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Spotify arrives to shake up SA music industry

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The global leader in music streaming has arrived in South Africa, and is set to shake up the industry, writes ARTHUR GOLDSTUCK .

The final death knell has been sounded for the thousands of iPods still in use in South Africa. Due to the high cost of streaming music via mobile data, many have held onto the one-time standard in storing music that was bought or copied onto a portable device.

That is about to change, as the world leader in music streaming, Spotify, was formally launched in this country yesterday. And it making a big play for the local audience.

“Our product stands for discovery: discovering new music and music you will like,” says Michael Krause, Spotify MD for Europe, Middle East and Africa. “We have local and international artists. Local content is so important which is why we made a huge effort to get local artist licensing.”

Krause stresses that Spotify’s arrival would be a boon not only or music lovers, but for the artists as well.

“It will give all the artists access to over 159-million customers, so we hope more South African artists will have great exposure outside the country, and also to local fans who will discover new artists they didn’t know. We hope more artists will be able to make a living off our service.”.

Spotify cheat sheet_Final

And there is one other massive potential benefit.

“Streaming is a key driver for industry growth in general,” says Krause. “Music streaming really helps to boost markets, even where there was a decline because of digital music. It has changed markets back to growth. These are features we hope to emphasise in South Africa.”

Spotify is available in both a free version, supported by advertising, and a paid version, which will cost R60 a month – as little as half of the $10 price tag in the United States. This positions it at the same price as other major streaming services in South Africa, like Simfy Africa and Google Play Music.  As with Simfy, users will be able to download music onto their smartphone when in a Wi-Fi zone, and play it offline when only expensive mobile data is available.

The one fundamental difference to other streaming services, however, is that few users will experience a difference between music available locally and internationally. That means current users who have been “cheating” by signing onto the American service won’t be disadvantaged when they switch.

“All South Africans can simply change the country and payment mechanism so that they can pay the local pricing,” says Claudius Boller, Spotify MD for Middle East and Africa. “The interesting thing is that it’s the same music, so you don’t lose any of your playlist.

“Our standard international offer is live in this market, and there will be more local content available. It’s a very tiny amount of content that may not be available due to licensing rights. We’re a 100% legal service, so we have everything licensed.”

Krause says that Spotify has had the African continent in its sights for a while, but chose South Africa as the continent’s launch pad due to a combination of music culture and better connectivity. Not mentioned in this context is the fact that, because the service currently requires credit or debit cards, Nigeria poses particular challenges. Many online services do not accept credit card from the continent’s largest music market

“Not everyone has a credit card available,” Krause says diplomatically. “Other payment options will come after the first launch. We will make sure we have all payment possibilities so that people have no boundaries.”

Meanwhile, the South African launch coincided with the service going live in three other countries yesterday, namely Israel, Romania and Vietnam.

Spotify is expected to make a similar impact on streaming music in South Africa as Netflix made on the video-on-demand industry. Netflix came into a market that had been gearing up for its arrival, but it still cleaned up, thanks to a vast and fast-growing catalogue of original content.

This still left room for a variety of niche players, like Digital Entertainment on Demand (DEOD), which emphasis extreme and school sports, Kwese Play, with a strong African focus, and Cell C’s black, which fills various gaps in between.

Music streaming,  on the other hand, does not lend itself to providers creating their own content, nor to artists providing exclusivity to one outlet – although there are exceptions. This means anyone in the market for a music streaming service is likely to choose only one. Spotify’s free version, along with the large existing fan base for its paid service, means it will be the first stop for most music lovers.

It is also likely to have one other effect that would not be encountered in developed markets. Because of the massive awareness that will spring from local artists punting Spotify to their fans, it will probably create a spike in app usage by South Africans who had migrated to smartphones but remained wary of data use.

In this way, it may well be a catalyst for growth in industries beyond only music.

* The Spotify app can be downloaded via the Android or iOS app stores or on the Web at www.spotify.com.  The premium service offers a 30-day free trial. 

Spotify facts and figures

Spotify offers the following curated playlists for South Africa:

Top Hits South Africa
New Music Friday SA
Hip Hop Juice
Sunday Praise
Gospel Greatness
House Nation
iGqom Le
Rock Essentials
Made in South Africa
Beste Pop
Maskandi Favourites
The Hip Hop Circle
Chilled Vibez
Sunday Feels  Feel Good Look Good
Nine 2 Five
Gym Beats
That Party Feeling
City Back 2 Kasi
SA Gold

Spotify stats:

  • Over 159 million active users
  • Over 71 million subscription users
  • Over 35m tracks in the catalogue
  • Over 2 billion playlists available
  • Over €8 billion paid to rights holders since launch in October 2008
  • Available across 65 markets including South Africa

Spotify Free features: 

  • Full catalogue access
  • Curated, personalised playlists, background play and charts
  • Listen to any artist, album or playlist on Android and iPhone handsets
  • Access to the full Spotify catalogue on desktop and tablet
  • Create playlists and share with friends on Spotify, Facebook, Twitter, text and email.

Spotify Premium: 

  • On-demand music with no ad interruptions on computer, phone and tablet
  • High quality streaming (320kbps)
  • Listen offline
  • Use Spotify Connect to play Spotify on a connected speaker, TV and car.
  • Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube

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Which IoT horse should you back?

The emerging IoT is evolving at a rapid pace with more companies entering the market. The development of new product and communication systems is likely to continue to grow over the next few years, after which we could begin to see a few dominant players emerge, says DARREN OXLEE, CTOf of Utility Systems.

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But in the interim, many companies face a dilemma because, in such a new industry, there are so many unknowns about its trajectory. With the variety of options available (particularly regarding the medium of communication), there’s the a question of which horse to back.

Many players also haven’t fully come to grips with the commercial models in IoT (specifically, how much it costs to run these systems).

Which communication protocol should you consider for your IoT application? Depends on what you’re looking for. Here’s a summary of the main low-power, wide area network (LPWAN) communications options that are currently available, along with their applicability:

SIGFOX 

SigFox has what is arguably the most traction in the LPWAN space, thanks to its successful marketing campaigns in Europe. It also has strong support from vendors including Texas Instruments, Silicon Labs, and Axom.

It’s a relatively simple technology, ultra-narrowband (100 Hz), and sends very small data (12 bytes) very slowly (300 bps). So it’s perfect for applications where systems need to send small, infrequent bursts of data. Its lack of downlink capabilities, however, could make it unsuitable for applications that require two-way communication.

LORA 

LoRaWAN is a standard governed by the LoRa Alliance. It’s not open because the underlying chipset is only available through Semtech – though this should change in future.

Its functionality is like SigFox: it’s primarily intended for uplink-only applications with multiple nodes, although downlink messages are possible. But unlike SigFox, LoRa uses multiple frequency channels and data rates with coded messages. These are less likely to interfere with one another, increasing the concentrator capacity.

RPMA 

Ingenu Technology Solutions has developed a proprietary technology called Random Phase Multiple Access (RPMA) in the 2.4 GHz band. Due to its architecture, it’s said to have a superior uplink and downlink capacity compared to other models.

It also claims to have better doppler, scheduling, and interference characteristics, as well as a better link budget of 177 dB compared to LoRa’s 157 dB and SigFox’s 149 dB. Plus, it operates in the 2.4 GHz spectrum, which is globally available for Wi-Fi and Bluetooth, so there are no regional architecture changes needed – unlike SigFox and LoRa.

LTE-M 

LTE-M (LTE Cat-M1) is a cellular technology that has gained traction in the United States and is specifically designed for IoT or machine‑to‑machine (M2M) communications.

It’s a low‑power wide‑area (LPWA) interface that connects IoT and M2M devices with medium data rate requirements (375 kb/s upload and download speeds in half duplex mode). It also enables longer battery lifecycles and greater in‑building range compared to standard cellular technologies like 2G, 3G, or LTE Cat 1.

Key features include:

·       Voice functionality via VoLTE

·       Full mobility and in‑vehicle hand‑over

·       Low power consumption

·       Extended in‑building range

NB-IOT 

Narrowband IoT (NB‑IoT or LTE Cat NB1) is part of the same 3GPP Release 13 standard3 that defined LTE Cat M1 – both are licensed as LPWAN technologies that work virtually anywhere. NB-IoT connects devices simply and efficiently on already established mobile networks and handles small amounts of infrequent two‑way data securely and reliably.

NB‑IoT is well suited for applications like gas and water meters through regular and small data transmissions, as network coverage is a key issue in smart metering rollouts. Meters also tend to be in difficult locations like cellars, deep underground, or in remote areas. NB‑IoT has excellent coverage and penetration to address this.

MY FORECAST

The LPWAN technology stack is fluid, so I foresee it evolving more over the coming years. During this time, I suspect that we’ll see:

1.     Different markets adopting different technologies based on factors like dominant technology players and local regulations

2.     The technologies diverging for a period and then converging with a few key players, which I think will be SigFox, LoRa, and the two LTE-based technologies

3.     A significant technological shift in 3-5 years, which will disrupt this space again

So, which horse should you back?

I don’t believe it’s prudent to pick a single technology now; lock-in could cause serious restrictions in the long-term. A modular, agile approach to implementing the correct communications mechanism for your requirements carries less risk.

The commercial model is also hugely important. The cellular and telecommunications companies will understandably want to maximise their returns and you’ll want to position yourself to share an equitable part of the revenue.

So: do your homework. And good luck!

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Ms Office hack attacks up 4X

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Exploits, software that takes advantage of a bug or vulnerability, for Microsoft Office in-the-wild hit the list of cyber headaches in Q1 2018. Overall, the number of users attacked with malicious Office documents rose more than four times compared with Q1 2017. In just three months, its share of exploits used in attacks grew to almost 50% – this is double the average share of exploits for Microsoft Office across 2017. These are the main findings from Kaspersky Lab’s Q1 IT threat evolution report.

Attacks based on exploits are considered to be very powerful, as they do not require any additional interactions with the user and can deliver their dangerous code discreetly. They are therefore widely used; both by cybercriminals looking for profit and by more sophisticated nation-backed state actors for their malicious purposes.

The first quarter of 2018 experienced a massive inflow of these exploits, targeting popular Microsoft Office software. According to Kaspersky Lab experts, this is likely to be the peak of a longer trend, as at least ten in-the-wild exploits for Microsoft Office software were identified in 2017-2018 – compared to two zero-day exploits for Adobe Flash player used in-the-wild during the same time period.

The share of the latter in the distribution of exploits used in attacks is decreasing as expected (accounting for slightly less than 3% in the first quarter) – Adobe and Microsoft have put a lot of effort into making it difficult to exploit Flash Player.

After cybercriminals find out about a vulnerability, they prepare a ready-to-go exploit. They then frequently use spear-phishing as the infection vector, compromising users and companies through emails with malicious attachments. Worse still, such spear-phishing attack vectors are usually discreet and very actively used in sophisticated targeted attacks – there were many examples of this in the last six months alone.

For instance, in late 2017, Kaspersky Lab’s advanced exploit prevention systems identified a new Adobe Flash zero-day exploit used in-the-wild against our customers. The exploit was delivered through a Microsoft Office document and the final payload was the latest version of FinSpy malware. Analysis of the payload enabled researchers to confidently link this attack to a sophisticated actor known as ‘BlackOasis’. The same month, Kaspersky Lab’s experts published a detailed analysis of СVE-2017-11826, a critical zero-day vulnerability used to launch targeted attacks in all versions of Microsoft Office. The exploit for this vulnerability is an RTF document containing a DOCX document that exploits СVE-2017-11826 in the Office Open XML parser. Finally, just a couple of days ago, information on Internet Explorer zero day CVE-2018-8174 was published. This vulnerability was also used in targeted attacks.

“The threat landscape in the first quarter again shows us that a lack of attention to patch management is one of the most significant cyber-dangers. While vendors usually issue patches for the vulnerabilities, users often can’t update their products in time, which results in waves of discreet and highly effective attacks once the vulnerabilities have been exposed to the broad cybercriminal community,” notes Alexander Liskin, security expert at Kaspersky Lab.

Other online threat statistics from the Q1, 2018 report include:

  • Kaspersky Lab solutions detected and repelled 796,806,112 malicious attacks from online resources located in 194 countries around the world.
  • 282,807,433 unique URLs were recognised as malicious by web antivirus components.
  • Attempted infections by malware that aims to steal money via online access to bank accounts were registered on 204,448 user computers.
  • Kaspersky Lab’s file antivirus detected a total of 187,597,494 unique malicious and potentially unwanted objects.
  • Kaspersky Lab mobile security products also detected:
    • 1,322,578 malicious installation packages.
    • 18,912 mobile banking Trojans (installation packages).

To reduce the risk of infection, users are advised to:

  • Keep the software installed on your PC up to date, and enable the auto-update feature if it is available.
  • Wherever possible, choose a software vendor that demonstrates a responsible approach to a vulnerability problem. Check if the software vendor has its own bug bounty program.

·         Use robust security solutions , which have special features to protect against exploits, such as Automatic Exploit Prevention.

·         Regularly run a system scan to check for possible infections and make sure you keep all software up to date.

  • Businesses should use a security solution that provides vulnerability, patch management and exploit prevention components, such as Kaspersky Endpoint Security for Business. The patch management feature automatically eliminates vulnerabilities and proactively patches them. The exploit prevention component monitors suspicious actions of applications and blocks malicious files executions.
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