Understanding Digital Rights Management Digital Rights Management - PowerPoint PPT Presentation

Understanding Digital Rights Management Digital Rights Management and the publishing industry Lara Carim, Analyst Electronic Publishing Services Assistant Editor, IMI EBLIDA Council Meeting 12 May 2001

“Read all about it…” Spring 2001  Napster forges deals with Gracenote, Gigabeat, Relatable  RIAA to create digital rights barcode g g  Digimarc/Cobion to enhance watermarked image tracking  InterTrust to test content-protective TV set-top boxes  Nokia buys 5% of InterTrust to protect mobile phone content  International DOI Foundation to fund feasibility study for  International DOI Foundation to fund feasibility study for development of a Rights Data Dictionary EBLIDA Council Meeting, 12 May 2001

EBLIDA Council Meeting, 12 May 2001 Monetisation Two sides of the same coin Protection

The size of the The size of the digital content prize In 1999 digital downloads = $12m Total online total online book sales $1,202m total online book sales = $1,202m book sales 2004 book sales 2004 Forrester Research 13% digital Media content sold in US in 1999: $200 bn downloads V Veronis Suhler, Information Industry Report, 1999 i S hl I f ti I d t R t 1999 40% of publishers’ total revenues from electronic document sales by 2003 electronic document sales by 2003. Xerox Rights Management $2.3bn in e-books sales by 2005 AAP/Andersen Consulting “eBook standards”, Nov 2000 Forrester Research Publishing industry loss to piracy by 2005 Forrester Research = $1.5 BILLION EBLIDA Council Meeting, 12 May 2001

EBLIDA Council Meeting, 12 May 2001 No shortage of players…

“What’s it all about?” Watermarking IP tracking Content preparation Content preparation Secure encryption Content packaging Financial clearing Financial clearing Usage monitoring… EBLIDA Council Meeting, 12 May 2001

Show me the money… Software licence fees Commission on transactions Integration of Aggregated back-office sales data sales data systems systems Consultancy fees EBLIDA Council Meeting, 12 May 2001

Why is DRM important NOW?  Connectivity: critical mass, broadband growth  User sophistication/demand  User sophistication/demand  Proliferation of thin clients  P2P file sharing networks – Xdegrees, Docster “There is no question that file-sharing will exist in the future as a part of the media and entertainment industries” Thomas Middelhoff, CEO Bertelsmann Th Midd lh ff CEO B t l  Elegant technology  Emerging standards E i d d  Trend away from ad-based content businesses EBLIDA Council Meeting, 12 May 2001

It’s not just Stephen King... Productivity Timeliness Historical financial: economic Financial : stock quotes, M&A Financial : stock quotes, M&A modelling, trends analysis Scientific: viz success of e-prints Company news/research Educational: texts/tips pre-exams reports: strategy documents, reports: strategy documents recommendations Technical: troubleshooting manuals Chemical: structural Shopping: price comparison, characteristics man fact ring characteristics, manufacturing availability il bilit EBLIDA Council Meeting, 12 May 2001

Benefits to publishers “For publishers in a number of sectors, a DRM solution is the rock on which they will build a successful digital commerce arm.” Caroline Horner, Vice President Marketing, Magex  Reduce piracy losses  Create once, sell many  Provide new revenue streams and customers  Boost upselling  Supply better quality customer service  Price tailoring  Freedom to choose  Gain competitive advantage  Selling to the unknown customer: superdistribution EBLIDA Council Meeting, 12 May 2001

EBLIDA Council Meeting, 12 May 2001 Superdistribution

Publisher DRM Checklist  Role of digital distribution within business  Fit with customer base  Preparation required/resources available P ti i d/ il bl  Timescales  Customer data privacy  Customer data privacy  Standards/Interoperability  The granny test  The granny test EBLIDA Council Meeting, 12 May 2001

Thank you for listening Thank you for listening Lara Carim, Analyst Assistant Editor IMI Assistant Editor, IMI lara@epsltd.com Electronic Publishing Services www.epsltd.com