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DRM Spending to Exceed $9 Billion

Content Protection Digital Rights Management Market Spending Exceeds $9 Billion Over Five Years, Says Insight Research Corp.

Spending on digital rights management (DRM) software and hardware to protect entertainment, commercial software, and other information will exceed $9 billion dollars over the next five years, says a new market research report from Insight Research Corp. By the close of 2007, total worldwide spending on DRM will reach just over $1 billion, and by 2012 business spending is forecasted to grow to nearly $1.9 billion, according to the new research study.

According to Insight’s newly-released market analysis report, “Wireline and Wireless Digital Rights Management: Securing Content Distribution 2007-2012,” DRM involves the combination of software and hardware technologies that enable the content owner and distributors to assign and control rights and conditions for viewing, listening, and employing the content present in digital media and applications — be it a song, a movie, a medical or financial record, or a software game. The study focuses on the use of DRM by wireline retail users, wireless retail users, TV and home entertainment network (HEN) users, software application retail users, as well as software application corporate users. The report notes that as the value of digital content increases, applications of DRM will increase, though at a slower rate than the value of content based on the fact that DRM pricing is not tied to the value of the protected content.

“DRM evolved over the last two decades to serve corporations that needed a means to deal with information piracy, peer-to-peer file sharing, and various regulatory requirements. So in a sense DRM did not arise to meet the needs of end users, and in fact, it may be said to have evolved to spite the end user,” says Robert Rosenberg, President of Insight. “While organizations like Creative Commons have emerged to balance the respective — and sometimes conflicting — rights of artists and creators, media companies, and individuals who share content, by and large the focus of the DRM industry is to protect the rights of the owner of the content, not the end user,” Rosenberg concludes.

A free report excerpt, table of contents, and ordering information is available online at http://www.insight-corp.com/reports/WWD.asp. This 188-page report is available immediately for $3,995 (hard copy). Adobe Acrobat (PDF) report licenses are also available.

For more information please contact:
Ms. PJ Conger, Marketing Director
973-541-9600
pj@insight-corp.com

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