In Ovum's view, from a content owner's point of view DRM is implemented to prevent sharing of content within a user network. It is not implemented to avoid illegal file sharing over for example P2P networks, it is to limit the more casual file sharing (copying and being able to playback content from one PC onto another either directly or via a third party device). The DRM industry is ironically waging a war against the P2P network users, yet its technology targets another market. DRM is set out to limit casual sharing, but proves futile against the consumers whom are actively seeking illegal copies. It is probably more popular in the public domain to claim that DRM is needed to prevent P2P network file sharing, than to prevent more casual sharing and swapping - something that consumers in general are used to with CDs and DVDs. With DRM, content owners now see it in their interest to limit sharing to increase the market.

This report addresses the issue of DRM and digital content. We only address the issues around the digital entertainment category (games, music and film) and not the issues surrounding other content categories such as publishing. The issues of delivering this content over cellular and broadband networks and to a much lesser extent broadcast networks are also covered.

• Key messages
• DRM is a critical component of a digital content offering
• Scenarios for content usage and mobility
• Important challenges for DRM
• DRM: the consumer challenge
• DRM: a fragmenting market far from consolidation
• The DRM ecosystem
• Two camps emerging
• Vertical integration
• The horizontal camp - more momentum required
• The DRM patent licensing minefield has yet to be cleared
• DRM: the content and the network
• Table of figures
  • Figure 1 Convergence of digital media industries
  • Figure 2 DRM solutions
  • Figure 3 Dominant music codecs on paid for downloads reflect the DRM in use