digital media
Digital rights management system needed: study
An efficient Digital Rights Management System that allows management and protection of digital content; and technology-agnostic, forward-looking and robust regulatory policies balanced with self-regulation and cross-industry agreements are the need of the hour to give a fillip to the fast-growing Indian digital entertainment and media industry, according to a FICCI- PricewaterhouseCoopers (PwC) study on “Entertainment & Media: India Going Digital”.
The study points out that the advent of digital media has thrown up several new issues that Indian stake-holders need to take cognisance of. Among these, copyright issues are at the foremost which impact exploitation of digital content across ‘new media’. Technology issues, especially those relating to inter-operability of equipments and devices at consumer premises are also to be dealt with. Digital piracy, though at a nascent stage, will also be a challenge for the Indian stake-holders with proliferation of digital media to the large Indian masses. Thus, the FICCI-PwC study notes that an efficient Digital Rights Management System that will allow management and protection of digital content in a digital environment become mandatory.
India is currently witnessing a trend of increased digital infrastructure penetration of broadband and mobile networks which now make it possible to broadcast, stream and download digitised content from diverse platforms to a variety of devices. The new technological environment is thus creating great opportunities for content providers in India to monetise their valuable content across various digital media and devices.
However, the migration to digital formats is having an adverse impact on competing revenue streams. The FICCI-PwC study points out that digital/mobile spending streams compete with physical home video sell-through and rental, physical recorded music sales, physical book sales and purchases of magazines and newspapers. Additionally, traditional TV, radio, magazine, and newspaper advertising continues to compete with Internet advertising.
In 2006, for the first time ever, global digital/mobile spending streams contributed more to global entertainment and media spending growth compared to directly competing spending streams.
Consumer migration to digital formats is leading to change on the part of content providers. One change is the increased interest in consolidation. With content now being distributed on multiple platforms, content producers/providers, distributors, and technology companies are looking to expand their presence among the proliferating channels, resulting in an increase in merger and acquisition (M&A) activity.
Companies are also forming alliances and joint ventures to better take advantage of and serve the needs of the changing environment.
Broadcasters are creating strategic alliances with digital networking companies and teaming up with Internet companies and wireless providers to stream programming both over the Internet and to mobile devices. Publishers and search engine companies are working together to share content and sell advertising in both print and digital formats. Technology companies are creating alliances to support the expansion of digital and mobile distribution of content.
The study notes that content, distribution, and technology companies are thus expected to continue to pursue new relationships during the next five years to accommodate the growing role that digital distribution will play in the entertainment and media market.
An issue for content providers and distributors is the degree to which they utilize DRM software to control distribution. DRM restricts the ability of consumers to copy and distribute products. The benefit to content providers is that DRM limits unauthorized distribution. There is also a cost. Restrictions on usage, which include the inability of content downloaded on one device to play on another, can discourage some consumers from buying product through legitimate channels. Companies are grappling with this trade-off.
Because of increasing pressure on the industry itself, music companies are considering releasing music over the Internet without copy protection, which would fuel Internet distribution and revenue growth by allowing music downloaded to be played on virtually any device. With physical distribution falling rapidly, labels are becoming more receptive to strategies that enhance digital distribution even as it reduces impediments to unauthorized distribution.
Companies are experimenting with different approaches to intellectual property management. It is expected that technologies, methodologies, and business models will continue to evolve during the next several years.
In 2006, the various digital platforms generated $690 billion in global spending, or 48 per cent of total entertainment and media spending, including Internet access spending. During the past five years, spending on these platforms expanded by double-digit rates and high-single-digit ratesTwo additional years of double-digit growth are expected, with high-single-digit gains anticipated during 2009–11. By 2011, spending on these platforms will reach $1.1 trillion, growing at a 9.1 percent compound annual rate. Asia Pacific will be the fastest-growing region, with a projected 13.5 per cent compound annual increase.
More and more entertainment and media companies are pushing forward with their triple- and quadruple-play strategies. Enabled by the growth in broadband and mobile, new players are intensifying competition and the fight for revenues as the market moves toward lower prices.\u003c/span\>\u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\> \u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\>For consumers, the possibilities are endless—an unprecedented explosion of choices and new services where they can call the shots. Often they can access content anywhere, anytime, on any device. They can entertain themselves and others and communicate with each other and with content and service providers in whole new ways. They can customize anything, from their music playlists to their television line-ups. They can use Weblogs, create their own content, and share that content on a growing number of social networks. All this points to a consumer who, increasingly, has the power to influence others, the organisation, and the marketplace.\u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\> \u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\>For the organisations that provide the content and distribution services, the growing complexity of their businesses is driven by new revenue opportunities, cost pressures, and a need to be much more transparent while developing offerings to meet consumer demand. Capturing the potential within the complexity requires a new marketing approach and a new mind-set, both reflecting the new expectations of consumers.\u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\> \u003c/span\>\u003c/p\>",1]
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The FICCI-PwC study points out that customer focus may very well be the key differentiator in the months and years to come. More and more entertainment and media companies are pushing forward with their triple- and quadruple-play strategies. Enabled by the growth in broadband and mobile, new players are intensifying competition and the fight for revenues as the market moves toward lower prices.
For consumers, the possibilities are endless—an unprecedented explosion of choices and new services where they can call the shots. Often they can access content anywhere, anytime, on any device. They can entertain themselves and others and communicate with each other and with content and service providers in whole new ways. They can customize anything, from their music playlists to their television line-ups. They can use Weblogs, create their own content, and share that content on a growing number of social networks. All this points to a consumer who, increasingly, has the power to influence others, the organisation, and the marketplace.
For the organisations that provide the content and distribution services, the growing complexity of their businesses is driven by new revenue opportunities, cost pressures, and a need to be much more transparent while developing offerings to meet consumer demand. Capturing the potential within the complexity requires a new marketing approach and a new mind-set, both reflecting the new expectations of consumers.
Customer focus may very well be the key differentiator in the months and years to come. Such a focus means knowing your customers, offering them the best experience as customers, making sure your organisation truly listens to customers while having the agility to react quickly to their changing expectations. Those companies able to harness this approach almost certainly will be the winners in a competitive and increasingly complex marketplace.
An efficient Digital Rights Management System that allows management and protection of digital content; and technology-agnostic, forward-looking and robust regulatory policies balanced with self-regulation and cross-industry agreements are the need of the hour to give a fillip to the fast-growing Indian digital entertainment and media industry, according to a FICCI- PricewaterhouseCoopers (PwC) study on “Entertainment & Media: India Going Digital”.
The study points out that the advent of digital media has thrown up several new issues that Indian stake-holders need to take cognisance of. Among these, copyright issues are at the foremost which impact exploitation of digital content across ‘new media’. Technology issues, especially those relating to inter-operability of equipments and devices at consumer premises are also to be dealt with. Digital piracy, though at a nascent stage, will also be a challenge for the Indian stake-holders with proliferation of digital media to the large Indian masses. Thus, the FICCI-PwC study notes that an efficient Digital Rights Management System that will allow management and protection of digital content in a digital environment become mandatory.
India is currently witnessing a trend of increased digital infrastructure penetration of broadband and mobile networks which now make it possible to broadcast, stream and download digitised content from diverse platforms to a variety of devices. The new technological environment is thus creating great opportunities for content providers in India to monetise their valuable content across various digital media and devices.
However, the migration to digital formats is having an adverse impact on competing revenue streams. The FICCI-PwC study points out that digital/mobile spending streams compete with physical home video sell-through and rental, physical recorded music sales, physical book sales and purchases of magazines and newspapers. Additionally, traditional TV, radio, magazine, and newspaper advertising continues to compete with Internet advertising.
In 2006, for the first time ever, global digital/mobile spending streams contributed more to global entertainment and media spending growth compared to directly competing spending streams.
Consumer migration to digital formats is leading to change on the part of content providers. One change is the increased interest in consolidation. With content now being distributed on multiple platforms, content producers/providers, distributors, and technology companies are looking to expand their presence among the proliferating channels, resulting in an increase in merger and acquisition (M&A) activity.
Companies are also forming alliances and joint ventures to better take advantage of and serve the needs of the changing environment.
Broadcasters are creating strategic alliances with digital networking companies and teaming up with Internet companies and wireless providers to stream programming both over the Internet and to mobile devices. Publishers and search engine companies are working together to share content and sell advertising in both print and digital formats. Technology companies are creating alliances to support the expansion of digital and mobile distribution of content.
The study notes that content, distribution, and technology companies are thus expected to continue to pursue new relationships during the next five years to accommodate the growing role that digital distribution will play in the entertainment and media market.
An issue for content providers and distributors is the degree to which they utilize DRM software to control distribution. DRM restricts the ability of consumers to copy and distribute products. The benefit to content providers is that DRM limits unauthorized distribution. There is also a cost. Restrictions on usage, which include the inability of content downloaded on one device to play on another, can discourage some consumers from buying product through legitimate channels. Companies are grappling with this trade-off.
Because of increasing pressure on the industry itself, music companies are considering releasing music over the Internet without copy protection, which would fuel Internet distribution and revenue growth by allowing music downloaded to be played on virtually any device. With physical distribution falling rapidly, labels are becoming more receptive to strategies that enhance digital distribution even as it reduces impediments to unauthorized distribution.
Companies are experimenting with different approaches to intellectual property management. It is expected that technologies, methodologies, and business models will continue to evolve during the next several years.
In 2006, the various digital platforms generated $690 billion in global spending, or 48 per cent of total entertainment and media spending, including Internet access spending. During the past five years, spending on these platforms expanded by double-digit rates and high-single-digit ratesTwo additional years of double-digit growth are expected, with high-single-digit gains anticipated during 2009–11. By 2011, spending on these platforms will reach $1.1 trillion, growing at a 9.1 percent compound annual rate. Asia Pacific will be the fastest-growing region, with a projected 13.5 per cent compound annual increase.
More and more entertainment and media companies are pushing forward with their triple- and quadruple-play strategies. Enabled by the growth in broadband and mobile, new players are intensifying competition and the fight for revenues as the market moves toward lower prices.\u003c/span\>\u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\> \u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\>For consumers, the possibilities are endless—an unprecedented explosion of choices and new services where they can call the shots. Often they can access content anywhere, anytime, on any device. They can entertain themselves and others and communicate with each other and with content and service providers in whole new ways. They can customize anything, from their music playlists to their television line-ups. They can use Weblogs, create their own content, and share that content on a growing number of social networks. All this points to a consumer who, increasingly, has the power to influence others, the organisation, and the marketplace.\u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\> \u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\>For the organisations that provide the content and distribution services, the growing complexity of their businesses is driven by new revenue opportunities, cost pressures, and a need to be much more transparent while developing offerings to meet consumer demand. Capturing the potential within the complexity requires a new marketing approach and a new mind-set, both reflecting the new expectations of consumers.\u003c/span\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 30pt 0pt 49.5pt;text-align:justify\"\>\u003cspan style\u003d\"font-size:16pt;color:black\"\> \u003c/span\>\u003c/p\>",1]
);
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The FICCI-PwC study points out that customer focus may very well be the key differentiator in the months and years to come. More and more entertainment and media companies are pushing forward with their triple- and quadruple-play strategies. Enabled by the growth in broadband and mobile, new players are intensifying competition and the fight for revenues as the market moves toward lower prices.
For consumers, the possibilities are endless—an unprecedented explosion of choices and new services where they can call the shots. Often they can access content anywhere, anytime, on any device. They can entertain themselves and others and communicate with each other and with content and service providers in whole new ways. They can customize anything, from their music playlists to their television line-ups. They can use Weblogs, create their own content, and share that content on a growing number of social networks. All this points to a consumer who, increasingly, has the power to influence others, the organisation, and the marketplace.
For the organisations that provide the content and distribution services, the growing complexity of their businesses is driven by new revenue opportunities, cost pressures, and a need to be much more transparent while developing offerings to meet consumer demand. Capturing the potential within the complexity requires a new marketing approach and a new mind-set, both reflecting the new expectations of consumers.
Customer focus may very well be the key differentiator in the months and years to come. Such a focus means knowing your customers, offering them the best experience as customers, making sure your organisation truly listens to customers while having the agility to react quickly to their changing expectations. Those companies able to harness this approach almost certainly will be the winners in a competitive and increasingly complex marketplace.
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