Beyond Traditional DRM

DRM is dead...Long live DRM.

Digital Rights Management (DRM) has seen its share of ups and downs. As a means for restricting consumer media usage, preventing copying, yet allowing interoperability, DRM has failed. However, DRM as a technology that enables content monetization on multiple networks and multiple devices faces a brighter outlook. Fingerprinting and Digital Watermarking (DWM) are two extentions of DRM that are emerging across several media-centric applications with far reaching implications.

DWM and fingerprinting underlie several key applications, including:

• Broadcast monitoring
• Internet Content Identification
• For copyright control
• Metadata
• Long-run, interactive behavioral targeted advertising in non-linear media distribution
• Copy Protection & Forensics
• High Definition DVD
• Digital Cinema

The impact of these technologies could be bigger than the direct applications. They are positioned to enable earlier release windows of premium content and to support the monetization of non-linear media distribution.

"Beyond Traditional DRM: Moving to Digital Watermarking & Fingerprinting in Media Monetization" provides research, analysis and forecasts for key Fingerprinting and DWM applications and technologies. The report identifies the key media and DRM trends that are aligning to drive demand. In addition, the report examines the broader impact that these technologies could have through supporting interactive business models on a multi-platform, multi-network basis. The report includes an assessment of the digital media ecosystem, the DWM & fingerprinting value chain, and the key players in each application segment.

The future of Digital Rights Management (DRM) depends on how you define it. As a means for restricting consumer media usage and preventing copying, DRM is facing significant backlash from consumers and some industry segments. As record labels retrench from their DRM efforts and legal assaults, MultiMedia Intelligence believes a broader definition of DRM better serves both industry and consumers.

DRM as a technology that enables content monetization on multiple networks and multiple devices faces a brighter outlook. Fingerprinting and digital watermarking (DWM) are two extensions of DRM that are emerging across several media-centric applications. These technologies are positioned to play a major role in enabling monetization of digital media. At a high level, there are two primary application categories:

1) Content Identification- fingerprinting and watermarking

• Copyright identification and enforcement
• Activity monitoring
• Association and monetization

2) Anti-piracy and copy protection-watermarking

• Copy protection
• Forensics- Identify source of illegally distributed content
• A variety of digital media and DRM trends are aligning contribute to increased need for fingerprinting and watermarking. Among these growth enablers are:
• 1) Proliferation of user generated content and social networks, coupled with users posting copyrighted media.
• 2) Release window compression
• The pressure to advance the release timing for high-definition premier titles is growing. Fox has already communicated that they will mandate watermarking for early-release HD content.
• 3) Increasing operator competitive pressures, driven primarily by IPTV operators and internet media distribution.
• 4) Greater processing capabilities in consumer equipment, enabling low cost transactional DWM in consumer electronics.
• 5) Loss of control and visibility in non-linear distribution of media

At a more detailed level, DWM and fingerprinting underlie these primary applications:

• Broadcast monitoring
• Internet Content Identification
• For copyright control
• Metadata
• Long-run, interactive behavioral targeted advertising in non-linear media distribution
• Copy Protection and Forensics
• High definition DVD
• Digital Cinema
• Set-top boxes, likely for early release windows for HD VOD

• Industry Assessment
• Digital Content Ecosystem.
  • Digital Audio/Video Platforms
  • Consumer Usage, Content Rights & Content Monetization
  • Industry Trends & Predictions
  • Digital Media & Web 2.0 Trends
  • Digital Rights Managment Trends
  • Watermarking & Fingerprinting
  • Watermarking & Fingerprinting Trends
  • Growth Enablers
  • Growth Inhibitors & market threats
  • The DWM Players
  • Watermarking & Fingerprinting in Content Identification
  • Broadcast monitoring
  • Internet Monitoring
  • Metadata association
  • Watermarking as Content Protection
  • Forensics & Accountability
  • Copy prevention: Revoking Content in the Consumer Platform
  • Watermarking Role in Digital Rights Management
  • The Network Traffic Cop
  • Watermarking role in content protection moves with the release windows
  • Content Authentication
  • Video & Digital Media Search
  • Advanced Interactive Business Models
  • Watermarking & Fingerprinting Company Profiles
  • Broad-based Solution Providers
  • Philips Content Identification
  • Thomson
  • Technology, IP & Software companies
  • Activated Content
  • Aqua Mobile
  • Cinea
  • DataMark Technologies Pte Ltd ("DataMark")
  • Digimarc
  • INA
  • MediaGrid
  • Verance
  • Vobile
  • Metadata companies- Content Identification with primary focus on associating metadata with the content
  • All Media Guide- Macrovision
  • Gracenote
  • Internet Video Piracy Monitoring & Content Protection Services
  • Advestigo
  • Audible Magic
  • Auditude
  • BayTSP
  • MediaDefender
  • MSI Copy Control
  • Streamburst
  • Broadcast Monitoring
  • Nielsen Media Research
  • Teletrax
  • TNS Media Intelligence
  • Others
  • Digital Watermarking Alliance
  • Gibson
  • ISAN
  • MovieLabs
  • Conditional Access/DRM companies
  • Equipment Manufacturers
  • Technology & Semiconductor Impacts
  • Technology Standards
  • Market Sizing & Forecasts
  • Fingerprinting, DWM and Related Markets
  • Extending DRM & Conditional Access- Enabling HD VoD with Transactional Digital Watermarking
  • Digital Cinema, HD & Blu Ray DVD
  • Protecting & Monetizing Online Content
  • DWM and Fingerprinting Technology
  • Methodology
  • Appendix A - Definitions
  • Watermarking
  • Fingerprinting
  • DRM
  • Steganography
  • Hashing
  • Appendix B - Copyright Principles for UGC Services
• List of Tables
  • Table 1. Summary Network DWM & Fingerprinting Software and Services Revenue Forecast ($M)
  • Table 2. Digital Watermarking & Fingerprinting Intellectual Property Revenue ($M)
  • Table 3. Broadband/Online Digital Music & Video On Demand Market Revenue Forecast ($M)
  • Table 4: US Internet Advertising Revenue by Category
  • Table 5. Conditional Access Competitor Market Share ($ Millions) 2006, 2007 Estimate
  • Table 6. Video-On-Demand Revenue Forecast by Operator Type and By Geography ($ Millions)
  • Table 7. IPTV Video-On-Demand Revenue Forecast by Geography ($ Millions)
  • Table 8. Digital Set Top Box Installed Base and Conditional Access Revenue Forecast
  • Table 9. Cable, Satellite & IPTV Set Top Box Worldwide Unit Forecast
  • Table 10. IPTV Set Top Box Installed Base, Conditional Access and Digital Watermarking Revenue Forecast
  • Table 11. Cable Set Top Box Installed Base, Conditional Access and Digital Watermarking Revenue Forecast
  • Table 12. Pay Set Top Box: Digital Watermarking Units and Revenue Forecast- Digital Cable & IPTV
  • Table 13. High Definition DVD Player/Recorder Shipment Forecast and Digital Watermarking Uptake (K Units)
  • Table 14. Digital Cinema Screens Deployed Annually, Installed Base, Projection System Revenue
  • Table 15. Digital Music Metadata Market Revenue Forecast ($M)
  • Table 16. Internet Video Metadata Market Revenue Forecast ($M)
  • Table 17. Internet Media Identification & Copyright Management Revenue Forecast ($M)
  • Table 18. Broadcast Monitoring Revenue Forecast ($M)
  • Table 19. Summary Network DWM & Fingerprinting Software and Services Revenue Forecast ($M)
  • Table 20. Digital Watermarking & Fingerprinting Intellectual Property Revenue ($M)
• Listt of Figures
  • Figure 1. Digital Rights Management Framework
  • Figure 2. Digital Media Ecosystem
  • Figure 3. Content Sources: Mass Media, Long Tail and User Generate Content
  • Figure 4. iTunes Global Music Sales
  • Figure 5. Tivo's Partnership with Amazon Unbox foretells the Coming Wave of Internet TV on the TV
  • Figure 6. Google/YouTube Year to Year Video Streams - July 2006/2007 (M)
  • Figure 7. Relevant Media Device Platforms for Digital Watermarking
  • Figure 8. Consumer media Consumption allocation of media and digital media by age group
  • Figure 9. Key Events have been a catalyst Driving Digital Media
  • Figure 10. Phases of Digital Watermarking & Fingerprinting Deployment
  • Figure 11. Digital Watermarking and Cascading Release Windows
  • Figure 12. Digital Watermarking & Fingerprinting Value Chain
  • Figure 13. Most Useful Applications for DWM and Fingerprinting based on Media & Entertainment Industry Leaders Responses
  • Figure 14. YouTube Copyright Identification Policies
  • Figure 15. Digital Cinema and Camcorders
  • Figure 16. Overview of the Digital Watermarking Insertion Process
  • Figure 17. Digital Watermarking Application across Distrubition channels and Consumer Devices
  • Figure 18. Internet Network Traffic by Type of Content
  • Figure 19. Studio Film Release Windows & Timing
  • Figure 20. Percentage of Studio Revenue by Source: Theater, Home Entertainment, Pay TV, Free TV
  • Figure 21. TV Distribution Windows are Transitioning
  • Figure 22. Conditional Access Competitor Market Share 2006, 2007 Estimate
  • Figure 23. Macrovision's Business Model Reflects Model for Digital Watermarking