Abstract
New Internet and mobile video services will pose an increasing challenge to
the traditional film and TV industry, argues a new report from Screen Digest
and consultancy Rightscom. The way forward lies in developing effective
digital download-to-own services that mimic the DVD business model that has
generated billions of dollars of profit for movie studios and broadcasters.
Sometimes called 'electronic sell-through' or 'digital retail', the
download-to-own business model allows companies to charge a higher price (and
hence extract a better profit margin) than other forms of video-on-demand.
Pioneering examples of such Internet services include Movielink -- an online
joint venture founded by a group of the largest studios, the new UK venture
recently announced by Universal Studios and new entrant LoveFilm and the
German In2Movies offering being established by Warner Bros.
Critical to the success of these new Internet video-on-demand ventures will be
the deployment of flexible and robust digital rights management (DRM) systems.
Screen Digest's report Digital Rights Management and New Entertainment
Business Models is the first comprehensive analysis of the way that DRM
technologies are being used to reinvent the film and TV industry in the 21st
century.
The report examines the lessons learnt from the music industry's digital
experience and also analyses the way in which DRM systems might allow movie
release windows to be radically changed in future. All the key players in the
DRM space are scrutinised and the report highlights the groundbreaking
business and distribution models developed by firms like Akimbo, BrightCove,
CinemaNow, Comcast, Greengrass, Lovefilm, Kontiki, RipeTV, and TiVo.
Structure of the report:
- Chapter 1 describes the music and audio-visual value chains as they are
today. It considers the different players in the chains, how they interact
with each other and which of them has a significant gate-keeping position.
- Chapter 2 presents a review of technological developments and standards.
The section opens with a brief history of Internet content delivery and the
first wave of digital rights management technology development. It then
provides a review of the growth of technologies for the infringement of
copyright, including peer-to-peer network technologies. This is followed by a
review of current developments in DRM. The section ends with a review of the
standards processes that have a bearing on DRM and interoperability.
- Chapter 3 sets out to draw a picture of some of the new business models
that may impact the value chain if DRM technologies are deployed. A series of
generic models is described, each more radical than its predecessor.
- Chapter 4 looks at DRM technologies and processes from the consumer
perspective. Three aspects of DRM of critical importance to consumers are
considered: copyright, privacy and usability. The section concludes with a
comment on the extent to which DRM technologies may have a tendency to exclude
certain categories of user.
- Chapter 5 provides a very brief review of the legal and regulatory
environment in which DRM will be implemented. The balance between rights
owners' protection and consumers' expectation is considered.
- Chapter 6 provides a non-exhaustive survey of some companies at the
cutting edge of developing new business models in the audiovisual space.