Research Overview
Content Owners are Gradually Realizing the Importance of DRM Systems
The increasing need for secure digitized content is stimulating demand for digital rights management (DRM) systems that serve as ideal tools for preventing IP theft and protecting business revenues. With the proliferation of broadband connections and peer-to-peer networks, content owners are realizing the importance of DRM systems in denying end users free access to online content. Since numerous lawsuits by the Record Industry Association of America failed to eliminate illegal trading of valuable digital files, content owners have been forced to seriously consider DRM systems. The upcoming release of Adobe Policy Server and Microsoft messaging that reiterate the DRM capabilities is also generating more interest in DRM solutions.
This Frost & Sullivan research evaluates the current state of the U.S. DRM market and examines the factors that will contribute to its future success. This analysis also identifies key challenges and provides strategic recommendations to overcome such obstacles. Key drivers, revenue forecasts, demand analysis, and product pricing trends allow participants to explore emerging opportunities in this market.
Difficulty in Obtaining Distribution Rights from Content Owners Proves Challenging for DRM Vendors
The success of DRM systems largely depends upon the ability of distributors to acquire the distribution rights from content owners. For instance, in the music industry, popular artistes have enough bargaining power over record labels to retain the digital rights of their work. "DRM vendors must educate content owners regarding the sophisticated solutions currently available in the market that allow them to retain full control of their content and simultaneously prevent attacks on viewing devices," explains the analyst.
Content owners that are aware of the benefits of complimentary technologies are likely to adopt DRM solutions more readily. Support solutions such as code transformation technology render DRM systems more effective by preventing automated hackings not only on DRM-enabled, but also on the entire range of related readers and players.
Widespread Access to Broadband Internet Accelerates Need for DRM Systems
The pervasive use of broadband Internet connections as opposed to the relatively safer 56k connections has brought about a sense of urgency in the deployment of DRM systems. "Broadband connections - that in some cases offer speeds comparable to T1 lines - have broken the barriers to download large files resulting in decreased revenues for the media and entertainment industry," says the analyst. Such companies are looking to install DRM systems to keep a check on large-scale intellectual property theft and revive falling revenues.
The lack of interoperability, which is critical for supporting a wider range of file formats, is a significant challenge facing DRM vendors. Fortunately, the integration of DRM solutions with enterprise content management is likely to expand the DRM capabilities for protecting multiple file formats such as e-mail, documents, HTML, audio, and video files, thereby accelerating market acceptance.
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Table of Contents
1 EXECUTIVE SUMMARY
Market Overview
- Introduction
- Competitive Analysis
- Technologies
- Opportunities and Forecasts
- Conclusions
2 TOTAL U.S. DIGITAL RIGHTS MANAGEMENT MARKET
Overview
- Report Objectives Definition and Introduction
- Drivers 1-5
- Drivers 6-10
- Restraints 1-5
- Restraints 6-10
- Challenges 1-5
- Challenges 6-10
- Strategic Recommendations 1-5
- Strategic Recommendations 6-10
Supporting Technologies
- Digital Rights Language and Interoperability
- XrML 2.0
- Software Code Diversity
- Hardware Support for DRM
- Forecasts and Trends
- Revenue Forecasts
- Market Trends
- Technology Trends
- Market Engineering Measurements
- Demand Analysis
- Pricing Models
- Competitive Structure
- Market Share and Product Description
Frost & Sullivan Awards
- Explanation of Market Awards
- 2004 Market Leadership Award - Consumer DRM Software
- 2004 Market Leadership - Enterprise DRM Software
- 2004 DRM Technology Innovation
- 2004 DRM Technology Leadership
