One of the issues I have wrestled with ever since starting my video business in 1988 is the need to copy-protect my work. When I was giving out VHS copies of my productions it was not as much of an issue, because making a copy from a VHS tape would result in a noticeable generation loss. When people asked why I put "copyright" on all my productions, I would tell them that I wanted to make sure that my work was "copied right." Then I would explain that I had a Beta SP master, which was the only viable source for high-quality copies.

Fast-forward 20 years, and we find ourselves in an all-digital world in which the consumer has access to the same technology that video professionals and other content producers have. Our customers no longer need to come to us for DVD copies if there is someone (often a teenager) in their house who can easily dupe DVDs. That means that once we give out a DVD, there is no guarantee that we will ever see our customers again. It also means that if your work is based on volume sales—for instance, if you're a video producer doing stage events or graduations—your entire business model can be undermined by home copying. The good news is that there’s help on the way. Welcome to the beginning of the new era of copy protection for event videographers and other small-shop DVD producers.

As small-studio content producers who deliver our work in volume too small for replication, we have two choices when it comes to protecting our work. One option is to use a third-party provider such as www.protecteddvd.com. ProtectedDVD will add copy protection to your DVD for $25, and copies from that point are relatively inexpensive. The other alternative—and this is the one I recommend—is to apply the protection ourselves with PTProtect, a new technology developed and marketed by Primera Technology, the company that brought us the popular Bravo line of automated DVD duplication and printing systems.

Using PTProtect
I’ve been using PTProtect on my productions since November 2008, and the best way to describe my overall impression is that I feel like a person who is experiencing freedom for the very first time. I am now free to provide my clients with DVDs without the fear of having someone make unauthorized copies. I realize that there are many producers who don’t care if their work is copied, because they have made their money in the production itself. But there are many of us who rely on the sale of DVD copies to make a living. Anyone who has taped dance recitals, concerts, plays, sporting events, school events, and other special events will welcome the benefits of PTProtect.

I am not a technical person, but I found PTProtect to be easy and intuitive to use. I tested PTProtect on the Bravo SE Disc Publisher. The setup of the printer was very simple. The PTProtect is activated using a USB dongle with a number of "credits" on it. For it to work properly I had to download a newer version of the PTPublisher software (it requires v1.3.0 or higher).

When PTPublisher is launched, the PTProtect option will be enabled, showing the number of credits still available. The DVD must first be converted into an ISO image or already be on the hard drive in an ISO format. You can also protect a DVD by copying the AUDIO_TS and VIDEO_TS folders from the master DVD to your hard drive, or use your DVD publishing software to create an output format in AUDIO_TS and VIDEO_TS folders. It is then a simple matter of selecting the "Protect Video with PTProtect" checkbox.

How it Works
According to Primera, this is how PTProtect works:

PTProtect software is applied to the DVD image during authoring so that when content is burned to disc it is encapsulated with the PTProtect software. The encapsulated content on the DVD is then protected from access by common ripping programs. The content on the DVD is not modified in any way and, because the copy control encapsulation sits in areas of the discs not read by the DVD players, playback quality remains unaffected. PTProtect is a passive solution, which means it does not load any software program onto the PC for the protection to work. In essence, PTProtect copy-controlled discs are designed to provide effective ‘speed bump’ protection from unauthorized casual copying.

PTProtect is designed to protect DVD-Video, and it also works with dual-layer (DVD-9) recordable DVDs. In the future, there should also be a version of PTProtect for data DVDs. You must have a Primera duplicator to use PTProtect. The software is free, but you pay incrementally for the credits: 100 credits (good for protecting 100 discs) costs $225, 1,000 credits cost $1,000, and 5,000 credits cost $3,750.

I am realistic enough to understand that anyone with enough time and expertise could probably bypass the protection given by PTProtect. But I also know that most people wouldn’t want to take the time. I do know that as the PTProtect software is improved, upgrades will be available so that we can keep one step ahead of those who would pirate our work.

Is It Safe?
To make sure that PTProtect actually did stop ollegal duplication of my projects, I decided to try duplicating a DVD that had PTProtect applied to it. First, I tried copying the video and audio files to the hard drive on my computer. I was not able to do so. I also tried making copies using Nero, but again failed. I then tried Miraizon Cinematize Pro, but was not able to convert the files to an AVI file like I do with other DVDs when I need to re-author them. My attempts at making copies using my VinPower Duplication Tower (which burns the information to a hard drive), and my Disc Makers Elite Duplication Tower (copies from DVD to DVD) also failed. Finally, an attempt to copy the disc using a popular DVD ripping tool (used by pirates to make illegal copies of Hollywood DVD movies by breaking the CSS encryption applied at replication) also failed.

My conclusion: I can safely give out DVDs to clients without worrying about them trying to make their own copies. I realize that eventually someone will figure out a way to bypass PTProtect, but I hope by then there will be a downloadable upgrade on the PTProtect software that will stay one step ahead of those smart enough to figure out a workaround. I like to think of PTProtect as a deterrent that will stop the average person from making unauthorized copies of my DVDs and thus allow me to be the one that sells the extra copies. From that standpoint, PTProtect is a welcome tool for videographers and small-shop producers—particularly those of use who depend on volume sales—that will allow us to be more profitable in our businesses.

On a personal note, I have been using Primera’s products for the last several years and have been impressed by the quality the company offers and the technical support that the company provides. I know that there will be other companies offering similar products in the near future, but I would encourage you to check out this reliable and easy-to-use anti-rip copy protection. I have already had several clients come back to me for DVD copies even though, when they received their original DVD, they assured me that they wouldn’t need to purchase copies from me. I wonder what they had in mind …

Alan Naumann (alan at memoryvision.tv) is a contributing editor to EventDV magazine, a two-time EventDV 25 honoree, and author of The Complete Course on Funeral Videography. A featured speaker at WEVA Expo 2004-2008, he lives in Minneapolis.

D-BOX Technologies Inc. (DBO.A on the TSX Venture Exchange), a leader in the design and manufacturing of innovative motion technology for the entertainment industry announced today the conclusion of a licensing agreement with French film editor EMYLIA to integrate D-BOX Motion Code(TM) on selected high-definition Blu-ray(TM) titles.

"We are very pleased being able to add EMYLIA to our growing list of partners" stated Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX Technologies. "This European agreement demonstrates once again the growing acceptance of our motion generating technology and constitutes amongst others, an interesting complement to already existing agreements with some of Hollywood's most important studios."

According to Mr. Alexandre Simard, executive at EMYLIA, "The addition of D-BOX Motion Code(TM) to the image and sound will allow movie viewers to experience an immersive experience of unprecedented realism. The integration of this new technology demonstrates amongst others EMYLIA's commitment towards its clientele to deliver the ultimate in entertainment experience. EMYLIA's team will begin working immediately with D-BOX and aims to announce as soon as May 2009, the titles of the first D-BOX embedded movies."

ABOUT D-BOX
D-BOX has pioneered the next step in the evolution of home, theatrical and gaming entertainment systems, a patented precision encoding system allowing for the creation of a custom motion track for each film, TV program or video game. The result for the viewer is an added dimension of realistic Motion effects (MFX) perfectly synchronized with on-screen action, for a supremely exciting and immersive entertainment experience right in their viewing seat. An opportunity for studios and retailers alike, this exciting new level of interactivity and immersion is well on its way to being a de facto industry standard; D-BOX's award-winning motion technology is available for more than 850 titles globally. Several Major Hollywood studios have embedded D-BOX Motion Code(TM) on many recent blockbuster Blu-ray(TM) releases. For more information, please visit www.d-box.com.

ABOUT EMYLIA
EMYLIA France is one of the main film editors in France with an emphasis on high potential mass-market films. With more than 300 films predicted to be part of its catalogue by the end of 2009, it can count on team of collaborators originating from both the movie and show business industries. The company is currently experiencing strong growth as it continues to acquire worldwide rights on a number of films.

The number of households with an installed high-definition television (HDTV) continues to grow worldwide. However, this installed base of households is decidedly biased to two countries: the US and Japan. Further, within the US market, there is a significant gap between HDTV ownership and households utilizing HD programming, reports In-Stat (http://www.in-stat.com).  

The number of US HDTV households, defined as households having both an installed HD-capable TV set and also receiving and watching HD programming, increased by almost 40% in 2008. However, the growth rate could well have been much larger. "In the US, there are more than 39 million households with an installed HDTV set," according to Mike Paxton, an In-Stat analyst. "However, only 22 million of those are HDTV households, meaning that 17 million US households with an installed HDTV set are not watching HD programming."

Recent research by In-Stat also found the following:

• On a global basis, HDTV service remains limited to a relatively small number of countries, primarily the US and Japan.
• At year-end 2008, there were over 36 million HDTV households worldwide, up from 29 million at year-end 2007.
• Even though the number of European HDTV households is rising, it will be 2011 before the number of HDTV households in that region reaches the 10 million mark.
• Cable and satellite TV service providers provide HD programming to almost 80% of all HDTV households. Telco TV service providers and terrestrial broadcast TV service providers provide service to the remaining HDTV households.

The research, "Worldwide HDTV Households: 36 Million and Growing" (#IN0804055MBS), covers the worldwide market for high definition television services. It provides an analysis of:

• The availability of HDTV services around the world
• Market and industry drivers for HDTV services
• How the development of different HD business models is impacting the market for HDTV services
• Results of a 2008 US consumer survey about HDTV ownership and services
• A look back at the historical growth of HDTV services
• A breakdown of HDTV households by geographic region and by transmission platform (cable, satellite, terrestrial, telco/IPTV)

The research also contains a forecast for worldwide HDTV households through 2012.

For more information on this research or to purchase it online, visit http://www.instat.com/catalog/Ccatalogue.asp?id=288. The price is $2,995 (US).

Bolstered by better than expected holiday Blu-ray sales and a greater movement toward stay-at-home entertainment, DVD International, a leader in information and entertainment DVDs, is expanding its HDScape line of Blu-ray Discs and DVDs. The HDScape brand (www.hdscape.com) features stunning HD landscape and visual DVDs that enhance any home or environment. The current line of products includes: Exotic Saltwater Aquarium, Fireplace: Visions of Tranquility, Antarctica Dreaming, Serenity: Southern Seas, HDWindow: Hawaii, HDWindow: The Great Southwest, Visions of the Sea: Explorations, Ocean Aquarium, Stargaze HD and a Sampler program with short clips of each of the above.

David Goodman, Founder, DVD International, said, "Blu-ray has been a focus of our business since the format launched in 2006, but we temporarily halted production of new Blu-ray products last year to let the market find its legs. Coming out of CES 2009 we feel the industry is at a turning point and we are beginning production of new programs once again. We’re excited to be moving forward with our award winning HDScape programming partners on new projects and seeking new artists who can help us expand the line."

DVD International, founded by Goodman in 1996, has been on the forefront of niche optical disc home media technology since DVDs inception in 1997. DVD International began releasing Blu-ray programming within months of the format’s release in 2006.

Artists with creative program content who are interested in international Blu-ray disc distribution should contact Jeffrey Goodman at Jeffrey@dvdinternational.com.

About DVD International
DVD International is a DVD Acquisition and Development Group, Inc. company that focuses on the creation of unique content that pushes the boundaries of traditional home video. From Joe Kane's Digital Video Essentials, the premier home theater system calibration program, to HDScape high definition scenic content, and the hugely popular BiblesOnDVD line, DVD International is redefining how people use their home theater systems in their daily lives.

Founded in 1996 by home video entrepreneur David Goodman, the company is comprised of four divisions: DVD International, HDScape, BiblesOnDVD, and DVD Bookshelf.

DVD International is known for its innovation in the "ambient art" and special interest genres. With programs such as The Complete Aquarium Collection, StarGaze and this year’s milestone release of Digital Video Essentials: HD Basics, David and DVD International have helped to define and expand the boundaries of the DVD format. In fact, DVD International created the first "made for DVD" title in the United States.

HDScape is DVD International’s new HD imprint, and it has seen the company return to its videophile roots. With new products geared to the Blu-ray disc format, DVD International has again taken the lead in producing world class ambient art content under the new HDScape brand. From the Exotic Saltwater Aquarium, Antarctica Dreaming, and to Visions of the Sea: Explorations, HDScape has established itself as a first-mover in the growing HD video business.

BiblesOnDVD presents effective, entertaining programs for bringing Bible learning to life. Featured titles create on-screen, dramatized video versions of the bible, synchronized with audio narration provided by the world’s leading Bible narrators including Stephen Johnston, Max McLean, Alexander Scourby and Samuel Montoya. Titles include: New International Version Listener’s Bible On DVD® Old and New Testament; The Message®; New Living Translation® Old and New Testament; New King James Version® Old and New Testament; Bible Challenge on DVD; the King James Version Old & New Testament narrated by Alexander Scourby; the Growing Reader Series; and the Reina-Valera 1960 version, narrated by Samuel Montoya.

www.dvdinternational.com

Royal Philips Electronics N.V. has reached consensus with each of CMC Magnetics Corporation and Ritek Corporation on long term patent licensing agreements for CD and DVD recordable and rewritable discs. The licensing agreements will not only settle the past use disputes between Philips, the patent holder, and Ritek and CMC, two Taiwan-based leading optical disc manufacturers in the world, but also covers the use of the relevant Philips’ patents until 2012. The parties also have agreed to stop all legal actions against each other.

Ben Beune, Senior Vice President from Philips says: "We are encouraged that the joint efforts of the Taiwan industry leaders and Philips over the past one year and a half can finally bring a positive result. Philips never gives up the hope to work with the manufacturers to find a win-win solution. The new agreements not only serve both parties’ interests but also mark the start of a renewed relationship. We believe this is a positive and healthy development for the industry going forward and we highly appreciate the frankness and sincerity shown by CMC and Ritek in the negotiations."

Y.Y. Shiao, Vice President of CMC says: "CMC attaches great importance to respecting IPRs which is critical for innovation and industry growth. By considering the overall benefits as well as the market status and outlook, CMC has decided to sign this new agreement with Philips. We believe this can contribute to CMC to maintain its global leading position in optical storage."

Vincent Chiang, Legal Manager of Ritek says: "Sharing of technologies by innovators like Philips has contributed to many industries in Taiwan and the CD and DVD recordable media industry have grown exponentially during the past decade. To answer the industry changes and challenges and maintain our leadership in the industry, Ritek has decided to conclude this licensing agreement with Philips. We believe it is positive to the development of the optical disc industry."

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified Health and Well-being company, focused on improving people's lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 133,000 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2007, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare.

DISH Network Corporation (Nasdaq: DISH), the nation's third largest pay-TV provider and the digital transition leader, along with A&E Network, today emerged as the first pay-TV provider to offer a television series in 1080p resolution quality comparable to Blu-Ray disc(TM).

A&E's new drama series The Beast is now available to DISH Network subscribers via its Internet Protocol Video On Demand (IP-VOD) platform in 1080p the day after a new episode premieres. DISH Network(R) subscribers with an MPEG-4 HD DVR receiver, a high definition television that is 1080p compatible, and a broadband connection will be able to access, download and watch The Beast.

"We are thrilled to work with A&E in pioneering these efforts by taking television to the next level using 1080p format," said Jessica Insalaco, Chief Marketing Officer for DISH Network. "As the first pay-TV provider to first offer VOD movies and now offer a TV series in 1080p, DISH Network continues to lead the industry when it comes to delivering the best quality programming options, DVR technology and overall value for our customers."

"We are excited to work with DISH Network to present The Beast on their innovative IP-VOD platform," said Mark Garner, VP Distribution, Marketing and Business Development of AETN. "The Beast represents the best-in-class drama programming viewers have come to expect from A&E and was the ideal choice to be the first series presented in stunning 1080p."

In The Beast, an unorthodox but effective FBI veteran Charles Barker (Patrick Swayze) trains a rookie partner (Travis Fimmel) in his own hard-edged and psychologically intense style while being investigated by a secret Internal Affairs team. Set on the gritty streets of Chicago, Barker hazes his new partner as they work undercover, brilliantly manipulating situations, constantly testing him, and pushing him to delve deeper into his "roles."

To access the DISH Network's 1080p IP-VOD content, customers with an MPEG-4 HD DVR receiver need to select the "DVR" button on their DISH Network remote control and chose the DishONLINE feature. They can also access the IP-VOD service by selecting "Menu" on their remote, followed by DISH On Demand and DishONLINE. Subscribers will see a variety of content and must select movies with 1080p after the titles in order to get the comparable to Blu-Ray disc(TM) quality films.

DISH Network's advanced HD DVRs lead the industry, winning more Editors' Choice Awards than any other receiver. DISH Network's ViP(R)722 HD DVR operates two televisions in separate rooms and has up to 500 hours of DVR storage capacity. Additional storage space is available by connecting an external hard drive via the ViP722's USB ports.

Consumers can sign up for the best high definition programming and service in the industry with DISH Network's TurboHD programming packages, the only all-HD packages on the market, starting at $24.99 per month. TurboHD is available in three separate tiers and includes special "turbo-charged" features and benefits such as the best quality HD available including 1080p resolution where available and the most-watched HD channels that may be viewed on any TV - analog, digital or high definition.

Current DISH Network customers looking to add the industry's best high definition experience can get a "turbo-charged" HD package for as little as $10 more per month.

For more information about DISH Network's 1080p programming, new HD channels and TurboHD system and packages, visit www.dishnetwork.com.

Blockbuster Inc. (NYSE: BBI, BBI.B), a global leader in entertainment, and Sonic Solutions (NASDAQ: SNIC), the leading technology and service provider for premium movie content, today announced an alliance to give consumers access to a vast library of premium digital entertainment across a wide assortment of home and mobile electronic devices. Under the multi-year, preferred-provider agreement, Blockbuster will supply the branded consumer interfaces and Sonic will power content delivery across PC and consumer electronic devices.

The two companies are collaborating with a host of consumer electronic (CE) manufacturers, including Sonic's existing CinemaNow providers, to expand the ecosystem of interoperable devices offering the Blockbuster service. These devices include PCs, portable media players, Blu-ray Disc players, personal video recorders (PVRs), set-top boxes, mobile phones and Web-connected television sets. Additionally, the two companies will make their digital libraries of mainstream content available under the Blockbuster brand resulting in one of the most expansive VOD (video on demand) and EST (electronic sell-through) offerings in the marketplace.

"We are excited to be partnering with Sonic, the industry's leading entertainment delivery and technology provider, to make Blockbuster's digital entertainment service easily and instantly available to consumers through the widest range of devices available in the marketplace," said Jim Keyes, Blockbuster Chairman and CEO. "Blockbuster is a ubiquitous entertainment presence in the physical world. Through this alliance with Sonic, we plan to become a ubiquitous presence in the digital world as well. Our goal is to offer consumers the most digital content, the most accessibility, via the most devices, both in- and out of home."

Sonic's device ecosystem, powered by its new CinemaNow™ SDK (software development kit), will help streamline the introduction of Blockbuster's digital entertainment service into a wide variety of consumer electronic devices, both Mac- and Windows-enabled, via adaptive streaming and progressive download. The devices will be sold through Blockbuster retail stores, blockbuster.com and other leading retailers.

"With more and more broadband-enabled consumer electronics hitting the market, there is a growing need for a service that gives consumers access to premium entertainment on any device, anytime and anywhere," said Dave Habiger, president and CEO, Sonic Solutions. "By pairing Sonic's digital delivery technology with Blockbuster's trusted brand and library of content, we enable any CE manufacturer to add an impressive digital movie service to its product offerings and in doing so, create the most flexible digital entertainment service for consumers."

www.blockbuster.com
www.sonic.com

Optical and hard disk solutions manufacturer Plextor announces a new range of wireless Networked Attached Storage (NAS) drives and media players. The company is responding to the ever-growing demand for wireless products from both professionals and consumers based on their need for more installation flexibility.

Capitalising on the success of its previous range, Plextor has re-engineered its popular single NAS drives to give them wireless capability. These new drives present the perfect solution for more storage capacity by making it easier to store, share and back-up data over a network.

The wireless PX-WNAS500L (500GB) and PX-WNAS1000L (1TB) models are designed for competent small office business users.

The wireless Plextor MediaX is a standalone networked media player and recorder that allows easy sharing and access to music, photos and films from either a PC or TV. Available in two models PX-MX500WL (500GB) and PX-MX1000WL (1TB), these products are Wi-Fi enabled thanks to the included dongle suitable for USB-entrance. Designed for people with growing media collections, Plextor’s wireless media players avoid the hassle of tangled cables.

Commenting on the new wireless products, Rudy de Meirsman, Sales & Marketing Manager at Plextor states, "We have decided to focus on developing more and more Wi-Fi products at Plextor. The great advantage of wireless drives is that they offer users flexibility in terms of installation if professionals or consumers have a small office or limited space at home."

Availability and Warranty
These wireless NAS drives and Media Players will be available from end of January through the network of Plextor dealers. They are covered by Plextor’s Fast Warranty Service (2-year warranty in the EU, Norway and Switzerland (Collect & Return); 1 year in other countries).

www.plextor.com

Digital Atlantic Corporation has released CDRoller 8.0 for Windows 95/98/ME/NT4/2000/XP/2003/Vista, a powerful, easy-to-use and low-cost software for CD and DVD data recovery with support of Blu-ray discs (BD and HD-DVD).

CDRoller 8.0 recovers the lost data from a new optical storage media: Blu-ray discs (BD and HD DVD). New optical media formats are supported by all program features. A fault-tolerant UDF Reader provides a direct access to the discs with UDF file systems and also finds the lost data: accidentally deleted files, files located in the corrupted folders, files on incorrectly closed or quick-formatted discs.

CDRoller 8.0 retrieves the lost video from not properly finalized discs, created by DVD camcorders: Hitachi, Sony, Panasonic, Canon, Samsung and other DVD cameras for home use. When you cannot play the recorded video due to a failure of camcorder or bad quality of DVD media, or disc finalization was accidently interrupted. A built-in "Burn" option allows you to make a new disc with recovered video that can be played back in most DVD players.

CDRoller 8.0 expands a list of supported file systems and provides access to the data recorded on BD-RE or DVD-RAM discs with FAT 32 file system, including a search of accidentally deleted files.

CDRoller 8.0 offers an improved data recovery on the discs created by AVCHD camcorders with quick identification of M2TS video files.

CDRoller 8.0 is available for Windows 95/98/ME/NT4/2000/XP/2003/Vista. It requires a Pentium or compatible CPU, 12 megabytes of HDD space and a CD, DVD or Blu-ray drive.

CDRoller 8.0 costs $39.00(US) for a single-user license. Business and multi-user licenses are available. You can download a free trial (demo) version of CDRoller on the web at http://www.cdroller.com.

The music industry has transformed its business models, offering consumers an increasing range of new services with leading technology partners. Yet generating value in an environment where 95 per cent of music downloads are illegal and unpaid for is still the biggest challenge for music companies and their commercial partners.

The digital music business internationally saw a sixth year of expansion in 2008, growing by an estimated 25 per cent to US$3.7 billion in trade value. Digital platforms now account for around 20 per cent of recorded music sales, up from 15 per cent in 2007. Recorded music is at the forefront of the online and mobile revolution, generating more revenue in percentage terms through digital platforms than the newspaper (4%), magazine (1%) and film industries (4%) combined.

At the same time, a new generation of music subscription services, social networking sites and new licensing channels is emerging. These were led in 2008 by services like Nokia Comes With Music, MySpace Music and a raft of partnerships with Internet Service Providers (ISPs), such as TDC in Denmark, Neuf Cegetel in France, TeliaSonera in Sweden and BSkyB in the UK.

Despite these developments, the music sector is still overshadowed by the huge amount of unlicensed music distributed online. Collating separate studies in 16 countries over a three-year period, IFPI estimates over 40 billion files were illegally file-shared in 2008, giving a piracy rate of around 95 per cent.

IFPI's Digital Music Report 2009, published today, gives a comprehensive overview of trends in the music business internationally. It shows an industry that has shifted its approach from one based only on unit sales of music to "monetising" access to music across a multitude of channels and platforms.

Single track downloads, up 24 per cent in 2008 to 1.4 billion units globally, continue to drive the online market, but digital albums are also growing healthily (up 36%). The top-selling digital single of 2008 was Lil Wayne's Lollipop with sales of 9.1 million units - 1.8 million more than the 2007 best selling digital single.

The Report also shows how the digital age is expanding the role of music companies in developing and marketing artists and it outlines the progress being made internationally in getting ISPs to cooperate to curb mass-scale copyright infringement on their networks.

John Kennedy, chairman and chief executive of IFPI, says: "The recorded music industry is reinventing itself and its business models. Music companies have changed their whole approach to doing business, reshaped their operations and responded to the dramatic transformation in the way music is distributed and consumed.

"There is a momentous debate going on about the environment on which our business, and all the people working in it, depends. Governments are beginning to accept that, in the debate over "free content" and engaging ISPs in protecting intellectual property rights, doing nothing is not an option if there is to be a future for commercial digital content."

New business models
New "music access" services, such as Nokia's Comes With Music phone, Sony Ericsson's PlayNow plus and Danish ISP TDC's new music service PLAY, emerged in 2008. TDC reports that "churn", the rate at which customers switch to a competitor, dropped significantly since bundling music with its mobile and broadband services.

Partnerships with broadband providers are likely to become more important in the future. TeliaSonera has launched a bundled music service in six countries; Neuf Cegetel runs a similar service in France and BSkyB has announced plans to launch a bundled broadband and music offering in the UK and Ireland.

Advertising-supported services that are free to consumers are also opening up. One of the highest-profile moves in this area was the launch of MySpace Music in the US in September 2008. Several leading music companies have also signed licensing agreements with YouTube, the global market leader in video streaming.

A-la-carte music downloads continue to grow, with AmazonMP3 joining the European market, broadening consumer choice. An increasing number of stores are licensed to sell DRM-free music tracks. In January 2009, iTunes, the leading download store, announced it was making eight million DRM-free tracks available at flexible pricing points.

Music companies are also increasingly licensing music to third parties. One notable success is the games sector, where music games were responsible for 15 per cent of overall game sales in the US in the first half of 2008 (NPD Group). Guitar Hero and its sequels have sold more than 23 million copies in three years, generating more than US$1 billion in North America alone (PWC).

Tackling the problem of digital commerce in the era of "free"
Despite these changes, the Report highlights the critical problem of online piracy, and in particular the impact it is having on the local music sector in markets such as France and Spain. In France in the first half of 2008, album releases by new artists fell by 16 per cent and local repertoire accounted for 10 per cent of albums, compared to 15 per cent in the first half of 2005. In Spain, just one new local artist featured in the Top 50 albums from January to November 2008 - compared to 10 in 2003.

Progress on ISP cooperation
Cooperation from Internet Service Providers holds the key to this problem - something that is increasingly accepted by governments internationally. In 2008 a tipping point was reached, with governments in France and the UK leading the way in looking to ISPs to help bring piracy on their networks under control. In France a draft Creation and Internet Law sets up a system of "graduated response" by which ISPs will write to persistent copyright abusers to educate and warn them about their actions, as a last resort sanctioning them with loss of internet access for between one and 12 months.

Research suggests the graduated response scheme will be effective. Seven in ten (72%) of UK music consumers would stop illegally downloading if told to do so by their ISP (Entertainment Media Research, 2008). Seven in ten (74%) French consumers agree internet account disconnection is a better approach than fines and criminal sanctions (IPSOS, May 2008)

In July 2008 the UK government brokered a joint 'Memorandum of Understanding' between the recording and film industries and the six largest ISPs, binding the parties to work to achieve a significant reduction in unauthorised file-sharing. At the same time, the government initiated a consultation on legislative options to deal with internet piracy.

The momentum for ISP cooperation extends beyond France and the UK. New Zealand will start requiring ISPs to implement a policy of terminating the accounts of repeat infringers in February. Governments are also involved in discussions of the issue in the US, Italy, Australia, Japan, Hong Kong and South Korea.

Iomega, an EMC company (NYSE: EMC) and a global leader in data protection, today announced the debut of the Iomega® Home Media Network Hard Drive, a new standard in easy-to-use network storage for the digital home. With EMC's acclaimed LifeLine™ software, in three simple steps users can configure up to one terabyte* of network storage for backing up all of their files as well as streaming music, photos, video and other multimedia files between computers, networked televisions, popular game consoles and other under-utilized digital home entertainment devices.

Iomega will be showing the new Home Media Network Hard Drive at the MacWorld tradeshow in San Francisco, January 6-9, 2009, and at the Consumer Electronics Show (CES) in Las Vegas, January 8-11, 2009.

Starting at just $159.99, the Home Media Network Hard Drive is available as a 500GB or a 1TB single-drive device. Consumers with multiple computers can use the Home Media Network Hard Drive to centralize their computer storage as well as access files on everything from a laptop to a big screen TV to a Microsoft Xbox 360 or a Sony PlayStation 3. Sharing and streaming multimedia files to a home entertainment system creates lots of enjoyment for the whole family, and the 1TB Home Media Network Hard Drive can store plenty of entertainment - more than 4 million photos, 18,500 hours of music, or 1500 hours of video.**

"Iomega's new Home Media Network Hard Drive is a powerful network storage device that's so straightforward that even a novice can be backing up multiple computers and streaming media around their home in less than five minutes," said Jonathan Huberman, president of Iomega and the Consumer and Small Business Products Division of EMC. "The Home Media Network Drive does the serious work of backing up and protecting digital files, but it also does the fun things like streaming photos and videos to game consoles, digital picture frames and networked TVs, as well as automatically feeding music into iTunes® for easy playback - all for little more than the cost of a USB direct-attached desktop hard drive with comparable storage capacity."

Key Features of the Home Media Network Hard Drive
The new Iomega Home Media Network Hard Drive operates EMC's LifeLine™ Home software, a custom Linux operating system and application suite that can be set up in three easy steps: simply plug the Home Network Hard Drive into a router, power on, and install the software CD. A friendly user interface screen makes it easy to access files on all networked computers, as well as control which family members have access to certain folders.

Iomega Home Media Network Hard DriveThe Home Media Network Hard Drive supports iTunes™ and Universal Plug and Play (UPnP) and Digital Living Network Alliance™ (DLNA) certified devices, which makes the Home Media Network Drive a robust media server that can save, store and stream digital content not only to laptops and desktop computers but popular game consoles like the Xbox 360 and the PlayStation 3, as well as digital picture frames, networked TVs and any other compatible device on a home network.

Fast network performance is achieved through a Gigabit Ethernet connection that plugs directly into a router. The Home Media Network Hard Drive also boasts a fast processor so users can save and access large media files quickly, as well as a USB port to add a shared network printer for multiple computers, or an external USB drive for incremental storage capacity.

The Home Media Network Hard Drive is specifically designed to operate cool, thanks to an efficient fan that also adjusts its rotational speed automatically for quiet operation. The drive has a burnished gun metal exterior and a small footprint, making it aesthetically pleasing out in the open, yet small enough to be easily stowed away. Because the Home Media Network Drive is always turned on to serve up content, the product's power supply is Energy Star® compliant for power conservation and a better environment.

Backup Software and Online Storage, Too
The Home Media Network Hard Drive is a total network storage solution that provides data backup and protection with integrated award-winning EMC Retrospect® Express backup software. During the set-up process, users choose files and folders for scheduled automatic backups from all the PCs and Macs on the network. After that, any changes or additions are updated and saved automatically.

For added protection, home networks utilizing the Home Media Network Hard Drive also get the benefits of online backup with EMC's MozyHome™ online backup service, a secure way to store, protect and access important files. MozyHome online backup service provides 2GB of free online storage for backing up selected folders to world-class EMC data centers. Users can also upgrade to unlimited online storage for just $4.95 per month.

Compatibility
The Iomega Home Media Network Hard Drive is compatible with Windows®, Mac OS®, and Linux® PCs. The user-friendly interface is localized in 11 languages (English, Spanish, Portuguese, French, Italian, Japanese, Korean, Traditional and Simple Chinese, German, and Russian). Other supported devices include uPnP AV devices, digital media adapters, iTunes™, and digital picture frames.
Price and Availability

The Iomega® Home Media Network Hard Drive 500GB will be available worldwide in early January for $159.99; the Iomega® Home Media Network Hard Drive 1TB will also be available in early January for $229.99. (All prices are U.S. suggested retail.)

www.iomega.com/ipartner