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Digital Rights Management (DRM)

Product Type: Market Research Report
Published by: Global Industry Analysts
Published: April 2009
Product Code: R263-4036
Description
This report analyzes the worldwide markets for Digital Rights Management (DRM) in US$ Millions. Based on its key application areas, DRM is broadly classified and analyzed under the following three segments in this report: Media & Entertainment DRM, Enterprise DRM, and Software DRM. The report provides separate comprehensive analytics for North America, Europe, Asia-Pacific, and Rest of World. Annual forecasts are provided for each region for the period of 2006 through 2015. A six-year historic analysis is also provided for these markets. The report profiles 65 companies including many key and niche players worldwide such as Adobe Systems Incorporated, Aladdin Knowledge Systems, Apple Inc., CoreMedia AG, Digimarc Corporation, EMC Corporation, End2End Content Services, International Business Machines Corporation, IPR Systems Pty Ltd., Liquid Machines Inc., LockLizard Limited, Macrovision Corporation, Microsoft Corporation, Oracle Corporation, RealNetworks, Inc., SafeNet, Teletrax, Thomson, VeriSign Inc., and YANGAROO Inc. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

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Table of Contents
I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability and Reporting Limitations

Disclaimers

Data Interpretation & Reporting Level

Quantitative Techniques & Analytics

Product Definitions and Scope of Study

Media & Entertainment DRM

Enterprise DRM

Software DRM



II. EXECUTIVE SUMMARY

1. Global Market Overview

Industry Overview

Introduction

Promoting the Concept of “Fair Use”

Current Scenario

What Ails DRM?

Controversies Surrounding DRM Technologies

DRM Vendors Strive Hard to Erase DRM Misconceptions

DRM - A Necessary Evil

Spending on DRM Technologies Increasing

Growing Acceptance of DRM

Global DRM Market

2. Key Market Trends

Digital Music Sales on a Rapid Growth Path

Digital Watermarks Market to Grow

DRM Likely to Emerge in a Different Form

TV Home Entertainment to Guide DRM Market

Boom in Digital Media Market to Provide Opportunities for DRM Solutions

Increased Awareness on Monetary Benefits of DRM Increases DRM Uptake

Despite Controversies, Bright Future Ahead for DRM Market

DRM Interoperability to Drive Effective Content Delivery

New Facets of DRM

Security Apprehensions Across the Business World Drive Global DRM Market

Growth in Digital Media and Subsequent Security Problems Propel DRM Market

Rapid Growth Held Back Due to Inter-Operability Issues

Progress in Mobile Market - DRM

New Business Models and Delivery Pipelines to Drive DRM Market Growth

Demand for Set Top Boxes on the Rise

Increased Revenues from Data Traffic and Premium Content Boost DRM Adoption

3. Growth Drivers and Inhibitors

Growth Drivers

Growth Inhibitors/Challenges

Availability of Multiple Sources for Online Content

Lack of Common Consensus on Content Piracy Aspects

Lack of Common Standards

Conflict of Interest

Encouragement for Virtual Content Distribution

Ambiguity in Clarification on the Right to Private Copying

Difficulty in Achieving Interoperability

Concerns About Battery Life of DRM Enabled Devices

4. Competitive Scenario

Global Media & Entertainment DRM

Table 1: Leading Players in the Global Media & Entertainment DRM Market (2007): Percentage Share of Revenues for Microsoft Corporation, Apple Inc., Macrovision Corporation, SafeNet and Others (includes corresponding Graph/Chart)

Global Enterprise DRM

Table 2: Leading Players in the Global Enterprise DRM Market (2007): Percentage Share of Revenues for Microsoft Corporation, Adobe Systems Incorporated, Liquid Machines Inc, Oracle Corporation, EMC Corporation and Others (includes corresponding Graph/Chart)

Global Software DRM

Table 3: Leading Players in the Software DRM Market (2007): Percentage Share of Revenues for Aladdin Knowledge Systems, SafeNet, Macrovision and Wibu (includes corresponding Graph/Chart)

5. Product Information

Definition & Overview

DRM - Next-Gen Security Tool for “Right” Balance

History

First and Second Generation DRMs

DRM Concepts

DRM as Exclusion and Versioning Tools

Objective of DRM

DRM System

Management of Digital Rights

Digital Rights Enforcement

DRM Approach

DRM Language

‘Layers’ of Rights

DRM and Inter-operability

DRM and Licensing

Re-Formatting of Content & Rights

Data Management

Condition Evaluation

Dynamical State Evaluation

DRM Process

An Archetypal DRM Model

DRM Operating System

Development and Limitations of DRM

Architecture of DRM

Functional Architecture

DRM Framework and Modules

Intellectual Property (IP) Asset Creation and Capture Module

IP Asset Management Model Module

IP Asset Usage Module

Repository Functions

Trading Functions

Information Architecture

Core Entities of DRM model

Advantages of Information Architecture

Open DRM Framework

Characteristics of DRM

Metadata

Security and Copyright Protection

Encryption

Technologies for Copyright Protection

Signatures and Digital Watermarking

Personalization

Granularity

Interoperability

DRM - Key Capabilities

Persistent Content Protection

Linking Business Rights with a Valid Content

Rights Licensing

Access and Usage Limit Restrictions

Remote Control of Content

Clear Demarcation Between Consumption and Distribution

Other Capabilities

Role of DRM

Wider Access

Choice and Flexibility

DRM Perspectives

Technical DRM Perspective

Legal DRM Perspective

Social DRM Perspective

Copyrights and DRM Technologies

DRM Technology Overview

Digital Distribution & Technologies for Protection Against Illegal Copying

Technical Protection Measures for Physical and Virtual Goods

Access Control

DRM Vs Access Control and Technical Protection Measures

Digital Watermarking

DRM Systems Become Stringent

Implications of DRM on User Privacy

Working Solutions for DRM

DRM Benefits

Easy and Safe Distribution of Digital Content

Protection Against Unauthorized File Sharing and Usage

Protection Against Piracy in P2P Networks

Benefits of DRM Technologies for Music Industry

Other Benefits

6. Segmentation & Application Areas

Major DRM Application Areas

Media & Entertainment DRM - An Overview

Digital Media

DRM and Conditional Access

DRM on the Rise in Digital Media Industry

Content Protection & Digital Rights Management in IPTV/Broadband Services

Scope of DRM in New Entertainment Models

Developments in Digital Media DRM

Challenges for Digital Media DRM

Music Industry

Music Industry Marches Towards Online-Music Distribution

Scope of DRM in Music Industry

Effects of DRM on Music Industry

Challenges

Lost Opportunity

Growing Lobby for DRM-Free Music

Industry’s Preference for CDs

Lack of Interoperability

Presence of Anti-DRM Software

Despite Odds, DRM Does Well

DRM in Music Industry - Way Forward

Mobile Industry

Importance of DRM for Mobile Content

Mobile Industry’s Focus on Content Services to Boost Mobile DRM

Content - An Important Revenue Source for Mobile Industry

Mobile DRM - Opportunities

DRM in Mobile - Benefits

Controlled Access

Other Benefits

Open Mobile Alliance (OMA)

DRM Scenarios in Mobile Industry

Separate Delivery

Combined Delivery

Forward Lock

Challenges

Presence of Multiple Networks

Absence of a Reliable DRM Framework

Enterprise DRM - An Overview

Digital Policy Management

Interoperable and Dynamic Security

Essentials of an Effective Enterprise DRM

Persistent Protection

Inter-company Transactions

Excerpting

Platform Shifting

Format Shifting

Transfer of Rights

Allow Changes to Access and Usage Rights after Distribution

Integration with Existing Applications

Tracking Usage of DRM Works

Offline Usage

Easy Verification

Easy Identification

Enterprise DRM Systems in Market

Challenges

Market Drivers for Enterprise DRM

Software DRM - Overview

Focus on Containing Software Piracy

Software - A Readymade Market for DRM

Illegal Software on the Rise

Anti-Piracy Solutions

Other DRM Applications

DRM Systems for e-books

Protection of Digital Data

Securing the Distribution of e-books

Protection Against Content Alteration

Provides Transaction Proof

Provision for Identification of Transaction Participants

DRM in Healthcare Industry

DRM in Education

7. Product Launches/Innovations

Adobe Unveils New LiveCycle ES Update

in the LiveCycle ES Platform

Nokia to Introduce “Comes with Music” Service

Adobe Launches Adobe Content Server 4 e-book Lending and Retailing Software

SafeNet Introduces SafeBSF GBA Mobile TV Protection Solution

Liquid Machines Releases Gateway for BlackBerry Enterprise Solution

Liquid Machines Introduces New ERM Solution

LockLizard Introduces Safeguard Secure PDF DRM Viewer and MSI installer

Global Interface and Ipercast to Launch DRM Platform for Video on-Demand

Amazon.com to Launch DRM-free MP3 Music Store

SafeNet to Unveil Secure Mobile Content and Communications Solutions

LockLizard Unveils Version 2.6 of Safeguard PDF Security

Apple Launches iTunes Plus, New DRM-free Service

Internap Integrates KeyOS Pay Media Platform of Buy DRM into its CDN Services

MediaKey Unveils DRM Solution with Phone Billing Options

Fasoo Rolls Out XDRM, Enterprise DRM Network Appliance

Modevity Introduces Imperium™ DRM for Corporate Content Management

Open Mobile Alliance Releases BCAST Version 1.0 Specification

SafeNet to Introduce DRM Fusion Toolkit4TV in Mobile Broadcast TV

SafeNet Introduces MediaSentry BI Direct Measurement Service

Microsoft’s PlayReady DRM Platform for Mobile Devices Storms the Market

Aladdin Expands DRM Solutions

8. Recent Industry Activity

Philips Assumes Complete Ownership of Teletrax; Forms Civolution

Aladdin Knowledge Systems Takes Over Secure SafeWord

SafeNet Acquires Beep Science Technology

SafeNet Announces Plans to Take Over Aladdin Knowledge

RealNetworks Announces Trymedia’s Take Over From Macrovision

SafeNet Acquires Ingrian Networks

ABS-CBN in Collaboration with IBM Embarks on Digitalizing Media Content

MySpace Launches Music Collaboration with Eminent Publishers

BuyDRM to Support Microsoft PlayReady-Powered Silverlight DRM

SafeNet Offering Security Solutions to LuxTrust

RealNetworks® Announces Extension of SK Telecom Partnership

Technicolor Enters into an Agreement with CinemaNow

YANGAROO Extends Agreement with Universal Music

YANGAROO Enters into Partnership Agreement with Radio and Records

BBC Enters into Agreements with CMLA, CoreMedia and Intertrust

SyncTV Inks Pact with Intertrust Technologies

7digital.com and Sony BMG Ink Agreement to Sell Tracks in MP3

Nexicon Signs Agreement with YouTube

AEP and PrimeKey Enter into a Reciprocal Reselling Agreement

Microsoft Plans to End Support to Defunct DRM

Vodafone Abandons DRM Software from Vmusic Store

Irdeto Takes Over Cloakware

Vector Capital Acquires SafeNet

Packetvideo Acquires Swiss SDC AG

SafeNet Enters into Partnership with Irdeto

Telefonica Signs Agreement with Intertrust to Develop DRM Market

Actify Enters into Partnership Agreement with AirZip

Opera Software Forms Partnership with Discretix

Alvarion Partners with NDS and MobiTV to Demo Mobile WiMAX TV

Teletrax to Offer Media Intelligence Services to CBS Television Distribution

Teletrax Enters a Deal with Major League Baseball®

Microsoft Signs Cooperation Agreement with Nokia

Irdeto Signs DRM Contract with Amoi

ContentGuard Extends License Agreement with Zinio

ContentGuard Inks a Licensing Agreement with LGE

Texas Instruments Purchases New DRM Solution From Discretix

Musicrypt Assumes New Corporate Identity, YANGAROO

9. Focus on Select Global Players

Adobe Systems Incorporated (US)

Aladdin Knowledge Systems (Israel)

Apple Inc. (US)

CoreMedia AG (Germany)

Digimarc Corporation (US)

EMC Corporation (US)

End2End Content Services (Denmark)

International Business Machines Corporation (US)

IPR Systems Pty Ltd (Australia)

Liquid Machines Inc. (US)

LockLizard Limited (UK)

Macrovision Corporation (US)

Microsoft Corporation (US)

Oracle Corporation (US)

RealNetworks, Inc. (US)

SafeNet (US)

Teletrax (UK)

Thomson (France)

VeriSign Inc. (US)

YANGAROO Inc. (Canada)

10. Global Market Perspective

Table 4: World Recent Past, Current & Future Analysis for Digital Rights Management (DRM) Market by Geographic Region - North America, Europe, Asia-Pacific and Rest of World Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

Table 5: World Historic Review for Digital Rights Management (DRM) Market by Geographic Region - North America, Europe, Asia-Pacific and Rest of World Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2000 through 2005 (includes corresponding Graph/Chart)

Table 6: World 10-Year Perspective for Digital Rights Management (DRM) by Geographic Region - Percentage Breakdown of Revenues for North America, Europe, Asia-Pacific and Rest of World Markets for Years 2006, 2009 & 2015 (includes corresponding Graph/Chart)

Table 7: World Recent Past, Current & Future Analysis for Media & Entertainment DRM by Geographic Region - North America, Europe, Asia-Pacific and Rest of World Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

Table 8: World Historic Review for Media & Entertainment DRM Market by Geographic Region - North America, Europe, Asia-Pacific and Rest of World Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2000 through 2005 (includes corresponding Graph/Chart)

Table 9: World 10-Year Perspective for Media & Entertainment DRM by Geographic Region - Percentage Breakdown of Revenues for North America, Europe, Asia-Pacific and Rest of World Markets for Years 2006, 2009 & 2015 (includes corresponding Graph/Chart)

Table 10: World Recent Past, Current & Future Analysis for Enterprise DRM by Geographic Region - North America, Europe, Asia-Pacific and Rest of World Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

Table 11: World Historic Review for Enterprise DRM Market by Geographic Region - North America, Europe, Asia-Pacific and Rest of World Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2000 through 2005 (includes corresponding Graph/Chart)

Table 12: World 10-Year Perspective for Enterprise DRM by Geographic Region - Percentage Breakdown of Revenues for North America, Europe, Asia-Pacific and Rest of World Markets for Years 2006, 2009 & 2015 (includes corresponding Graph/Chart)

Table 13: World Recent Past, Current & Future Analysis for Software DRM by Geographic Region - North America, Europe, Asia-Pacific and Rest of World Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

Table 14: World Historic Review for Software DRM Market by Geographic Region - North America, Europe, Asia-Pacific and Rest of World Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2000 through 2005 (includes corresponding Graph/Chart)

Table 15: World 10-Year Perspective for Software DRM by Geographic Region - Percentage Breakdown of Revenues for North America, Europe, Asia-Pacific and Rest of World Markets for Years 2006, 2009 & 2015 (includes corresponding Graph/Chart)



III. MARKET

1. North America

A. Market Analysis

Current and Future Analysis

Market Drivers

Increased Awareness on DRM Benefits Drive the DRM Systems Market

Broadband Internet and Unlimited Access Accelerates the Need for DRM Systems

Technological Innovations to Boost Premium Mobile Content

Next-Gen Mobile Content Services Market to be Fragmented Due to Competition

Challenges

Growing Popularity of DRM-Free Music

Major Music Labels Keen to Offer DRM-Free Music to Challenge Apple Inc.

Difficulty in Achieving Distribution Rights Pose Challenges to DRM Vendors

The US DRM Market

Product Launches

Strategic Corporate Developments

Key Players

B. Market Analytics

Table 16: North American Recent Past, Current & Future Analysis for Digital Rights Management (DRM) by Product Segment - Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

Table 17: North American Historic Review for Digital Rights Management (DRM) by Product Segment - Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2000 through 2005 (includes corresponding Graph/Chart)

Table 18: North American 10-Year Perspective for Digital Rights Management (DRM) by Product Segment - Percentage Breakdown of Revenues for Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets for Years 2006, 2009 and 2015 (includes corresponding Graph/Chart)

2. Europe

A. Market Analysis

Current and Future Analysis

Key Trends & Issues

Full-Track Master Tones & Mobile Music Downloads to Drive DRM

DRM to Drive Growth of Wireless Content Programs

Illegal Distribution of Content Haunts Europe

Music Companies in Europe Averse to DRM

UK Government Rejects DRM Ban Proposal

Product Launches

Strategic Corporate Developments

Key Players

B. Market Analytics

Table 19: European Recent Past, Current & Future Analysis for Digital Rights Management (DRM) by Product Segment - Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

Table 20: European Historic Review for Digital Rights Management (DRM) by Product Segment - Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2000 through 2005 (includes corresponding Graph/Chart)

Table 21: European 10-Year Perspective for Digital Rights Management (DRM) by Product Segment - Percentage Breakdown of Revenues for Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets for Years 2006, 2009 and 2015 (includes corresponding Graph/Chart)

3. Asia-Pacific

A. Market Analysis

Fastest Growing DRM Market

New Digital Media Driving Market for DRM Tools in Asia

Select Asian Markets

Japan

The Music Downloading Industry

Music Download Market Registers Rapid Growth as CD Sales Decline

iTMS Well Accepted in Japan

Mobile Phone Music - Big Potential

Laws & Regulations

India

Product Launch

Strategic Corporate Developments

IPR Systems Pty Ltd (Australia) - A Key Player

B. Market Analytics

Table 22: Asia-Pacific Recent Past, Current & Future Analysis for Digital Rights Management (DRM) by Product Segment - Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

Table 23: Asia-Pacific Historic Review for Digital Rights Management (DRM) by Product Segment - Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2000 through 2005 (includes corresponding Graph/Chart)

Table 24: Asia-Pacific 10-Year Perspective for Digital Rights Management (DRM) by Product Segment - Percentage Breakdown of Revenues for Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets for Years 2006, 2009 and 2015 (includes corresponding Graph/Chart)

4. Rest of World

A. Market Analysis

Product Launch

Strategic Corporate Developments

Aladdin Knowledge Systems (Israel) - A Key Player

B. Market Analytics

Table 25: Rest of World Recent Past, Current & Future Analysis for Digital Rights Management (DRM) by Product Segment - Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

Table 26: Rest of World Historic Review for Digital Rights Management (DRM) by Product Segment - Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2000 through 2005 (includes corresponding Graph/Chart)

Table 27: Rest of World 10-Year Perspective for Digital Rights Management (DRM) by Product Segment - Percentage Breakdown of Revenues for Media & Entertainment DRM, Enterprise DRM, and Software DRM Markets for Years 2006, 2009 and 2015 (includes corresponding Graph/Chart)



IV. COMPETITIVE LANDSCAPE

Total Companies Profiled: 65 (including Divisions/Subsidiaries - 69)

Region/Country Players

The United States 36

Canada 3

Europe 22

France 4

Germany 5

The United Kingdom 8

Spain 1

Rest of Europe 4

Asia-Pacific (Excluding Japan) 4

Latin America 1

Middle East 3

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