May 14, 2015 Context-Related DRM in the Mobile Networks A Master’s thesis research project done at Small Planet Ltd Antti-Jussi Kangas

May 14, 2015 Agenda  Motivation  Research problem & goal  Methods  Theory  Research & Analysis  Results & Conclusions

May 14, 2015 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)

May 14, 2015 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?

May 14, 2015 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

May 14, 2015 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

May 14, 2015 Theory  Research target: Digital Rights Management  Research context: Mobile business environment

May 14, 2015 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)

May 14, 2015 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

May 14, 2015 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

May 14, 2015 Research context: Mobile business environment (3/3)

May 14, 2015 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

May 14, 2015 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

May 14, 2015 Results  Dependencies found between research context and research target dimensions:

May 14, 2015 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 guarantees functionality but limits the target market (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

May 14, 2015 Conclusions (2/2)  Durable contents (e.g. music) are better suitable for subscription models  Active contents (e.g. music, ring tones) are better suitable for previewing models  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

May 14, 2015