Protective software rejuvenates DRM market

Digital rights management systems and supporting technologies that protect valuable content from ‘super distribution’, are experiencing strong market growth.

Digital rights management (DRM) systems and supporting technologies that protect valuable content from super distribution, are experiencing strong market growth with the increasing digitisation of content for easy transfer or sale via the Internet.

New analysis from Frost & Sullivan ‘The US Digital Content Protection Market’, reveals that this industry generated revenues of $285.6 million in 2001. Total market revenues are expected to reach $864 million in 2007.

‘2002 marks the beginning of the end for peer-to-peer network users that super distribute intellectual property with impunity,’ says Frost & Sullivan Industry Analyst Jarad Carleton.

‘With the push to digitise all types of content, the need to protect that content will become increasingly important in order to prevent intellectual property theft and protect revenues of content owners.’

Healthcare and financial services already use sensitive and personalised digital content and have a legally mandated need to protect it. With the rapid evolution in web technology and dynamic generation of content, market verticals such as government, media and the entertainment industries are also ready to employ technology to protect their data.

While DRM vendors are primarily focusing on the above industries, corporate enterprise is also fast becoming a lucrative market with a growing need to protect trade secrets, according to the study.

Another factor aiding the expansion of the DRM solutions market is the increasing willingness of vendors to try corporate-friendly pricing models. Business models for content protection solutions that eliminate transaction charges are expected to encourage industries such as publishing that have slim margins to increase digital publication.

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