Saturday, 29 August 2015

US Equity and Economic Review For August 24-28

     The strongest news of the week was the upward revision of 2Q GDP from 2.3% to 3.7% (Q/Q).  All sectors contributed.  Personal consumption expenditures increased 3.1% with contributions from durable goods purchases (+8.2%) and non-durable goods (+4.1%).  Residential construction increased 7.8% while non-residential was up 3.1%.  Equipment was down .4%, but this can be attributed to oil sector’s weakness.  Finally, exports increased 5.2%.  Overall, this report was very encouraging, especially considering 1Q weakness.



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Universal: Smart Pirate Site Owners Get Round Restrictions

per-sundinFor many years Sweden was one of the most prominent battlegrounds in the global file-sharing wars, playing host to dozens of unlicensed sites including the notorious Pirate Bay. As a result, Universal Music Sweden MD Per Sundin knows a thing or two about piracy.

A key figure in the now-famous prosecution of The Pirate Bay, Sundin was one of the site’s harshest critics and one of many desperate to bring both the platform and its operators to their knees.

But despite a herculean effort from Sundin and others, The Pirate Bay not only lived through a trial and subsequent appeals, it outlived even its own founders who each served prison sentences for their crimes. Today the site may not quite hold the status it once did, but it’s certainly a major player in the file-sharing ecosystem.

If Sundin remains bothered by the Pirate Bay’s resilience he isn’t letting it show, but it’s clear that he’s picked up plenty of experience along the way. In an interview with MBW, Sundin suggests that no matter what obstacles are put in file-sharing’s way, pirates will always adapt.

“We will see piracy in the future,” Sundin says.

“The pirate site owners will get smarter and find ways around [restrictions]. If we close down one, another will pop up. That’s a fact of life.”

This admission from Sundin is not the usual thing one hears from high-powered music executives, especially those so close to the powerful anti-piracy forces of IFPI. However, Sundin is part of a revitalized local music market that projects Sweden’s success story onto the world stage, despite massive historical piracy.

According to figures from IFPI, the Swedish music revenues bounced from a low of US$144.8 million in 2008 to US$194.2 million in 2013. During the same period, digital music revenues increased from just 8% to a huge 70%, with subscription services accounting for 94% of the digital market.

“[In] 2009, we had The Pirate Bay trial and verdict; we had the [anti-piracy] enforcement directive implemented; and we had Spotify, which launched in October 2008. It was the perfect storm,” Sundin explains.

“Thanks to that – especially Spotify, I would say – we were taken out of the dark times. We went from bad boys to something much better.”

Despite Sundin’s comments concerning the difficulty of permanently blocking or shutting down sites, he remains optimistic about confronting piracy. However, rather than relying entirely on the stick, the industry veteran now openly acknowledges that beating the pirates at their own game is a better option.

“We have to help legal services, Spotify and others, be better,” Sundin says.

Interestingly – and this has been a talking point in recent weeks – Sundin also expresses concern surrounding the prevalence of ‘exclusives’ on legitimate services, such as those recently negotiated with Apple by Black Eyed Peas and Dr Dre.

“I think the exclusivity thing is dangerous – that’s my personal opinion. Hopefully we won’t see it so much,” Sundin says.

The Universal man’s thoughts are shared by Mark Dennis, Managing Director of Sony Music Sweden.

“We have to learn from what’s happened in the past: when people haven’t been able to consume music in the way they want, they turn to piracy. We’re just not learning!”

If piracy is to be kept under control long-term then such lessons will have to be learned, but whether the message will take a long or short time to sink in is another matter. History suggests later rather than sooner, but attitudes are changing.

Nevertheless, with appetites whetted, millions of people are now eagerly anticipating tomorrow’s super-advanced version of Spotify and other services that simply haven’t been envisioned yet. But whatever arrives, innovation is definitely the key, and one gets the impression that the Swedes really get that.

Source: TorrentFreak, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Weekly Indicators: no significant changes edition

In the deep rear view mirror, Q2 GDP was revised sharply higher. Corporate profits set a new record.

 
With one exception, monthly data for July was all positive, including new home sales, house prices, durable goods, and both personal income and spending. Conference Board consumer confidence was positive, while University of Michigan consumer sentiment was negative.

 



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International Economic Week in Review For Aug. 24-28

Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer      



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Popcorn Time Blames Hollywood For Its Popularity

popcorntLast week several users of Popcorn Time were sued in the United States and this week a Norwegian anti-piracy group threatened to go after tens of thousands of local users.

It’s clear that copyright holders aren’t happy with the app, which allows people to stream pirated movies. However, according to the software’s developers Hollywood is to blame for its overwhelming success.

In a statement sent to TF the team behind the popular Popcorn Time .io fork say that film and TV-studios should compete with their app. That is, make a globally available streaming service where all the latest blockbusters and series are available.

“People are ready to pay a fee, but a lot of them currently refuse to pay for a petty catalog with country-specific restrictions,” the Popcorn Time team notes.

“The price can also be a hurdle for some people: $20 a month is not the same in Uganda and the United States. But obviously, the most problematic issue is the complete lack of legal availability in some places.”

Hollywood is still holding on to limited releases and regional roadblocks. This is something Netflix and other VOD providers are not happy with, and neither are consumers.

“Why would people in France wait two years to see a movie that’s already being broadcasted in the US, when they both are paying almost the same amount of money?”

According to Popcorn Time these artificial limitations drive people to break towards unofficial sources.

“The Internet has brought people closer, and they start to notice that some things aren’t acceptable. And then they turn to alternatives, even if it means diving into illegality.”

The developers themselves see the Popcorn Time software as a legitimate product but they realize that some users may be breaking the law. Ironically, the reason for breaking the law is so they can watch their favorite Hollywood entertainment.

Currently, this situation mostly benefits the popularity of Popcorn Time but with the right alternative for the right price, many won’t need to turn to piracy.

“Maybe it is time to consider the will of the people and offer them a legal, complete and useful service, no matter where they were born, instead of trying to punish people for… well, for wanting the see the content artists and industries are offering.

“Currently, piracy is fulfilling the demand of the people because the industry fails at the transition into the modern age. We think it’s as simple as that,” the Popcorn Time team concludes.

Source: TorrentFreak, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Friday, 28 August 2015

XE Market Analysis: Asia - Aug 28, 2015

The dollar was mostly higher versus major currencies in N.Y. trade on Friday, though generally, price action was much calmer than seen through the rest of the week, where volatility reigned. In-line income and consumption data helped the greenback marginally, and the unit drifted higher though the morning, before settling a bit lower into the London close. Later, the dollar rallied back after Fed VC Fischer said the case for a September rate hike was "pretty strong", though he did say it was too soon to say what would happen at the next FOMC meeting.



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First Netflix 4K Content Leaks to Torrent Sites

netflixuhdWhile many average consumers can’t even play 4K content on their TV or computer, true video geeks are looking forward to every new release.

Thus far the offerings have been limited to adult content and a handful of mainstream productions. However, with the adoption of a Blu-Ray standard for Ultra High Definition video more releases will follow soon.

4K streaming releases have been available for a while already, with Netflix and Amazon being the two key vendors. These online streams are well protected against pirates.

In fact, up until this week it was believed to be impossible to break the High-Bandwidth Digital Copy Protection (HDCP) version 2.2 or higher. However, this may no longer be the case as the first 4K Netflix leak just appeared online.

The leak in question is the first episode of Breaking Bad and was released by the reputable group “iON.” The 2160p video file takes up 17.73 GB of space, which is roughly 50 times that of a traditional standard definition equivalent.

The image below shows the file being listed at a popular private tracker with just over a dozen people sharing it.

Breaking.Bad.S01E01.Pilot.2160p.NF.WEBRip.DTS.x264-iON

bb4k

The media info for the release shows that the episode has a bit rate of 41.3 Mbps and overall the video specs make it hard to play the file smoothly on the average computer.

At the time of writing the 4K leak is only available on private torrent trackers but it’s expected to eventually leak to public sites as well. It’s currently unknown if the release group broke HDCP 2.2 or if they found another way to capture the stream.

Leaked drafts of the 4K copy protection agreement between Sony and Netflix reveals that the streams are generally well-protected. They also include a watermark so that leaks can be traced back to the source.

“The watermark must contain sufficient information such that forensic analysis of unauthorized recorded video clips of the output video shall uniquely determine the account to which the output video was delivered,” the document reads.

It’s unclear whether the watermarks were included and if they were removed from the Breaking Bad video, but release groups are generally well-equipped to remove these type of markers.

Netflix informs TF that they are looking into the reported leak and the company will do its best to prevent similar breaches in the future.

“Piracy is a global problem. We, like others content providers, are actively working on ways to protect content featured on our site,” a Netflix spokesperson told us.

While 4K content is not going to be shared by the majority of online pirates, the first 4K leak from Netflix will certainly have Hollywood and the streaming service worried. Whether they can stop it has yet to be seen though.

Source: TorrentFreak, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.