The Library of Congress has given iPhone users a get-out-of-jail-free card.

As part of a periodic review, the agency determined that “jailbreaking” the iPhone is allowed under American copyright law. Owners of iPhones (and other smartphones) have the right to unlock their devices and use applications not approved by the manufacturer or seller.

The decision is important in a variety of ways, not all of which are directly related to phones, or even to the wider goals of the Electronic Frontier Foundation, which sought a smartphone exemption to the Digital Millennium Copyright Act.

Basically, the Library of Congress reinforced the idea that when you buy a device, you own that device. This concept should apply to all sorts of technologies.

Automobiles are one example. Between built-in DVD navigational systems and the impenetrable engine service codes, drivers have to rely on the manufacturer for updates and service more completely than ever before. The days of teenagers in garages tinkering with their cars are all but over. Any owner, however, should be able to buy a third-party DVD database for the navigation system, or a program that can interrogate a car’s onboard computers to learn which malfunctioning gewgaw is making the “check engine” light flash ominously.

The world of e-books is another arena where the rules of ownership are fuzzier than they ought to be. A year ago, Amazon incensed its customer base when it wirelessly deleted certain previously purchased books from Kindle users’ libraries. Though the customers owned their Kindles, the files were apparently not so clear cut. And, while Amazon has since acknowledged that it was wrong to handle the matter the way it did, the company still has recall-enforcement mechanisms that are not available to merchants who sell more traditional merchandise.

Technology changes quickly, but some concepts ought to be enduring. One is that you own what you buy. Yesterday’s ruling means that, if you wish, you can install unauthorized applications on your own device, or make changes to the firmware.

Be careful. These modifications can have consequences much worse than a copyright violation notice. Jailbreaking your phone will almost always void its warranty. The practice can also open the door to spyware and viruses. But those choices are now firmly in the hands of the individual user, as they should be.

Apple claimed that permitting iPhone owners to jailbreak their phones would destroy the company’s technological protection for software on the device. But the Copyright Office noted that jailbreaking involves changing fewer than 50 bytes out of 8 million. It’s a small change that yields a lot of flexibility.

Vendors are usually eager to invoke the digital copyright law to the maximum extent. Apple understandably wants to keep its iPhone customers tied as closely as possible to its own iTunes and App stores, and to the wireless carriers (in this country, AT&T) with which it makes exclusive marketing arrangements. But hardware customers are not serfs. A car company cannot tie its customers to a certain brand of gasoline. Television makers cannot select only certain channels that will appear on their screens. (I am old enough to remember when the Federal Communications Commission mandated that all TVs must be able to receive UHF signals.) Even my shaving razor accepts third-party blades.

Our mothers taught us that we can’t “eat our cake and have it, too.” The Library of Congress now has delivered the same message to smartphone makers: You can’t sell a device and still behave as though you own it.

Larry Elkin is President and Founder of Palisades Hudson Financial Group LLC.

Photo Credit: Apple-Phone-Hacks.com

Comcast announced in late June that they will launch a version of their VOD channel, Fearnet, as a linear, ad-supported cable network. Fearnet’s VOD service is available in 28 million homes, and the linear, ad supported channel will expand its reach. Presumably, the ads and license fees will bring in more money, since the VOD service is available free to digital subscribers. This is a significant development. When Comcast launched Fearnet on Halloween 2006 they hailed the VOD-only channel as a new paradigm in cable service. The days of the linear network were numbered, since consumers wanted to consume their video on demand. Fearnet would be the first in a series of new VOD networks.

A funny thing happened on the way to this future. Linear cable networks continued to launch — news channels, local sports channels, foreign language channels, HD versions of current channels. There are groups looking for funding for several more. Instead of fading away, networks with limited distribution continued to expand. Satellite services like Direct TV and DISH made more networks available to homes and cable systems competed by adding more channels and creating their own proprietary channels. The VOD interfaces that cable networks put in homes turned out to require several clicks to find specific shows. Most consumers didn’t want to work that hard. It was so much easier just to see what was currently on your favorite channels than hunt for specific VOD programs.

Comcast further demonstrated the importance of networks and content last year when they bought NBC for its popular cable channels like USA, and the most old-fashioned dinosaur of them all– a broadcast network. Although an increasing number of people time shift their viewing of shows, they still rely upon networks to schedule programs at specific times so they can record them.

What does this mean for your program idea? It means that cable networks in the U.S. and around the world will be a viable market for the foreseeable future. Selling a program to a cable channel remains a good way to make money and increase your program’s visibility. That doesn’t mean you have to wait for a network to buy your show before you create some video for your web site. It does mean that you should consider a network sale as a viable part of your business plan. And if you’re dreaming of creating a new linear network don’t give up hope. It looks like they will be around for awhile.

Peter M. Gordon is a writer, public speaker, and media consultant in Orlando, FL.

As the Tour de France prepares to climb the Pyrenees, ratings are up while 2010 TDF numbers are down.

Crashes and injuries have forced 20 cyclists to drop out leaving only 178 riders in the race.  But riders’ pain seems to be Versus’ gain. Live morning race coverage on the channel has averaged 501,000 viewers and a .5 household rating through Stage 9 on July 13 — the best start for race coverage in the network’s 10-year history with the Tour.

The cable network also says unique users on its Tour de France Web site in the U.S. have increased 15% overall, while pages per user are up 22%. Unique users’ average time on the site is currently running 13% higher than a year ago.

Versus, like all media companies in big events, is touting its three-screen approach to this competition. In addition to cable and internet coverage, Versus is offering an iPhone app for its mobile component. The Tour app will offer video highlights, standings and route maps.

The three-screen approach just reached a new goal for media conglomerates to strive for with ESPN’s coverage of soccer’s World Cup. ESPN estimated that 132 million persons aged 2+ had consumed World Cup content in the U.S. across all of ESPN’s platforms. ESPN is promoting the notion of 3 with the new website, ESPN3.com. This website is all about watching live streaming sports online.

Sources: Versus, TV By The Numbers 7/7/2010
See also:

• re:Cycling TV 7/12/2010
• MediaPost 7/12/2010
• Rating The Race & The Riders 7/2/2010

Photo: Quickstep’s Sylvain CHAVANEL, Stage 7 on 7/10/2010. Credit:  ©PresseSports/B.Papon

One of this summer’s “hottest” new shows is a reality based sports drama featuring daily updates each morning. It raises the usual reality fare a few notches, including spontaneous fistfights, a psychopath who has been kicked off the island, illicit drug use and egos which dwarf anything that Hollywood could imagine. This production uses real world class athletes competing for big prizes. And instead of unseen producers manipulating the circumstances to imitate reality…it uses reality.

OK, it’s in France. Maybe not the reality most of us share, but it’s reality for the 198 riders in this year’s Tour de France – a three-week daily drama taking place across the pond.

Reality shows are usually weekly cliffhangers. In this version, protagonists that ride on cliffs are often eliminated on a daily basis.

There is danger aplenty on the screen with steep canyons, narrow roads, rain, cars, motorcycles, the press and cobblestones. And let’s not forget team rivalries and personal rivalries. Add to this – doping allegations, drug tests and blood samples.

While Versus awaits validation of this programming with hopefully higher ratings, it seems like this reality show should produce that desired effect.

Too much to keep track of? Here’s a short list of Top Things You Should Know About The Tour de France so far:

• Lance Armstrong – The sentimental favorite, in his final TDF race, crashes several times and is now too far back to win. According to BenepesBikeBlog on location coverage of the race, “Armstrong said he clipped pedals with another rider, his wheel rolled, and he came down hard as he was traveling about 65 kph (about 40 mph). He had bloody wounds on his arms and back.”  Lady Luck may have been in his corner on seven previous TDF wins, but not this year (Future Headline: “Lady Luck Bitch Slaps Lance in 8th TDF Win Attempt”)
• Alberto Contador – Last year’s winner and Armstrong’s nemesis is riding effortlessly, currently in 3rd place.
• Floyd Landis – The disgraced former rider has admitted to drug-taking and is trying to take Lance Armstrong down with him.
• Great Finishes – Can happen on any single stage but never on the last one in Paris. Tradition dictates no change in leadership on the final day.
• Crashes – Even after horrible crashes, some riders refuse to give up, others are not so lucky. A few notable crashes so far in the race: Christian Vande Velde (broken ribs /out), Tyler Farrar (broken wrist / in), Robert Gesink (fractured forearm / in), Adam Hansen (broken sternum / out).
• Who’s leading now – Cadel Evans of Australia.
• What’s next – Levi Leipheimer, Lance Armstrong’s teammate, is currently the highest-ranked American in 8th place, and Team RadioShack will now devote all its efforts to leading him to victory.
• Who will win – Alberto Contador is the strongest rider and has excellent support on Team Astana.

Back to our show – watch out for the bikes lying on the road ahead of you.

Source: BenepesBikeBlog, 7/11/2010
See also: Canada.com 7/29/07

New York, July 7 — Nielsen has announced organizational changes which will give set top box data greater visibility in the ratings company. In addition to announcing STB analyses from Charter systems in St. Louis, Greenville/Spartanburg, and Reno, Nielsen told clients about organizational changes designed to integrate STB data “formally within our existing audience measurement product leadership teams.”

The letter to Nielsen’s clients also announced that Matt O’Grady will be responsible for testing and incorporating STB data into Nielsen’s national and multi-platform products. Cheryl Idell will have integration responsibilities for local products.

Kantar (formerly TNS Media Research), Rentrak and TiVo have existing products and client bases already using these data. Rentrack’s Station Essentials product, using AT&T and Dish Network data, has been adding clients to its sec-by-sec no-demographics alternative to traditional NSI local market data. It’s not clear from the announcement if Nielsen is upping the ante or if they are just publicizing previous efforts.

The July 7 announcement was nuanced so as not to discredit the current local and national TV measurement services which serve all DMAs with a combination of people meters, household meters and paper diaries. “While STB data is incomplete on its own, we believe combining the stability and granularity afforded by this data with the representative quality of our panels will provide enhanced capabilities, analytics and insight,” says Nielsen’s Dave Thomas and Steve Hasker.

The new Nielsen tests will compare the ratings currency to STB data “to determine if the STB data can help supply greater fidelity to our ratings projections and enable more granular reporting, including to additional stations and regional networks.”

New York, June 23 — Canoe Ventures may not always be on time but yesterday they were certainly on message. “Interactivity is here,” was the message CEO David Verklin repeated numerous times at the Advertising Research Foundation AMS 4.0 Conference in New York.

Verklin says RFI — Canoe’s first interactive app — is now up and running. “Request For Information” is an overlay to existing commercial content that lets consumers click a button to request request information, free samples or mailed coupons after following a double opt-in screening process.

In May, Canoe announced that E!, Discovery Channel, USA Network and AMC had committed to using RFI. MediaPost reports that the service is only available on Comcast and Time Warner, two of the six Canoe MSO partners.

Canoe has received alot of criticism for its slow progress in delivering on the promise of interactivity. “Just imagine what it’s like trying to get six cable companies to work together,” says Verklin. “The set top box universe is amazingly heterogenous. The challenge is to find something that works across all platforms.” Verklin says the solution is EBIF, the Enhanced Binary Interchange Format technology which Canoe will use to deliver interactive television spots.

“I think we are succeeding because of the support across the cable MSOs,” he said. “They are committed to making an interoperable and interconnected national cable structure.”  Verklin says RFI is the first of several Canoe initiatives that will make interactivity simple and easy to use. “Interactive TV on network breaks has become a reality,” he said.

Sources: AdWeek, MediaPost, Canoe Ventures

Arbitron is going high tech with their portable people meter rolling out a replacement for the 80’s-like pager-looking device with hardware that uses cell phone technology.

The new wireless PPM 360 technology will use a cellular network to collect data from Arbitron’s Portable People Meter (PPM) panel. PPM ratings using the existing cradle technology will be available in 50 markets for the Summer 2010 book.

“We have multiple solutions for data capture and retrieval,” says Arbitron spokesperson Jessica Benbow. “While this version is on a cell phone delivery system, the existing PPM technology retrieves data from the meter through a docking station and sends it to Arbitron through a landline or a cell modem depending on status of the household and the availability of cell coverage. That system will remain intact simultaneously as this system is deployed.”

Arbitron’s president says the enhanced PPM will liberate audience measurement from the home and make it easier to follow the mobile consumers. “This platform is designed to be an integrated component to our existing radio services and drive future innovation for media measurement,” says William Kerr, Arbitron President and CEO.

Arbitron has decided to keep the name of the cell phone carrier secret. Rollout plans for PPM 360 will be announced after field testing of the new system concludes at the end of 2010.

High Definition TV has been good to TV manufacturers, program producers and consumers. HD helps sell more high-end TVs to consumers who like the Big Picture and richer viewing experience. Now new research suggests there might be good HD news for media buyers and sellers, too.

A comprehensive study of commercial viewing to a dozen of the largest network TV advertisers suggests that commercial tuneaway is lower in HD households. Higher audience retention means bigger commercial ratings which might translate into future cha-ching for broadcast and cable ad sales executives.

A new Kantar Media study reports that viewers tune away from commercials about half as often on HD channels compared to the standard definition (SD) feed for the same network. Ad supported HD channels have an average tuneaway of 3.73 percent of commercial seconds compared to 6.8 for SD viewing.

The analysis is based on nearly 124,000 thirty second spots for advertisers in the automotive, communications, retail, QSR, insurance and prepared foods categories. October 2009 data from 100,000 set top boxes in Kantar’s DIRECTView sample were used for the analysis. The complete results will be presented at the Advertising Research Foundation AMS 5.0 conference in NYC on June 22-23.

Broadcast also benefits from HD. High Def broadcast channels have 31 percent less tuneaway compared to the same commercials on SD channels  (2.2 vs. 3.2).

“This may be another measure of engagement,” says Leslie Wood, president of Media Trust and a study co-author. “If a person is watching on the HD channel, they care more about their TV experience.”

The finding could also be a win for set top box providers.  “Return path data can provide important insights into consumers’ digital viewing behavior,” says George Shababb, president of Kantar Media Audiences. “The ability to isolate the tuneaway effect of HD versus SD is unique to these data,” he says.
Wood notes that it isn’t clear if HD makes people spend more time with commercials or if the household characteristics of HD homes  — such as income, family size, etc. — differentiate SD and HD commercial viewing. Either way, it’s good news. “Greater audience retention and its implied higher commercial rating are a powerful rationale for networks considering adding a HD feed,” she says.

Breakthrough research is nice – but actionable findings are what matters most to media buyers. “These data suggest that HD channels reach a more engaged viewer which can have repercussions for our advertisers,” says Kevin Moeller, partner and Insights Director at MediaCom. “If HD programming results in a more engaged viewer it will encourage media communications planning and buying teams to rethink media plans.”

Although these preliminary data suggest an additional payoff to networks’ HD investment, one sales veteran is cautious about cashing in.

“I am not wild about centering a sales effort on the potential of this incremental gain,” says Harvey Ganot, a partner at New Markets Now and former President of Advertising Sales at MTV Networks. Ganot says charging more for HD is a double-edged sword: if HD is worth more, does that mean standard definition is worth less? “Advertisers are getting the HD advantage for free now. Why would they want to pay more?” Logistical issues would also make an HD-only sales effort difficult. “Segmentation and micro-placement of schedules in an HD environment are time consuming and labor intensive tasks,” Ganot adds.

Higher HD commercial ratings may not justify bigger ad sales rates down the road. But if it helps justify networks’ continued investment in high def distribution and technology, it’s bound to help broadcast and cable CFOs sleep better at night.

Dave Zornow is president of TNG Research, a media research and applications development company in Nyack, NY. He is also co-author of the study, “Using Return Path Data to Understand Contextual Advertising Engagement on TV,” which will be presented at the ARF AMS Conference in New York on June 22.

by Dave Zornow

If you find yourself going online to learn what’s going on around town, you’re not alone. More Americans are using digital tools to complement face time with neighbors and friends to keep current on what’s up — downtown.

According to the Pew Internet & American Life Project, one in five adults (20%) used digital tools to talk to neighbors and keep informed about community issues. Online blogs about community issues (21%), emailing (9%) and texting (4%) with neighbors are some of the ways that we are now wired (sometimes wirelessly) to our communities.

Interactive marketing consultant Richard Dysinger says people use digital media to  communicate because it’s faster and easier. Although the average letter is read within a week of being sent, “the average text message is read within fifteen minutes of being sent and emails on average are read within 48 hours,” he says. “This level of immediacy coupled with a buffered level of intimacy is at the heart of the new age of communication.” It’s another example of how technology is shrinking the world — making small towns even smaller. “Digital media and social media have facilitated  communication across a vast virtual network. We have gone from six degrees of separation to three,” Dysinger says.

Pew reports that there’s still a place for conversations on the front porch or over the back fence: Almost half (46%) of all Americans talk face-to-face with neighbors about community issues. The phone is used by about one in five adults (21%) — about the same number who say they stay connected with digital connections.

What’s the message here? If you are trying to get the message out about a community issue or event — or even run for public office — word of mouth is still your best friend. But more and more words are being digitized for posting, emailing and texting across town as well as around the world.

This story was also cross posted at NyackNewsAndViews.com

Source: Neighbors Online, Pew Internet & American Life Project, 4/9/2010

The tables have been turned on the ratings business.

Predicting that “Nielsen should score big audience ratings on Wall Street,” the NYT thinks the private equity team which took the former VNU company private four years ago has done a good job — and will be rewarded with a successful IPO of up to $1.75 billion. Nielsen’s SEC filing says they plan to use the proceeds to reduce its $8.6 billion debt and “general corporate purposes.”

Here’s the “by the numbers” analysis of Nielsen’s numbers:

• Nielsen takes in about $4.8 billion in revenue each year from nearly 100 countries.
• In 2006,  former GE Exec David Calhoun and a group of private investment firms including Blackstone Group, The Carlyle Group and Kohlberg Kravis Roberts bought Nielsen from VNU for about $10 billion.
• Calhoun and company injected another $3 billion in capital into the business, buying up new properties like IAG, mobile measurement firm Telephia and video analytics company GlanceGuide. They also shed non-core assets like Nielsen EDI (sold to Rentrak) and a long list of venerable publications, closing Radio & Records and Editor & Publisher and selling Billboard and The Hollywood Reporter to e5 Global Media. According to the WSJ, Nielsen also cut 10% of their staff after the buyout.
• Nielsen earned about $1.3 billion last year compared to $879 million four years ago.

Where the NYT is bullish on Nielsen’s IPO prospects, a skeptical WSJ calls “bullsh1t.” Noting that Nielsen was acquired in a pre-Twitter and Facebook(-dominant) world where they now trail comScore in Internet measurement, the Wall Street Journal’s Michael Corkery blogs that “anytime savvy investors – such as KKR, Blackstone and Carlyle Group – are selling out in a volatile stock market — potential investors should be asking themselves why.”

At the end of the day, Van Morrison may have the last word on the success of Nielsen’s planned IPO.

In the song “Wild Night,” Morrison writes “…and all the girls walk by dressed up for each other.” If you substitute private equity firms for girls you get some insight into how The Street views Nielsen’s IPO. “An initial offering that comes close to doubling their money would also help dispel criticism that buyout firms are nothing more than undertaxed financial engineers,” says the New York Times.

If anyone has a reality show treatment called “Pimp My Ratings Company” in the works, this would be a great time to do some lunches.