though, to the support from the Finnish government, which has very much got behind the industry and offered significant funding grants for new projects, as well as tax credits. This fact provides further evidence for the case brought by UK games industry trade body Tiga, which has consistently lobbied the British government to introduce support for our studios to help them compete with other state-backed global industries.

That gripe aside, there are many things the world can learn from Finnish innovation. Supercell chief executive Ilkka Paananen said that Finnish studios were given confidence by the success ofAngry Birds, which he feels "raised the bar" for everyone. Gunshine is free role playing game available through browsers and Facebook, in which players come together to form clans, fight battles and conquer bases. It has a heavy focus on social interaction, a feature many games are now embracing as it makes players more engaged and also more likely to purchase additional content (something particularly important in free-to-play titles). But also, such an open user experience throws up some interesting player behaviour trends.



Paananen gave an interesting example of this in Gunshine. When the RPG came out of public beta last year, the players who had already become fans decided to celebrate the landmark with a party. With no input from Supercell, they gathered in a place called The Pirate Bay nightclub (which Paananen noted has no other function in the game than decorative) and had a virtual knees-up. They got together, they chatted, they pole danced (!), and even used spells that they had paid for to liven up the atmosphere. "Here's the key point - we did not design that in the game," Paanenen noted. "It was the users who invented it. They created it and it was a social experience."

Remedy Entertainment is one of the more established studios in Finland, having sold 10m physical units over the years, generating $500m in revenue. Alongside blockbuster releases likeMax Payne and Alan Wake, the studio has also joined others in embracing the new digital platforms.

The company offers the Death Rally combat racing game on iOS devices. Despite being priced at just 99 US cents, Death Rally recouped its original investment in just three days and has since generated $1m in revenue from its 3m players. The studio is so keen on digital distribution that it has opted to release the next instalment in its flagship franchise, Alan Wake's American Nightmare, exclusively on Xbox Live Arcade.

Aki Järvilehto, executive vice president at Remedy, said that digital distribution is having a "major impact" on the industry as it is enabling studios to "do things that were not previously thought possible". He said that studios previously viewed the publishers as their customers, but they are now increasingly fostering direct relationships with the consumers of their games.


Independent developers now no longer need to bow to the whims of the publishing overlords, and can self-publish new titles with considerably-reduced upfront costs and hassles. Järvilehto noted, for example, that getting games on Android is a "single-click process" in some cases. There are issues that must be beared in mind with developing for digital platforms, such as that average playtime of Facebook games is only 3.4 minutes and many people would baulk at paying more than £2.99 for a mobile game, but Järvilehto feels that the more level playing field makes up for these drawbacks.

"People tend to vote with their wallets on the Apple App Store," he said. "Ad campaigns have a major impact on physical sales, but it's not the same for the digital channels. Its more about getting to the top of the Apple charts, and the only way to do that is by making a kick-ass game that people buy, update and recommend to others. As an indie developer, that is a really great thing."

External Reference: www.digitalspy.co.uk

Star looks to do a Hulu with Indya.com

Television broadcaster Star India Pvt. Ltd plans to convert its website Indya.com into a digital distribution platform beaming all kinds of content, including that from rival broadcasters, and generating revenue largely through subscriptions.

Star India says it is in talks with Zee Entertainment Enterprises Ltd (ZEEL) and Multi Screen Media Pvt. Ltd (MSM) on the commercial terms of bringing their content onto Indya.com, which will be styled on the lines of Hulu.com, one of the largest digital distribution platforms in the US.

Consumers would be able to access the content on any device, whether it’s a smart TV or a smart phone, from the platform, which could be a potential game-changer in the way television is consumed in this country.







Hulu, which shows movies, episodes of TV series and music videos, is a joint venture of News Corp., NBC Universal and the Walt Disney Co. On one platform it provides content from various networks such as NBC, Fox, ABC, Nickelodeon, deriving its revenue from subscriptions and advertising.



Digital experts say Star had earmarked Rs. 40-45 crore for the digital project, but is likely to spend a lot more because a bigger investment is required for both front-end and back-end operations. The broadcaster had been expected to launch the platform in October-November, but the plans have been pushed to the first quarter of 2012.

Star is working with various technology partners—July Systems, Autonomy Interwoven and the video platform Ooyala, among others—for this project. It is expected to use AdTech’s ad-serving technology. Agencies that are helping with the design and campaign include OgilvyOne, G2 Interactive, and Law and Kenneth (Digital).

Star India’s chief operating officer Sanjay Gupta said the broadcaster had big plans in the digital space for India. The first part of the plan has already been executed with episodes of television shows, or mobi-sodes, being created for mobile phones, and the launch of applications for the iPad and iPhone. The move made it the first general entertainment channel to enter the iTunes app store.

“What we are doing is building a digital ecosystem, through which consumers can access content on their preferred device,” Gupta said. “Bandwidth continues to be a problem in the country, which is why we are collaborating with a lot of third-party companies (technology partners) so that we are able to deliver faster videos and a good interface.”

“We want the technology to be perfect before we go ahead with the launch,” Gupta said, adding the plan was to bring some top television networks onto the platform. “The more the numbers, the better it is,” he said, because the idea was to position the site as a one-stop destination for content.

Gupta cautioned that much of the project was a work-in-progress; it may start in a small way and be built up along the way.

He said it was premature to comment on whether Star would monetize all the content on the site and what revenue-sharing model it would adopt with its partners. The business model would be largely subscription-based, although advertising could contribute a part of its revenue.

He added that the current distribution contract with Zee did not cover this venture. “We are in fresh discussions with Zee on this matter,” Gupta said. He did not comment on how much money would be invested in the venture.

Danish Khan, vice-president of marketing at MSM, remained unavailable for comment. An MSM spokesperson said the company was not in a position to comment. A ZEEL spokesperson did not respond to Mint’s email and phone queries.

Prasanth Mohanachandran, founder of digital company AgencyDigi, said Star will have a sizeable first-mover advantage once the project gets off the ground.

“Competing networks could very well think of starting a similar venture themselves,” he said. “But it would take them a window of one-and-a-half years in order to put it together. If they choose not to come on board the Star platform, they lose the money-making opportunity, and plus it’s a year or more of waiting.”

Mohanachandran added that there isn’t much Indian online video content currently, let alone paid-for content.

“The audio-visual format bridges the barrier of literacy. Indian producers would have avenues to put in content and generate money from that content,” he said.

Mohanachandran says it’s a misconception that people will not pay for online content. “People using iPhones are already used to paying for content. Even in tier-two cities, there are SIM cards with pre-loaded content,” he said

Mahesh Murthy, chief executive and founder of digital marketing firm Pinstorm Technologies Pvt. Ltd, said any general entertainment channel would want to expand its base and reach out to the people migrating online.

“They want to follow the YouTube success story. But the thing that’s worked for YouTube is that it’s quite democratic in the content that it puts out. For instance, it does not give precedence to a soap versus a Kolaveri and that’s led to its popularity. There’s every form of video content available.” The reference is to Why this Kolaveri Di, the Tamil music video that’s been watched by millions since its YouTube debut last month.

L.K. Gupta, chief marketing officer at LG Electronics India, said digital expansion is a logical move for media companies.

“As of now, only YouTube is structured and geared to provide huge video content, but it is everything for everyone. A focused approach guarantees quality video content,” he said.

India has less than 200,000 smart TV sets, but over 10 million smart mobile handsets, Gupta said. “Add to this premium-end tablets and there is an audience,” he said, “but is doubtful whether users would be willing to pay for content given a profusion of free videos.”

Abdul Khan, senior vice-president at Tata Teleservices Ltd, shares Gupta’s doubts about the revenue model.

“It’s a networked world and eventually everything’s moving to an open-source model,” Khan said. “Star is ahead of the curve but I have doubts on the business model. There haven’t been too many successful subscription models online.”

External Reference: www.livemint.com

Library Wars: Amazon and Publishers Vie for Control of E-Book Rentals

As the digital era unfolds, the role of libraries in the distribution of e-books has emerged as a significant issue of contention. While print books are still the mainstay of most libraries, and audiobooks are accepted as a regular feature, there is considerable uncertainty about how to handle e-books. Among the six largest trade publishers, only Random House has been selling e-books to libraries without restrictions, and a spokesman said that it is now "actively reviewing" its position. Macmillan and Simon & Schuster do not sell e-books to libraries at all. Hachette and Penguin withhold their newest titles, and HarperCollins caps the number of times a book can be loaned at 26 after which, in principle, it needs to be repurchased.

The soaring popularity of e-books and the dominance of Amazon and its proprietary Kindle reader have apparently made these publishers wary of the impact on sales. Smaller publishers and academic presses share those concerns and recognize that e-books could, over time, replace print books as the format of choice among students and scholars, which would seriously undermine their revenue model. About two-thirds of libraries across the country now offer some access to e-books, mostly working through OverDrive, which is the leading provider of digital books to institutions. Initially, Amazon did not make its Kindle e-books available to OverDrive. When Amazon changed that policy this past September, library patron access to e-books substantially increased, and publishers privately expressed concern that substantial numbers of e-book buyers would become borrowers instead. Steve Potash, chief executive of OverDrive, told the New York Times that connecting libraries to the Kindle "is going to bring millions of readers to the public library."

Libraries are a valued pillar of the book business, but the prospect of widespread downloading of e-books unnerves publishers because digital files can be easily shared and used in perpetuity, and because Amazon has proven to be an especially tough negotiator over terms in other aspects of the book business. Announcing before Thanksgiving that it was limiting the sales to libraries of new titles in e-book formats, Penguin said that, "due to new concerns about the security of our digital editions, we find it necessary to delay the availability of our new titles in the digital format, while we resolve concerns with our business partners." In response, Carrie Russell, director of the American Library Association's Public Access to Information program, said "Penguin says that they have security concerns with library sales which we find puzzling. There is no evidence that security breaches have been tied to public libraries or library users. One would think this is more of an issue with everyday consumers or hackers who do not want to pay for ebooks."

In fact, the publishers' real concern is turning over an ever greater share of business to Amazon; in particular, its recently launched Kindle Owner's Lending Library, which when linked to public libraries through OverDrive could enable remote access to books. "Now with the right credentials," Jeffrey Van Camp wrote on the website Digital Trends, "a person could technically get on his or her computer and start borrowing new books and not paying for anything with relative ease. Of course library lending must have always been a source of contention for publishers as users don't pay for rented books, but this new service makes it more convenient, which may scare Penguin and other publishers."

Driving home the point, the post continued, "Amazon has been known to be pushy about new features, usually for the betterment of its users, but sometimes to get an edge on the competition." A number of publishers have complained that their books have turned up among the offerings on the Kindle Owner's Lending Library, even though they have chosen not to participate in the program. Publishers Weekly made a similar argument, asserting that Penguin's move, as well as the stance of the other large publishers, "is yet another sign that despite considerable talk of librarians and publishers coming together to work out solutions, tension over digital content is in fact escalating. In 2011 alone, two major publishers have scaled back their policy on library ebooks; [and] the Authors Guild is suing university libraries over its plan to digitize out-of-print and orphan works for use in an educational setting."

Librarians, encouraged by the dramatic increase in e-book borrowing since the September launch of OverDrive's library lending program for the Kindle, are eager to refute the publishers' complaints. OverDrive executives say that e-book checkouts have tripled this year over 2010, with two million new users signed up as digital borrowers. According to Publishers Weekly, Ruth Liebmann, director of account marketing at Random House, made the best case on behalf of the libraries earlier this year. "A library book does not compete with a sale," she said, "A library book is a sale." Libraries are comparable to independent booksellers as a percentage of business, and they "never send books back." Liebmann said that Random House's goal was to have books in libraries in multiple formats, as they are in retail. That may well turn out to be the long-term position, but in the meantime, as the spokesman said, the company's policy for library e-book sales is under active review.

Digital Trends sees the dispute as a tug-of-war between publishers and Amazon, in which the libraries are caught in the middle. "Is this an industry squirming because times are changing or is this Amazon pushing its power too far?" The question is an intriguing one.

External Reference: www.theatlantic.com

AdGenesis and TVGenesis Merge to Create Genesis Media

Two leading online video advertising and content distributors, AdGenesis and TVGenesis, today announced they have merged to form Genesis Media, a full-spectrum online video distribution and targeting platform. Genesis Media will enable advertisers to target their desired consumers through the industry's first cost-per-verified-view broadcast model, which matches relevant brand videos to opt-in consumers based on their interests and online habits.

Genesis Media's targeting algorithms deliver 20 times the engagement of pre-roll advertising and 100 times the engagement of traditional banner ads. The Genesis Platform has five million registered users and reaches 150 million viewers per month across thousands of premium publishing partners.

The company also announced the appointment of Andrew Reis as interim chief executive officer. A proven entrepreneur, Reis co-founded Tremor Media and helped pioneer online video advertising. He also co-founded TVGenesis and will join Genesis Media's Board of Directors.

"Genesis Media improves advertisers' ability to reach and activate their desired customers with transactional video and full accountability," said Andrew Reis, interim chief executive officer of Genesis Media. "By bringing together two powerful platforms to create Genesis Media, we have unified video distribution and activation into one seamless experience."

The platform has already delivered unprecedented, subscription-level data and engagement and soon will be extended across the entire Genesis network of publishers. Genesis Media will announce major publishing partners before the end of the year that will result in a doubling of Genesis Media's brand matching reach.

"For retailers and e-commerce providers, Genesis Media extends the impulse buy from the physical store to online video and ensures the consumer's intent-to-purchase," said Joshua Feuer, co-founder, chief product officer and industry e-commerce expert. "Our patented Ad-Match™ and View Verification™ software changes the way digital video is distributed and consumed. It also transforms how our publishing partners interact with their user base and program their content to create new and high-performing online videos."

"Consumers love brands and brands are always looking for ways to get closer to consumers," said Richard Smullen, co-founder and chief revenue officer. "Genesis Media helps advertisers speak to their desired consumer on a one-to-one basis, on a much grander scale. By matching consumers and brands, Genesis Media can deliver stronger ROI for advertisers."

Product Roadmap

Genesis Media will build and support the existing product portfolio with new content and brand matching applications, including its patented Verified View™ technology, which guarantees that consumers watch brand videos. Genesis Media also plans to develop video offer banks that will appeal to opt-in consumers, and will provide targeted offers from deal-of-the-day, group and flash sale sites as well as e-commerce sites starting to leverage video marketing and distribution.

External Reference: www.sacbee.com

Cloud-Based Versus Digital Downloads

In a one-two punch the past couple of weeks, both Apple and Google have opened up their own cloud music services. Apple has iTunes Match, a $24.99/year service, andGoogle has Google Music, a music store and free cloud storage solution (you can store up to 20,000 songs for free, but you must upload them to your account yourself) for your music files.

Apple’s service is available only on Apple devices, while Google is accessible as an app on Android devices, and as an HTML5 web app for Apple devices.

Both allow you to stream music directly from the cloud, eliminating the need to mess around with local storage. This makes sense considering many smartphones and tablets (which these services are aimed at) have limited storage captivity. But armed with an unlimited mobile internet plan (or Wi-Fi) you can keep all you music on the cloud and stream as needed, without having to download them.

Both services are currently restricted to US-only users. However there are creative ways for non-US users to sign up for these services, using proxies that give you a US-based IP address. Engadget even published a post explaining how. Or if the circumstance presents itself, you could do as I did, sign up for Google Music while in the US during a quickie visit.

Apart from Google Music, I signed up for Spotify, that Swedish based music-streaming service now making headway in America thanks to its patron saint Sean Parker and his ties to Facebook. Spotify’s links with Facebook are so tight that you need a Facebook account just to sign in.

Spotify usage is likewise blocked in the PH. However if you signed up for Spotify in one of the countries supported, you can continue to use the account globally.

I signed up for the “Premium Account”, which for $9/month allows you unlimited use and the ability to use Spotify on both PC and mobile devices (a wide range of smartphones are aupported from iPhones to Nokia Symbian devices).

Spotify boggles the mind. This service eliminates the need to download any music at all. Any song you care to pull out of your nostalgia banks is stored somewhere in a Spotify server. You only need to search for it. Having found the the track, you can play it immediately, or add it to a playlist. With no need to download it to your device.

External Reference: www.gmanews.tv

Google Opens its Music Store to the U.S...What's up Apple?

Google unveiled its much-anticipated digital music store Wednesday as it opened a new front in its battle with Apple to provide services over mobile devices.

For the first time, Google Inc. will sell songs on the Android Market, its online store for apps, movies and books. The service is available over the next few days to customers in the U.S., but it aims to roll it out eventually to some 200 million Android users globally.

Some songs are free, while others were priced at 69 cents, 99 cents and $1.29 — the same prices as on Apple's iTunes. Artists whose work is available right away include Adele, Jay-Z and Pearl Jam. The store will feature dozens of free tracks from artists like Coldplay, Rolling Stones and Busta Rhymes.

Google is offering 13 million tracks for sale, from three of the four major recording companies — Vivendi SA's Universal Music, EMI Group Ltd. and Sony Music Entertainment — and a host of independent labels. Warner Music Group was the major recording company left out. Warner spokespeople did not respond to requests for comment.

Google is allowing sharing of purchased songs over its social network, Google Plus. Friends will be able to listen to one another's songs once for free.

Once someone buys a song, it can be downloaded and is automatically uploaded for free into an online locker. The song can then be streamed over computer and mobile phone browsers, including the Safari browser, which comes on Apple Inc. devices such as the iPad. People who download the Google music app on devices running Android 2.2 and higher can stream stored songs or download them for offline playback within the app.

Google's director of digital content for Android, Jamie Rosenberg, took a dig at Apple's online song storage service, iTunes Match, which costs $25 a year. Google's cloud storage service is free for up to 20,000 songs.

"Other cloud music services think you have to pay to listen to music you already own. We don't," he said.

Recording company executives said that, although some of Google's features go beyond what is offered at iTunes — specifically the one free listen for friends, the concessions were worth the benefit of reaching new customers.

"How many people do you know have both an iPhone and an Android device?" said Universal's president of global digital business, Rob Wells. "I encourage any new entrant into the digital music space who is going to help us reach a broad audience and sell legitimate songs."

Mark Piibe, EMI's executive vice president of global business development, said Google's plan to bring legitimately sold music to people in new ways "can only be good for the market as a whole."

Although Google and the recording companies hope sharing of songs helps sell more tunes, some observers were skeptical.

Adam Klein, chief executive of discount digital music store eMusic, said that for his customers, buying music is more a considered, personal decision that is often not influenced by friends' tastes.

"A Google-Plus tie-in will not make it a game changer," he said.

T-Mobile USA, which brought Google's first Android-enabled smartphone to market in 2008, also was a partner in the Google music launch. The cellphone carrier said it would offer other free songs to its customers and soon allow them to pay for music purchases through their phone bill.

Google also appealed to independent artists who release their own music, allowing them to upload songs, biographical information and artwork to the store after paying a one-time $25 fee. Artists would be able to keep 70 percent of all sales.

By launching the store, Google is opening its music service widely. It released the service as an unfinished beta in May to about a million people in the U.S. who requested an invitation and got one. That version of the service, which essentially uploaded your digital songs for online storage and allowed playback on computers and Android devices, proved to be a hit: Testers were streaming music on average 2.5 hours every day.

EA Negotiates with Nintendo for Digital Distribution Service, Origin, to the Wii U

That's according to the usually reliable leak source WiiUGo, which claims it's been tipped off by a network engineer working closely with Nintendo's new console that the platform holder and EA are in talks.

According to the source, EA's looking to increase the userbase of its online platform and Nintendo could see this as an opportunity to build upon its relationship with Western gamers.

Supposedly, Valve is also interested in getting Steam on the platform, but EA is "aggressively persuading Nintendo to go Origin exclusive with the Wii U's online so they can gain a competitive advantage over Steam."

We're not sure what to make of this one. What do you think readers? Would you want to see Origin as the exclusive Wii-U online platform?

External Reference: www.computerandvideogames.com

AnyClip Signs Distribution Deal with Warner Bros

AnyClip has signed a content licensing agreement with Warner Bros. Digital Distribution to create a library of clips from movies like "Harry Potter and the Prisoner of Azkaban," "Batman Begins," "The Wizard of Oz," and "Dirty Harry." Each film is tagged with more than 5,000 individual elements and added to AnyClip's online library. That library now has more than 12,000 films and 50,000 live clips from production companies including Universal Pictures, Vivendi Entertainment, First Look, and Virgil Films.

AnyClip helps movie studios monetize their content libraries by creating promotional channels for movies. By using AnyClip affiliates, third-party brands and publishers can also legally get access to the content, as well as consumers on the AnyClip Web site.

The major motion picture industry has been a tough one for startups to crack. Competitors include ClipBlast, VideoSurf, and blinx. AnyClip has been the most successful at securing the partnerships that will make its database the most extensive.

AnyClip was founded in 2008 by Aaron Cohen, Michael P. Schulhof, and Erel N. Margalit. The current CEO is Oren Nauman (since 2010). AnyClip is funded by Jerusalem Venture Partners. The company hasn't announced its total funding to date, but it did raise a $3 million round in 2009. Board members include Mickey Schulhof, former president and CEO of Sony America and Sony Media and Entertainment; Erel Margalit, founder and managing partner of JVP who has led 15 Nasdaq IPOs; and Art Levitt, formerly CEO of Fandango, president of Disney Regional Entertainment, and CEO of Hard Rock Cafe International.

External Reference: http://news.cnet.com

IRIS Distribution Distributes Content for Saban Brands

IRIS Distribution (www.irisdistribution.com), the digital music distribution and marketing company that represents many of the world's leading independent record labels, will provide worldwide digital distribution for artists represented by Saban Brands, whose portfolio includes Paul Frank and Power Rangers.

Under the relationship, IRIS will distribute curated compilations under the Paul Frank name. The compilations will feature bands and music that exemplify the brand's already well-known hip, youthful and fun aesthetic. In addition, IRIS will distribute music from the hit series Power Rangers Samurai to digital retailers for the first time.

"We couldn't be happier about our new distribution partnership with Saban Brands. Their forward-thinking approach to marketing in the branded music space makes them an ideal client for IRIS and Blinker Active. We look forward to supporting the Power Ranger and Paul Frank repertoire with the level of service that it truly deserves," said Layne Fox, VP, Sales & Marketing.

With these music releases, we aim to continue to establish Paul Frank and Power Rangers as entertainment brands with a transmedia strategy approach that builds, enhances and extends their appeal with our fans and consumers" said Elie Dekel, President of Saban Brands. "We are thrilled to be working with IRIS Distribution on these collaborations."

About IRIS Distribution

Founded in 2003, IRIS Distribution is a leading independent digital distribution company, focused on delivering a select roster of quality independent music to digital outlets around the world. IRIS distributes music from 700 prominent independent labels and content providers including BYO Records, Chemikal Underground, CMH, Duckdown, Environ, Fox Mobile, kranky, k records, Minus, Moodgadget, Nick Carter (Backstreet Boys), Palmetto, Projekt Records, and Starz Media to 400+ online retailers including major outlets such as Amazon, eMusic, Google, iTunes, Microsoft Zune, Napster, Rdio, Rhapsody, Spotify, and Sprint Mobile.

The company also operates a wholly owned branded entertainment and music marketing agency, BlinkerActive, specializing in music and brand integration. BlinkerActive clients have included BYO Records, Chandon Winery, Chemikal Underground, Electrolux, EMI, Mint Records, Ninja Tune, Scion A/V, Stella Artois, Surfdog Records, and more.

IRIS is based in San Francisco and New York City. www.irisdistribution.com www.blinkeractive.com

External Reference: http://www.sfgate.com

Digital DIstribution in Gaming is Getting Competitive

In part one of this feature, we examined the boxed-retail past that many gamers have abandoned. Now we take a microscope to the digital-driven future of PC game distribution, which many gamers have already embraced. Like downloading music, downloading games for your PC makes a shitload of sense: it's fast, convenient, better for the environment, and you can do it in your underwear and no-one will ever know. Sneaky and classy.

Where did all the money go?


Half to 70% of the $4 billion market for downloaded PC games are purchased through a platform named Steam, according to an article published by Forbes earlier in 2011. (Steam operator Valve refused to comment on the accuracy of this claim.) Though Steam was a right royal pain in the ass when it launched in 2002 during the beta period of Counter-Strike 1.6 - any gamer who recalls that frustrating time will no doubt concur - using the software is now as akin to the average PC gamer as breathing and circle-strafing. It's the gaming equivalent of iTunes. Both are clear market leaders; both maintain an enormous brand loyalty worldwide.


That same Forbes article quotes North American market research firm NPD Group as stating that, in 2010,"sales of PC games via download outstripped sales of boxed games in stores for the first time". When I question Valve VP of marketing Doug Lombardi on the significance of this outcome - was this always a goal on the agenda, or happy coincidence? - he cryptically replies, "Our goal has always been to deliver a higher quality of service to the customer, regardless of where or how they purchase the product." Perhaps enormous consumer uptake and financial success was always going to be a consequence of aiming to develop the market's best digital distribution platform.

Lombardi makes it clear that Valve still values traditional retail and healthy competition in the digital distribution market. "We don't advise folks to skip retail, or other digital outlets," he says. "Every publisher and developer should consider the widest possible distribution possible." I'm curious as to how he pitches the service to prospective Steam clients - from indie developers, to the world's biggest publishers. "We start with the 30 million-plus gamers connected to the service, the instant access to data on their Steam sales, and the increasing number of Steamworks features we offer free of charge such as matchmaking, anti-piracy, support for in-game DLC, and more." Also of note is Lombardi's eyebrow-raising claim that "Steam has grown over 100% year-over-year for the past six years." A userbase of 30 million is a fairly compelling reasoning for both developers and publishers to do a deal with Steam, I'd imagine.

Game developers such as Tripwire Interactive are among the legions of Steam supporters. The Roswell, Georgia-based studio - creators of Red Orchestra 2 and Killing Floor - have been fans since they signed up in 2005. "And we still are", says vice president Alan Wilson. "They still have that Valve sense for what the people buying the games actually want, will give it to them at a good price, good customer service - and they treat the developers/publishers right as well. They're always easy to work with. There are other good services out there - D2D, GamersGate and so on. But until Steam either starts getting it all wrong, or the others find some miracle formula, Steam will stay king of the pile."

A challenger appears
Gamers are clearly very happy with Steam, as they have a history of providing a quality service. That's not to say that this will always be the case. A handful of publishers and retailers - and their shareholders, no doubt - would love to possess their market share and loyalty, as evidenced by the competitors that have appeared in recent years.


Electronic Arts opened Origin, their Steam challenger, in June 2011 and have spent the last couple of months denying - unconvincingly - that they're trying to take a bite out of Valve's pie. "There's a space for Steam, there's a space for Origin, there's a space for third party etailers," EA's SVP for European Publishing Jens Uwe Intat told GamesIndustry.biz in late September. "Both are pure etailers and traditional retailers that are entering the digital distribution space. I think in that space, that competition will create superior experiences for the consumer. There's space for more than one player." According to a recent article at GameSpot, Origin has reportedly been installed by 3.9 million users as of September, and we're sure that number has grown significantly since the Battlefield 3 Beta's mandatory Origin installation. You can bet EA will have a gloating press release soon after Battlefield 3's release talking about the massive growth of Origin.

EA aren't the only company attempting to lure gamers away from Steam. GameStop - the world's largest gaming retailer - dived into digital distribution in July. Named Impulse, their service offered 1,200 PC game titles at launch. Steve Nix, GameStop's general manager of digital distribution, tells GameSpy that "it makes sense for us to be a major player in the PC digital space. Impulse is a good opportunity to combine solid technology with our relationship with gamers around the world, plus our solid publishing relationships. Since we're already talking to every major publisher about their physical products, it's very easy for us to talk to them about their digital games in the same meetings," he says. "We felt like there was a fantastic synergy between a good, solid digital distribution platform like Impulse with GameStop's customer base and publishing relationships." An interesting advantage offered by Impulse is its extensive back catalogue of PC games. "Ultimately, we'll have the full Impulse catalogue available in stores," Nix says. "If someone wants to buy an older title and it's not available on shelves, we'll be able to sell it to them there at the register and give them a redemption code that they can take home and start downloading and playing that game immediately. It's going to bring a huge PC catalogue back to all of our GameStop stores. People say, why would you want to buy a digital product in a store? There's two reasons: curation, because our associates (GameStop's in-store staff) are extremely enthusiastic gamers who are able to teach our customers about DLC and steer them toward what they might be interested in. And they might not necessarily want to use their credit card online, or buy a points card."

"There are some established distributors out there," Nix admits, cautious to avoid mentioning a word that starts with 'S' and ends with 'team'. "I think ultimately, we'll be successful. The biggest pressure is the ones we might not know about it. What are the unknowns? We're ready for where the market's going, but if there's something that comes up that none of us are expecting, we'll have to be prepared for that. We're well-positioned right now to sell any PC digital content, no matter what other distribution systems it might be on."

Free to play
Making a purchase isn't always a necessity, though. In 2011, PC gamers can play a hell of a lot of games for free, thanks to the burgeoning 'free to play' (F2P) scene. The play-before-you-pay model has been adopted by some of the world's biggest gaming companies: among them, EA (with their title Battlefield Heroes, released in 2009), id Software (Quake Live, 2010) and Sony (Free Realms, 2009). Among the biggest recent successes is a game called World Of Tanks, a MMORPG released by Belorussian studio Wargaming.net in October 2010. As of August 2011, over five million people had registered to play the game, which generates revenue for the developer through micropayments to purchase the in-game currency, 'gold'.


Jeremy Monroe, general manager of Wargaming.net's North American arm, laments that "PC gaming has taken a backseat in importance in the past years from the media." He notes, however, as "the free to play market grows, and more and more people join in on PC gaming, the media is definitely remembering their 'old girlfriend'. Media follows trends and has to give what the readers want but PC gaming is always here and it always ends up back at the top eventually. PC gaming has always been, and always will be, the dominant figure lurking in the shadows."

While it's foolish to suggest that F2P is the future of PC gaming, examples like World Of Tanks prove that keen development studios can fund their ongoing projects if the free game concept is compelling enough to draw a crowd, and keep them entertained long enough to open their wallets in order to improve the in-game experience. It looks as though F2P and full-price digital retail will sit snugly side-by-side for some time. And although boxed retail sales seem set to continue their slow decline, they too have a place in the current PC gaming market. To draw one last parallel to the music industry: people still buy CDs, remember, even if you don't.

"I think digital sales eclipsing physical is inevitable," says GameStop's Steve Nix. "We haven't really developed a timeframe on it. We can sit here and debate on how quickly it'll happen, but I'll just say that it's something that will happen eventually. The PC gaming market is sustainble in the long-term, absolutely. It's probably going to grow. What's amazing is, in the early 2000s - before the PC indie market had really established itself - the market was a really tough place. Now, for young, talented developers who have a great idea and want to distribute it to the market quickly, PC is by far the best platform. The PC is the world's largest gaming platform, and I expect that to continue."




External Reference: http://pc.gamespy.com