Digital Rights Management (DRM) in the Mobile Environment T-109.7510 Research Seminar on Telecommunications Business 30.03.2006 Yrjö Raivio.

Digital Rights Management (DRM) in the Mobile Environment

T-109.7510 Research Seminar on Telecommunications Business

30.03.2006

Yrjö Raivio

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 2

Contents

Introduction Internet and Mobile Lessons DRM

• Basics• Open Mobile Alliance (OMA) DRM

Business Models• Types• Superdistribution

Pricing Conclusions

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 3

Introduction

Mobile capabilities are increasing steadily• Memory GBs• Broadband connectivity• Stereo sound• Colour screen• 300 million smart phones by 2009 (DTC 2005b)

Both branded and user created content Some Internet business models have succeeded Peer-to-Peer (P2P) popular in fixed Internet, mainly illegal

file sharing How to accelerate content usage in mobile environment?

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 4

ARPU Challenge

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 5

Market size for Mobile Services

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 6

Analyst Estimates about the Future

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 7

Internet Lessons

Long Tail important Various business models Music distribution

• iTunes• MusicMatch, Qtrax• Wippit

Openness• Donations: Wikipedia, McAfee• Flickr->Mappr->KrazyDad• Creative Commons license

P2P• Legal distribution: Peer Impact• Streaming: Grouper, Mercora

Copyright can be content owner’s worst enemy

Source: Castro 2005

Mass marketDRM needed

Niche marketDRM needed?

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 8

Mobile Lessons

Walled Garden Mobile society prefers complicated systems WAP problems

• Revenue sharing • Technology• Scope (ref. Long Tail)

iMode succeeded better but E2E controlled by one player SMS trap

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 9

Digital Rights Management

DRM can solve most of the Information Security challenges

• Confidentiality, Integrity, Authentication, Access control, Anti piracy protection, Non repudiation

• Availability (DoS) out of reach

DRM Architecture• Content: intellectual property• Users: anybody in distribution chain• Rights: permissions, constraints &

obligations

DRM includes several technologies• Encryption, Signature, Watermarking,

Metafile, Security protocols

Source: Iannella 2001

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 10

OMA DRM Architecture

Source: OMA 2006

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 11

OMA DRM Features

OMA DRM 1.0: September 2002: Ring tones, MMS OMA DRM 2.0: March 2006

• More content types, better security• Several delivery mechanisms: Push, Pull, Push & Pull, Streaming• Superdistribution• Export to other DRM systems and non cellular devices

New business models• Gifting• Rewarding• Subscription to bundles• Metered time • Store to backup, use later• Usage constraints

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 12

Business Models

Content type: file, streaming Delivery method: client-server, P2P, multicast & broadcast Subscription

• Access to predefined class of content• Simple to understand and charge• Promotional model: user can select the class and pay accordingly

Pay-per-view/use/download• Charge per transaction• Does not suit for data as well as to voice• Complicate charging, discourage to use?• Micropayments: similar but with higher accuracy (URL etc.)

Superdistribution, partly overlaps with the previous

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 13

Superdistribution

Open Consumer-to-Consumer distribution Sharing not restricted; separate license for consumption Gifting: share content with friends who can use it for a

limited time free Rewarding

• Viral marketing, community effect• Distributor will earn a commission of each charged share

Advertising supported by profile information Streaming?

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 14

Pricing

Distribution• Currently MB can cost up to 20 €• Flat rate is the only option• Promotional flat rate enables extra income• Superdistribution free of charge

Content• Must be competitive with Internet• Operator delivery systems should utilize

subscription & promotional models• Rewarding with Superdistribution• Operators may utilize Amazon type of

business model: commission of turnover• Interoperability with other players

Price/€

LOG DataMB

10

20

30

10 100 1000

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 15

Conclusions

Some people behave always badly – DRM cannot give 100% anti piracy protection

Make piracy obsolete by offering competitive legal services: easy to use, competitive price

OMA DRM 2.0 enables almost any business model Superdistribution offers interesting possibilities The best business model does not necessarily mean

maximal protection

30.03.2006 T-109.7510 Research Seminar on Telecommunications Business 16

Concluding Remarks

Thank You! - Any Questions?

References: Castro M., Costa M. and Rowstron A. Debunking some myths about structured and

unstructured overlays. In Proceedings of 2nd Symbosium on Network Systems Design and Implementation (NSDI’05), May 2-4, 2005, Boston USA. Usenix Association.

DTC. 2005b. DTC Says Some 300 Million Mobile DRM Phones Will Ship in ’09. At: http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_March_30/ai_n13490154, referenced: March 27, 2006.

Forum Nokia. 2004. Mobile Services Market - Status, Evolution and Forecast. Nokia. At: http://ncsp.forum.nokia.com/download/?asset_id=11991, referenced: March 27, 2006.

Iannella R. 2001. Digital Rights Management (DRM) Architectures. D-Lib Magazine, June 2001, Volume 7, Number 6.

OMA. 2006. DRM Architecture, Approved Version 2.0 – 03 Mar 2006.