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<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'>This is an article going into Digital
Media Net magazine next month. I’m not quite happy with it yet so I
thought I’d circulate it here first to see if I get any interesting
feedback that I can use to ‘reform’ the article.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'>I picked you guys because <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'>1; You probably understand the technical concepts
even if you aren’t the target audience of the magazine<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'>2; You probably already place shift your
content anyway.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'>Think of it as group editing process and
let me know what you think.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<div>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Regards,</span></font><o:p></o:p></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Dean
Collins<br>
<a href="mailto:dean@cognation.net">dean@cognation.net</a> <br>
<br>
</span></font><font size=1 face=Arial><span style='font-size:7.5pt;font-family:
Arial'>+1-212-203-4357 (<st1:State w:st="on">New York</st1:State>) <br>
+61-2-9016-5642 (<st1:place w:st="on"><st1:City w:st="on">Sydney</st1:City></st1:place>)<br>
<a href="http://www.Cognation.net/profile">http://www.Cognation.net</a><o:p></o:p></span></font></p>
<p><font size=1 face=Arial><span style='font-size:7.5pt;font-family:Arial'><o:p> </o:p></span></font></p>
<p><font size=1 face=Arial><span style='font-size:7.5pt;font-family:Arial'><o:p> </o:p></span></font></p>
<p><font size=1 face=Arial><span style='font-size:7.5pt;font-family:Arial'><o:p> </o:p></span></font></p>
<p><font size=1 face=Arial><span style='font-size:7.5pt;font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-weight:bold'>Potential
‘Cloud’ification of Your Entertainment Content<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>By Dean Collins<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Managing Consultant<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Cognation LLC.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>A recent win for Cablevision, a <st1:place
w:st="on"><st1:State w:st="on">New York</st1:State></st1:place> cable
television provider, in the Southern District Appeals Court marks a pivotal
change for the ‘physical location requirements’ of your
entertainment content.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Does this affect Australian
consumers….. I’ll leave it to more learned people than
‘I’ who are more familiar with the byzantine rules of the
Australian-USA Free Trade Agreement and just concentrate on the technology and
what this may mean for you but somehow I think one or two people reading this
ruling will be consulting with FTA lawyers and coming up with ways to compete
against Foxtel and Optus for a new form of pay tv solution for the Australian
market.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>There are three critical legs as to why
the entertainment consumption market shifted this month. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Without the preceding rulings like a two
legged stool this new business model would not be possible, but with the third
leg, anyone prepared to strike out on a new business model will be breaking
ground on a radical change about content ownership.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>The first leg was implemented in 1984
during the pivotal Sony Betamax time shifting court case, which ruled that
“the making on individual copies of television shows for the purposes of
time-shifting does not constitute copyright infringement but is ruled as fair
use”, fair use doctrine was enshrined and an ongoing war for Consumer
v’s Hollywoods rights has been ongoing ever since.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>The second (and most informal leg) where
with the introduction of DVD’s and the inevitable hacking of the DRM code
using</span></font> <font color=black><span style='color:black'>DeCSS in 1999
another battle over ‘device-shifting’, or the ability to watch
legally purchased DVD’s on a Linux laptop or some other type of iPod
style mobile display device has also been waging.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Here in the <st1:place w:st="on"><st1:country-region
w:st="on">USA</st1:country-region></st1:place> a content provider MLB (Major
League Baseball) actively ‘dogged’ but did not follow through with
their verbiage about suing a device manufacturer SlingBox which is an Ethernet
enabled device you connect to your TV that allows you to view content remotely
on laptops, cell phones and blackberry’s.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>With these two legs in place it was
inevitable that the physical location of your content would be the next issue
challenged in the courts.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>I believe the ‘third leg’
which will result in the complete ‘Cloud’ification of your content
has been forged by this ruling <br>
<a href="http://www.publicknowledge.org/pdf/cablevision-judgement-20070322.pdf">http://www.publicknowledge.org/pdf/cablevision-judgement-20070322.pdf</a>
<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>The background of the case is this; <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Video tape based VCR’s have been
replaced with a proliferation of hard drive based Digital Video Recording
devices (DVR’s) both privately owned Tivo’s and cable tv provider
owned/leased devices.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>These hard drive based DVR’s have
grown in both capacity, and the number of simultaneous channels they could
record. For example the new Foxtel IQ2 announced last month from NDS will now
feature quad tuners with a 320gb hard drive.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>In March 2006 Cablevision proposed to
place these ‘hard drives’ not inside the set-top box that
physically sits underneath your tv but instead to move these hard drives to a
central location within their data center.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>By centrally locating these hard drives
within their network they would not only reduce truck roll repairs and
deployment issues but also make massive gains in the use of centralized large
scale storage.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Content providers sued in 2006 and won an
injunction preventing deployment but this injunction has now been overturned
which will allow for the deployment of ‘cloud based content
delivery’.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Cablevision intend to launch in the 4<sup>th</sup>
Qtr of 2008 a diskless set top box that will reside in your home on top of your
TV, but your ability to ‘record to disk’ will be directly linked to
content being stored on hard drives at the Cablevision data center. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>I would also speculate that shortly
thereafter Cablevision would be offering their customers the ability to
‘store more’ for additional fees per month thereby increasing the
ARPU per client.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>With this ruling now in place I'm not sure
why the wider press hasn’t reported the potential ramifications of this. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>I guess the press isn't necessarily there
to 'speculate on the news' or maybe I'm totally wrong but if I'm right this
could be the biggest thing since the introduction of consumer recordable media.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>With these three ‘legs’ of
content consumption in place; time shifting, device shifting, location shifting
I think we are finally moving into a golden age of entertainment content
consumption that will finally allow ‘anywhere anytime’ consumption
of entertainment content.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Extrapolating this ruling out, for the
first time clear precedent now exists that I can ‘logically control
content’ and not need ‘physical control’ of the media -
it is there available for me to access when and where I want - with the
limitation that I'm the only person who is able to access it (limiting public
performance).<br>
<br>
So if I purchase a MP3, does it no longer does it need to be stored on my iPod
but I might choose to listen to it on my desktop pc, or I might I also choose
to stream it to my cell phone or even a laptop when I'm working remotely from
my hotel room while on the road.<br>
<br>
Does this ‘Cloud’ification of entertainment content open the
possibility of a major competitor to the Apple dominance in music sales? <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Will Destra implement a new version of
their MP3 sales where I ‘purchase’ content but it is stored
centrally allowing me to access it when or how I chose to from multiple devices
as long as only a ‘single copy’ resides centrally.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><br>
Or even more exciting does this finally pave the way for a wifi/wimax
‘device company’ for a new class of 'anywhere anytime' content
delivery hardware box?<br>
<br>
Can I pay for a piece of content and own that content for life, allowing it to
be streamed to me at a time, location and format of my choosing via an ‘uber’
connected always on device? Possibly even allowing retransmission to the TV I
‘happen’ to choose to view the content on it would certainly make a
great use of the new UWB standards.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='margin-bottom:12.0pt'><i><font size=3
face="Times New Roman"><span style='font-size:12.0pt;font-style:italic'>(Ultra-Wideband
(UWB) is a short-range, low power radio technology that was developed to
complements other longer range radio technologies such as Wi-Fi, WiMAX, and
cellular wide area communications. It is used to relay data from a host device
to other devices in the immediate area (up to 10 meters, or 30 feet). Learn more
about UWB at the WiMedia alliance website. http://www.wimedia.org/en/index.asp)<font
color=black><span style='color:black'><o:p></o:p></span></font></span></font></i></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Geeks in <st1:place w:st="on"><st1:country-region
w:st="on">Australia</st1:country-region></st1:place> and around the world have
been running their own music servers and Myth-TV video servers have been
streaming content around their homes or to laptops and remote locations for a
number of years. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Is there finally an opportunity for a new
type of ‘Cloud’ification Service Provider to emerge that removes
the need for the hardware and allows the rest of us to do the same? <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Lets hope so.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'><o:p> </o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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