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List:       ms-wmtalk
Subject:    Re: Output stacker
From:       Christopher Levy <clevy () NFAGROUP ! COM>
Date:       2005-02-19 7:54:14
Message-ID: 000f01c51655$d8c1add0$54fe1942 () streamOGMOBILE
[Download RAW message or body]

Nicholas,
 
It's not just old news to experts on the lists. It's old news period.
This approach has been around since Windows Media Digital Broadcast
Manager came out in like 1998 and it's not a hack, it's a work-around.
This story is a product of Apple's Marketing Machine. It would be like
me writing a story for NEWS.com titled: "Hackers Come Up with New Way to
Hack iPod Shuffle DRM"
 
It's PURELY a ploy by Steve Jobs and Apple to spin the press into their
favor as their market leading position in download music sales rapidly
erodes. Creative sold 2.5 MILLION MP3/WMA players last quarter. They
don't work with iTunes. That's just ONE COMPANY Out of probably 20
making these devices. It's just a matter of time before iTunes is #2 and
so on and Jobs knows it and he's scared. If you need reference on this
one look at where FastTrack is now after Kevin Bermeister Guaranteed
that Kazaa would be the p2p king for decades to come. They are now #2
and that was one short year later.
 
Job's is a short sighted mental midget who set the industry back 10
years with the iTunes business unit...which by the way SOLELY exists to
generate sales of iPods and Apple related goods. It's not to make
Artists money or further the music industry. 
 
His note to Label Execs about this supposed "HACK on Napster To Go" is a
desperate tattle tale. 
What CEO in their right mind sends a NA NA NA email to record label
execs, who by the way don't even buy music and could care less about any
hack of anything whether it's real or not. NONE OF THEM BAILED OR said
anything when the iTunes QTFair Use tools came out. 
 
AOL pulled the app because it's bad business and it endangers ANY
pay-media content including the content they will be selling soon using
WMRM and WMA in the near future. Any public company distributing tools
which can circumvent or breach anti-piracy measures is
waaaaaaaaaaaaaaaaaaaay out of the lines of professional conduct.
 
Again though I have to tell you I find your comments about "diminished
value" and "commoditized tracks" disheartening. The threat is the same
to you and your new system and customer's content as it is to every
customer using WMRM today which is probably in the 10,000 range. I would
bet it's more.
 
We have one customer that sells 30 minute WMV files all day long for
$39.99 and they are not porn. Some of her customers spend $400 a MONTH
on DRM-enabled content from her site. Will your offering be of greater
value than this? If so can you make an argument your customers are any
more at risk than mine or any other DRM provider on this list? If so I
want to hear it please.
 
THE POINT BEING that here are your customer's alternatives to WMRM:
 
1. You can go pay RealNetworks $200,000.00 for a license of their
License Server and Packager SDK and oh by the way you will need
RealServer licenses to go with it and if it's streaming you will need
the RealServer MCS plug-in. Should set you back about $250,000.00 for
the licenses then you will need to go buy machines and OS Licenses and
bandwidth in a Datacenter and oh yeah you will need to pay someone to
cook all of that up into a pay-media solution.
 
1.a OR You can go GIVE Your stuff to Real and license it to their
OnePass program and hey guess what they will take 40% of your revenue
and drive your customers into OTHER products on their site.
 
2.  You can go call DivX and ask them to license you their OpenVideo
system and you will get a "sorry it's not at that stage yet to license
out." 
 
2a. OR you can GIVE your stuff to DivXNetworks and they can put it up on
their servers with all their porn customers (their primary source of
revenue) and they will ALSO take 40% of your revenue since they MUST do
the hosting and processing and DRM. Oh and you will be stuck with their
terrible DivX player which has less installs than QuickTime on the PC.
 
3. You can try and call ISMA and see if anyone has ever developed a DRM
solution for MPEG 4 and I am not just talking about a spec I mean
crypto, packager, license server, player and web objects.......Never
mind which player you will use since none of them support DRM yet.
 
4. You can try and send a formal letter to Sony's OpenMG DRM group. It
needs to be a formal proposal printed out and put in an envelope and
mailed to JAPAN and they will give you no structure for the proposal nor
will they tell you who it's going to and one more thing you cannot
connect with them via email, web form or phone since they don't work
that way. Old school Japanese. There is also a GREAT chance their
product will only work on ATRAC files.
 
5. You can try and contact Frauhoffer about their MP3 LWDRM or MP3P
systems but right now they are in their early stages and the prior
requires that your customers SIGN their files they buy and the latter is
not compatible with ANY mp3 player in the marketplace and oh their is no
video component or SDK as of yet.
 
6. You can contact the Marlin JDA group and ask them who in the group is
creating their DRM product since even though the press releases say it's
InterTrust, a call and email into them will get you "we are no longer
developing technology and are just exploring the licensing of our IP."
 
7. Finally just for kicks you can contact Apple and ask them to license
you their FairPlay technology and when they are done laughing in your
face and telling you they will get back to you, you can finally just
roll over and play dead and license them your customer's content and
AGAIN they will ALSO take 40% on the dollar, it only works with their
player and oh NO VIDEO either.
OH AND THERE IS THIS TOOL CALLED QTFAIRUse which will let you rip any
track you buy into unencrypted AAC. There is also a great chance they
will drive your customers into buying content from your competition. Hey
their stuff also does not work on EVERY MP3/WMA player made and
certainly not on the whole new wave of PMCs.
 
Nicholas I am not attacking you or your post but elevating your
customer's needs or vulnerability above anybody else's needs on this
list or otherwise is IMHO an unnecessary proposal. Your options for DRM
are presented to you as clear as they can be presented in this format.
Ultimately it's your customer's call. Just make sure they are educated
in an open manner.
 
Microsoft's DRM solution has issued more licenses and protected more
content since 1998 than ALL of the above technologies combined. It's a
real solution for real commerce enabled Pay-Media. Is it foolproof? No.
Is DirectTV or iTunes or your car alarm or your cell phone? No. Should
this prevent your customer from moving forward with WMRM.....CLEARLY NO.
 
Regards,
 
Christopher
 




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<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2>Nicholas,</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial><FONT color=#0000ff><FONT 
size=2>It's not just old news to experts on the lists. It's old news period. 
This approach has been around since Windows Media Digital Broadcast Manager came 
out in like 1998 and it's not a hack, it's a work-around. This story is a 
product of Apple's Marketing Machine.<SPAN class=625544807-19022005> It would be 
like me writing a story for NEWS.com titled: "Hackers Come Up with New Way to 
Hack iPod Shuffle DRM"</SPAN></FONT></FONT></FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial><FONT color=#0000ff><FONT 
size=2>It's PURELY a ploy by Steve Jobs and Apple to spin the press into their 
favor as their market leading position in download music sales rapidly erodes. 
Creative sold 2.5 MILLION MP3/WMA players last quarter. They don't work with 
iTunes. That's just ONE COMPANY Out of probably 20 making these devices. It's 
just a matter of time&nbsp;<SPAN class=625544807-19022005>before iTunes is #2 
and so on </SPAN>and Jobs knows it and he's scared.&nbsp;<SPAN 
class=625544807-19022005>If you need reference on this one look at where 
FastTrack is now after Kevin Bermeister Guaranteed that Kazaa would be the p2p 
king for decades to come. They are now #2 and that was one short year 
later.</SPAN></FONT></FONT></FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>Job's 
is a short sighted&nbsp;mental midget&nbsp;who set the industry back 10 years 
with the iTunes business unit...which by the way SOLELY exists to generate sales 
of iPods and Apple related goods. It's not to make Artists money or further the 
music industry. </FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>His 
note to Label Execs about this supposed "HACK on Napster&nbsp;<SPAN 
class=625544807-19022005>T</SPAN>o Go" is&nbsp;<SPAN class=625544807-19022005>a 
desperate tattle tale</SPAN>. </FONT>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>What 
CEO&nbsp;in their right mind sends a NA NA NA email to record label execs, who 
by the way don't even buy music and could care less about any hack of anything 
whether it's real or not. NONE OF THEM BAILED OR said anything when the iTunes 
QTFair Use tools came out.&nbsp;</FONT></SPAN></DIV></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>AOL 
pulled the app because it's bad business and it endangers ANY pay-media content 
including the content they will be selling soon using WMRM and WMA in the near 
future. Any public company distributing tools which can circumvent or breach 
anti-piracy measures is waaaaaaaaaaaaaaaaaaaay out of the lines of professional 
conduct.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial><FONT color=#0000ff><FONT 
size=2>Again though I have to tell you I find your comments about "diminished 
value" and "commoditized tracks" disheartening. The threat is the same to you 
and your new system and customer's content as it is to every customer using WMRM 
today which is probably in the 10,000 range.<SPAN class=625544807-19022005> I 
would bet it's more.</SPAN></FONT></FONT></FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>We 
have one customer that sells 30 minute WMV files all day long&nbsp;for $39.99 
and they are not porn. Some of&nbsp;her customers spend&nbsp;$400 a MONTH on 
DRM-enabled content from her site.&nbsp;Will your offering be of greater value 
than this? If so can you make an argument your customers are any more at risk 
than mine or any other DRM provider on this list? If so I want to hear it 
please.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>THE 
POINT BEING that here are your customer's alternatives to 
WMRM:</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>1. You 
can go pay RealNetworks $200,000.00 for a license of their License Server and 
Packager SDK and oh by the way you will need RealServer licenses to go with it 
and if it's streaming you will need the RealServer MCS plug-in. Should set you 
back about $250,000.00 for the licenses then you will need to go buy machines 
and OS Licenses and bandwidth in a Datacenter and oh yeah you will need to pay 
someone to cook all of that up into a pay-media solution.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>1.a OR 
You can go GIVE Your stuff to Real and license it to their OnePass program and 
hey guess what they will take 40% of your revenue and drive your customers into 
OTHER products on their site.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2>2.&nbsp; You can go call DivX and ask them to license you their OpenVideo 
system and you will get a "sorry it's not at that stage yet to license out." 
</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>2a. OR 
you can GIVE your stuff to DivXNetworks and they can put it up on their servers 
with all their porn customers (their&nbsp;primary source of revenue)&nbsp;and 
they will ALSO take 40% of your revenue since they MUST do the hosting and 
processing and DRM. Oh and you will be stuck with their terrible DivX player 
which has less installs than QuickTime on the PC.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>3. You 
can try and call ISMA and see if anyone has ever developed a DRM solution for 
MPEG 4 and I am not just talking about a spec I mean crypto, packager, license 
server, player and web objects.......Never mind which player you will use since 
none of them support DRM yet.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>4. You 
can try and send a formal letter to Sony's OpenMG DRM group. It needs to be a 
formal proposal printed out and put in an envelope and mailed to JAPAN and they 
will give you no structure for the proposal nor will they tell you who it's 
going to and one more thing you cannot connect with them via email, web form or 
phone since they don't work that way. Old school Japanese.&nbsp;There is also a 
GREAT chance their product will only work on ATRAC files.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>5. You 
can try and contact Frauhoffer about their MP3 LWDRM or MP3P systems but right 
now they are in their early stages and the prior requires that your customers 
SIGN their files they buy and the latter is not compatible with ANY mp3 player 
in the marketplace and oh their is no video component or SDK as of 
yet.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>6. You 
can contact the Marlin JDA group and ask them who in the group is creating their 
DRM product since even though the press releases say it's InterTrust, a call and 
email into them will get you "we are no longer developing technology and are 
just exploring the licensing of our IP."</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>7. 
Finally just for kicks you can contact Apple and ask them to license you their 
FairPlay technology and when they are done laughing in your face and telling you 
they will get back to you, you can finally just roll over and play dead and 
license them your customer's content and AGAIN they will ALSO take 40% on the 
dollar, it only works with their player and oh NO VIDEO 
either.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff size=2>OH AND 
THERE IS THIS TOOL CALLED QTFAIRUse which will let you rip any track you buy 
into unencrypted AAC. There is also a great chance they will drive your 
customers into buying content from your competition. Hey their stuff also does 
not work on EVERY MP3/WMA player made and certainly not on the whole new wave of 
PMCs.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2>Nicholas I am not attacking you or your post but elevating your 
customer's needs or vulnerability above anybody else's needs on this list or 
otherwise is IMHO an unnecessary proposal. Your options for DRM are presented to 
you as clear as they can be presented in this format. Ultimately it's your 
customer's&nbsp;call. Just make sure they are educated in an open 
manner.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2>Microsoft's DRM solution has issued more licenses and protected more 
content since 1998 than ALL of the above technologies combined. It's a real 
solution for real commerce enabled Pay-Media. Is it foolproof? No. Is DirectTV 
or iTunes or your car alarm or your cell phone? No. Should this prevent your 
customer from moving forward with WMRM.....CLEARLY NO.</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2>Regards,</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2>Christopher</FONT></SPAN></DIV>
<DIV><SPAN class=296323806-19022005><FONT face=Arial color=#0000ff 
size=2></FONT></SPAN>&nbsp;</DIV>
<BLOCKQUOTE style="MARGIN-RIGHT: 0px">
  <DIV><FONT face=Arial size=2></FONT></DIV></BLOCKQUOTE></BODY></HTML>
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