[Ecommerce] EC report on digital roadblocks; drm the answer

[Michelle Childs]

<snip>

Widespread piracy of music and video downloads is also a major concern
within the commission. It believes piracy siphons off potential revenue
and deters media companies from putting content online.

Brussels' answer is "Efficient Digital Rights Management (DRM) systems to
manage and protect digital content are necessary for a secure and
sustainable roll-out of digital distribution".

However, a lack of interoperability or standardisation in DRM was noted as
a longer term stumbling block for digital content services and devices.


<http://www.theregister.co.uk/2007/01/29/ec_online_content/

EC foresees digital roadblocks
Broadband inequality and piracy to blame
By Maxim Kelly, ElectricNews.net &#8594; Published Monday 29th January
2007 11:29 GMT
The European Commission has identified unequal broadband provision and
piracy as major "roadblocks" to the development of Europe's online
creative content industries.

Despite the fact that broadband penetration is slowly increasing across
the European Union, the commission is concerned that vast gulfs between
adoption in different member states is harming the development of revenues
derived from online creativity.

The commission predicts business revenues from online content such as
music and video downloads will reach =808.3bn by 2010 in Europe - a growth
of over 400 per cent in five years.

EU Commissioner for Information Society and Media Viviane Reding is
currently preparing a "Content Online in Europe's Single Market"
initiative which will be commenced in the second half of 2007.

"The long-awaited digital convergence is becoming an economic reality,
creating great opportunities for Europe's consumers, content providers and
technology industries," Reding said in a statement. "To capitalise may
require casting a fresh eye at the technical and legal issues where a
modernised and internal market-oriented approach would add value to
European content."

A commission report released on Thursday expects that revenue generated
online will become massively important for creative industries - many of
which have already embraced the e-commerce revolution. The study predicts
Europe's entire music industry will take one fifth of its total revenue
from internet-based transactions by 2010, while one third of the
indigenous video game industry's revenue will be solely originated online.

The latest report on the development of internet-based business models for
the creative industries, Interactive Content and Convergence: Implications
for the Information Society, has found that although the sector is growing
steadily, technological, economic and legal challenges - notably
intellectual property rights and interoperability - need to be addressed
for Europe to have faster market uptake.

The study also found that Europe trails the US in developing interactive
fixed broadband services, and lags behind Japan and Korea when it comes to
mobile services.

Slow uptake of 3G in Europe, and the sometimes confusing pricing structure
of mobile operators' data tariffs were two specific areas which come in
for criticism.

Widespread piracy of music and video downloads is also a major concern
within the commission. It believes piracy siphons off potential revenue
and deters media companies from putting content online.

Brussels' answer is "Efficient Digital Rights Management (DRM) systems to
manage and protect digital content are necessary for a secure and
sustainable roll-out of digital distribution".

However, a lack of interoperability or standardisation in DRM was noted as
a longer term stumbling block for digital content services and devices.

Copyright =A9 2007, ElectricNews.Net




--
Michelle Childs -Head of European Affairs
Consumer Project on Technology in London
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Consumer Project on Technology in Washington, DC
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