Towards a political economy of the Internet

Control over space, time, speed, quality and access onthe Internet. An analysis of mechanisms andinstruments.

Leo Van Audenhove (IBBT-SMIT)John Vanhoucke (Telindus)Luciano Morganti (IBBT-SMIT)

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Overview

Introduction Cultural industry (audiovisual)

Current position on digitalization Current business models - versioning

Regulation: definition and reasoning Controlling what, why, with what mechanisms and instruments?

Space - who can access content from where Time - who can access content when Speed - who can access at what speed Quality - who can access what quality Access - who can access what content

Relations between regulation and self-regulation

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Introduction: Audiovisual industries

Current position on digitalization Fear of piracy in a real broadband era

Do not want to go same road as music industry Play active role in debate on protection

New possibilities through digitalization HDTV, video-on-demand, long tail, etc.

Existing business models Music industry

Limited amount of channels same time For majors already global market

Video market Based on ‘repurposing’ or versioning of content On different platforms and media Within different geographies

Much of work based on experience music industry

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Introduction: Audiovisual industries

Main question Are we evolving towards global market? Are we staying within national and regional markets?

Hypothesis: Content industry will try to protect existing Business Models

In what way with what effect? How will existing power relations change? What is the interplay with other actors

Electronics industry Internet industry players: Google, Overture, etc. Telco and ISP industry

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Regulation

Definition Start from a broad definition of regulation

Formal regulation: codified rules endorsed by law

Self regulation: norms, habits and practices influencing behavior and

structures but not codified Hypothesis

Self regulation plays an important role in Internet governance Instruments to ‘govern’ content distribution and protect BM

Being developed DRM, encryption, etc.

Already in place DRM, GeoIP, CDN, Identity Management, etc.

Not all of these supported by formal regulation

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Control over Space

Two specific characteristics of business models Dependent on versioning of content in time

Sequentially introduced: theatre, airplane, pay-per-view, etc.

Sold in different geographic spaces at different times especially TV productions

Instruments of control GeoIP, personal and financial information

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Control over Space: GeoIP

GeoIP Information about users

location (nation, region, city) 98% accuracy at national level ISP, network connection, speed, etc.

Based on IP address Information about infrastructure, distribution of IP Information from sites who ask users addresses Information from partnering ISPs

Often used to Control fraud Use in marketing Control access to content geographically

New GeoIP can control for IP circumvention/anonimizers

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Control over Space: GeoIP Example

BBC iPlayer Access to on demand content of TV broadcasts Restricted to the UK by GeoIP Reason License Fee

Channel 4 4oD Restricted to GB and Ireland by GeoIP

Movielink US based movie site Paramount, Sony Pictures,

Universal Studios, Warner Bros First legal store for movies Restricted to the US by GeoIP

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Control over Space: Financial and personal info

Financial / Personal information iTunes restricts access on basis of personal and bank

card info More restrictive then GeoIP European accessing from local US computer no access

No access to certain music and video TV series not yet scheduled outside US Movies not yet released on other media Reason ‘repurposing’ and ‘versioning’ strategies

Dualspeak on copyright and DRM According to Jobs not applicable to music No word in text on visual content

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Control over Time

Related to control over space GeoIP and personal/banking information allow windowing

Audiovisual industries interested to limit access to content in time To prevent copying and distribution over the Internet To use price discrimination for its products To saveguard existing business models

DRM main instrument Access control mechanisms (software and technical) BM Music industry and audiovisual again often different

Music once purchased (mostly) unlimited use in time TV and Movies limited time to use

E.g. Cinema and DVD - two time for same product

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Control over Time: BBC iPlayer - Movielink

BBC iPlayer Access to content 7 days after broadcasting Remains on disk of user for 30 days Once started viewing 24 hours to view Uses Windows DRM

Many complaints that service under TV license fee Should be open to all systems

Only accessible in Britain (Channel 4 similar service) Movielink

Difference between rental and purchase Rental: 30 days, once started 24 hours - Price in line with DVD rental Purchase: infinate use (on 1 to 3 devices) - Price close to DVD purchase Only accessible to US

Both services go beyond fair use (no possibility to have own copy) Protection through copyright law and contract law

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Control over Speed/Quality

Not the same Gaming versus streaming put different requirements on network Related and taken together here

Internet made out of different independently managed networks Agreements exist between ISPs to connect networks People tend to forget that content providers and ISPs

Are constrained by the underlying biases in infrastructure Can make choices which affect speed and quality

Control over network Only partly influenced by content industry Mainly domain of ISPs and Telcos

In process of better controling speed over networks Brings up whole discussion of ‘net neutrality’ Fast lane and slow lane on the Internet

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Control over Speed/Quality: Instruments

Content Delivery Networks Akamai, etc. have large servers all over the world Brings content closer to the edges of the network Large players host their content with international CDNs Gives them faster access to consumers Gives them some control over quality of their services

Peering Agreements ISPs interconnects to other networks on the Internet 80% of peering agreements with private partners SLAs between parties define quality of service Technological tendency

To be able to control speed and quality of content To differentiate between content e.g. Prioritization of video

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Control over access

ISP can filter information and sites from their networks Used by authoritarian states to filter content Used by Western states to filter harmful content Might in future be used to filter sites

Whole debate on Net Neutrality Threath of ISPs in Brittain with BBC iPlayer

ISPs fear that iPlayer traffic would clog their networks Threaten to block BBC iPlayer traffic unless BBC contributes

Instruments Filters Walled Gardens Net neutrality

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Regulation and self-regulation

Regulation Legal environment is changing and will be different for video

than for audio Slow globalization of copyright law - but stronger in centre

Millenium Copyright Act in US EU Copyright Directive Take into account transition to digital environment

Much more restrictive Bias to strong protection of copyrights holders Copy and access control technology supported by law

Self-regulation Although certain globalisation of copyright law Remains to be seen whether audiovisual industry is going global Control over time and space used to sustain existing business models Better control over speed/quality and access might strengthen this

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Question

Citizen is becoming a global citizen?

Costumer is put back in the box of the nation state?