News Blog

Video surveillance firm VideoIQ is set to announce on Wednesday morning a $10 million Series B funding round.

Lehman Brothers Venture Partners is leading the round, and current investors Matrix Partners and Atlas Venture are participating.

The funding will be used to help VideoIQ expand to new markets and continue product development of its IP video surveillance and video analytics products, the company says.

Bedford, Mass.-based VideoIQ was spun out of GE Security in 2007 and is headed by Scott Schnell, a former RSA executive.

Video may have killed the radio star, but it doesn't have to kill the Internet.

That is if Internet service providers can figure out how to keep up with the video-driven bandwidth demand on their networks. Peer-to-peer technology provider BitTorrent says it can help.

Video consumes more network resources than any other media distributed on the Web. Even poor-quality video from YouTube eats up more bandwidth than e-mail, music downloading, and voice over IP services. And when you throw full-length high-definition video into the mix, you're talking about even more bandwidth. Depending on the compression used, a single HD video stream can eat up 20 megabits per second worth of bandwidth.

And as consumers subscribe to faster and faster broadband connections at home and sites like YouTube and Hulu come online offering all kinds of video choices, more people are watching video on the Web. According to ComScore Video Metrix, Americans are currently watching upward of 10 billion videos online a month. By the end of 2007, online viewers averaged more than one video a day.

This is just the beginning. ABI research forecasts the number of viewers who access video via the Web will nearly quadruple in the next few years, reaching at least 1 billion in 2013.

This summer's Olympic Games in Beijing marks the first real test of online video as NBC embarks upon the most ambitious online video project ever. NBC plans to offer 3,600 hours of live programming from Beijing, which translates to about 212 live hours for each of the 17 days of the Olympics. The majority of this viewing will be delivered online.

All this video is great for viewers, who are able to pick and choose what they watch and when. But for Internet service providers like the phone companies and the cable operators, it represents a massive challenge. Some providers, such as Comcast and Time Warner Cable, are testing out new ways to deal with "bandwidth hogs" or individual users who use an inordinate amount of bandwidth.

Last month, Comcast began testing a new system that will throttle back or slow down traffic during times of congestion for heavy bandwidth users. The new system was developed after Comcast faced stark criticism for singling out and slowing down peer-to-peer traffic.

Meanwhile, Time Warner Cable, which says it faces the same capacity headaches, also began testing a new billing system that charges customers who exceed their limit for uploading and downloading material.

P2P as a solution, rather than a problem
Eric Klinker, chief technology officer for BitTorrent, which has commercialized the peer-to-peer technology, says that what the cable operators are doing is a good start. But more can be done to help operators deal with the onslaught of video.

"I think what Comcast and Time Warner Cable are doing is a great first step. It gets ISPs out of the business of deciding which applications are important and which aren't. But there are enhancements to the peer-to-peer protocol, in particular, that can make it easier on all ISPs."

--Eric Klinker, CTO, BitTorrent,

For one, peer-to-peer protocols, such as BitTorrent, which are often cited as major headaches for network operators because of the big file transfers they enable, need to be utilized rather than singled out as a source of the problem, he said.

"I think what Comcast and Time Warner Cable are doing is a great first step," Klinker said. "It gets ISPs out of the business of deciding which applications are important and which aren't. But there are enhancements to the peer-to-peer protocol, in particular, that can make it easier on all ISPs."

Peer-to-peer technology has gotten a bad rap for years. Since the days of file-sharing networks like Napster, which allowed people to exchange songs on their computer hard drives with others on the Internet, peer-to-peer technology has been demonized in the press. But the truth is that peer-to-peer technology actually allows large files like videos to be distributed more efficiently. And as more video makes it way onto the Web, it's increasingly being used. In fact, peer-to-peer traffic accounts for about 43 percent of all traffic on the Internet, according to a recent study by the network management company Sandvine.

The way peer-to-peer works is that when a user requests a video, the peer-to-peer network queries other users in the network and takes pieces of the file from different peers and sends it to the user requesting the file. This distributed architecture means that content owners don't have to assemble large and expensive data centers. It also means that a content distributor doesn't have to pay for expensive high-speed links to serve up an entire file from a single server farm.

That said, peer-to-peer protocols in the wild can eat up lots of bandwidth because peers on the network can silently and continuously upload pieces of files from their computers all day and all night, seeding dozens or hundreds of file requests. And because upload capacities are generally much slower than downloads, it can create bottlenecks and capacity crunches on the last mile of service providers' networks. For network operators that are already capacity-constrained, this phenomenon can dramatically affect performance for all users.

The enhanced version of peer-to-peer
Peer-to-peer companies, such as BitTorrent and Pando Networks, have recognized this problem and have been working with service providers, such as Verizon Communications, Comcast, and others to come up with solutions. Verizon and Pando Networks have been working on a project called P4P, which advocates ISPs share information about their network topography and use an enhanced version of peer-to-peer to locate peers in close proximity to the file request. Getting files locally can help reduce the expense associated with carrying peer-to-peer files over long distances.

BitTorrent, whose founder created one of the most popular peer-to-peer protocols used today, has also been working on a solution. The company has developed its own enhancement to the peer-to-peer protocol that tells peer-to-peer applications to stop seeding the network with content when the network is congested.

For example, if a teenager starts playing an online video game at the same time his mother makes a voice over IP phone call and his little sister is downloading music from iTunes, the protocol will tell the peer-to-peer movie application that is running in the background on their family computer to stop uploading bits of the Spider-Man movie that had been ordered from an online movie rental service and is now stored on a hard drive in their home. Instead, the network will search for the content on another peer that is on a network that is less congested.

"If there is contention in the network, my application will back off," Klinker said. "And it will automatically and seamlessly find someone else in the network to complete uploading that content. The video quality is never disrupted, and the user never knows where the content is coming from."

BitTorrent has already tested the enhancement with more than 10 million users and it's currently working with the Internet standards body, the Internet Engineering Task Force, to standardize the technology so that other peer-to-peer companies can embed it in their software client.

Klinker said that new technologies, such as the one developed by his company, as well as efforts on the P4P enhancements will help ISPs manage and control their networks so that even more video can make it to the Web without crippling the infrastructure delivering it.

And once service providers learn how to harness peer-to-peer, they will be able to develop business models that reap the benefits of the technology. For example, Comcast, Verizon, or any other TV provider could add peer-to-peer software to the set-top boxes sitting in their customers' living rooms to create a distributed peer-to-peer movie network. Instead of serving up on-demand movies from their own servers sitting in expensive-to-run data centers, these TV providers could leverage the content already stored on their customers' set-top hard drives.

"The cable and phone companies are already spending capital to put set-tops in everyone's home," Klinker said. "They could use that same hardware as part of their content distribution model. Then the user pays the electrical bill. And they pay for the bandwidth. It's just much more efficient."

Klinker said a solution, such as this one, requires a slightly different business model from BitTorrent's current business model. But he said that it's something the company is investigating.

"It's interesting enough that we're in discussions and testing some scenarios with ISPs," he said. "In general, service providers move slowly. So nothing will happen overnight. But I think we'll see some interesting changes within the next three years."

Turns out, the so-called Netflix box could be even cooler than initially thought.

The tiny black device from Roku was introduced to the world in May as the first box that could stream Netflix's "Watch it Now" option directly to a television.

But the company is saying there could be more where that came from.

Roku's vice president of consumer products, Tim Twerdahl, said Wednesday that, yes, more content partners are coming, but, no, he's not saying who just yet. That makes the $99 price tag look that much more attractive.

So who will it be? YouTube seems obvious, as they've been partnering with a bunch of hardware makers lately: Panasonic, Sony, Apple, Hewlett-Packard.

Or what about Hulu, as my colleague and CNET's resident home theater expert John P. Falcone suggests?:

The Netflix vids use the VC-1 codec, but the box can handle H.264 as well. Of course, because all of these players--Apple, Microsoft, Netflix, and Sony--are already trying to sell you videos, it's unclear why they'd want to provide a free competitor that's just a click away. So even if a Hulu option is technically feasible, business considerations may keep it relegated to the drawing board. But hey, we can dream, can't we?

Either way, Roku will have to differentiate. Rumors are flying fast that at E3 next month, Sony or Microsoft (or maybe both) will announce support for Netflix's "Watch it Now" feature as well, for the PlayStation 3 or Xbox 360, respectively.

And though far more expensive than $99, both game consoles have large install bases, and are also far more functional beyond just streaming video.

Update: Sony has suspended the 2.40 upgrade, following reports that it has fouled up some PS3 systems (see Joystiq for more). While the two PS3s we have here at CNET were able to install the update with no adverse effects, it appears that some users were considerable less fortunate.

The 2.40 firmware update for the PlayStation 3 is now available. The free update, which Sony has been talking up for the past several days, adds a smattering of new features, including in-game access to the XMB (Cross Media Bar) home screen, custom soundtracks, a new trophy system, and a shortcut to Google searches.

The new features carry a host of caveats: the in-game XMB, customized soundtracks, and trophies aren't supported on all games; in-game XMB features are fairly limited; and the trophy system (with the a few exceptions) won't be retroactive to already-accomplished goals.

Trophies, for instance, are better viewed as a feature that will begin becoming more useful as future games begin supporting the feature. That said, both the trophy system and in-game XMB help the PS3 better compete with the achievements and Xbox Live or Xbox Dashboard features offered by the Xbox 360.

PS3 users will also notice a handful of other simple but useful touches with this update, including an on-screen clock, a quick shutdown icon, and a shortcut to Google searches. And speaking of the PS3's browser: while it's not new for 2.40, it's worth noting that the Web browser splash screen now includes shortcuts to YouTube, Flickr, and Facebook.

So what do you think? Does the 2.40 update add some worthwhile features to the PS3, or does the Xbox 360 or Nintendo Wii still have an edge? And what other features would you like to see come in future PS3 software upgrades?

PlayStation.com: Firmware 2.40 walk-through, part 1 (embedded above)
PlayStation.com: Firmware 2.40 walk-through, part 2
PlayStation.com: Firmware 2.40 FAQ

With advertisers and marketers polluting the Web with scads of pseudo "viral videos" it's nice to see a legitimate one crop up.

In a lampoon of CNN and mainstream media, alternative news source The Onion informs us of an approaching disaster: "Entertainment Scientists Warn Miley Cyrus Will Be Depleted by 2013."

The Onion News Network reports that we're burning through the entertainment value of the teen-pop sensation "at far more aggressive rates" than we did of Lindsay Lohan or the Olsen twins. The latter women were "bountiful entertainment resources that our overconsumption reduced to smoldering remnants."

Tip: Pay attention to the graphs and to the ticker running across the bottom of the screen.

The expert from the Institute of Miley Research soberly tells viewers that within two years, society will be reduced to "roving tribes of barbarians constantly searching and fighting and scouring the landscape for the last remaining Miley Cyrus fashion doll."

Leave it to the folks at The Onion to remind us what viral videos are supposed to do: entertain.

Entertainment Scientists Warn Miley Cyrus Will Be Depleted by 2013

Google has enlisted Family Guy creator Seth MacFarlane to create an original animated series that it will distribute on the Web via its AdSense advertising system, according to The New York Times.

Google plans to use AdSense to syndicate the program--called Seth MacFarlane's Cavalcade of Cartoon Comedy--to thousands of Web sites that are popular with MacFarlane's target audience, according to the newspaper. Advertising will be incorporated via "preroll" ads, banner ads, or "brought to you by" ads, according to the report.

MacFarlane is also reportedly working with advertisers to create original advertising to run with the Cavalcade content, although neither Google nor MacFarlane would reveal any of the advertisers, saying only that the deals were among AdSense's largest ever.

MacFarlane, who will receive a percentage of the ad revenue, told the newspaper that the two-minute episodes would be "animated versions of the one-frame cartoons you might see in The New Yorker, only edgier."

Google, which launched AdSense in 2003, expanded its AdSense program last year so that Web site publishers could display and make money off embedded video clips from YouTube content partners that have targeted banner or text ads. Google has experimented with distributing video and video ads on its AdSense publisher network before, but with mixed results. The company has tested distributing in-stream video ads and in-stream video clips with bundled ads.

Ever since NBC announced their very ambitious plans for online coverage of the 2008 Beijing Olympics, I have been very excited to see how well they execute it. Promising 3,500 hours of online video, with 2,200 hours of live streams, full event replays, and highlights, for free, how could they go wrong? It has recently come to light that the online coverage may not be as complete as we were hoping.

NBC will not be offering live online feeds of any events that will be broadcast on TV. The ones broadcast on TV will, of course, include the most popular events and the ones that people are most likely to tune into. The video of the events will be on NBC's site only after the events have been completed. With this in mind, it is clear that NBC views its online offering as a supplement to their TV broadcast and not as any sort of a replacement.

Many have been really quick to heavily criticize this move by NBC, but I'm not jumping on that bandwagon just yet. I am usually not one to defend old media (see my post on Why Broadcast TV Sucks), but I have some sympathy for NBC here. I applaud NBC for taking this major leap into the online distribution of this major event in the first place. It's an unfamiliar road and a departure from a model that has worked for NBC for a very long time.

Of course, we would love to see every live stream available to us, with videos and highlights that we could embed on other sites, but this may be too radical of a first step for NBC. Think of this year's Olympic webcast as testing the waters. If NBC's web offerings prove to be profitable this year, then maybe they will expand their offerings in years to come. The Olympics only happen every two years (the more popular Summer version every four) and I can understand NBC not wanting to gamble too much on this very costly venture.

An online feed of an event like the Olympics (or any sporting event for that matter) can offer all sorts of rich functionality, including realtime statistics, scores, and leaderboards. There is no doubt in my mind that rich functionality will eventually win out, whether it is viewed on your computer or through a new interface on your TV. If it doesn't look like they get it now, NBC and the other networks will eventually see the light, but these big companies may just need a little more time to make the switch at their own pace.

Amidst all of this, let's not forget who the potential big winner is with this year's Olympics. No, it's not all of the athletes competing for Olympic glory, it's Microsoft's Silverlight. Microsoft scored the exclusive deal with NBC for Silverlight to power all of their Olympic web offerings. Not having caught on that well yet, this will prove to be a good way to expose a lot of new people to Silverlight and get their plug-in installed on a lot more computers. While it may not be the gamebreaker, it will certainly give them a shot in the arm in their fight against Flash.

Don't believe the haters, NBC's online offering of the Olympics is a step in the right direction, just not two steps as a lot had hoped.

Click here for more stories on tech and the Beijing Olympics.

Some people might be embarrassed if their friends found an old copy of Mr. Big's "To be with you" or Paula Abdul's "Cold hearted (snake)" stashed away in their CD collection. But not EMI. They own those songs, and they want the world to know it.

The music giant is suing social-networking site Hi5, video advertising start-up VideoEgg, and 10 unnamed defendants for allegedly infringing on the copyrights of those and hundreds of other pop throwbacks.

The lawsuit alleges that Hi5 users have uploaded and disseminated hundreds of music videos the company owns rights to. VideoEgg is on the hook because it's a former partner of Hi5, and those allegedly infringing videos were uploaded to its servers. (On May 31, VideoEgg stopped hosting videos uploaded by the public and refocused efforts on its ad network, prompting rumors that the company was on its way out.) The lawsuit doesn't say much of anything about who the 10 John Does are.

The companies had attempted to work out some kind of deal for more than a year, a source told TechCrunch, but those efforts eventually failed.

As I searched for something to talk about today, I came across this article from Joystiq featuring a discussion by Will Wright about Spore and the gaming industry.

For those of you who don't know Will Wright, he's not only the creator of Spore, but he's also the creator of the Sims franchise, and arguably one of the greatest game developers of all time.

And yet, I'd venture to say that at least some of you reading this have never heard of Will Wright before. I'll bet you've played the Sims and may even know about Spore, but you had no idea who Will Wright is.

If that's true, the blame shouldn't be placed on you and you certainly shouldn't be expected to perform research just to find out who develops a specific game. Instead, the blame should be placed squarely on the video game industry, and more specifically, major companies like Take-Two and Electronic Arts, for creating an environment where anonymity is not only accepted, but expected as well.

And if you ask me, that's just wrong.

... Read more