Consortium To Standardize Digital Rights Management, Take On Apple

A consortium of digital entertainment companies including movie studios, digital device manufacturers, and electronics retailers are trying to take on Apple (AAPL) by standardizing their DRM practices. Originally dubbed “Open Market,” the official name of the initiative is now the Digital Entertainment Content Ecosystem [DECE]. As we first reported a few weeks ago:

Open Market is a set of policy decisions and a software and services framework that will allow interoperability of various formats and DRM schemes that are currently splintering the market. That splintering locks users into a single store and format, and is putting a stranglehold on widespread adoption of movie sales online. Multiple sources have indicated that the studios are putting their weight behind the initiative to avoid the fate of the music industry and as a last ditch effort to stop or slow non-DRM movie sales.

The basic idea is that if you buy digital content for one device, it should play on any device. And instead of having 50 different rules for how many times you can play a digital download movie and on how many different devices, DECE will come up with one industry-wide standard. Content and devices that comply with the DECE standard will sport a new DECE logo.

The consortium includes Alcatel-Lucent (ALU), Best Buy (BBY), Cisco (CSCO), Comcast (CMCSA), Fox Entertainment Group (NWS), HP (HPQ), Intel (INTC), Lionsgate (LGF), Microsoft (MSFT), NBC Universal (GE), Paramount Pictures, Philips (PHG), Sony (SNE), Toshiba, VeriSign I(VRSN) and Warner Bros. Entertainment (TWX).

Notice the glaring absence of Apple and Disney (DIS)? That’s because Apple already figured this out a long time ago with its Fairplay DRM on iTunes (which also sucks, but at least it is consistent).

Original post

Comments

[jmmx:]

You may not like Apple's DRM - but it sure is a whole lot better than what we had before. The only choice you had then was to buy a CD or download illegally!

That was the deal the music companies made. We will sell online IFF you can protect the product from illegal copying. It's worked fine for me.

2008 Sep 13 06:46 AM

[westech:]

Fairplay DRM sucks? Apple would be delighted to drop it if the labels would let them. As for the Apple store and the ipods, the market has spoken. They like it. The consortium is a joke. Poor Microsoft and their Zune. Another joke.

2008 Sep 13 06:57 AM

[Jon T:]

It will have to be good. Really good. Which it won't be. Just as all those other useless alternatives to iTunes for music were decimated - by having no customers.

If this is another Microsoft like tactic, to artificially engineer the take down of Apple, it will only fail.

Just as the Music labels are failing at slowing iTunes by denying them DRM free music. (Funny thing is that the music labels are engineering the lock in to iPods which is exactly what they say they DON'T want!).

Net result of all this will be another expensive fail.

2008 Sep 13 08:25 AM

[PK de C'ville:]

Erick,

Hate to break it to you, but this is Msft trying to take over DRM. Haven't you noticed?

Msft has failed (till now) with its crapware, but just wait until the new standard is announced! What a surprise when this thing appears to be somewhat advantageous to msft! Who'd a thunk?

Msft leading a collusive attack on it's enemies (In this case Apple and Disney.) is Msft doing what it does best.

Apple innovates the future.

Msft innovates collusion.

2008 Sep 13 08:29 AM

[sleepy:]

Apple's Fairplay DRM is an optional service to content owners. Since it is proprietary, Apple can both make guarantees to content owners (if security is breached, Apple can force an update to every device wanting to load new Fairplay content), and offer consumers a fair deal (DRM'd content never dies; there is no "keep alive" callback to headquarters required, unlike other systems with guarantees).

The problem with a shared open standard is that once it's cracked, it can't be repaired, and content owners can't be compensated. Therefore it can't compete with Fairplay as an attractive DRM for content owners.

Apple does not in fact demand a monopoly on distribution; but only to distribute on its own terms.

The final solution some years hence may be that Fairplay is licensed broadly by means of Apple chips embedded in devices from all manufacturers.

The paradox for content owners is that no-one wants content until they are aware of it. An owner will pay to get his song on radio, yet wants paying for a consumer to hear it on demand. An industry wide "open" DRM is destined either to be cracked and bypassed (like DVD), or its protected content to be ignored and forgotten by consumers.

The industry needs to cut a long term deal to license Fairplay, in exchange for giving Apple distribution of its content.

2008 Sep 13 02:48 PM

[Viswakarma:]

This consortium approach smells more like the formation of an illegal Cartel for entertainment. The FTC should take notice of this collusion!!!

2008 Sep 13 06:10 PM

[holycow:]

Instead of finding solutions that their customers want, these guys are trying to engineer a solution that addresses their needs only. Consumers will simply ignore them or just find a way around it. Anyway since MS is part of the consortium, you can be sure it won't be open or they will find a way to retain control.

2008 Sep 13 09:52 PM

[offtheobt:]

Hey guys, wake up!! The horse has left the barn, Apple has taken the market. What you are doing is just locking the barn door. Face the facts!

2008 Sep 13 10:02 PM

[PeteK:]

Yes, wake up, but keep quiet and just sit, & wait & see.
All this argues won't help.

2008 Sep 14 03:25 PM

[mathue:]

I'm not sure I follow your reasoning that this consortium is a benefit to consumers. I spy Microsoft in the mix of companies and media producers. IF Microsoft GENUINELY wanted interoperability then they could have done so years ago. Going on prior behaviour (Has everyone gotten amnesia lately?) I'm not the least bit confident that MS has any intension but to link 'primary' interoperability to it's products alone. Yah, they might allow basic video viewing at 240x320 on non MS gear and OS but to get the full rich experience you need to sun 'Windows Media Deluxe Professional Corporate Mega Homestore OS' version 12

2008 Sep 14 03:57 PM

[peter02l:]

DRM is one thing, the digital format is another, but more important issue. As long as movies are available in a non-propriety good quality format, Apple will be happy to use their standard. That is, as long as microsoft can't embrace and extend it.

2008 Sep 14 10:33 PM