The role of Digital Rights Management in content delivery Summary Introduction Background Increasing role of DRM in media and entertainment
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1 EXECUTIVE SUMMARY and market context The role of Digital Rights Management in content delivery Video Content Delivery Music Content Delivery Video Gaming Delivery ebooks Delivery The Future of Content Delivery Competitive landscape and market context Report scope Who is this report for? Content Delivery Networks The global content delivery market Role and importance of content delivery Video Music Gaming ebooks The role of Digital Rights Management in content delivery Increasing role of DRM in media and entertainment Video Music Gaming ebooks Video Content Delivery Online video advertisement spend forecast, Growth drivers Demand for high quality video propelling content delivery platform investments Video content demand on mobile devices presenting new revenue opportunities Service bundles driving the demand of multi-play service platforms User generated content increases video sharing website traffic Key trends Increased investments in platforms supporting multiple end user devices
2 Video content monetization through subscriptions and advertisements Growing market for Video on Demand Increased personalization in content display based on users interest areas Trends in video content delivery by region US Brazil Challenges in video content delivery Delivering content on multiple platforms Scalable content delivery systems to accommodate growing internet content Delivering good quality content Content delivery strategies followed by key video companies ABC delivers interactive television services on ipad Netflix offers subscription based on-demand video streaming services Hulu offers both free advertisement supported & subscription based content Comcast launches one of the first TV Everywhere service in the US The future of video content delivery Shift to 3D format Internet-only video providers Transition to the cloud Packaged applications delivered over tablets Music Content Delivery Global digital music market forecasts, Growth drivers Removal of DRM leading to increased download volumes Increased music consumption owing to mobile capability Music access service bundles drives investments in content delivery platforms Key trends Increased adoption of subscription based music content download Music made available on social media Growing market for unlimited ad-supported free music streams Musicians distribute directly to end users Trends in digital music delivery by region
3 US Brazil Challenges in digital music delivery Piracy Digital music pricing Content delivery strategies of key digital music websites itunes transitions from PC software based to a cloud based service Amazon enters the subscription based streaming market by acquiring Amie Street Spotify Pandora The future of digital music delivery Cloud based music services Rise in social music sharing websites Streaming services offered by e-commerce websites Video Gaming delivery Global video gaming forecasts, Growth drivers Seamless gaming experience on mobile The rise of online gaming Mobile-to-console integration Key Trends Social gaming User generated gaming content Motion sensor gaming Trends in video gaming delivery by region US
4 Brazil Challenges in gaming delivery Piracy Long development cycle impacts profitability Content delivery strategies followed by key gaming companies Console based gaming Sony PS3 Zynga exemplifies the rise of social gaming The future of gaming delivery Cloud based gaming streams Massive Multiplayer Online Role Playing Games (MMORPG) ebooks delivery Global ebooks market forecasts, Drivers Aggressive pricing, integrated store experience, and more titles Innovation in ereaders expanding scope of content delivery Key Trends Publishers getting involved in content delivery Multiple application strategy working in the US but Europe needs to catch up Europe is still in nascent stage though there are early signs of digital books adoption Trends in ebook delivery by region US Brazil Challenges in ebook delivery Formulating country specific content delivery strategy Unfavorable tax policies is significantly impacting growth in Europe Managing sales to create a sustainable business model around content delivery Developing simple yet effective DRM systems Increased sophistication of ereaders at lower prices Content delivery strategies followed by publishers Amazon focusing on developing integrated shopping and delivery system Google ebooks focusing on the cloud ebooks in the future
5 Localizing content delivery Developing a cost effective content delivery strategy Existing online bookstores will continue to dominate Increased focus on portability across multiple media, formats, and platforms ereaders to retain customer segment despite rising competition from other devices The future of content delivery Video Music Video gaming ebooks Competitive landscape Content Delivery Network (CDN) providers Akamai Technologies Limelight Networks Level 3 Communications EdgeCast Networks, Inc. Internap Network Services Highwinds Network Group CDNetworks DRM technology providers Adobe InterTrust Rights System Rovi (Macrovision) Microsoft Contentguard IBM Appendix Methodology Primary research Secondary research Glossary/Abbreviations Bibliography/References TABLES Table: Growth of countries with 3G commercial services, Table: Global online video advertisement spend ($m), Table: Top US online video properties by video views (Jan 2011) Table: Top online video brands in the US by time per viewer per month, January 2011 Table: Top online video content properties (November 2010)
6 FIGURES Table: European mobile TV / Video users (000), July 2010 Table: Mobile content revenues in by type ($m), 2010 Table: Internet users (m) and total online hours per visitor, October 2010 Table: Global digital music market revenues by segment ($m), Table: ese digital music revenues by segment ($m), Table: ese digital music delivery data by segment, 2009 Table: Digital format s share of music sales in the (%), 2004 Q3 10 Table: European mobile benchmark data (% of mobile subscribers), March 2010 Table: Global video gaming revenues ($bn), Table: Global video gaming software revenues by segment ($bn), Table: Global number of online social gamers by age group (% population), 2010 Table: Global ebooks revenues ($m), Table: US ebooks revenues ($m), Table: ese ebooks revenues ($m), Table: Chinese ebook shipments (000 units), Table: Akamai Technologies key clients Table: Akamai Technologies key financials ($m), Table: Limelight Networks key clients Table: Limelight Networks key financials ($m), Table: Level 3 Communications key clients Table: EdgeCast Networks key clients Table: Internap Network Services key clients Table: Internap Network Services key financials ($m), Table: CDNetworks key clients Figure: Growth of countries with 3G commercial services, Figure: CDN revenues by geography (%), 2010 Figure: Global online video advertisement spend ($m), Figure: Frequency of watching Internet video by country, 2009 Figure: Mobile content revenues in by type ($m), 2010 Figure: Internet users (m) and total online hours per visitor, October 2010 Figure: ABC on ipad Figure: Example of ABC s interactive My Generation experience Figure: Netflix share price movement, March 2010 March 2011 Figure: Netflix button on remote controls Figure: Subscription based service offered by Hulu Plus Figure: Global digital music market revenues by segment ($m), Figure: ese digital music revenues by segment ($m), Figure: ese digital music revenue share by segment, 2009 Figure: Digital format s share of music sales in the (%), 2004 Q3 10 Figure: Breakdown of digital revenues in the, 12 months ended Sept. 2010
7 Figure: Snapshot of Ping social network for music Figure: Global video gaming revenues ($bn), Figure: Global video gaming software revenues by segment ($bn), Figure: Global number of online social gamers by age group (% population), 2010 Figure: Gaming spend in the US, 2009 vs Figure: Gaming spend in the, 2009 vs Figure: Total money spent per gaming platform in ( m), Figure: Global ebooks revenues ($m), Figure: US ebooks revenues ($m), Figure: ese ebooks revenues ($m), Figure: Chinese ebook shipments (000 units), Figure: Evolution of video delivery Figure: Evolution of music delivery Figure: Evolution of video game delivery Figure: Evolution of ebook delivery Figure: Akamai Technologies product portfolio Figure: Akamai Technologies key financials ($m), Figure: VAS as a % of revenues for Limelight Networks, Q109-Q410 Figure: Limelight Networks key financials ($m), Figure: Level 3 Communications product portfolio Figure: Internap Network Services key financials ($m),
Table of Contents TABLE OF CONTENTS
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