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Week ending January 27, 2007

RCS MediaGroup: clarification regarding rumors – January 25, 2007

from Barbara Ruggeri/RCS MediaGroup–

In relation to rumors concerning the interest of RCS MediaGroup in the Recoletos group, the company repeats, as already communicated on November 22, 2006, that no formal negotiations have commenced and, least of all, due diligence procedures on the Spanish market. The company however confirms, as already declared on several occasions, it’s interest in analysing growth opportunities on international markets, including the Spanish market.

RCS MediaGroup: precisazione relativa a rumors

In merito a voci di un interessamento di RCS MediaGroup per il gruppo Recoletos, la società ribadisce, come già comunicato il 22 novembre scorso, che non sono state avviate formali trattative e tantomeno processi di due diligence sul mercato spagnolo, pur confermando, come più volte dichiarato, di analizzare con interesse le opportunità di ulteriore sviluppo sui mercati internazionali, compreso quello spagnolo.

ABI Research - Game Consoles Fast Becoming a Major Factor in Digital Distribution of Gaming and Entertainment Content – January 25, 2007

from Beth Schechner/ABI Research

As increasing numbers of gamers participate in multiplayer gaming and community features enabled by their consoles' online service offerings, a growing percentage of their gaming budgets will go towards the purchase of in-game virtual assets such as maps, game related add-ons, casual game titles, and, eventually, full core console titles. According to a new study from ABI Research, micropayments for consoles alone will account for over $833 million by 2011, as console vendors and their publisher partners look to monetize both in-game and game-related assets beyond initial game purchases.

"The market is evolving from one in which over 90% of software monetization occurs at time of game purchase through standard retail channels, to one where a significant portion will take place through digital distribution," says research director Michael Wolf. "All of the big-three console vendors are working closely with their publisher partners, both internal and third party, to push as much content through digital distribution as possible. In offering original titles and after-market content, publishers will be able grow the average revenue they receive for a single gaming title."

ABI Research believes that Microsoft currently has the leading online gaming service, in Xbox Live. The company's strong focus on casual game distribution through its Live Arcade and new features such as Video Marketplace have kept its momentum despite new offerings from its competitors. Nintendo, however, could challenge in the online casual game space with its strong library of legacy titles in its Virtual Console. Sony's PlayStation Network, while lacking in content today, will likely see higher attach rates as both Sony and its studio partners expand the online offerings.

"By establishing their consoles as connected devices with tens of millions in installed base and established online commerce services, these vendors will also look to move beyond gaming content to sell digital entertainment such as movies and music," said Wolf. "We believe that video and music downloads to game consoles will reach $1.1 billion annually by 2011."

DG Info - Over 400% growth for creative content online, predicts EC study – an opportunity for Europe – January 25, 2007

from Martin Selmayr/DG Info

Revenue from online content will reach €8.3 billion by 2010 in Europe, a growth of over 400% in five years, says a new study for the European Commission. For the most advanced sectors, online content will represent a significant share of total revenue: about 20% for music and 33% for video games. Thanks to the spread of broadband, the rollout of advanced mobile networks, and the massive adoption of digital devices, the study shows that mass market online content distribution is becoming a reality, creating unique opportunities for Europe.

"The long-awaited digital convergence is becoming an economic reality, creating great opportunities for Europe's consumers, content providers and technology industries," said Viviane Reding, Commissioner for Information Society and Media. "To capitalize may require casting a fresh eye at the technical and legal issues where a modernized and internal market-oriented approach would add value to European content. As I am preparing my 'Content Online in Europe's Single Market' package for the second half of 2007, today's study will prove very useful."

This new study on 'Interactive Content and Convergence: Implications for the information Society' assessed the potential of the emerging creative content online market. It found that although the market is growing steadily, technological, economic and legal challenges – notably intellectual property rights and interoperability – need to be addressed for Europe to have faster market uptake. The study found that Europe trails the US' lead in developing interactive fixed broadband services, and Japan and Korea's in mobile services.

After a wide consultation, it identified 36 roadblocks to developing online content and assesses their market impact up to 2010.

Today the most obvious roadblock is connectivity. Although broadband is spreading quickly and consumer take-up is enthusiastic, differences between EU Member States risk remaining high. For mobile services, the roadblocks include the slow uptake of 3G in Europe, and the sometimes confusing pricing and structure of data tariffs.

Many market players still need to adapt to the new distribution technologies that cut across national borders and traditionally separated sectors. This is still a major obstacle to developing content online. However, innovative and collaborative solutions to exploit content online are being found.

Piracy siphons off potential revenue and deters media companies from putting content online. Efficient Digital Rights Management(DRM) systems to manage and protect digital content are necessary for a secure and sustainable rollout of digital distribution. However, concern over the lack of interoperability or standardization in DRM may hinder digital content services and devices in the long term.

Consumer acceptance of new content services, a lack of specialized skills in media companies, or the cost of digitization of content, also has a significant market impact.

While some of the obstacles are global, others are due to Europe's market and legal framework. These may significantly slow down growth and competitiveness. As the market matures, evolving business practices will remove some obstacles but others may require measures from industry and EU legislation to provide legal certainty for consumers, content providers and the hardware industry.

The study will be an important input for the Commission's proposals on 'Content Online in Europe's Single Market' that may be presented in the second half of 2007. The public consultation questionnaire on 'Content online in the Single Market' (28 July-13 October 2006) and public hearing on 11 October 2006 led to more than 175 written contributions, which are currently being analyzed for the proposals. Over 160 contributions have been posted online.

ABI Research - The iPhone is No Smartphone – January 25, 2007

from Beth Schechner/ABI Research

Apple's iPhone was the talk of the town after its January 9 launch. Industry observers were by and large impressed with the new device, praising its user interface, innovation, and seamless integration. But two senior ABI Research analysts — wireless research director Stuart Carlaw, and principal mobile broadband analyst Philip Solis — point out that while the iPhone is undoubtedly clever and capable, it is not correct to call it a smartphone, as much of the media has done.

ABI Research defines a smartphone as a cellular handset using an open, commercial operating system that supports third party applications. The iPhone runs the Apple Macintosh computer operating system, OS X, so at first glance it would seem to fall into the smartphone category, which might help justify its announced $500+ price tag. But, says Solis, "It turns out that this device will be closed to third party applications. Therefore we must conclude at this point that, based on our current definition, the iPhone is not a smartphone: it is a very high-end feature phone."

Feature phones' functionality (dictated by the software which controls the hardware) is closed and controlled by an operator or the device manufacturer, whereas smartphones are supported by a third-party ecosystem, where competition in the software space creates applications that add value. "Sure," concedes Solis, "feature phones have third party applications too — but these are relatively weak and limited applications that work with the middleware such as Java and BREW. Applications designed for smartphones can be written to access core functionality from the OS itself, and are therefore usually more powerful and efficient. The competition in an open environment also yields more cutting edge, rich applications."

Stuart Carlaw adds, "Consumers will not be willing to settle for a second-rate cell phone just to have superior music. Apple must get the phone engineering part of the equation right, and it is difficult to see how they will accomplish that with no track record in the industry. Even though they are working with some prominent suppliers, the task of putting all of the building blocks together cannot be underestimated."

BBC launches mobile news service in Dhaka – January 24, 2007

from Christine George/ BBC World Service

BBC World Service, the international radio and online broadcaster, has teamed up withQA Konsortium, a mobile content aggregator in Bangladesh, to launch a comprehensive SMS news service in Dhaka. The service provides subscribers with news from the BBC gathered from all over the world via a single SMS sent to their cellular phone.

BBC news on demand is available in seven categories including Asia Pacific, Breaking News, Cricket, Entertainment, Football, South Asia and World News. Subscribers can register by sending reg bbc to 6666.

Sabir Mustafa, Head of BBC Bengali, said: "News through mobile phones is the newest frontier of today’s broadcasting world, and the BBC is at the forefront of this new media revolution. By combining cutting edge technology with our highest editorial standards and unequalled newsgathering capability, we are able to bring the world to mobile phone users in Bangladesh at the touch of a button.’’

Mr A. K. Mahuiddin, Head of QA Konsortium, added: “The BBC’s credibility and position of clear global news leadership will add unparalleled value to our subscribers’ experience. Staying in touch through a credible news media is now virtually mandatory in a world where reliable information has become a vital decision-making currency for all walks of life.”

Subscribers can also request news for individual categories by sending the respective syntax to 6666: for news on the Asia Pacific bbc ap; Breaking News bbc bn, Cricket bbc cr; Entertainment bbc en; Football bbc fb; South Asia bbc sa; and World New bbc wn.

20 Jahre „BLM-Hörfunk-Preis“ – January 23, 2007

from Bettina Pregel/BLM

Die Bayerische Landeszentrale für neue Medien (BLM) vergibt in diesem Jahr zum 20. Mal den „BLM-Hörfunk-Preis“ für herausragende Leistungen im lokalen Rundfunk in Bayern. Der „BLM-Lokalfernseh-Preis“ wird 2007 zum 16. Mal ver liehen. Noch bis 16. Februar können Beiträge bei der BLM eingereicht werden.

Im Hörfunk werden die besten Beiträge mit lokaler Bedeutung aus den Kategorien Aktuelle Berichterstattung und Information, Kultur und Gesellschaft sowie Unter haltung und Comedy mit dem "BLM-Radio" sowie einem Geldpreis in Höhe von 3.000 Euro ausgezeichnet. Für eine besonders gelungene journalistische Darstellung sform (Bericht, Reportage, Kommentar, Feature usw.) aus den drei thematischen Kategorien kann ein Sonder preis vergeben werden.

Der Evangelische Presseverband für Bayern und der Sankt Michaelsbund vergeben den "Verkündigungspreis im bayerischen Lokalradio". Der Preis ist mit 3.000 Euro dotiert. Ausgezeichnet wird eine herausragende christliche Verkündi gungssendung, die in einem bayerischen Lokalradio ausgestrahlt wurde. Über die Vergabe des Preises entscheidet eine eigene Jury.

Die "BLM-Lokalfernseh-Preise" werden in den Kategorien Aktuelle Berichterstattung und Information sowie Kultur und Gesellschaft vergeben. Außerdem wird die beste Sonder-, Spezial- oder Spartensendung mit lokaler Bedeutung eines in Bayern zugelassenen privaten Fernsehanbieters ausgezeichnet. Die Gewinner in den drei Bereichen werden mit einem Geldpreis in Höhe von 3.000 Euro und dem "BLM-Telly" ausgezeichnet. Zusätzlich wird die originellste lokale Fernseh-Werbe kampagne bzw. Promotion-Kampagne prämiert. Sie ist mit 1.500 Euro dotiert.

Voraussetzung für die Teilnahme am "BLM-Hörfunk-Preis" und "BLM-Lokalfernseh-Preis" ist, dass die Beiträge im Zeitraum zwischen dem 20. Januar 2006 und dem 21. Januar 2007 in einem unter der Verantwortung der BLM stehenden Hörfunk- oder Fernsehprogramm in Bayern als Erstsendung ausgestrahlt wurden.

Einsendeschluss ist Freitag, 16. Februar 2007. Die Ausschreibungs- und Anmelde unterlagen sind über www.blm.de abrufbar.

Über die Vergabe entscheidet eine Jury. Die Preisverleihung erfolgt am 3. Juli 2007 in Nürnberg im Rahmen der BLM-Lokalrundfunktage.