Digital Rights Management and New Entertainment Business Models: A strategic analysis

Table of Contents

Introduction

• Structure of the report

Value chains in transition

• Value capture
• The recording and motion picture industries compared
• Value capture versus creation
• The music industry
• Creation, composition and performance
• Recording
• Reproduction and distribution
• Sales
• Value chain change
• Creators
• Corporate content owners
• DRM service providers
• Network operators
• Device manufacturers
• The movie industry
• Illegal distribution
• Remuneration of talent
• Global market
• Consumption environments
• Digital impacts on production
• Delivery and presentation--theatrical
• Delivery and presentation--DVD
• Delivery and presentation--TV
• Windowing
• Old value chain, new value chain
• Conclusions

DRM Technologies

• DRM versus conditional access (CA) technologies
• The internet effect
• First generation DRM architecture
• The failure of first generation DRM
• The delivery application explosion
• Ripping tools and CD burners
• Broadband
• P2P networks
• Centralised P2P networks
• Distributed P2P networks
• Second generation DRM

Six key DRM companies

• Microsoft
• RealNetworks
• Apple
• Sony
• InterTrust
• Sun

The proprietary DRM providers

• Microsoft
• RealNetworks

The 'single-play' DRM providers

• Apple Fairplay
• Sony MagicGate

The interoperability providers

• InterTrust Nemo
• Sun Microsystem's Dream

Supporting technologies

• Rights languages and watermarking and fingerprinting
• Content tracking

Standards Standards initiatives

• Advanced Access Content System (AACS)
• Copy Protection for Recordable

Media--4C (CPRM)

• Digital Living Netwrok Alliance (DLNA)
• Digital Transmission Content

Protection--5C (DTCP)

• High-bandwidth Digital Content Protection (HDCP)
• Digital Video Broadcasting Project (DVB)
• Motion Picture EXpert Group (MPEG)
• Digital Media Project (DMP)
• Open Mobile Alliance (OMA)
• TV-Anytime
• Secure Video Processor (SVP)

Content Protection Conclusions

DRM and new entertainment business models

• Scenario 1--Simple online consumer download with aggregated content
• Scenario 2--Simple online consumer download with distributed content
• Scenario 3--Content owners access to multiple delivery streams
• Scenario 4--Content owners and aggregators relate in a complex value chain
• Scenario 5--Legal peer-to-peer
• Scenario 6--Pervasive automated content trading

The consumer environment

• Copyright issues
• Permissions, limitations and exceptions
• First sale
• Privacy issues
• Usability of DRM systems
• Interoperability of content across
• different systems
• Service support and content recovery
• Other issues
• Conclusions

Legal and regulatory environment

• International copyright protection
• TRIPS agreement (WTO)
• National copyright protection--USA
• National copyright protection - European Union
• European Union consumer law Transparency
• Contractual terms
• Privacy
• Government initiatives on DRM
• DRM and private-copying levies

New distribution and business models in practice

• Business models
• Retail
• Rental
• Pay-per-view (PPV)
• Subscription
• Advertising and sponsorship

Selected company profiles:

• CinemaNow
• TiVO
• BrightCove
• Akimbo
• RipeTV
• Kontiki
• Greengrass
• Comcast
• Lovefilm

Tables and Charts

Value chains in transition

• UK Music downloads
• Traditional music value chain
• Emerging music value chain
• Diagram A: Current movie value chain
• Diagram B: Current release windows
• Diagram C: New movie value chain - scenario 1
• Diagram D: New movie value chain - scenario 2

DRM Technologies

• Conditional access and DRM comparison
• USA Online--Historic and projected
• UK Online--Historic and projected
• USA Broadband uptake
• UK Broadband uptake
• Centralised P2P network
• Distributed P2P network
• Exemplary DRM Providers Chart
• Standards Initiatives: Summary
• Standards and propriety technologies

DRM and new entertainment business models

• Scenario 1
• Scenario 2
• Scenario 3
• Scenario 4
• Scenario 5
• Scenario 6