Archive: piracy

Copyshite

A series of posts

  1. Copyshite
  2. The entertainment industry’s wrong turns
  3. The future of music: gigs and t-shirts
  4. The future of music: pretty boxes

Apologies for taking so long to get round to writing this post. That pesky life business getting in the way as usual.

In the previous posts in this series I have been waxing lyrical about copyright law and the mistakes the entertainment industry has made in adapting to a world with the internet. Over the past couple of years, people in the music industry have — belatedly — begun to tackle the issue properly.

Radiohead made big news last year with their latest album, In Rainbows. What hit the headlines was their novel pricing structure. You could choose the price you wanted to pay for it, between zero and £100.

This idea wasn’t all so novel though. Radiohead are by no means the first band to release their music for free, or to take the ‘honesty box’ approach to pricing. They certainly won’t be the last.

Prince did a similar thing this year as well when he gave away his latest album free with copies of the Mail on Sunday. This led to the odd sight of branches of HMV installing a dumpbin of the paper for one day only.

It’s worth thinking about exactly what Radiohead did by implementing a choose-your-own-price method. The record industry often likes to talk about how much it has “lost” as a result of piracy. But the numbers they use are misleading.

As Tim Worstall pointed out on his (now tabloid) blog many months ago, demand curves slope downwards. So the record industry don’t lose anything like as much as (number of illegal downloads) × (RRP of a CD) as a result of the download revolution.

The old model meant that people could basically either choose to buy a CD at its RRP or pass on it completely. So if you were only willing to pay £11.98 for a CD that was priced £11.99, you wouldn’t buy it. That is fine — that is how the market works.

But when filesharing became more common, people could choose to buy a CD at its RRP or download it for free. Those were the only options available. So if you were still willing to pay £11.98 for that CD, you would not pay £11.99 — you’d just download it for free. From £11.98 and lower, record companies were losing profits. They didn’t know how to deal with this, so used the ham-fisted techniques I described in the previous post instead of coming up with a new business model like they should have done.

The In Rainbows method tackled the problem head-on. Under Radiohead’s system, if you were willing to pay £11.98, you could choose to pay £11.98. What’s more, if people were willing to pay, say, £80 for the album, they could choose to pay that as well.

Chances are that most wouldn’t. You could legally download it for free, so lots of people will have done this without feeling any sense of guilt. Radiohead aren’t releasing any figures, so we can’t tell. But reading between the lines of the interviews Radiohead have given, they seem quite happy with how the experiment has worked out and most estimates suggest that Radiohead have made more money using the honesty box approach than they would have done with the old way — mostly because all of the middlemen have gone.

The middlemen are a big problem. They seem to be particularly so at EMI. Recently EMI was taken over by a private equity firm, Terra Firma. They appear to be particularly clueless. In the space of a few months they have managed to piss off three of the biggest acts on their roster — Radiohead, Paul McCartney and now Robbie Williams.

Here is some insight from Paul McCartney:

“I’d started saying to them: ‘Look, we could write a thing and have it released the next week.’ And they would say: ‘You can’t do that these days.’ So I would say: ‘Well, how much time do you need?’ And they’d say six months. I said: ‘Why do you need that long?’ And do you know what they said? ‘To figure out how to market it.’ I said: ‘Wait a minute, are you sure you need six months for that? Couldn’t some bright people do that in two days?’ Jesus Christ. I said: ‘Look boys, I’m sorry, I’m digging a new furrow.”

EMI seem to be making the mistake of treating artists like widgets. They have mistaken creativity for something that can be switched on and off like a tap.

And they seem to be amazingly inefficient. Fans know all-to-well about the six month gap between the announcement of a new album and its actual release date. It surely don’t have to be that way. Indeed, one of the most refreshing things about In Rainbows was that it was announced a mere ten days before its release.

So if the middlemen are no longer needed and are actively hurting the artists and the fans, does it mean labels are doomed?

Well, Radiohead took a risk, and it paid off. A lot of people say they were in a lucky position. And they were. Radiohead are the best band in the world and probably the most popular contemporary band. They were always going to do well regardless.

But what about the smaller bands? Surely the chances are that they won’t do as well as Radiohead by adopting such an honour system.

But honour systems work. Paul Feldman the bagel salesman knows that. LibraryThing has been using such a model for a while, and found that their takings increased once they adopted the system.

A lot of music fans are extremely loyal to their favourite bands. They are just the type of people who won’t take advantage of the fact that you can get music for free. They get such a warm glow from knowing that they are rewarding their idols.

Labels and bands may still be wary. If honour systems don’t convince, the common answer to the problem is to release music for free and use it as a way of generating publicity so that more money can be made from touring. Alan McGee, manager of The Charlatans, who are also now giving away their music for free, reckons that it could even triple the size of the crowds at gigs.

Merchandise is also becoming increasingly important. There is a theory that the reason concert promoters don’t charge the market value for gig tickets is because keeping the price low attracts a younger audience. These youngsters will go on to buy loads of t-shirts from the merchandise stall, so in the end everyone involved makes more money. Some bands are even stopping selling CDs at gigs for fear of cannibalising t-shirt sales.

So the future of music is gigs and t-shirts. This is great for my wallet. I rarely attend concerts, and I am more and more reluctant to buy t-shirts.

But I think the music industry could still potentially make lots of money from selling physical copies of the music. And my wallet won’t be so happy about that. That will be the subject of my next (and, at last, final) post in the series.

A couple of times in the past I have blogged about numbers stations, a slightly creepy phenomenon where coded messages are broadcast over shortwave radio frequencies.

But more recently I have become interested in a similar phenomenon which is almost the reverse of numbers stations. Whereas numbers stations are seemingly utilised by the state for spying activities, broadcast signal intrusion is usually the opposite — members of the public hijacking television and radio broadcasts.

Perhaps the most well known is a pirate who posed as Max Headroom, hijacking two broadcasts in Chicago in 1987. The perplexing thing about it is that the broadcast was so cryptic — if it had a meaning at all, that is — that most people just scratch their heads wondering about the imposter’s motive.

The first successful hijack was short lived. It interrupted the evening news bulletin on WGN. However, only the images came through, and no audio was broadcast. An engineer at the transmitter site was able to re-gain control within 30 seconds.

Reports say that the pirate attempted to hijack several other broadcasts in Chicago, but none of them were successful. But two hours later the imposter successfully interrupted an episode of Doctor Who that was being broadcast on WTTW. No engineer was present at the transmitter, so the pirate broadcast carried on until its end. It lasted only 90 seconds, but it could have been much longer.

If numbers stations didn’t send shivers up your spine, surely this would. Imagine sitting there watching television as normal, only to be faced with this creepy transmission.

The video fascinates me. First of all, as I have mentioned, the motives are unclear. There is a cryptic message about “the greatest world newspaper nerds”. WGN, the first station to be hijacked, stands for World’s Greatest Newspaper. This suggests that WGN was the real target, but with the attempt having misfired the imposter went on to find any old place to broadcast his odd — at points disturbing — message. Even if you reach the conclusion that the message was aimed at WGN, what that message actually was is a complete mystery.

Some speculate that whoever was behind the video was simply drunk or high. I doubt this is the case. The broadcast was clearly pre-meditated. It is obvious that the message was pre-recorded because it went out twice, and there are continuity errors when the shot changes towards the end of the broadcast.

There are also probably at least three people involved in the making of the broadcast. There are at least two actors, and two people would probably be required to rotate the sheet of corrugated metal that’s used as the backdrop (the rotation is not CGI or mechanical because it is inconsistent).

A lot of technical equipment may be involved as well. Immediately after the hijacking, authorities claimed that a transmitter powerful enough to hijack a television broadcast would cost as much as $600,000 to buy, or several thousand dollars to rent. However, it seems as though this was misinformation designed to dissuade copycats.

Nevertheless, it is clearly at least a semi-professional job. Even putting aside the equipment needed to overpower a television broadcast signal, the quality of the recording looks really good for 1987 standards and the distortion in the vocals suggests at least a modicum of expertise. It obviously wasn’t amateur stuff.

Yet, the message and motive is difficult to decipher. YouTube contains another video containing subtitles with a likely transcript of what the imposter dressed as Max Headroom was saying. If you’re interested enough, I’d also skim through the comments which have interesting additional suggestions. (The subtitles in the YouTube video are definitely wrong in parts.)

Over twenty years on, people are still unclear about the intentions behind the pirate broadcast. It was clearly designed to be ambiguous. But it clearly took considerable time and effort to pull it off. No-one has ever come forward to admit to the pirate broadcasts.

Perhaps the person did it just for fun — a precursor to the hacker culture that became more prevalent in the 1990s. Perhaps it was social commentary. After all, the original Max Headroom programmes were set in a future dystopia where the world was run by giant television corporations and freedom fighters utilised exactly this trick of interrupting regular broadcasts.

The theory I favour holds that the person was a former employee of WGN who had been fired — not by his boss, but by an underling (hence the line “be a man”). This was his form of revenge.

There is a brilliant article about the Max Headroom pirating incident at Damn Interesting.

The fake Max Headroom remains at large, but another (less sophisticated) hijack broadcaster was caught. This simple broadcast is less intriguing than the Max Headroom incident in terms of its message, but is interesting because it is a successful hijacking of a satellite transmission.

A person calling himself Captain Midnight hijacked an HBO broadcast with a simple caption complaining about the channel’s price. The caption also contained an ominous threat, seemingly implying that broadcasts on two other channels would also be hijacked.

It transpired that Captain Midnight was John MacDougall, a satellite television dealer who felt that HBO’s then new fangled subscription model was hurting his sales. He was caught when a member of the public overheard him bragging about it.

Less well-known, but perhaps the scariest hijack broadcast of them all, happened in the UK way back in 1977. This seems to be among the very first examples of hijacking a broadcast, and is perhaps the most impressive. Unlike the Max Headroom incident, the motive here was clear, the message was relatively unambiguous and the broadcast was a complete success.

During an ITN news bulletin broadcast on Southern Television, the audio started crackling and the newsreader’s voice was replaced by that of “Vrillon of the Ashtar Galactic Command”. The pictures of the news broadcast continued uninterrupted. But the sound of the news was replaced by an ‘alien’ warning of an imminent global disaster unless humans became peaceful and dismantled their weapons.

Here is a great video — the audio is genuine but the pictures are not. Carry on until the end to hear follow-up news reports on the incident.


Vrillon of the Ashtar Galactic Command Incident from Labyrinth13 on Vimeo.

An impressive feat. The audio is very crackly in moments, but this is a successful hijacking of a broadcast to disseminate a clear message. Like the Max Headroom incident, a lot of planning appeared to go into it, with a series of electronic effects designed to make it sound like an alien broadcast, and samples of Looney Tunes cartoons.

Once again, the imposters have never come forward. However, given the message that put out and the irreverent set-up, it seems likely that it was a group of students who had some technical know-how and access to decent equipment.

It was rather naughty though, and clearly very distressing for some viewers. I suppose I would be too. What I would do is switch the channel to make sure I wasn’t going mad or that aliens actually were talking to me. However, these imposters successfully hijacked five major terrestrial transmitters. This is concerning, because it means that these people could feasibly have hijacked every television channel in one area and then some.

These successful hijacks are really disturbing. Apparently it is easy to hijack an analogue television signal. The only reason we haven’t seen more of it is simply because people haven’t found out about it.

Although there are only a few well-known instances of broadcast intrusion in the western world, they are much more common in less free countries. Falun Gong use the technique in China. And according to Wikipedia they were a regular feature of television in the Soviet Union.

In the mid-1980s one of Poland’s leading astronomers, Jan Hanasz, managed to superimpose captions on top of state television broadcasts. Using basic equipment, he and three others managed to display the logo of the Solidarność labour movement and implored viewers to boycott elections. Some say this action was one of the first cracks in the Iron Curtain.

That is an example of using this technique for good. But imagine if there was a genuine major national emergency. Any rogue elements with enough know-how and resources could easily hijack the emergency transmissions to spread misinformation or generally wreak havoc and cause panic.

A part of me wonders if this is the real reason why governments around the world are in the process of switching off analogue transmissions and engaging in a digital switchover process. Digital broadcast signals are encrypted, making them much more difficult to hijack.

But pranksters are using different methods to hijack digital broadcasts. Some Czech artists are currently standing trial after they tampered with on-site camera equipment to make a computer-generated mushroom cloud appear in a panorama shot during a weather forecast.

As technology improves, more and more broadcasts will be automated. It will be a ripe environment for future pirates.

Cinema has had a good year. The Scotsman reports:

FUTURE-gazers claimed 20 years ago that it would be doomed by the arrival of the home video recorder.

And more recently they’ve been claiming that the internet is killing the entertainment industry. So how do they explain the following two paragraphs?

But figures released yesterday reveal that the cinema is set to enjoy a golden 2007 in the UK, with the largest number of visits to film theatres in 40 years.

The wettest summer on record and a slew of blockbuster sequels led to 50.8 million visits to UK cinemas between June and August.

This is despite the fact that people are supposedly killing cinema by downloading pirate films from the internet. This surely suggests that the entertainment industry has got it wrong when it points at the internet for its failings. This summer shows that the film industry should spend less time running scared of the internet, and more time simply giving people what they want.