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

EBLIDA Council Meeting, 12 May 2001

 International DOI Foundation to fund feasibility study for

development of a Rights Data Dictionary

Two sides of the same coin

Protection Monetisation

EBLIDA Council Meeting, 12 May 2001

The size of the The size of the digital content prize

In 1999 digital downloads = $12m total online book sales = $1,202m

Total online book sales 2004

total online book sales $1,202m

Forrester Research

Media content sold in US in 1999: $200 bn

V i S hl I f ti I d t R t 1999

book sales 2004

13% digital downloads

Veronis Suhler, Information Industry Report, 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

EBLIDA Council Meeting, 12 May 2001

Publishing industry loss to piracy by 2005

Forrester Research = $1.5 BILLION

Forrester Research

No shortage of players…

EBLIDA Council Meeting, 12 May 2001

“What’s it all about?”

Watermarking IP tracking Content preparation Content preparation Secure encryption Content packaging Financial clearing

EBLIDA Council Meeting, 12 May 2001

Financial clearing Usage monitoring…

Show me the money…

Software licence fees Commission on transactions Integration of back-office systems Aggregated sales data systems sales data

EBLIDA Council Meeting, 12 May 2001

Consultancy fees

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” Th Midd lh ff CEO B t l Thomas Middelhoff, CEO Bertelsmann

 Elegant technology

E i d d

EBLIDA Council Meeting, 12 May 2001

 Emerging standards  Trend away from ad-based content businesses

It’s not just Stephen King...

Timeliness Productivity

Financial : stock quotes, M&A Historical financial: economic Financial : stock quotes, M&A Scientific: viz success of e-prints Educational: texts/tips pre-exams modelling, trends analysis Company news/research reports: strategy documents Technical: troubleshooting manuals Shopping: price comparison, il bilit reports: strategy documents, recommendations Chemical: structural characteristics man fact ring

EBLIDA Council Meeting, 12 May 2001

availability characteristics, manufacturing

Benefits to publishers

“For publishers in a number of sectors, a DRM solution is the rock

• n 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

EBLIDA Council Meeting, 12 May 2001

 Gain competitive advantage  Selling to the unknown customer: superdistribution

Superdistribution

EBLIDA Council Meeting, 12 May 2001

Publisher DRM Checklist

 Role of digital distribution within business  Fit with customer base

P ti i d/ il bl

 Preparation required/resources available  Timescales  Customer data privacy  Customer data privacy  Standards/Interoperability  The granny test

EBLIDA Council Meeting, 12 May 2001

 The granny test

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