KENDRA

MINUTES OF MEETING HELD ON 22 OCTOBER 2001

EXECUTIVE SUMMARY

Attached are the minutes of the last meeting. This note summarizes the key points and some proposed actions for moving forward. These need consideration by the group.

First, who are Kendra?

An informal, not-for-profit organisation interested in content and convergence. Over 400 named individuals on the Website list and over 1200 people on the mailing list.

Named individuals comprise the following percentages of the Kendra population.

		Example Organisations	Any sponsorship Offers
Technology	24%	Blue Arc, Akami, Digital Island, Enon, IBM, Inktomi, Intel, MS
Content	13%	BBC, Bertelsmann, Media Channel, PR Newswire, Out there news, Westminster Digital
Creatives	13%	Aspects MM, Electric Echo, Floklore Films, Black Shorts, Hot Starts, Imagination
Individuals	8%
Network Related	6%	BT, Telia, Nortel, Cisco
Consultants	6%	Big 5 and Independents
Academic	3%	City University, SPRU, Tennessee, Minnesota, Victoria
Finance,Govt, Legal	1%	Dept of Trade & Industry
Other	26%	All Sorts

Few groups have the range of interests represented within Kendra and this is a major strength in considering the whole question of convergence.

Kendra Visions

Consumer vision - To have the information I want when and where I want it and to have the ability to pay for such content

Provider vision - To deliver open value for money solutions and make a reasonable profit whilst satisfying user requirements to deliver information anytime, anywhere to any device.

Kendra Mission

To work together and with others without exclusion to facilitate progress towards the visions by acting as creative sources of ideas, prototypes, trials and solutions, to act as commentators and promoters of the Kendra vision and to experiment with potential components that may deliver the Kendra vision.

Organisation, Goals and Priorities

As determined from time to time by participants and the willingness of volunteers' efforts.

Incubation

A series of four meetings including 22.10.01 to address the opportunities with the output posted on the web site.

Options for Moving Forward

More formal activities and report backs from various Special Interest Groups (SIG's) including

Ø Kendra network trial

Ø Kendra streaming media trial

Ø Kendra billing solutions trial

Ø Kendra content rights trial

Ø Kendra user interface trial

Ø and others.

Minutes of Meeting on 22 October 2001

Attached and on the Web site.

Sponsors

Provide a meeting area and refreshments for Kendra people for a one-day meeting in London or New York for up to 100 people.

Sponsor for Next Meeting

A sponsor is required.

Date and Location of Next Meeting

To be advised.

Agenda for Next Meeting

To be advised but possibly including

1. Kendra update

2. Sponsors Welcome and introduction

3. Special Interest Group workshops and Updates

3.1 ISP Developments towards Convergence

3.2 Networking Developments towards Convergence

3.3 Content and Convergence

3.4 Next Generation user interface demo.

4. Kendra Brainstorm Workshop

4.1 What next?

4.2 Value Chain Analysis - Like and Unlike links

4.3 Open Forum

5. E-mail suggestions

6. New Members / Marketing of the Group

7. New Sponsors / Supporting Group Activities

8. New Structures for moving forward

9. Any other business and Date and Venue of next meeting.

KENDRA

MINUTES OF MEETING HELD ON 22 OCTOBER 2001

Introduction and Welcome was given by Daniel Harris.

Gave an overview of Kendra

Ideas on how to build the Kendra Initiative

1) Vault of all information

2) Monopoly - buy out all exisitng and new solutions and consolidate

3) Co-operative development - the Kendra way.

1^st Speaker

DAVID MORRIS, Director of Broadband Initiatives - Blue Arc

Speaking on Issues in Broadband

Streaming media show invitations to participants

Background in Telio and ISP's.

Bandwidth constraints restricted content delivery - issues around large numbers of users accessing content.

Content needs to migrate to the edge for effective distribution. Broadband is on the incubation/take off stage. "Ego-casting" of annual reports by digitally enabled CEO's. Broadband to home will be the next big thing.

In US 8 million on 1/2 MB connectivity. Rest is mainly 56KB so need to move it from disc via network to user.

Microsoft and Yahoo not cost effective in giving e-mail away. 2000 servers just for Hotmail type applications.

80% of content of Internet is static

Average server 200 Mbits per second

Good server 340 Mbits per second

It is difficult to scale servers

So NAS but Yahoo has 200 NAServers.

Cycle Pipes / User interface / Content / Content Development

Blue Arc Focus - Server Bottle neck nothing else

3 to 10 times faster

field programmable array

Software download upgrades to make it faster to deliver content to users

Storage factor x 30 Improvements from hardware over software.

Thruput x 10

Telco HW call switching X 100

All by hardware improvements and software elimination.

QUESTION : Business Model or Technology Model?

Mobile phone analogy - business model is broken - price Restricts usage so technology allows the barrier to be raised.

Internet is broken - Bloomberg/MSN/etc one central repository - have to push content to the edge.

PUSH technologies like Napster - not sure where its going.

2^nd Speaker

PAOLA DI MAIO, Editor - Content Wire

Speaking on Quality of Content

Lot of information but distr4ibution restraints. Content-wire is about technology and has the space to explore it.

Hybrid Model - Paid-for content and Free content.

Convergence - coming together of content technologies in Lifecycle.

Content : Production / management /DRM / Distribution / Delivery into one manageable process.

Context vs The content supply chain -

DRM - A class of technologies and business processes for protection of copyrighted works for purpose of control and monetarization of intellectual property.

People who make money out of content are often not the authors but the intermediaries - this needs to change if creators are to benefit.

Privacy issues with regard to personalisation of content delivery and receipt - need to be aware of these.

DRM

Protection / Security / authenticity / transaction verification (non-repudiation)

QUESTION - DRM for single media can be embedded at the point of origin - but then for multi-source multimedia content you would need multiple DRM's.

QUESTION - Video - "Want maximum freedom in the production process so digital rights difficult at creation production end of the cycle."

But need to look at the whole content value chain.

Ideal solution

Open DRM Standard developed as open source. Content to contain digital licence throughout its lifecycle.

Could it be incorporated into MPEG?

Open Standard Architecture - is it possible to develop a DRM Rights Specification / File format / Trust Infrastructure?

Should not be proprietary.

MPEG21 may be a candidate.

3^rd Speaker

LISA GORNICK, Film Maker - Valiant Doll

Speaking on FILMS and the requirements of Internet Solutions

Quiet in the entertainment fenzy, desire for simplicity … could be a danger in the interface to make it too intrusive (one that you want - not "in your face").

Needs feedback of audience reaction.

GLUT - everyone is making rubbish if you're not careful.

Opportunity - notes by filmmakers - hear the maker - more intimate experience.

Don't replicate the big business culture of the film industry

DV and Home Video allow for more personal solutions.

4^th Speaker

TOBY SLATER, Musician - singer - song writer www.Tobyslater.com

Speaking on What Artists Want

MP3Jukebox player / DSL .WAP mobile site

Payment system Security copyright / Publishing rights difficult area

Musicnet & pressplay - designed by record companies to own distribution but musicians want to do it direct.

MP3.com vitamin.com etc

Association of Independent Music (AIM)

Kendra - Hopes and aspirations

Anyone can plug into and get paid.

Copyright owner can enforce rules

Universal plug into other systems

Content owners and technology need to meet and Kendra is a place where they can meet.

MP3 - most popular but no security and no payment capability.

Payment - is it possible or not possible - per track / per album / subscription? - different payment models.

Music payment systems seem to be in dollars!

Wallet systems - Minimum purchase price of song $5 so with tracks @ 50 cents it is 10 "buys" which is a hurdle

- needs to be transparent and fixed with e.g. integrated with mobile phone bill.

Wallets are NOT compatible - need to be compatible.

Talking about a "no clicks" payment system

Whatever you listen to you will have a charge for and needs to happen automatically

DoSoMo Ù distribution (from subscriptions) is split according to how many people access a particular site. Simple, easy to use, and easy to operate.

Security

Everytime its played the customer pays - make it secure enough and cheap enough to make it attractive to pay for rather than hack it.

Swap information instead of paying is one option. Eliminate the barriers of complexity - security - payment.

Easy way for originator -

Intertrust DRM or equivilent Ù expensive and difficult

Soundtrap - encrypted file Ù open and easy but not persistent

Need to divide according to the Royalties requirements so need systems that prove how often a file is downloaded.

And human contact needs to be built into the site and the content.

Ø ISP's

Ø Content owners

Ø Payment people - Banks / phone

Compatible across computer platforms, broadband and mobile

Systems need to be a) built

b) marketed (even if it is viral marketing)

5^th Speaker

NEIL HARRIS, Media Channel

Speaking on Metadata and where it's going

Meta Data Data about Data

CDDM (internet) artist name - track - length

FREE DB - publishes it for Free

ID3 TAGS - within the MP3 file

Internet Movie Data Base (now owned by AOL)

Collated into a database with people who entered it then cut out of the process

Information started by public should be kept in the public domain (and not be owned by a company)

XML Extensible mark up language

RDF Resource Description format for describing resources needed

Dublincore - describe "things" and attributes of "things".

Aimed at books and academic papers. Very elaborate

MPEG 7 - Meta Data framework -

Moving picture expert group who developed MP3 and MPEG 4 for streaming video

MPEG7 not practical for many commercial users yet

BUT the solution

MUSICBRAINZ.org (based on RDF/XML/Dublincore) and made it concrete enough that people can use

Tools/databases/ public system that can be used by something like Kendra

e.g. How much?

What forms of payment?

Where it can be sourced?

Universal product codes e.g. CD/DVD/VHS cassette

But no prescription about how it should be used.

Can use other schemes, e.g. Production metaData or DRM solutions.

Open source -

Userland software - Dave Winer Metadata about text

XML based syndication system

These are practical components of a working solution

Most news sites generate the syndication tags from this metadata format.

6^th Speaker

JUSTIN KEERY, Internet Analyst - Trafalgar Asset Management

Speaking on Stop Worrying and Start Making Money

Cerberus

Cerbernet

www.turtlebeach.com (Audiotraon)

www.pjbox.co.uk - personal jukebox 20 gig.portable play

TIVO - and now ADSL connection (via ethernet connection)

Morpheus has replaced Napster as file swapping place -

Bandwidth is available but content is limited

Content www.atomfiles.com

www.emusic.com

New Model

Ø Subscription fee £10 per month (higher charge for heavy users)

Ø Users vote on sound quality

Ø Records labels get fee for downloads

Open database standards for storage - encourage reviewers and fan sites.

MP3 good enough for music

MPEG1 good enough for video

Unified content broker database and/or format needed

Wippit.com Napster look alike with subscription model

7^th Speaker

STEVE KENNEDY, Head of Technology Futures, Thus Plc Demon since '94

Speaking on Content Providers, ISP's, Caching and content Peering

35 million phonelines owned by BT 85% of access into peoples home.

DSL - 80k BT ignite customers who sell to re-sellers of DSL

Cable - 40,000 6 months ago

90,000 now Broadband

50 to 1 contention ratio

so 2 Terabytes of Bradband per second of data

ISP's DSL - BT Ignite takes a hugh chunk so ISP's only get £3 to £4 per month so

2 gigabits (about) per second

Have to manage the bandwidth so caching overhead - can only move the head 200 times second.

Intelligent caches at the edge of the network are needed. Then have a CDN (content delivery network) tells you where the network is being over utilised.

Software Management kills it when the content scales.

Make the peering point a common platform. Then the content can be injected and distributed to all the users.

Content providers have the money to pay for the information. Even Sky will want to use Broadband as a two way service.

AFTERNOON : WORKSHOP SESSIONS

Define the links and responsibilities of all the potential players in the content distribution chain

2 ways - same or different links in the chain

a) Like-Links - what are the needs, what is the way forward Being all inclusive

Present the requirements

b) Unlike link groups across Content Value Chain

Flow of information and payment

Design a model of the content value chain.

A Build a technology and ask people to come and use it . May not be the right time

B No one technology will win so unless it is inclusive it will lead to fragmentation.

-----

Define levels of interoperability to sit on top of the internet.

Kendra - what is different

Set up a series of trials - discuss requirements on how their link of the chain.

----

20 ISP's - trial putting content close to the user.

CONSUMER REQUIREMENTS

Child's education - want technology to play a full part.

Preview and download with seamless billing

Easy to use

Whatever platform that suits me (not the provider)

Clarity - structured information

Whatever device

Pay in any currency and pay one price just unit pricing.

Unified interface TV/Radio/Likestreams/On demand Video and Music

Pay a good price for everything and have a direct relationship with content owner.

No middle people - easy-convenient

Pay for everything with one log-in and enter details once.

Limitless choice and easy to find and easy to access.

Choose to pay for level of quality I want.

Access/get information - finding it in first place

Ø Trust in the system - delivers what I want

Ø Disputes procedure in place

Open standards

Ø Clips

One interface that gives me the information.

Same at business and at home on PC/TV/home

Ø Security of internet billing

Ø 1 in 14 visitors return to site, 1 in 70 buy.

Worst fear

Best experience

£150 taken off credit card Long delivery deadlines Site with dead links Using Mac & being told go away Purchasing flight details e-mails posted on Web No certainty or confirmation of action Getting too much information from a search enquiry No Quality Assurance of Content No legal way of getting what I want Being disappointed about the realisation Paying twice for the same thing (Stephen King) Bad - 2 credit cards duplicated Spyware being downloaded Green requirements and Registration Slowness Had a great connection then lost it

Get more than you bargained for finding unexpected information Links and info there when you are there Shopping on line not going to the shop Napster & Atomfilms when it worked Access through browser or through easy to get application with central repositioning Early download of new material Top of list Google.com Buying software off the Web - easy to download Download Morpheus This is what you need to un-install as the first item on the menu Cancel double payment automatically

IDEAL INTERFACE

Ø Micropayments

Ø Each of us have our own individual requirements

Want flexibility

Want inclusiveness

Ø Register once - for lifetype

Ø Micropayments without huge commission

Ø Usable works

Ø Quick

Ø Predictable

Ø Simple

Ø Secure

Ø Fast

Ø Bills made simple - pay on basis of itemised bill

Ø Persoanlised

Ø Intelligent - phone to my credit card number so it knows and links to the PC

(Download - breaks of link. Should pick up from where I left off

Should just tell to pay

Consumer Interfaces

ISP

Network provider interfaces

Content Provider

Interfaces

Business - will pay

Consumer driven by Brands, e.g. Sky, Timewarner, AOL

Brand

Number of subscribers Link between the two

Price

Brand that they recognised, e.g. TV companies

Content Providers é Billing Interface é Consumer

PAYMENTS

Ø Build a payments system and the rest will follow.

1. Simplicity

2. Trust / reputation

3. Interoperability tech currencies etc, order in local currency

4. Trade off - choose anonymity, full accountability along dimension & audit

5. Trilogy Identification

Accountability

Authorisation

6. Trusted Reputation

Authorisation é Confirmation of order & payment

7. Different Payment

Credit/Debit/Wallet/Barter/Subscription

8. Different Models

Subscription/pay as you go/monthly/byte

9. Suit users as consumers and content creators back up the chain

Royalty/different payback method

10. Value Add about the transaction

Info and aggregation of information, e.g. how many sold to whom

(info gathering)

11. Loyalty and Incentive Schemes

Using payment as starting point

12. Beyond the payment system there is an aggregation, e.g. phone/gas/electricity.

CONTENT GROUP

Keep it simple, Not everything is payment based.

Simple and easy way for artists to put their information into the system.

1) Royalty collection mechanism

- Adherence to current models

2) Access to usage statistics

- Sales

3) Control of access

- Release dates (withdrawal)

4) Pricing Controls

- Define environment

5) Accreditation

- Full (unremovable) credits

6) Entertainment!

- Prime motiviaton, not £$Y

7) No Alterations

- Editing or reformatting

- Technical clarity

8) User Feedback

- Interaction

9) Usage restrictions

- CD? Copy?

10) Compatibility

- All Systems

User Registration process - to give confirmation details.

Rights not to have content altered - content is prepared and it stays the same to point of distribution and receipt.

Remixing / reconstitution / enhancement

Professional re-use and replication - deliver it in one piece.

Content Delivery Network

1. Making sure the content goes from producer to the user

2. Who pays for the transport end-to-end?

3. Existing mechanisms - for pricing. Many different players in the market

B2B, B2C etc. Who has what interest was difficult to define.

Work over any kind of network and any kid of device.

Content delivery é People

ISP will have to pay for content distribution and then reclaim from the user (or commercials)

Network Group

Network Service providers

1. Big fat pipe

2. Interoperability - Satellite / DSL / PSTN / Mobile

3. Offer scalable Bandwidth

4. Q of S

5. End-user integrated billing arrangements with single bill.

Kendra Brainstorm

An analysis of the value chain that exists between the various participants

Ø The Content creator

Ø The Content aggregation

Ø The Internet Service Provider

Ø The Infrastructure Provider

Ø The Billing process

Ø The Wealth re-distribution process

Ø Assessing end user satisfaction with Content

The chain and the interdependencies need to be examined in more detail.

The Shop Analogy

We are all comfortable going into a store and buying goods. The model works well. As yet there is no electronic equivalent of the corner store or supermarket. We may need to build such a solution.

The Kendra Baton

Given the interdependencies we can imagine we are all participating in a Relay Race with the baton passed from person to person, or in our example from process to process.

The baton is the only consistent element throughout the whole process. If we can devise a way for the baton to get back to the content creator then it should be possible to begin to manage the whole of the content creation and distribution cycle or chain.

This may require a Special Interest Group explicitly focussed on the baton.

Informal Session

Discussions continued over drinks kindly provided by Blue Arc. Make their investment worthwhile by taking a look at their web site

www.bluearc.com

Next Sponsor Volunteer

Would the next sponsor volunteer like to come forward!

Date of next meeting - to be advised.