DRM use to soar across Europe

DRM use to soar across Europe


Open Mobile Alliance DRM v2.0 will spur adoption by wireless content providers

The growing need to control the use and distribution of intellectual property is creating a greater emphasis on digital rights management across Europe, according to Frost & Sullivan.

The analyst firm believes that this process will boost adoption of the Open Mobile Alliance (OMA) DRM v2.0 standard which aims to improve interoperability across networks.

"DRM will witness further growth as content owners exhibit their desire to promote content to customers through all available channels," said Pranab Mookken, ICT industry manager at Frost & Sullivan.

"The implementation of OMA DRM v2.0 will spur the wireless content industry market, which will reach a value of around €20bn by 2011."

Mookken pointed out that several content owners, including large media houses, are in need of best-of-breed DRM systems to allow maximum interoperability.

In keeping with the need of the communications industry for agnostic DRM, which allows for seamless interoperability across fixed and wireless networks, the market is expected to witness growth.

At present, the file size of DRM (built into content or delivered separately) remains a challenge, according to Frost & Sullivan.

"It will become essential to ensure ease of use in the implementation of DRM technologies," said Mookken.

"Besides the focus on security, DRM and content management solutions from companies such as CoreMedia, which are OMA DRM v2.0 compliant, also provide emphasis on content distribution.

"As a result, operators that run CoreMedia DRM, such as Vodafone, will benefit from increased use of mobile content applications due to the improved interoperability offered by the OMA DRM v2.0."

DRM will therefore need to progress towards an "open and transparent control mechanism", according to the analyst.

As proprietary systems restrict industry growth, thereby hindering industry participation and innovation, open standards at the software as well as the platform level become imperative for continued growth.

Frost & Sullivan predicts that wireless network operators currently facing falling average revenue per user (ARPU) will also gain from standardised and interoperable DRM systems.

Besides raising data ARPU for fixed and wireless service providers, DRM also assists in driving network traffic by providing secure transfer of sensitive payment-related information.

Network operators are currently pursuing premium data services (ring-tones, screensavers, full-track music, video/audio streaming and subscription-based news and sports) to boost their ARPU, thereby leading to greater focus on effective DRM.
"With the growing focus on software, companies in the value chain complement their existing products with bundled solutions that include DRM. As a number of ICT infrastructure and devices manufacturing companies become part of the DRM value chain, DRM is expected to enjoy greater demand," Frost & Sullivan stated.

"As DRM is evolving, it will become crucial to provide ubiquitous functionality across multiple platforms.

"In addition, DRM, particularly for wireless networks, will need to incorporate MPEG and MP3 music file formats that can work across multiple platforms and devices."