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UnderstandingDigital Rights ManagementDigital Rights Managementand 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 barcodeg 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 theThe size of thedigital content prize
In 1999 digital downloads = $12mtotal online book sales = $1,202m
Total onlinebook sales 2004total online book sales $1,202m
Forrester Research
Media content sold in US in 1999: $200 bnV i S hl I f ti I d t R t 1999
book sales 200413% digital downloads
Veronis Suhler, Information Industry Report, 1999
40% of publishers’ total revenues fromelectronic document sales by 2003electronic 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 2005Forrester 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 preparationContent 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
systemsAggregated sales data systemssales 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 lThomas Middelhoff, CEO Bertelsmann
Elegant technologyE 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 on 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 listeningThank you for listening
Lara Carim, AnalystAssistant Editor IMIAssistant Editor, IMI
Electronic Publishing Services
www.epsltd.com
