In-game advertising is a “small, but growing” portion of revenue generated by Microsoft’s Xbox Live service, Microsoft Senior Attorney Brent Sanders told us at the Assn. of National Advertisers conference in N.Y.C. Thurs. Its growth potential depends on whether in-game ads are labeled as such or integrated into the title itself, Sanders said. The FTC Children’s Advertising Review Unit released guidelines asking that if a spot is integrated into an online game that it be made clear to the “intended audience” that it’s an ad, Sanders said. “Videogames companies have spent a lot of money to be treated as entertainment” businesses and it’s a question of “whether they should have the burden of labeling which is which,” Sanders said. Xbox 360 and other consoles usually are aimed at 18-34s who spend 30% of their monthly entertainment budgets on games and play about 15 hours per week, Sanders said. Videogames advertising has emerged in 3 forms: (1) Dynamic advertising, with spots “fed” into online games. (2) Static product placements. (3) “Adver-games” sponsored by one company. The last costs the most, is the most complex and needs the most development time, Sanders said. Xbox Live’s annual movie and TV services revenue will reach $726 million by 2011 from $92.5 million this year, Emerging Media Dynamics said. Sanders declined to comment. In late Nov., Microsoft debuted movies and TV shows at Xbox Live Marketplace (WID Nov 24 p2) via deals with CBS, MTV Networks, Paramount Pictures, Turner Bcstg. Systems, Ultimate Fighting Championship and Bros. Home Entertainment. As videogame sales -- $7 billion-plus in 2005 -- rise so will product placement in games, said Sanders. Game companies once paid to use products in titles, now “it’s equally likely that advertisers are paying” to have products featured, Sanders said.
EU e-communications networks aren’t ready for disaster, Alcatel-Lucent said Thurs. The draft EC-commissioned study addresses reliability and robustness in Europe’s electronic communications infrastructures, offering 10 recommendations for guarding them from attack or natural hazards. Leading the list of security issues: a finding that in crises the EU needs more and better coordination, more govt. involvement and responses more proportionate to critical services. EU members and the private sector should run more emergency drills and prioritize restoration procedures for critical services. In crises, certain media “are simply essential for saving lives and property,” and first responders need to be able to communicate even amid high network traffic, the report said. Govts. should require standards-based priority communications capabilities in future networks. Not enough service providers, network operators and gear suppliers have mutual aid plans, the report said, urging formal accords in the private sector so industry is ready to collaborate in crises. The EU has fine schemes for sharing infrastructure data but they are “largely underutilized as an instrument for infrastructure protection,” the study said. Industry and govts. need formal methods for sharing data, the report said, noting that although critical infrastructures are a complex “system of systems,” infrastructure protection moves at varying speeds in EU countries. Institutions and govts. should work with companies on interdependencies between the communications sector and other critical sectors. The study found strong concern about supply-chain integrity driven by 3 factors: (1) The speed of the shift to outsourcing, with potential impact on quality control. (2) Rising risks to networks from dependence on software-controlled technology. (3) Global security. EU bodies and member nations should “embark on a focused program” to promote supply-chain integrity and trust, the report said, noting that standards can affect network security. Govts. should do what they can to coordinate positions in standards development to give the EU a unified voice. Interoperability testing is at issue now, because network interface testing varies greatly among network operators, the report said. It urged development, via industry consensus, of a standardized network-to-network testing framework. “Too often, critical public-private partnerships are suffering from suboptimal health,” the report said. Suggesting that EU bodies, govts. and industry “re-invent” their approach to collaboration. The EU and member govts. should foster use of industry best practices for making e-communications networks available and robust. Feedback is due by April 30 -- infso-a3@ec.europa.eu.
EU e-communications networks aren’t ready for disaster, Alcatel-Lucent said Thurs. The draft EC-commissioned study addresses reliability and robustness in Europe’s electronic communications infrastructures, offering 10 recommendations for guarding them from attack or natural hazards. Leading the list of security issues: a finding that in crises the EU needs more and better coordination, more govt. involvement and responses more proportionate to critical services. EU members and the private sector should run more emergency drills and prioritize restoration procedures for critical services. In crises, certain media “are simply essential for saving lives and property,” and first responders need to be able to communicate even amid high network traffic, the report said. Govts. should require standards-based priority communications capabilities in future networks. Not enough service providers, network operators and gear suppliers have mutual aid plans, the report said, urging formal accords in the private sector so industry is ready to collaborate in crises. The EU has fine schemes for sharing infrastructure data but they are “largely underutilized as an instrument for infrastructure protection,” the study said. Industry and govts. need formal methods for sharing data, the report said, noting that although critical infrastructures are a complex “system of systems,” infrastructure protection moves at varying speeds in EU countries. Institutions and govts. should work with companies on interdependencies between the communications sector and other critical sectors. The study found strong concern about supply-chain integrity driven by 3 factors: (1) The speed of the shift to outsourcing, with potential impact on quality control. (2) Rising risks to networks from dependence on software-controlled technology. (3) Global security. EU bodies and member nations should “embark on a focused program” to promote supply-chain integrity and trust, the report said, noting that standards can affect network security. Govts. should do what they can to coordinate positions in standards development to give the EU a unified voice. Interoperability testing is at issue now, because network interface testing varies greatly among network operators, the report said. It urged development, via industry consensus, of a standardized network-to-network testing framework. “Too often, critical public-private partnerships are suffering from suboptimal health,” the report said. Suggesting that EU bodies, govts. and industry “re-invent” their approach to collaboration. The EU and member govts. should foster use of industry best practices for making e-communications networks available and robust. Feedback is due by April 30 -- infso-a3@ec.europa.eu.
In-game advertising is a “small, but growing” portion of revenue generated by Microsoft’s Xbox Live service, Microsoft Senior Attorney Brent Sanders told us at the Assn. of National Advertisers conference in N.Y.C. Thurs. Its growth potential depends on whether in-game ads are labeled as such or integrated into the title itself, Sanders said. The FTC Children’s Advertising Review Unit released guidelines asking that if a spot is integrated into an online game that it be made clear to the “intended audience” that it’s an ad, Sanders said. “Videogames companies have spent a lot of money to be treated as entertainment” businesses and it’s a question of “whether they should have the burden of labeling which is which,” Sanders said. Xbox 360 and other consoles usually are aimed at 18-34s who spend 30% of their monthly entertainment budgets on games and play about 15 hours per week, Sanders said. Videogames advertising has emerged in 3 forms: (1) Dynamic advertising, with spots “fed” into online games. (2) Static product placements. (3) “Adver-games” sponsored by one company. The last costs the most, is the most complex and needs the most development time, Sanders said. Xbox Live’s annual movie and TV services revenue will reach $726 million by 2011 from $92.5 million this year, Emerging Media Dynamics said. Sanders declined to comment. In late Nov., Microsoft debuted movies and TV shows at Xbox Live Marketplace (CED Nov 24 p4) via deals with CBS, MTV Networks, Paramount Pictures, Turner Bcstg. Systems, Ultimate Fighting Championship and Bros. Home Entertainment. As videogame sales -- $7 billion-plus in 2005 -- rise so will product placement in games, said Sanders. Game companies once paid to use products in titles, now “it’s equally likely that advertisers are paying” to have products featured, Sanders said.
The Business Software Alliance (BSA) released its Hill agenda for 2007, heavy on copyright and telecom. The group tries to walk a tightrope on net neutrality, supporting bill language to ensure that data packets can be sent “without being blocked, degraded or otherwise impeded” based on type, origin or destination. But its members “recognize” that ISPs must manage networks to “enable new services, enhance Internet security, and meet emerging new consumer needs.” BSA cites VoIP as a technology developed precisely because of “absence of regulation” in arguing against regulating IP- based services. It supports a “single national federal franchise agreement” for all video providers, which would mean more broadband-subscribing households. The group also backs municipal broadband efforts if they're “technologically and competitively neutral… investments.”
The Business Software Alliance (BSA) released its Hill agenda for 2007, heavy on copyright, data security, telecom and detente with China. But it takes a far less interventionist tone on copyright than the creative industries and avoids the fiery rhetoric of Internet companies on net neutrality. BSA wants to improve copyright enforcement and FBI training, update national laws to conform to the World Intellectual Property Organization copyright treaties, and put heat on signers of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement to fulfill treaty obligations. But it opposes legislation that “mandates specific technology solutions to be incorporated into product design to deter piracy,” which can have “unintended consequences” -- a veiled slap at RIAA and MPAA for pushing audio and broadcast flag legislation. BSA backs data security legislation with a national breach standard for notification, adding law enforcement resources against cybercrime, and “universal” ratification of the Council of Europe cybercrime convention, which the U.S. recently joined (WID Oct 2 p10). It wants incentives for antispyware developers -- sometimes threatened with defamation lawsuits by “spyware companies” -- who work in “good faith.” Increasing cybersecurity R&D spending is another priority. Congress should renew trade promotion authority to promote e- commerce; work to “reinvigorate” WTO trade talks; and fight domestic or international rules that treat online products differently than hard copies, BSA said. The group tries to walk a tightrope on net neutrality, supporting bill language to ensure that data packets can be sent “without being blocked, degraded or otherwise impeded” based on type, origin or destination. But its members “recognize” that ISPs must manage networks to “enable new services, enhance Internet security, and meet emerging new consumer needs.” BSA cites VoIP as a technology developed precisely because of “absence of regulation” in arguing against regulating IP-based services. It supports a “single national federal franchise agreement” for all video providers, which would mean more broadband-subscribing households. The group also backs municipal broadband efforts if they're “technologically and competitively neutral… investments.” It opposes requirements regarding proprietary or open-source software, calling both “the foundation of a healthy and diverse software ecosystem” that drives competition. BSA wants a “continued productive dialogue” with China in light of the govt.’s promise to buy computers only with preloaded software and its occasional crackdowns on infringing websites.
Convergence of IT networks and the systems that control electricity, water and other essential services offers targets for cyberattackers, a Dept. of Homeland Security advisory body heard Tues. The National Infrastructure Advisory Council (NIAC) urged the White House to focus more DHS resources on the problem and set a deadline for national compliance.
Bills filed in the 2007 state legislatures are taking on video franchising reform, state commission regulatory authority, broadband service and the perennial topic of wireless phone use while driving.
Lawmakers introduced several telecom measures Thurs. on the opening day of Congress -- some of which didn’t make it last Congress. Senate Commerce Committee Ranking Member Stevens (R-Alaska) introduced 5 measures, including a bill that would reform the Universal Service Fund (USF) program that Senate Minority Whip Lott (R-Miss.) is co-sponsoring. Stevens also is introducing a measure that would address FCC and FTC roles in policing pretexting -- impersonating someone else’s identity to illegally gain access to private phone records. A Judiciary bill was enacted last Congress.
A rapid-fire pricing decline is pinching retail margins for flat-panel TVs, cutting them to 25-30% for top brands from 35-40% a year ago, said dealers we canvassed. The steep decline in LCD and plasma TV pricing seems to have caught by surprise many retailers. They include Circuit City, which conceded that it vastly underestimated flat-panel price erosion in the 3rd quarter (CED Dec 20 p1).