Posts Tagged ‘Guardian’

Woke up this mornin and nearly got the IMP blues

Tuesday, November 10th, 2009

I woke up this morning (there’s a song there…) to the news from the Daily Telegraph that ” Government announced yesterday it was pressing ahead with privately-held “Big Brother” databases”.  This is the Interception Modernisation Programme that has periodically been in the news this year with general opposition and a subject I have posted on in the past.  It would indeed have given the ISP industry a headache.

I now hear a contrary position from the Guardian which tells me “Legislation to access public’s texts and emails put on hold. Widespread concern about the safety and security of communications data prompts Home Office rethink.”

My understanding is that it is the Guardian that is right on this occasion and that the Telegraph has tapped into the wrong wires. I imagine that the Labour party has enough on its plate in the run up to an election without further alienating the voters.

“When they woke up this morning someone got their wires crossed and my head it felt confused, oh yeah. “  I think that’s what I was trying to say :-)

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We7 cracks free online music streaming business model

Wednesday, June 10th, 2009

I have been getting more and more hits on an old post about We7 where I was giving away promo codes for free music downloads.

In a dialogue on this subject with We7 CTO Gareth Reakes I was extremely impressed to find that they seem to be on the way to cracking the business model for giving away “free” music online.

The whole music streaming business model has been a debating point with the content industry for the last 12 months or so as ISPs and the Music Industry struggled to find a viable, mutually beneficial approach.

Several big name sites have got into difficulty over the model. YouTube have allegedly lost hundreds of millions of dollars (apparently 89% of YouTube traffic is(was) music) and imeem.com allegedly in debt to the record labels for tens of millions.

It is easy to attract visitors to your website if you are giving something away free but not so easy to make money.

What We7 has done is to fine tune the model so that the revenues balance out the costs.

Reakes said “We are trying to grow at while increasing ad revenues as we go and ensuring the model can work. What it comes down to is the number of ad impressions you get per stream you serve (this includes ads as they surf around the site looking for new content). With us that ration is between 3 and 4.

What this means is that you can get to a reasonable CPM rate (cost per thousand impressions – its how ads are priced) which is as low as £2.50. This really is an achievable rate. That’s not even factoring in the recent MCPS/PRS reduction in rate from 0.22p to 0.085p which reduces our costs per stream by over 10%.”

The key here is that We7 can get as many as 4 ads in your face/ear whilst you are listening to a track. This adds up to the equivalent of a CMP rate of £10 whilst the advertiser is on average only charged £2.50. Compare this with up to £60 at the FT and £25 at the Register. Not the same target audience I know but it does give you a feel for the attractiveness of the rates.

The reduction in the MCPS rate has also been a big help although this together with payments to the record labels still amounts to around 1 pence per stream.

We7 has been growing at a very attractive rate.  Reakes again:

“We will reach a couple of good milestones soon (we are nearly at million monthly unique visitors). I suppose one of the most interesting things from my point of view is that we are starting to get great reach with our widgets. We now have partnerships with The Guardian and NME where they show the widgets. They are also picked up in many many other places. The whole distribution of music and being able to listen to it anywhere is very interesting. We have had .75 million unique visitors to the widget on all its sites in the last 30 days! (that excludes anything on our site).”

This is a great story and the team at We7 is to be congratulated on their progress. I didn’t ask them whether they have reached profitability yet but this suggests that it can only be a matter of time.

I have had quite a few unanswered requests for We7 promo codes recently. Hold on tight guys and I’ll send some more out this week. Also We7 have said that if I want more to just ask so keep the requests coming. This batch is for ad free music.

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ICSR-YouTube-PRS

Tuesday, March 10th, 2009

A bit of an ambiguous post title but considering this is meant to be a technology blog I get more and more opportunities to comment on political and business issues. Following on from yesterday’s post on the Coroners and Justice Bill today brings a report on how to combat Online Radicalisation and also more on the debate between the music industry and ISPs as YouTube pull the plug on music downloads in the UK.

The International Centre for the Study for the Study of Radicalisation and Political Violence (ICSR) has produced a report recommending how “the world” should combat this problem. It starts off saying that any efforts to date have been either “crude, expensive or counterproductive” and concludes that we need to spend more time deterring the producers of extremist materials, empowering users to self-regulate their online communities, reducing the appeal of extremist messages through education and promoting positive messages.

Call me a cynic but I doubt that this will get anywhere though I suppose at least they are having a go.

The second bit of news relates to a public spat between YouTube and the Performing Rights Society (PRS) who can’t agree licensing model (ie costs) that will allow YouTube to stream music. Unfortunately this seems to be a theme of any discussion between the music industry and those organisations providing internet services. During my time spent in meetings between the ISP and music industries it seems to me that the latter needs to start exploring new ways of making money, and believe you me I do not in anyway support the illegal downloading of another person’s intellectual property.  Link to the Guardian report here though it has been widely reported elsewhere in the UK.

What all this amouts to is a huge change in the way we live our lives. Last night a friend rang me for advice.  His broadband connection was down all day and his family was up in arms. Other than suggesting he moves to Timico all I could do was make sympathetic noises and say at least his family would talk to each other that evening – united in the face of a common problem instead of locked away surfing in their own rooms.

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Changes afoot to the landscape of the digital highway

Tuesday, January 6th, 2009

The economic downturn seems likely to spring some surprises in the internet world . In an interview with the Guardian Newspaper over the weekend Prime Minister Gordon Brown discussed his plans to fund the employment of 100,000 people in the UK. He was quoted as comparing the need to invest in a high speed digital infrastructure for the UK with the way that Franklin D Roosvelt spent his way out of the US recession in the 1930s by investing in capital projects.

This comes at the same time as a Sunday Times article that suggests that Lord Carter, the UK Communications Minister is about to do away with BT’s Universal Service Obligation. This is the law whereby BT has to guarantee to provide a fixed line communications service to everyone that wants it in the UK.

It would appear that the large mobile operators are likely to have to share the cost of this with BT. In difficult to service rural areas the fixed line network could be replaced with mobile technology. 

What will be interesing is to see who is likely to benefit from Gordon Brown’s investment plan. I would imagine that there will be a number of network operators lining up with their hands outstretched for Government money. We shouldn’t assume that it will just be BT, although they are clearly well placed to take advantage.

With mobile operators having to support USO it looks to me as if we will be going back to the old days where a network operator (BT in those days) was both a fixed and mobile player This time round perhaps we will see a true competitor to BT emerging from the pack.

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