DRM must evolve to satisfy needs of both content owners and end users or face abandonment, says Arthur D. Little

While DRM has been used since the early days of digital content distribution, it has long been a source of controversy, with complex proprietary systems creating integration headaches for manufacturers and distributors, and preventing end users from legitimately sharing content across different devices and platforms.  The rise of digital piracy can even be part-blamed on the inflexibility of traditional DRM systems, with users resorting to file sharing as not only the cheapest, but also easiest way of accessing and sharing content. The perceived failure of DRM to stop piracy has led some stakeholders - most notably Apple - to abandon it in favor of 'watermarking' digital content and linking it to individual consumers, in order for leakage to be better tracked and file sharers more easily prosecuted.  However, this approach raises serious issues relating to the potential blacklisting and criminalization of users, particularly in the context of online identity theft. Arthur D. Little foresees three possible scenarios for DRM:

  1. Continued fragmentation of proprietary DRM systems and continued limited fulfillment of stakeholders' needs
  2. Gradual abandonment of DRM in favor of other content tracking techniques such as watermarking or fingerprinting
  3. Emergence of next generation DRM system(s) that manage to balance end user needs with the requirements of all other stakeholders
"The present situation is the worst of all worlds. Scrapping DRM altogether would be an improvement over today's complex web of proprietary systems, but would bring its own problems," says Erik Almqvist, co-author of the report and Director at Arthur D. Little's Telecoms, Information, Media & Electronics (TIME) Practice. "Standardizing on an interoperable set of DRM technologies based on open standards such as Marlin, OMA and/or DECE would be better than dismantling DRM altogether, as abandonment could spell bad news for the protection of ordinary consumers' rights." "Untying the Gordian Knot" is available for download at www.adl.com/drm

Notes for Editors

About Arthur D. Little
Founded in 1886, Arthur D. Little was the world’s first professional management consulting firm. Arthur D. Little is a global leader in management consultancy, linking strategy, innovation and technology with deep industry knowledge. These last years, Arthur D. Little developed partnerships with more than 70% of Fortune 100 companies. Its teams conceive and implement sustainable, innovative and operational solutions. Arthur D Little is present in over 20 countries with more than 1000 consultants. With its partners Altran Technologies, the firm has access to a network of over 17.000 professionals.

Further Information

Sue Glanville/Jo Gwaspari
Say Communications
Tel: +44(0)2089716400
arthurdlittle@saycomms.co.uk

Arthur D. Little: Business is back in business

The majority of CXOs across all industries predict businesses will return to pre-crisis activity levels by the end of 2011. This is the finding of a survey by global management consultancy Arthur D. Little of 338 executives worldwide, with 71 per cent of CXOs believing their businesses will fully recover. This is a more prudent outlook compared to the consultancy’s survey conducted last year, where 84 per cent of executives predicted this result. Yet, the popular notion of the “new normal”, commonly referring to a downsizing of the global economy, has been shown to have few adherents, with 75 per cent of executives estimating growth to be at least as high as before the crisis took hold.

Arthur D. Little: Electro-mobility players must do more to develop business models

Green market challenge goes beyond developing new technology