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DRM-Enabled Business Models in

Multimedia Commerce
Xin Wang

AVS/ISMA Workshop, Beijing, China

June 8, 2005
Outline

● Concepts and purpose of DRM

● License-based DRM architectures

● Business models in streaming media delivery

● Conclusions

June 8, 2005 Page 2


DRM Concepts

● Digital Assets
● Any resources, contents and services in digital domain

● Digital Rights
● Privileges for creating, distributing, using and managing digital
assets
● Digital rights are not just copyrights

● Digital Rights Management (DRM)


● A unified approach to specifying, interpreting, enforcing and
managing digital rights

June 8, 2005 Page 3


DRM Purposes

● Not just prevent illegal access and sharing of digital


assets

● But, more importantly, allow authorized access and


enjoyment to more high quality assets in more
convenient fashions

● and, at the same time, create more markets and


businesses for creating, distributing and consuming
digital assets

June 8, 2005 Page 4


End-to-End DRM in Multimedia Commerce

Create Package Sell Play

s&
Clear Price models
ness
Prices & Rights & Busi
ts &
Aggregate Distribute Business models Payment Righ ions
Rights & dit
Rights & Con
Conditions
Conditions
Protected Protected
Original Protected
content content
content content

Author / Artist Publisher Retailer Consumer

June 8, 2005 Page 5


License-based DRM

Create Package Sell Play

s&
Price models
s
ines
Bus
ts &
Righ ions
dit
Aggregate Distribute Con

Protected Protected
Original Protected
content content
content content

Author / Artist Publisher Retailer Consumer

Clear
Prices & Rights &
Business models
Payment License

Rights & Prices &


Conditions Business models
Rights &
Conditions

June 8, 2005 Page 6 License server


License Based DRM Architectures

● To use content, one needs to have a valid license to authorize usage and
provide a key to decrypt the content

● Characteristics
● Licenses are associated with content, but as separate entities with their own life
cycle
● issuance, distribution, consumption, revocation and expiration
● Licenses specify who have what rights
● play, print, adapt, …
● Licenses also provide information for implementing business models, rather than
applications hard code it
● preview for 3 times, rent for a week, …
● Licenses also carry information for content protection and trust management
● encrypted content decryption key, license issuance and revocation, …
● Licenses are defined using Rights Expression Languages (REL)
● ISO MPEG REL, OMA DREL, XrML, XMCL, …

● Examples of license based DRM systems


● Microsoft Windows Media DRM and Rights Management Server
● OMA DRM
● RealNetworks Helix

June 8, 2005 Page 7


ISMA License-based DRM Architecture
+-------------------------------------------+
| +----------+ +----------+ |
| | | | KEY/ | |
| |MASTERING |KEY/RIGHTSPEC=>| LICENSE | |
| | | | MGT | |
| | | | | |
| +----------+ +----------+ |
| | | |
| MEDIA KEY/LICENSE |
| | | |
| V V |
| +----------+ +----------+ |
| | | | | |
| | |<---CONTROL--->| | |
| | SENDER | | RECEIVER | |
| | |----MEDIA----->| | |
| +----------+ +----------+ |
+-------------------------------------------+

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Streaming Media

● can be delivered via the internet without downloading its


entirety

● should not leave a retention copy on recipient device


● making a retention copy requires additional device capability and
rights

● can be measured
● for how long
● using how many bytes
● for how many times
● to how many devices

June 8, 2005 Page 9


Streaming Media Delivery & Payment

Contracted
with retailer

Network Operator

Publisher Retailer Consumer

Un-contracted
with retailer

Network Operator

June 8, 2005 Page 10


Business Models Supported by MPEG REL

● Unlimited usage ● Site/volume license

● Flat fee sale ● Rent

● Pay per view ● Territory restricted

● Preview ● Component based model

● Promotion ● User types based model

● Subscription/Membership ● Payment to multiple rights Holders

● Transfer ● Super-distribution

● Gifting ● Multi-tier models

● Personal lending ● Composite content

● Library loan

June 8, 2005 Page 11


Example Business Models

● Fixed subscription
● Monthly or annually charge (e.g., $19/month for any songs in subscription)

● Limited subscription
● Monthly charge with fixed amount of content consumption (e.g., $9/month, up to
35 movies each month)

● Event or transaction based charging


● Pay per view, per file, or per message (e.g., 10¢ per message)
● Burn to CD, output to portable device (e.g., 69¢ to listen a song, but 99¢ to burn
to CD)

● Session-based charging
● Charged according to amount of time or data traffic used, (e.g., 2¢ per minute or
KB)

● Multi-tier models
● Fixed subscription for Gold members, limited subscription for regular members
● 2 or more levels of limited subscription (e.g., $9/m for 35 movies, $19/m for 100)

June 8, 2005 Page 12


Conclusions

● DRM is set to enable multimedia commerce

● License based DRM systems support more flexible


business models, via use of licenses

● DRM will benefit content providers and end users, as well


as all other participants in the commerce value chain,
such as technology providers, device manufacturers,
network operators, and service providers

June 8, 2005 Page 13