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Digital Music Distribution Time for a New ApproachPublished by: Generator Research Limited Published: Jan. 22, 2007 - 33 Pages Table of Contents
AbstractThis report describes a new strategy for distributing digital music that would be enabled by a new category of technology, Digital Media Management (DMM). Strongly based on Web 2.0 concepts, DMM would for the first time provide rights holders and entrepreneurs with the means to monetise existing user behaviour, which is to copy and share digital content on a mass scale.The music industry is at a strategic crossroads and desperately needs a long-term solution to the problem of digital distribution. It is becoming increasingly clear that the industry’s current implementation of DRM is causing at least as many problems as it solves while the alternative approach of supplying raw, unprotected MP3s, could severely damage the industry’s commercial potential in the long term. This report proposes a radically different approach which is based on harnessing the desire that ordinary users have to copy and share music in an unpredictable way on a mass scale. This new approach would be based on a new category of technology, Digital Media Management (DMM), that would convert user-driven copying and sharing into a new, zero-cost distribution channel for digital content. Individual items of content and the subsequent copies could be easily associated with an arbitrary range of business models based on Web 2.0 concepts. DMM technology would allow an arbitrary webservice to be delivered using the media file as the delivery vehicle. Because the files themselves, or links to them, could be freely shared between users, digital content files would represent a new and powerful distribution channel for webservices. DMM is different to Digital Rights Management (DRM). While DRM technology enables content monetisation through protection and enforcement, DMM technology would enable content monetisation through sharing and copying. The report contains a detailed explanation of the technological approach that would be required to implement DMM. The report also contains numerous examples of the business models that would be enabled by DMM, as well as completely new categories of business model that are currently impossible, but would be enabled by DMM. |
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