Archive for the ‘Mobile’ Category

1.-Airbnb-Image-Coyrtesy-AmazonawsSXSW Inspiration – Airbnb: CEO Brian Chesky talking candidly about the challenges of growing and scaling a truly disruptive business model…

UnknownSXSW Inspiration – FourSquare: CEO Dennis Crowley on the challenges of growing the business and the opportunity to design the future of maps…

swissmissSXSW Inspiration – Swiss Miss: Designer Tina Roth Eisenberg on following your passions, and the 11 rules to live and work by…

ovee_logoSXSW Content – Social TV: how great technology and UX can engage audiences with online video as a social experience, using the case study of social video platform OVEE.

JerusalemSXSW Content – Exploring place in cross-platform storytelling: how technologies like geo-tagging, location-aware devices and augmented reality are combining with traditional storytelling…

BuzzFeed-logoSXSW Content – Viral content and social content advertising: BuzzFeed CEO Jonah Peretti on how to create and distribute viral content in a world where ‘share’ is the key to success…

ouya-logoSXSW Games – OUYA: Julie Uhrman, CEO of OUYA, discussing kickstarting an open gaming ecosystem  and bringing a software system to the television…

IAP4082SXSW Mobile – Africa’s $100bn mobile market: an overview of the scale and pace of change of all things mobile as the primary, scalable, transactional route to impact and change.

aetnaSXSW Health -Aetna: an overview of the Aetna healthcare ecosystem to illustrate the opportunities for mHealth startups and investment.

SXSW1Logo2This afternoon’s SXSW session saw game industry veteran Julie Uhrman, now founder and CEO of OUYA, discuss the future of an open gaming ecosystem. 

Aiming to “crack open the last closed gaming platform – the TV”, OUYA is a “beautiful affordable console built on Android”, developed via a $8.6m Kickstarter campaign. The OUYA is essentially taking the low-cost / high-performance aspect of mobile gaming and moving it into a TV-friendly space (watch a promo here).

But the ambition was never limited to hardware: “OUYA is a game ecosystem…we are basically bringing a software system to the television”. Uhrman has previously reported that even with the popularity of mobile gaming, TV gaming still wins over mobile. The average gamer spends 4 hours a week on consoles, versus 3 hours on mobile. For core gamers, it’s 7 hours a week on consoles, compared to 3.5 hours a week on mobile devices. Console gamers are also worth 6 times more than mobile gamers…

But how to drive users into this new ecosystem? By copying the Apple model and creating a closed loop ecosystem: inventive, proprietary, free-to-try gaming will drive the hardware purchase. Adoption of the app store model will also create lower barriers to entry for independent developers to sell on to the platform. “What we did is challenge the status quo…for less than the cost of two games on traditional hardware you are getting a system where the games will be free to play.” OUYA is “about enabling the creators” and already has 7,000 sign-ups to the Developers portal. Uhrman reported that mobile and triple-A game developers are being attracted back to creating for the “immersive, private and personal TV screen”. She also said that as a platform, OUYA will think differently about indicators of a good game, by prioritising “fun, engagement metrics” over traditional download metrics or user numbers. OUYA platform content will be curated by discoverability and community enjoyment, to drive the more traditional metrics of success.

Lastly, Uhrman reported that OUYA is talking to the content-giants Google, Netflix, Amazon and Hulu. OUYA “will have content beyond games”, signalling that the ambition for the hardware, beyond a game-specific console, is to capture the content ecosystem as a ‘set-top box’. Disruption runs deep for OUYA, with the hardware remaining a “hackable box”, albeit feeding into a proprietary ecosystem and platform.

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UnknownAt this morning’s SXSW session, FourSquare CEO Dennis Crowley discussed growing the company on data, maps and recommendations, and the future of location data as a utility…  

With DodgeBall (a location-based social network acquired by Google in 2005) Crowley came to understand the value of geo-located check-ins, and conceived FourSquare using game mechanics (badges, leader boards etc) to motivate users to check-in. In four years, FourSquare has attracted over 30m users, growing at 1.5m users per month, with more than 1m merchants on the platform, and 60% of users now non-US. The ‘place database’ has over 50m entries. Interestingly, giant tech companies – from Twitter’s Vine, to Path, to Facebook’s Instagram – see FourSquare as “neutral space” and deliver location services through FourSquare’s API. And this is becoming a closed loop, with user tagging of videos or photos on these platforms driving FourSquare’s location intelligence. Despite all this, FourSquare is just 160 people, shipping new or updated software products every few weeks.

Crowley commented that there is a lack of insight into the massive opportunity and future impact of FourSquare transitioning from “cute” points, badges and gamification to mining the 3 billion check-in data points created by their user base. The “small human actions” that fuelled Google’s growth was clicking of links, and Facebook was ‘likes’: FourSquare can now mine the aggregate value of their user’s small human actions – which now amount to billions of data points – to draw conclusions about community, location, consumerism and sophisticated recommendations. “People are out there crawling the real world the way Google spiders crawl the web”.

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What 500,000,000 FourSquare check-ins look like as data points on a map…

Crowley commented that the opportunity lies in “understanding the context of use”: phones passively track where the user is and then “perking up” when a user deviates from their usual routine or place to actively make suggestions and drive behaviours (FourSquare Radar). For merchants, FourSquare has enough data to begin joining-the-dots around community and user profiles to more actively grow local businesses. Crowley hinted that in the future, users may no longer have access to all deals, with the apps rewarding the best users (by frequency of interaction and possibly some socio-economuc measure of value as a customer) with varying value and quantity of offers.

foursquare-radarAsked about his mistakes, Crowley said one error was not putting search functionality front-and-centre sooner, as it drives people to think about the service as default local search. Talking about the future, Crowley echoed other keynote speakers from SXSW: don’t lose focus, just fix one thing well (“location is the thing that we do”), don’t get distracted by trying to do everything (e.g. the short-run “follow mode” that FourSquare tried, mimicking Twitter). In terms of future functionality, these will include: context data (queues, waiting times etc), including using data visualisation to “map the shape of places” based upon activity (e.g. roads); social-graphs and interest-graphs will have joint impact to construct dynamic recommendations; as above, increasing emphasis on passive geo-location (FourSquare Radar to “own the local discovery of places”) to drive active recommendations; and while they don’t have ambitions to be a transactional provider, Crowley believes FourSquare has a huge opportunity to make “point-of-sale transactions smarter”. Crowley is ultimately massively passionate about making it easier for people to consume data on what’s going on around them. “Local is going to be huge, maps need to be reinvented, FourSquare gets to invent the future of this stuff…”.

UnknownAt this morning’s SXSW session Airbnb’s CEO Brian Chesky talked candidly about the challenges of growing and scaling a disruptive business model.

Chesky began by charting the road to investment: from financing the startup on personal credit cards, to dabbling in breakfast cereal (Obama-O’s, making $30k to keep the company afloat), to securing investment. A year-and-a-half from launch, Airbnb had just 100 users. But Chesky talked passionately about the power of these early adaptors as champions for the business: “better to have 100 people love you, than a million people sort of like you”. Embracing this concept, the founding team went door-to-door in New York taking “professional” photographs, for free, to help early users better represent their homes.

He encouraged the SXSW audience to have a lot of ideas, and not worry too much if they seem like bad ideas. “Airbnb seemed like a crazy idea at first, as did the free photography, as did the $50k guarantee (that is now a $1m guarantee)”. Chesky commented that too many entrepreneurs prioritise ideas that will promote growth – to drive growth metrics and investment potential – rather than simply focussing on good ideas that people want. It’s simple: “make good product that people love”.

Chesky and his co-founders made early mistakes, including a short phase focussing on apartment groups (believing that this would allow them to scale faster) rather than individual homes. Having stayed in a bland apartment building in London, followed by an old Parisian home, he felt convinced that the key is to “always use your product”. So, in June 2010, Chesky moved out of his apartment and since then has largely only lived in Airbnb homes…

1.-Airbnb-Image-Coyrtesy-AmazonawsHaving built the company on personalised experiences, how do you scale? “Work out how to do something remarkable and then use technology to scale it”. Coming back to his central driver – make good product that people love – Chesky commented that the habits of the first 100 will be what the next 1,000,000 will look like. Get those first experiences right: tweeking it for 100 is simple; changing it for 1,000,000 will break the business. Like Steve Jobs, Chesky believes “design isn’t how something looks, it is how something works”. Design the end-to-end user experience in detail (Airbnb hired a feature film storyboard artist to capture the ideal user experience “frame by frame”) and then you can plot where the users’ journey deviates from this, and why. Create emotional attachments to experiences, as these are the ones that stick. Airbnb heavily prioritised growth from within their early community of users, prioritising cities which had global reach – such as New York and London – so that users would go home and spread the company message.

Talking about company culture: “I don’t want to do what will make me win, I want to do what I think is right and will make me want to come to work everyday. A community of missionaries will beat a community of mercenaries every time”. Good company culture runs deep, shown through the Airbnb and NYC team-up to offer free accommodation to Hurricane Sandy victims. But it’s not simply philanthropic: “the best marketing is investing in the user and they will do the marketing for you”.

Chesky briefly discussed the current controversy over alleged “illegal rentals” in New York, and the impact of Government legislation that is arguably out of date, lagging behind technological change. Moving on to Airbnb’s position as “the face  of the sharing economy” – a people powered economic system – Chesky commented on the disconnect between consumption, production and product availability. He used the example of power tools: “people don’t want power drills – there are some 80m powerdrills in the USA, each one used on average for 13min in its lifetime – they want holes in their walls”. This leads on naturally to asset sharing – including time, the country’s largest asset – which is “naturally the thing after mass production, technology is allowing us to cycle back from generic brands and mass manufacturing, to personalised and local consumption. Ask yourself what won’t be local and personal in the future? You’ll probably conclude that the sharing economy could replace a huge amount of the existing economy…”.

Asked if they see the Airbnb becoming a larger platform beyond vacation rentals, Chesky commented that while there are now many “amazing spaces” listed on the site – boats and castles, tree houses and the entire country of Liechtenstein - they aren’t tempted to become the marketplace for everything. Chesky wants to do one thing well, namely travel. Efforts remain in this space, focussed on being vertically integrated rather than horizontally spread across multiple markets.

Five years on from the credit cards and breakfast cereal, some 50,000 to 60,000 people now use Airbnb every night across 170 countries. At this year’s SXSW festival alone, 8,000 delegates are staying in Airbnb sourced accommodation. AirBnB’s operational success can be traced to three levers of competition which form the basis of strategy on most platforms:

  1. Creation of new sources of supply
  2. Creation of new user behaviors on the demand side
  3. Architecting a strong curation system

Read more about Airbnb’s competitive advantage on TheNextWeb.

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SXSWiLogo4Next up at SXSW was “Exploring Place with Cross-Platform Storytelling“: examples of how new technologies like geo-tagging, location-aware devices, interactive video and augmented reality are being combined with traditional storytelling methods to explore the world in richer, more in-depth ways than ever before…

The panel was made up of: Mike Knowlton, CTO of Storycode; Danny Harris, Creative Director at StorySocial; documentary filmmaker and cross-platform producer, Liz Nord; and Executive Director of ARTE France Cinema, Michel Reilhac. Knowlton began by talking about “story as software”, suggesting that cross-platform storytelling and new technologies allow creators to make more immersive, more iterative content. As scene-setting, he introduced some case studies: ”The Silent History“, serialised iPad/iPod novel; “Rough Ride – The Oil Patch Tour”, interactive documentary; “NY Hearts” interactive neighbourhoods project; and ”Welcome to Pine Point” created by NFB.

Liz Nord introduced her project “Jerusalem Unfiltered” which offers an immersive insider’s perspective on the city. Interestingly, Nord has launched the content-rich site more than a year before the film is due to complete in late-2014.

Jerusalem

Danny Harris reflected on his StorySocial project, People’s District, which became “Washington D.C.’s largest and most ambitious non institutional-based oral history project”. Over three years, Harris traveled across all 120+ city neighbourhoods to piece together a “people’s history” of the District told through some 2,000 diverse interviews. Explore more StorySocial projects here.

Cinemacity-Galley-1-960x400Michel Reilhac showcased one of the most unique immersive projects, ARTE’s CinemaCity: a geolocalized augmented reality project which allows users to overlay the physical experience of walking through Paris with excerpts of films shot on that location. Costing $417k, the project will launch in June 2013, when Paris city authorities will open up the wifi network so free connectivity will drive update. Reilhac reported that the ambition is to roll-out the project to the world’s other “film cities”.

The panel commented that integrating physical space into storytelling “allows the audience to consume the narrative in a far more intimate way”. Knowlton summarised that place can be integrated via technology to make the storytelling experience deeper, but also to encourage audiences to physically explore place to unlock narrative content. As creators, Nord suggested producers need to fully interrogate the impact of immersive place on the narrative approach, from the degree of user autonomy to platforms and devices.

IAP4082This morning’s SXSW session, “The $100bn mobile bullet train called Africa“, revealed the scale and pace of change of all things mobile across the African continent, now the world’s fastest growing telecoms market.

Gareth Knight, from Tech4Africa, and Toby Shapshak, Editor of ‘Stuff’ magazine, began by stating that more people have a cell phone than have access to electricity across Africa. PC (or other computer) penetration is as low as fixed-line penetration. Some 80% of the world’s mobile transactions are now made in East Africa, with 40% of Kenya’s GDP transacted through mobile money (carrier billing).  There was $171bn made in mobile payment transactions in 2012, forecast to be $607bn by 2016. The SIM card is the credit card of Africa.

The vast majority of the population do not have a bank account or credit card, yet there are 700m SIM cards in Africa, nearly all pre-paid, and growing at 20-25% each year. Most are comparatively low-functionality, but Shapshak reminded the audience that every phone in the world (4.2 bn) has SMS functionality, and SMS has a hugely high “open and read” rate – 97% versus 5-20% percent for email - and that this often overlooked mechanism has huge potential for disruption in Africa. High illiteracy is overcome by picture or numerical SMS messaging. And the landscape is changing: in 2015, there are forecast to be 125m smartphones in Africa, driven mainly by significant middle-class population growth.

Examples of mobile services and product ranged from micro-finance and micro-loans, such as M-Pesa, to paid-for social media networks to electricity ordering via text. One example was iCow: mobile phone applications which give diary farmers information on how to better manage their livestock. With agriculture contributing about 25% of Kenya’s GDP, the majority of farmers in Kenya remain small-scale, lacking opportunities and finances for professional advice. The iCow platform has 25,000 users after two years in operation and has seen many farmers more than double their income due to improvements recommended by the app. Another example was Mxit, Africa’s biggest social network and mobile instant messenger network. Although facing fierce competition from user migration to Facebook, Mxit is managing to monetize interactions and content in a way that Facebook still struggles to do, with some 750,000,000 paid-for messages sent every day via the platform.

Mxit_Stats

Discussing unemployment and lack of access to education, Shapshak championed an example of Nokia’s web-based MoMaths service, which aims to plug learning gaps in pupils from low-income households, and create new business opportunities in Africa. In 2011, 8,000 South African high-school students racked up a total of 2.5m exercises on MoMaths, with 82% of this activity taking place after school or during the holidays.

Discussing the growth in mobile internet as a utility, Knight and Shapshak touched on the potential of networks like Facebook and Twitter for a range of impacts, from political change to finding employment opportunities, but returned to the realised potential of SMS to have impact now. The session concluded with these statements: Africa has skipped the desktop – have a mobile-first strategy for any product or service launch across the continent; and that the opportunity lies in providing utility value to the 750m and growing SIM cards by solving day-to-day problems that are endemic across Africa, to free up time and energy to become more productive. In short, this brilliant session made crystal clear the social and economic opportunities now for innovation via mobile as the primary, scalable, transactional route to impact, change and value-chains across Africa.

Update: Another notable innovator in this sector is Worldreader, a US and European literacy non-profit whose mission is to make digital books available to children and their families in the developing world. Worldreader has partnered with biNu technology to deliver a smartphone-like eReader experience to low-end feature phones. Worldreader Mobile is currently installed on 4.5 million phones, mostly in Asia and Africa, with 500,000 unique readers consuming 20 million pages per month. The organisation hopes to reach 10 million people by the end of 2013.

Update: Great article from The Atlantic here: “Medicine by Text Message – Learning from the Developing World”, 4th April 2013.

SXSW1Logo2Today at SXSW’s Social Health Startup Bootcamp a panel of leading healthtech innovators and investors gave an interesting overview of the sector, and the opportunities for startups and investment.

Charles Saunders, CEO of Emerging Businesses for health insurance giant Aetna, introduced Healthagen, the ”innovation engine for Aetna”.  Healthagen acquires and builds new healthtech companies, aiming to be “a transformational force for healthcare” focussed on “provider enablement, consumer engagement in accessing and navigating healthcare, and population health technology”.   Some examples of portfolio companies are: iTriage, now the leading US symptoms-tracker and consumer health care app, with some 8 million downloads; ActiveHealth, focussed on “applying clinical experience and advanced analytics to help optimize quality of care, population health and wellness”; Medicity, the leading innovator and largest provider of health information exchange technology; newly launched Practice IQ and recently announced WellMatch. Saunders defined the “hot areas of innovation in healthcare tech” as: accountable care enablement, consumer engagement, population health management and IT, health and wellness low-cost behaviour-change engagement, solutions that focus on the “sickest of the sick”, and big data.

CarePassMartha Wofford, VP & Head of Consumer Platforms at Aetna, summarised the demand and opportunity by reporting that a third of US adults are now using their mobile devices to access health information, and a quarter are using social media to connect over health issues. Wofford introduced the CarePass Developer Portal, which grants access to APIs from Aetna, HHS and other innovators in the health and wellness community to speed up time-to-market and access to patient groups to trial and scale.

The BBC has reported usage figures for its web-TV on-demand iPlayer system in 2012, and they are rather startling: 2.32 billion TV and radio programme requests, and 36.5 billion minutes of BBC content accessed in a record-breaking year.  

BBC-iplayerThese figures equates to 70,000 years’ worth of material, making iPlayer a major contender even compared to efforts by Amazon and Netflix. Dramatic year-on-year growth was driven partly by the Olympic year but also from mobile devices, with mobile access now accounting for more than 25% of all iPlayer use.  Since the BBC enabled program downloading onto iPads and iPhone there have been nearly 11 million downloads. Other interesting stats for iPlayer in 2012:

  • a +177% increase of requests from mobiles and tablets – making up over a quarter of total iPlayer requests
  • nearly 14m downloads of the iPlayer mobile app
  • 10.8m programmes downloaded to iPhone, iPad and iPod Touch devices, following the launch of mobile downloads in September 2012
  • requests from PCs comprised less than half of all total iPlayer requests (47% in December 2012)
  • new feature allowing viewers to rewind & restart live TV – used by up to 30% of those watching live TV online

Daniel Danker, General Manager, BBC Programmes and On-Demand, said: “2012 was a ground-breaking year for BBC iPlayer with a record 2.32 billion requests for programmes across over 650 platforms. Last year, the use of iPlayer shifted from PCs and early adopter devices like game consoles to screens used by all audiences. Mobile, tablet, and connected TV skyrocketed, with a particular emphasis on audiences taking iPlayer on the go. This year, we’re looking forward to turning iPlayer into an entertainment destination, with a relentless focus on making iPlayer as easy and enjoyable as television.”  More here.

Update:  BBC announces iPlayer tablet viewing has doubled over January/February 2013 to 40m viewing requests.

An article for SyncTank.  

Two elder Aboriginal women sit in the dust, hand painting on a canvas that stretches between them. At a nearby makeshift table, three young Aboriginal women tap away on smartphones. They are on Facebook. These women are all Martumili artists or filmmakers, and only one or two generations separate them. The elder generation were born and grew up “on country”, and began the practice of painting on canvas. The current generation were born in hospital and raised in communities, balancing modern influences with traditional culture and law. This rapid transition from the bush to the cloud must make Aboriginal Australians one of the most innovative cultures in the world.

We are at the Martumili Art Centre in Newman on the edge of the Pilbara Desert, the red dusty heartland of Western Australia. I am here with FORM, a not-for-profit arts organisation that leads cultural and industry development through thought-leadership and creative capital. This is the first in a series of community consultations to establish a legal, cultural and technological framework for an ambitious digital archive of materials amassed in the course of FORM’s Canning Stock Route Project.

The Canning Stock Route is a 2000km trail that cuts across Western Australia’s red desert interior. It is the world’s longest and reputedly most dangerous cattle stock route. It was constructed by Alfred Canning in the 1900s to increase the trade of cattle from the north to feed a gold boom in the south. However, the Canning Stock Route was forged by brutal methods. It also crossed the traditional lands of more than 20 Aboriginal language groups, and wells – created a day’s walk apart – desecrated sacred waters at the very heart of indigenous culture. The route scattered Aboriginal communities, many ending up in stations and settlements far from their traditional lands. Like much of Australia’s twentieth century cultural history, the white story was a source of deep shame, and the black indigenous story remained largely unknown.

That changed in 2006 when FORM initiated Ngurra Kuju Walyja: The Canning Stock Route Project – translated as One Country, One People – which sought to explore the history of this land from an Aboriginal perspective. The project brought together over 200 elders, artists and community members from 10 language groups who, despite the distances that now separate them, are related by marriage, kinship or blood. The resulting exhibition of paintings, film, oral histories, photography and interactive multimedia went on to break attendance records across the country. Dark stories of first contact and conflict are overwhelmed by the vibrancy of culture, connection to land, spirituality, the uniting of diaspora, and the development of an Aboriginal art movement which has taken the world by storm. The exhibition was recently acquired by the National Museum of Australia as a ‘national treasure’.

Between 2006 and 2011, the Canning Stock Route Project and exhibition amassed a vast store of creative and cultural works which must rival any single collection in the world. Aboriginal society is an oral one, with cultural knowledge preserved and passed on in stories, song, painting and dance. And while Aboriginal peoples are one of the most intensely researched in the world, this knowledge has consistently seeped out of communities in the hands of white anthropologists and researchers, to be stored in museums, libraries and universities far from the reach of most indigenous people.

A new phase of the Canning Stock Route Project aims to reverse this decades-long trend of extracting cultural knowledge from communities. Recognising the ubiquitous reach of digital technologies into even the most remote communities, FORM will repatriate the project’s materials through a vast digital archive and range of web and tablet applications.

A handful of bespoke content management systems exist with cultural protocols at their core, including Mukurtu developed at the Centre for Digital Archaeology at UC Berkeley. In these platforms, technical experimentation and innovation intersects with cultural context, research ethics and ownership of cultural property. Indigenous Cultural Intellectual Property (ICIP) protocols, widely acknowledged across Australia but not yet adopted into law, seek to recognise indigenous people’s communal interests in tangible and intangible aspects of cultural practice. The architecture of the Canning Stock Route Project archive will rigorously reflect ICIP protocols, acknowledging traditional owners and determining which materials are ‘open’ for public use and which are closed, held as culturally sensitive only for the benefit of communities. Aboriginal communities have become understandably wary of the potential for their knowledge to be misappropriated or misused. FORM, in partnership with ArtsLaw Australia and arts centres across the Pilbara, aim to place ownership of this cultural knowledge firmly back in indigenous hands.

The ambition is that the Digital Futures project will become a living archive, owned and administered by community, with the younger generation using and adding to its content to create deeper cultural heritage value and new revenue streams. FORM’s immersive, content-rich web and tablet apps will act as a portal for indigenous and non-indigenous alike to explore the archive and understand the region and its people. The repository will be a work in perpetual progress, and finding funding partners and archival hosts with this kind of long-term vision may prove its greatest challenge. However, if successful, I believe the Canning Stock Route Project will become a world-leading example of how to collaboratively record and make accessible indigenous cultures, whilst simultaneously preserving and invigorating them.

We are now online, mobile and sharing everything, everywhere and everyday. We carry the world with us on smartphones and tablets. As armchair tourists, we can now explore distant cultures, living and past, to gain a greater appreciation and understanding of what separates and unites us. As a physical tourist, the digital world can be layered over the real world to create deeper, richer experiences to educate as we explore. For at-risk communities or environments, digital holds the potential for us to explore and care, but from a safe distance. And new technologies enable indigenous cultures with tools to improve self-sufficiency, self-governance, human rights advocacy, education, and general economic conditions. In terms of cultural heritage, digital provides mechanisms to record and pass on knowledge, diluting a largely culturally homogeneous media and connecting with younger generations on their own digital turf.

I am not celebrating a cultural heritage digital utopia just yet. Although rapidly changing, the power, money and technology lie predominantly in non-indigenous hands. It is absolutely vital that indigenous peoples can actively assert dominance over the reflection of their own knowledge, stories and history. It must be their voice and their experiences that are digitally amplified. If we do not enable that, we risk following in Canning’s footsteps: blind imperialist pioneers, distorting and misrepresenting indigenous cultures with every step.

Note:  I wrote this article for SyncTank: a new online magazine “showcasing the freshest thinking about how digital is enabling, inspiring and changing our cultural lives“.  Read the article here.  Many thanks to all at FORM, where I was based as a Fellow of the International Creative Entrepreneurs Programme.

Today the BBC gives more insights into a for-profit business model for ‘iPlayer 2.0′ Project Barcelona, and reveals changes to the standard terms of trade to include DTO-rights.

Back in March I wrote about the out-going BBC Director General Mark Thompson’s pledge to make “a dramatic leap forward in digital capability” with the launch of an ‘iPlayer 2.0′ called Project Barcelona.  The DG claimed “the iPlayer is the most successful and most intensively used catch-up service in the world” and signalled an intent to monetise its success.  The idea behind Barcelona is simple: after the 30-day iPlayer window closes, another non-exclusive paid download-to-own window will open.

Today the BBC has begun circulating a more detailed business plan for Project Barcelona, ahead of possible launch at the end of this year.  Project Barcelona will allow users to pay a small fee to download and keep programmes, from both the recent and deep archive.  It has been given the slogan “making the unmissable, unmissable forever” – a twist on the current iPlayer moto.

The BBC is hoping to introduce a clause in its next Terms of Trade for non-exclusive download-to-own (DTO) rights, meaning all original BBC commissions could feature on the new platform.  The proposals are understood to include sliding-scale price points and potential profits for rights holders.  And as discussed back in March, the BBC service is expected to give producers a greater share of the episode download price (around 40p from £1.89) than Apple currently does (28p on the same price).

Originally described as a not-for-profit exercise, the BBC is now aiming to make profit out of the initiative, which it will feed back into its original programming budget.  It has been reported that a new subsidiary may be formed to manage the platform, operating similarly to subsidiaries BBC Studios & Post Production and BBC Worldwide.

The news comes days after Dan Heaf, EVP and managing director of digital for BBC Worldwide, commented on the threat posed by commercial VOD services.  He reportedly said that if all users got their BBC content via services like Netflix at its current subscription rates – the equivalent of £5.99 per month – it could wipe out 80% of BBC Worldwide’s revenues.  BBC Worldwide’s 2011 annual report indicated that it made total sales of £1.15 billion in that year, from which digital entertainment accounted for just 2.3% of revenues (£27.1 million).  Heaf’s remarks came at the launch of BBC Labs, a new incubator/mentorship program to find innovative and potentially revenue-generating digital content services.  Central to this must lie an ambition to replace the £192.3 million Worldwide is reported to make in physical (DVD) sales currently.

It is crucial that digital innovation and commercialisation lies at the very heart of the corporation’s longterm ambitions.  The BBC awaits the green-light from the Trust over today’s announced plans for Project Barcelona.

Update:  The BBC widens its digital offering by launching a live interactive video player in advance of the London 2012 Olympics. The player combines HD video with relevant data designed to enhance the viewing experience. 

Update Oct 2012: BBC rumoured to be expanding on-demand strategy further by developing music-streaming service Playlister