Sometimes called 'electronic sell-through' or 'digital retail', the download-to-own business model allows companies to charge a higher price (and hence extract a better profit margin) than other forms of video-on-demand. Pioneering examples of such Internet services include Movielink – an online joint venture founded by a group of the largest studios, the new UK venture recently announced by Universal Studios and new entrant LoveFilm and the German In2Movies offering being established by Warner Bros.

Critical to the success of these new Internet video-on-demand ventures will be the deployment of flexible and robust digital rights management (DRM) systems. Screen Digest's report Digital Rights Management and New Entertainment Business Models is the first comprehensive analysis of the way that DRM technologies are being used to reinvent the film and TV industry in the 21st century.

The report examines the lessons learnt from the music industry's digital experience and also analyses the way in which DRM systems might allow movie release windows to be radically changed in future. All the key players in the DRM space are scrutinised and the report highlights the groundbreaking business and distribution models developed by firms like Akimbo, BrightCove, CinemaNow, Comcast, Greengrass, Lovefilm, Kontiki, RipeTV, and TiVo.

Structure of the report:

Chapter 1 describes the music and audio-visual value chains as they are today. It considers the different players in the chains, how they interact with each other and which of them has a significant gate-keeping position.

Chapter 2 presents a review of technological developments and standards. The section opens with a brief history of Internet content delivery and the first wave of digital rights management technology development. It then provides a review of the growth of technologies for the infringement of copyright, including peer-to-peer network technologies. This is followed by a review of current developments in DRM. The section ends with a review of the standards processes that have a bearing on DRM and interoperability.

Chapter 3 sets out to draw a picture of some of the new business models that may impact the value chain if DRM technologies are deployed. A series of generic models is described, each more radical than its predecessor.

Chapter 4 looks at DRM technologies and processes from the consumer perspective. Three aspects of DRM of critical importance to consumers are considered: copyright, privacy and usability. The section concludes with a comment on the extent to which DRM technologies may have a tendency to exclude certain categories of user.

Chapter 5 provides a very brief review of the legal and regulatory environment in which DRM will be implemented. The balance between rights owners' protection and consumers' expectation is considered.

Chapter 6 provides a non-exhaustive survey of some companies at the cutting edge of developing new business models in the audiovisual space.


List of tables and charts

Introduction
Structure of the report

Value chains in transition
Value capture
The recording and motion picture industries compared
Value capture versus creation
The music industry
Creation, composition and performance
Recording
Reproduction and distribution
Sales
Value chain change
Creators
Corporate content owners
DRM service providers
Network operators
Device manufacturers
The movie industry
Illegal distribution
Remuneration of talent
Global market
Consumption environments
Digital impacts on production
Delivery and presentation–theatrical
Delivery and presentation–DVD
Delivery and presentation–TV
Windowing
Old value chain, new value chain
Conclusions

DRM Technologies
DRM versus conditional access (CA) technologies
The internet effect
First generation DRM architecture
The failure of first generation DRM
The delivery application explosion
Ripping tools and CD burners
Broadband
P2P networks
Centralised P2P networks
Distributed P2P networks
Second generation DRM
Six key DRM companies

• Microsoft
• RealNetworks
• Apple
• Sony
• InterTrust
• Sun

• Microsoft
• RealNetworks

• Apple Fairplay
• Sony MagicGate

• InterTrust Nemo
• Sun Microsystem's Dream

• Rights languages and watermarking and fingerprinting
• Content tracking

• Advanced Access Content System (AACS)
• Copy Protection for Recordable

• Digital Living Netwrok Alliance (DLNA)
• Digital Transmission Content

• High-bandwidth Digital Content Protection (HDCP)
• Digital Video Broadcasting Project (DVB)
• Motion Picture EXpert Group (MPEG)
• Digital Media Project (DMP)
• Open Mobile Alliance (OMA)
• TV-Anytime
• Secure Video Processor (SVP)

• CinemaNow
• TiVO
• BrightCove
• Akimbo
• RipeTV
• Kontiki
• Greengrass
• Comcast
• Lovefilm