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Context-Related DRM in the Mobile Networks

Context-Related DRM in the Mobile Networks. A Master’s thesis research project done at Small Planet Ltd 29.4.2008 Antti-Jussi Kangas antti-jussi.kangas@smallplanet.fi. Agenda. Motivation Research problem & goal Methods Theory Research & Analysis Results & Conclusions. Motivation.

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Context-Related DRM in the Mobile Networks

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  1. Context-Related DRM in the Mobile Networks A Master’s thesis research project done at Small Planet Ltd 29.4.2008 Antti-Jussi Kangas antti-jussi.kangas@smallplanet.fi

  2. Agenda • Motivation • Research problem & goal • Methods • Theory • Research & Analysis • Results & Conclusions

  3. Motivation • Low margins in basic mobile services (voice, SMS) and increased importance of value adding services (e.g mobile content) • Rapid handset technology advancement and richer content formats • Risk of piracy familiar from fixed Internet • Need of new innovative business models (both DRM-enabled and DRM-free)

  4. Research Problem • How do the contextual factors of mobile business environment affect the successful use of DRM technology? • Can there be generalized some guidelines that take these contextual factors into account?

  5. Research Goal Main goal • To find guidelines for successful application of (OMA) DRM technology in different contextual situations Secondary goals • To understand DRM technology (OMA DRM 2.0) and its roles, functionalities and business models • To understand mobile business environment player roles and their relationships in the mobile content delivery chain • To find and understand contextual (market and technology) forces that affect the mobile business environment

  6. Methods • Three case studies representing different approaches to DRM business models • Cases are analyzed using a framework that is based on the theory • Results are drawn using the found values in the framework

  7. Theory • Research target: Digital Rights Management • Research context: Mobile business environment

  8. Research target: DRM • OMA DRM (2.0) de facto standard in mobile industry • Logical roles: • DRM Agents, Content Issuer, Rights Issuer • (User, Off-device storage) • Functionalities: • Forward lock, Combined delivery, Separate delivery, Domain model • (Streaming, Backup and export) • Rights: • Usage or time-based • Business models: • Trials and previews, Viral marketing, Differentiated pricing, (controlled) Subscriptions • (Rewards, Streaming-based delivery)

  9. Research context: Mobile business environment (1/3) • Mobile business environment players: • Operators, • Handset manufacturers, • Application providers, • Service providers, • Content aggregators, • Content providers (creators), • Content owners, • End users • Player relationships and interactions are dynamic and parallel, not static and sequantial • Value creation analysis through value network tools, rather than value chain tools

  10. Research context: Mobile business environment (2/3) Market factors: • Market hierarchy (integrated vs. modular) • Maturity level (S-curve model) • Culture, user behavior and geographical location • Regulation Technological factors: • General technology • Standards • Content characteristics

  11. Research context: Mobile business environment (3/3)

  12. Research & Analysis (1/2) • Mobile business environment dimensions in framework: • Player role • Value network complexity / value added • Market hierarchy • Market maturity level • Regulatory influence • Technology level and standards • Content type / value / durability • Content consumption process / consumption context • DRM dimensions in framework: • Logical role configuration • System architecture • Functionality • Business model • DRM standard

  13. Research & Analysis (2/2) • Case 1: Marketing with DRM (Elisa) • Free previews through WAP interface • Ring tone contents • OMA DRM (1.0) conforming • Case 2: Mobile Gaming with Licences (Nokia N-Gage) • Free trialing and previewing of content and differentiated pricing of separate licences (usage rights) • Mobile (Java) games • Proprietary OMA DRM (2.0) technology • Case 3: Subscription-Based Music Community (Rockerz) • All-you-can-eat music service through controlled subscriptions • Full track music (both professional and user-generated) • OMA DRM (2.0) conforming

  14. Results • Dependencies found between research context and research target dimensions:

  15. Conclusions (1/2) • Complexity in value network leads towards complexity in DRM role configurations • Markets in decline phase call for simple DRM models, while markets in growth and maturity are more attractive for advanced DRM models • Proprietary OMA DRM technology guaranteesfunctionality but limits the targetmarket (attractive for large integrated service providers) • OMA DRM standard guarantees target market but invites competition and does not guarantee functionality (attractive for small service provider) • Some DRM functionalities are optional (e.g. domain) which may lead to smaller target markets

  16. Conclusions (2/2) • Durablecontents (e.g. music) are better suitable for subscriptionmodels • Activecontents (e.g. music, ring tones) are better suitable for previewingmodels • Content with multiple use contexts (e.g. music) are under more pressure to ”DRM-freeness” because of compatibility issues • Integrated service through handset manufacturer or operator can radically improve the usability of DRM service

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