Thursday, January 19, 2006

Online Digital Content Explosion Presents Opportunities & Problems .Balance of copyright protection and customers' expectations

eMarketer: iTunes figured out how to deliver online, Sony didn't. . Consumers do not want to be blocked from content – they want it when and how it best suits them. If content is blocked, savvy users will find it elsewhere. Content providers can either get a piece of the action, or risk having their content avoided because of tight content restrictions from DRM and restrictive terms-of-service agreements.

Sony's recent Digital Rights Management (DRM) fiasco highlighted the tightrope content producers employing DRM technologies are currently walking. Authors, artists and publishers now have the technological tools to better protect their digital creations but if they want consumers to pay for their digital work, they must find the right balance between copyright protection and customer's expectations. Changing media consumption patterns and emerging broadband channels are opening up new opportunities for content providers. TV still presents content providers (and advertisers) with the largest audience for high-bandwidth content with approximately 1 billion households worldwide having a TV in 2005. Forecasts that nearly half of US broadband users in 2008 (76.5 million people) will be regular users of Internet audio/video content, up from 31% in 2004.

New channels for broadband content are emerging, with approximately 30 million broadband users accessing online audio or video content each week in the US to access, record, and share digital content,. Used effectively, DRM technologies have the potential to open up these new channels to traditional publishers and producers. Digital Rights Management report DRM? Wikipedia ; Red Viking Publ 2006019