It looks like the video and music industries are standing firm over digital rights management (DRM) , the controversial copy protection system they employ to protect their content.
Despite EMI and Apple reaching agreement to sell records free of DRM, albeit at a slight premium, others are unlikely to follow suite. The EMI deal gave Apple access to a rich catalogue of music to sell over iTunes. The stumbling block for EMI was in part that Apple refuses to license Fairplay copy protection system third parties, meaning that anyone buying music over iTunes is restricted on the devices it can then be played on.
This week at Internet World in London,
Channel 4 reiterated that it would continue blocking Mac users from using its 4OD video on demand service until DRM issues with Apple are sorted out. The BBC is taking the same position with its new online TV service.
A new study by Strategy Analytics, called '
A Roadmap for DRM: Business Impact for Content Owners and Technology Vendors', says after extensively interviewing senior executives in the media, entertainment and consumer electronics industries, it believes DRM "will still play a critical role in the emergence of the digital marketplace".
But, it warns that DRM must "sink into the background" so that consumer choice can be broadened and the industry open up new revenue streams.
"In the right form, DRM can help expand the size of the music and video markets," said Martin Olausson, director of the Strategy Analytics Digital Media Strategies service. "Ultimately, DRM is needed to harness the commercial value of the `rip, mix, burn and share' culture".
Andrew Currah, the report's author, added: "It is time to shift the focus of the debate over DRM beyond the misleading polarity of 'corporations' versus 'consumers'. Ultimately this is a commercial rather than a technological problem. In the coming years DRM will be redefined and fine-tuned - not eradicated completely, as many have suggested."
The problem that TV broadcasters face is that most programmes are put online for download, giving those prepared to access the content illegally (in the eyes of the authorities) a very easy means of downloading the latest US blockbusters before they appear in the UK. The downloads are DRM free, generally of good quality and with a media streamer, can be enjoyed on a TV rather than the computer screen.
Channel 4 said it had learned from the mistakes of the music industry in its approach to TV online. Rod Henwood, new business director at the broadcaster said it would not waste time chasing pirates or those that illegally download programmes over the Internet, instead focusing on fine-tuning its offering.
And that's the real solution to DRM. Content providers have to make their offerings complete, easy to use and if not freely available, then at very low cost. That will mean in future that UK online broadcasters will need to think about signing deals with US programme makers to show a new series in Britain as soon as it shown in America.
Henwood told delegates at Internet World that Channel 4 was not afraid of cannibalisation. It's going to have to prove that over the coming few years if it wants to attract the Torrent generation over to its legal offerings.