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

2. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business2 Contents  Introduction  Internet and Mobile Lessons  DRM Basics Open Mobile Alliance (OMA) DRM  Business Models Types Superdistribution  Pricing  Conclusions

3. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business3 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?

4. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business4 ARPU Challenge

5. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business5 Market size for Mobile Services

6. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business6 Analyst Estimates about the Future

7. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business7 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 market DRM needed Niche market DRM needed?

8. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business8 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

9. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business9 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

10. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business10 OMA DRM Architecture Source: OMA 2006

11. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business11 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

12. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business12 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

13. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business13 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?

14. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business14 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

15. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business15 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

16. 30.03.2006T-109.7510 Research Seminar on Telecommunications Business16 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. http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_March_30/ai_n13490154  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. http://ncsp.forum.nokia.com/download/?asset_id=11991  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.