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.
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
