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  1. 1. ETO Technology News – March 2008 edition Last call for Mobx Sited alongside the World Telemedia Show at the Corinthia Grand Hotel Royal, Budapest, Hungary, Mobx will run from March the 31 st to April the 1st. Replacing the AOExpo, the adult- bias mobile event will feature a mixture of networking, workshops and conferences. More details can be found at mobxpo.com or contact norman@aoexpo.com / 08707 327 327. Fun in the Sun with Eurowebtainment 8th to the 11th of May are the dates for this year’s Eurowebtainment event in Mallorca- or Majorca as we say in Britain. Pitched as a show for Adult Internet, Telecommunications and Web/Satellite TV in Europe, the venue is Hotel Playa Golf in Playa de Palma. With networking, parties and the promise of ‘Biz and Fun in the Sun’, it must be getting something right as this is their 13th event. Further reading at eurowebtainmet.com, or call the organisers in Liechtenstein on 00423 232 6846. And the Winner is… It was announced on the 19th of February that Toshiba, the last major force behind HD-DVD, would cease developing, manufacturing and marketing the format, effectively ending the Hi- Def disc format war. Following January’s news of Warner Brothers switching allegiance to Blu-ray, Toshiba will stop supplying HD-DVD players and recorders into retail by the end of March and also intends to end production of drives for PCs, Laptops and games machines in the same period. However, Toshiba will continue to provide technical support and after-sales service for owners of their HD-DVD products. President and CEO of Toshiba, Atsutoshi Nishida said, “We carefully assessed the long-term impact of continuing the so-called ‘next-generation format war’ and concluded that a swift decision will best help the market develop.” Nishida continued, “While we are disappointed for the company and more importantly, for the consumer, the real mass market opportunity for high definition content remains untapped and Toshiba is both able and determined to use our talent, technology and intellectual property to make digital convergence a reality." Despite talk of porn studios allegiances playing a major role as they did in the VHS vs. Betamax tussle, it appears it was Sony’s Playstation3 that settled this fight. With one million units of the Blu-ray-playing games console sold in the UK alone since its March 23rd 2007 launch here, the installed user base massively outstripped that of HD-DVD. Sales of films on both formats reflected this, and you can expect to see adult studios rapidly realigning themselves full behind Blu-ray. From a technical standpoint it was the format with the higher storage capacity, and from a porn position, it’s the format with the better name for puns. Porn has a conscience Steven Hirsh, co-founder and co-chairman of Vivid Entertainment has called on Google and Yahoo to, “Erect stronger barriers” to keep children away from porn. He did this at an address to Yale University’s graduate business students last month, during their well publicised ‘Sex Week’. In a Vivid press release Hirsh said, “Responsible companies in the adult industry such as ours have done a great deal to deter minors from accessing adult material. None of the search engines and portals, but particularly Yahoo and Google, has taken any significant steps in this direction.” He continued, "Vivid will work with any company that is ready to make it much more difficult for children to be exposed, even inadvertently, to material intended only for adults. This is not about First Amendment rights, it is about protecting children." Hirsh points his finger at the likes of Google and Yahoo! For doing little to promote their anti- porn filters and age-verification systems. Given the recent re-failure of the easy-to-filter-out .XXX extension to be approved by ICANN, it could be argued the people who control the traffic flow on the Internet are doing little to protect its most vulnerable users. Woodman Entertainment join GDB’s IPTV network
  2. 2. Launched as a ‘top twenty’ offering on Global Digital Broadcast’s IPTV service, Woodman Entertainment (makers of Xcalibur) aim to deliver uncompromising, high-class hardcore from their back catalogue as well as new material. The ‘Woodman’ branded channel will, in addition to Pierre Woodman’s own work, offer the full range of Woodman Entertainment content such as the Anal Gate line from David Perry, and Philippe Soine’s Games of Perversion series as well as Woodman Import's cherry-picked selection of the world’s greatest hardcore feature movies from both established industry directors and new names. The GDB platform will make Barcelona-based Woodman Entertainment content available on television sets through Global Digital Broadcast’s PlayTV UK (adult zone) IP set-top box service, online at Woodman Entertainment’s own website and on the GoUK TV adult portal, plus on any other form of compatible media (such as a mobile telephone, or gaming console). Pierre Woodman, chairman of Woodman Entertainment since it was founded in 2006, said: "I am delighted to announce this partnership with Global Digital Broadcast. Distributing our content through their IPTV platform will enable us to reach their huge customer base and take our movies to an even wider audience. Now we have our DVD distribution network established, we are focusing on expanding digital distribution which we expect to contribute substantially to revenues by the end of 2008. We firmly believe in digital distribution and are pleased to be joining forces with one of the leading forces in global IPTV." Global Digital co-founder and director, Jim Deans, comments: “People now see that IPTV is the way forward and that is especially true of the adult industry. Traditional DVD production and distribution is, in fact, slowing down. I like to think of a company in the adult industry as a thoroughbred racehorse and if that racehorse has started to go lame, the more you ride it the worse it gets. You cannot sell it, because who wants a horse with a bad leg, so you keep riding it …until IPTV comes along with a new delivery method to distribute your content straight to the consumers home, in a fast and very cost effective way. Now your horse has bionic back legs and that puts it ahead in the race again.” Admoda Launches mobile advertising solution for Network Operators Admoda, a global mobile advertising network, announced in mid February the launch of a new solution to monetise Network Operator inventory. They now offer Network Operators a robust suite of unique features to fully monetise their entire inventory. Ads are highly targeted and can be delivered in a number of MMA recommended formats to suit the Operators particular requirements. There is also a solution, utilising Adultmoda, whereby carriers can monetise their 18+ inventory with ads which are only suitable for age verified 18+ users. Adultmoda can present a strong business case for this having already run a number of highly successful Age Verified on-deck campaigns, with repeat bookings from the advertisers in the region of 90%. Admoda say they already have advertisers lined up in numerous countries who want to run campaigns on Operator inventory and they can secure the highest rates. A MobVision spokesperson commented from Barcelona: "The response we have had this week has been nothing short of phenomenal. We have secured a huge number of key relationships to further our reach into new markets. The feedback we have had about our solution has been extremely positive from both advertisers and publishers. Judging by our signup numbers Publishers and Advertisers are moving to Admoda in droves. The Carriers have been extremely responsive to our new solution." Admoda can be reached on 08707 661 992 or via info@mobvision.com Hotbox make Live more lively. Presented as a live, interactive sex channel for multi-platform broadcast, Hotbox is pitching itself as ‘Reality TV for Generation XXX’. Bypassing traditional UK and US television
  3. 3. censorship with R18/XXX level content, online and wireless media is being targeted by the 9pm to 3am (UK time) Thursday to Sunday morning -with plans to extend to a 24/7 schedule- service. Broadcast from their new Bristol studio, Phil and Cathy Barry of Pumpkin Films are behind the channel, backed up by regular performer Laura Michaels and Tony Uttley, as floor manager. Hotbox stress all feeds are monitored to ensure content doesn’t exceed R18 levels and will comply with all UK/US record keeping requirements. When not live the channel will screen a programme of pre-recorded hardcore action, including ‘best of Hotbox’ material. Using phones to add an interactive element to their live transmissions, at least five female and two male performers are available for solo girl, girl/girl and boy/girl scenes to be played out in a set specifically designed for TV use- complete with three remote-controlled cameras and a roving one to catch close-up shots and off-set activity. Hotbox can provide a white label ‘hotboxlive’ stream (as seen on Strictly Broadband TV) to fit onto any platform on a revenue share basis, or outright purchase of the stream. More information can be found at bristolfilmstudios.com and there’s a sample stream at hotboxlive.tv. In related news: SexQube get a Hotbox SexQube.TV, the adult broadband TV and VOD service announced the first stage of their live, pay-per-view adult events with their first live hardcore channel. According to their press release, “Broadcasting from studios in the west of England, the Hot Box Live shows will be on-air between 21:00 and 03:00 GMT (16:00 and 22:00 EST) Thursday to Saturday. Featuring some of the best known adult stars from the UK and Europe, viewers will be able to interact, direct and chat with the stars as they perform live.” Pay-Per-View Tickets will retail at $9.99 for a full evening's viewing, meaning additional first year revenues are forecast in excess of $250,000 for the UK & Eire alone. Due for launch on SexQube.tv in late February, the shows are initially aimed at UK and European audiences and schedules will be expanded in future to accommodate a growing global audience. SexQue added the Hot Box Live shows are a perfect addition to their ever growing raft of services. Is that a .mobi in your pocket? Dublin based dotMobi, which was established by a consortium of technology industry giants, including Nokia, Microsoft, 3, Vodafone, the GSM Association, Orange, Hewlett-Packard, Samsung and Sun Microsystems, brought 14 adult and entertainment-related names to a US domain name auction on 20 February. With an estimated worth of US$3.3bn by 2011, the adult .mobi domain names were auctioned at the Moniker TRAFFIC event in the US and included naked.mobi, and the ‘highly anticipated’ porn.mobi, plus vegas.mobi. Others included broadway.mobi, cards.mobi, geneology.mobi, hollywood.mobi, lottery.mobi, tickets.mobi, banks.mobi, doctor.mobi, floods.mobi, property.mobi and score.mobi. Amy Mischler, VP of Identity and Brand Service at dotMobi said, “Given the intimate relationship people have with their mobile phones, this set of names promises to be a strong match with content that consumers are actively seeking. One proof point is that a recent study estimated the mobile adult content market will grow from US$1.4bn in 2006 to more than US$3.3bn by 2011. The mobile market that .Mobi helped build is now growing rapidly.” When dotMobi last auctioned domain names at the Moniker TRAFFIC event in 2006, it netted UK$300k on the sale of just two domain names. Flowers.mobi sold for $200k and fun.mobi for $100k. Since its creation in October 2006, .Mobi has registered over 700,000 mobile domain names. Following their previous auction, Trey Harvin, CEO of dotMobi, said: "Already, more than 7.5 million pages of .mobi content have been created, many of them using tools that dotMobi
  4. 4. makes available for free like http://ready.mobi and http://site.mobi. The auction proceeds allow dotMobi to make tools like these available to encourage the growth of the mobile web." At the time of writing no sale prices for naked.mobi or porn.mobi were available. FreePorn has a price. Announced in February, Moniker(.com), a provider of Domain Asset Management services, successfully brokered the sale of FreePorn. com, an adult entertainment portal, for US $4 million. Separately, Moniker also finalised its domain name auctions at Internext Las Vegas, grossing more than $1.5 million from 60+ adult domain name sales from that event. The sale of FreePorn. com marks one of the largest two-word domain name sales in history and is the largest domain transaction of 2008, to date. The site was launched in 1996 and has consistently been one of the largest portals of free, adult entertainment on the Web. The site has continually gown in page and traffic rank according to Alexa. Monte Cahn, co-founder and President of Moniker, said, "A marketable domain name is crucial to the success of any online adult entertainment business, perhaps more so than in any other industry. FreePorn. com is generic in nature, helping its new owner benefit from direct navigation and general in- bound inquires directed at the site daily." Moniker was responsible for selling more than $20 million in adult-related domains in 2007, including names sold at separate Internext auctions in Las Vegas and Miami last year. Moniker remains the only Domain Asset Management company and auctioneer for various niche markets including adult, gaming/gambling, affiliate, webmasters, geo-targeted, and more. Cherrysauce get cherry on top Mobile adult innovators, Cherrysauce, have been selected as this year's top award winner in the mobile adult category at this year's Future Mobile Awards, presented by Juniper Research. The Future Mobile Awards are given to companies that have made significant progress within their particular sector during the previous year, and who are now poised to make a considerable market impact in the year ahead. This gold award recognises Cherrysauce for making an outstanding contribution to the future of the mobile adult industry. "Cherrysauce are very honoured and grateful for this recognition from respected industry peers. The key here is in the detail. Being able to maintain a presence in wholesale B2B distribution of erotic mobile content, whilst simultaneously winning the hearts and minds of mobile consumers means Cherry Media are well poised to continue making a massive impact with mobile operators and its D2C offerings over the next 12 months," says Cherry Media's Julia Dimambro; who was also recently voted as one of the mobile industry's top 50 most influential players. Dr Windsor Holden, panel judge and Principal Analyst at Juniper Research said, "Cherrysauce has continued to demonstrate it's pre-eminence within the mobile adult sector, delivering high quality D2C and B2B services and products and maintaining high subscriber conversion rates. The company's video chat services, implemented in association with CC Media, have been particularly successful, generating high monthly spend and exhibiting strong customer retention levels." The awards were granted by a panel of expert judges based on a number of criteria, including: Innovation; Customer retention; Customer growth; Commercial deployment; Ease of use/user interface; Revenue generation; Pricing (for services/products); and Capability/functionality. From a short list of nominations, the case was made for each nominee, with their relative merits and shortcomings debated and scored. Gold and Silver
  5. 5. awards were conferred for each category. The silver award winner for the mobile adult category was Phonebox Entertainment. Unused stories from last month below; may need editing! HD-DVD vs Blu-ray. An end in sight? Mainstream studios seem to be moving towards Blu-ray as the next-gen format war warms up. Warner recently announced it would be releasing films in just that format in future, because the war was hurting both standard DVD sales and both HD varieties. Warner Home Entertainment President Kevin Tsujihara said it was ‘somewhat troubling’ that consumer confusion was starting to have an impact on regular DVD Sales. "Consumers were saying 'Hey, I might was well wait.'" Blu-ray hardware sales in Q4 of 2007 were accelerating, especially in December, despite the price premium. Regarding the transition to Blu-ray exclusivity in May ‘08, Warner hasn't set a firm gap between the standard DVD and Blu-ray releases. They're also not sure if they're going to keep producing existing HD-DVD titles - it will depend on retailer demand. Backing up the trend, Digital Playground is expected to release its first Blu-ray movie, Pirates, shortly. Their decision is interesting because company founder Joone criticised Blu-ray early in 2007, claiming its backers including Sony were deliberately hindering the adult industry's effort to release films on the format. At the time, Joone said Digital Playground in keeping with other adult studios, would probably adopt rival high-def format HD-DVD instead. He also cited the lower unit cost of releasing films on HD-DVD. Joone now believes the two million PlayStation 3 owners in the USA have been demanding that the studio release movies on Blu-ray. “A lot of people were emailing that [they’d] bought a PlayStation and they were basically saying, ‘When are you guys going to release Blu-ray?’ They really have no preference in format yet because it’s so now. When it comes down to image quality, there is no difference between the two." He added that Digital Playground has already released several films on HD-DVD and has an 80% share in the adult high-def porn market. It’s expected that the studio will continue to release movies on both formats until there’s an obvious victor. Vivid Entertainment squeeze PornoTube Vivid Entertainment Group is suing PornoTube.com for copyright infringement, unfair business practices and misappropriation. The suit claims Vivid movies and clips are posted on PornoTube without permission, compensation or compliance with 2257 age verification regulation. They’re targeting Adult Entertainment Broadcast Network (AEBN) and related companies for unlawfully posting or allowing third parties to upload copyrighted Vivid content on its PornoTube.com website and for failure to comply with certain provisions of the federal Child Protection and Obscenity Enforcement Act requiring proof of age of performers. The suit filed in the U.S. District Court for the Central District of California names Data Conversions, Inc., which does business as AEBN and PornoTube.com, and also WMM LLC, which also owns and/or operates PornoTube. AEBN is a Charlotte-based company that claims to be the ‘global leader in adult pay-per-view video.’ PornoTube is a free website featuring a variety of sexually explicit material. Vivid say that PornoTube’s infringement causes ‘great and irreparable injury that cannot fully be compensated or measured in money,’ and noted that the law provides for damages up to $150,000 for each wilfully infringed work. The suit asks for a permanent injunction to bar future infringement and damages of at least $4.5 million. In addition to its copyright infringement claims, Vivid also requests damages for wilful and fraudulent ‘misappropriation
  6. 6. of the actors’ right of publicity’ under California law, as well as for unfair business practices for unauthorised copying, reproducing, distributing and selling Vivid content. A novel aspect of the suit is Vivid’s contention that by displaying clips of its films on PornoTube the defendants violate California law and engage in unfair business practices by failing to follow labelling requirements under the so-called 2257 provisions of the Child Protection and Obscenity Enforcement Act that require verification that all performers are over 18 years old. “PornoTube and AEBN have exactly the same responsibility as any other adult content distributor or producer to obey U.S. copyright laws and 2257 regulations” said Steve Hirsch, co-chairman of Vivid Entertainment. “Vivid spends enormous sums to copyright its content and to comply with the Child Protection and Obscenity Enforcement Act age verification process. PornoTube and AEBN have been getting away with a practice that unlawfully earns it millions of dollars at our expense.” “This action against PornoTube is groundbreaking,” said Vivid’s attorney Paul Cambria. “AEBN and PornoTube are not exempt from their responsibility to comply with 2257 rules, and we will demonstrate in court that they are obtaining an unfair business advantage by violating this obligation. Vivid should not have to take responsibility for policing PornoTube on a minute by minute basis to protect its rights.” Mr. Cambria added, “Vivid has already found dozens of violations of its copyrights, and AEBN needs to know that it cannot continue pilfering Vivid’s products no matter how they might reformat or reshape it. Once they put up any material on their site and fit it into their format, they are no longer just a ‘pass through’ medium—they have become producers or distributors under the law.” The copyright portion of the suit is similar to a $1billion suit filed last March by Viacom against YouTube. Viacom, the owner of MTV and Nickelodeon, accused YouTube of ‘massive intentional copyright infringement’ by allowing 160,000 unauthorised Viacom clips to be uploaded onto YouTube. The case is currently being adjudicated in the U.S. District Court for the Southern District of New York. More from GDB: Hot Scandinavian producer jumps onboard. In another addition to Global Digital Broadcast’s growing IPTV network, Lizeth Strange, a big name in Scandinavian porn, is to launch the Scandinavian Adult Channel. The female porn producer’s company, Belais-Production, was nominated for ’Best Film’ with ’Danish Deluxe Hardcore’ at the 2007 Scandinavian Adult Awards. They own, sell and buy exclusive content from adult companies in the Scandinavia territory, much of which has never before been available outside of Scandinavia. Lizeth said of the deal with GDB, ”The idea is to get Scandinavian porn out to a larger audience and I believe that IPTV is not only the best way to do this, but that it is also the future of broadcast. With Belais I strived to create a new way of thinking, in that I make movies for couples, from a female point of view. This does not mean the films will be soft and are, in fact, far from it, but as a female we see things in different ways and my films are intended to open men’s eyes to this. Scandinavian Adult is both a way of showing my own work and that of others in my territory.” Lizeth is working closely with Scandinavia’s biggest adult companies, Maxs Film and Bestseller (Sweden), and the IPTV channel will showcase latest releases, unseen and popular archive footage and content from independent Scandinavian labels. Private launch Private.Mobi to fanfare. PMG and Mobile Streams released the state-of-the-art off-portal site, www.private.mobi, in early January. It’s intended to be the first stage in the development of their strategic global partnership. The site features Private’s top stars, wallpapers, photosets and short videos, with content sorted into categories such as teen, cum shots, MILF and anal.
  7. 7. Private.mobi exclusively focuses on the rapidly growing off portal, D2C mobile content market. It uses Mobile Streams’ Vuesia solution, which includes advanced strategic integration with major search engines such as Google, Yahoo and Microsoft, and the search results offer a uniquely tailored ‘one-click-to-the-correct-content’ response for the user. The site will be aggressively marketed both on and offline. This includes the vast array of media platforms that Private is distributed on such as internet, broadcasting channels, DVDs and magazines. Peter Cohen, COO of Private Media Group commented, “Private is the most distributed global adult brand in the mobile business. We are currently available ‘on-portal’ on over 800 million handsets in 35 countries via 83 operators and we are very focused on maximising our mobile content distribution as ‘off-portal’ content delivery is projected to exponentially grow in the next few years. With this new delivery method we are anticipating significant incremental growth in contribution to operating profit from our mobile division.” "The direct to consumer channel is growing strongly", stated Simon Buckingham, CEO of Mobile Streams. "Private owns the largest high quality adult content library in the world. As users search more widely for content that fits their individual interests, Private's brand quality and depth of product offerings utilising Mobile Streams technology platform will present them with an exciting and fulfilling mobile internet experience." SexQube.TV Launch affiliate programme SexQube.TV, the world’s first free-to-air, fully interactive adult broadband TV and pay-per- view video on demand service has this week launched the first of its affiliate schemes. Developed in house as part of Petel’s broadband TV broadcast platform, the affiliate programme offers both online and offline partners such as web site owners, publishers etc. the opportunity to monetise traffic through the sale of SexQube.TV’s Video-On-Demand movies. Affiliate partners who join the scheme before February 29 th will be offered an “early adopter” affiliate bonus taking the usual affiliate commission rate from 30% to 40% of net revenue on Video-On-Demand sales of £4.99 ($9.90) each, for the first six months. “Affiliate marketing is a key ingredient in the marketing mix of not only SexQube.TV, but all channels that we launch on Petel’s broadband TV platform”, says Petel Inc. CEO, David Morton. “Early indications suggest that our key partners will add several thousand Video-On- Demand sales per month in the UK alone.” Any media or website owner wishing to participate in SexQube.TV’s new affiliate programme should contact affiliates@sexqube.tv or call +44 (0)20 3239 9140.

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