Choosing a DRM Strategy
One of Entriq’s better-known clients in the U.S. is World Wrestling Entertainment (WWE), which also has a long history of showing live pay-per-view content. The WWE’s wrestling matches are viewed by hundreds of thousands—in some instances, millions—of fans, at a set time. In essence, these events are simulcasts: if a fan can’t be in New York to watch a big wrestling match, they can pay a fee to view the match live.
WWE, who has also pioneered internet-only entertainment content, was concerned about dilution of revenues as its live events began to be streamed on the web. A big concern during early events was password swapping, which was prevalent among its tech-savvy audience, so the company began searching for a solution that would minimize this loss of revenue. At the same time, WWE also wanted a consolidated billing and customer care solution to accompany the upgraded security features, so that its legitimate online viewer base would have a satisfying entertainment experience.
"Our online events have always been of great interest to WWE fans, as they give them the ability enjoy live high quality wrestling entertainment," said David Knise, VP of Interactive at WWE.
WWE and Entriq worked together to use several conditional access security policies, including geographic restrictions and media usage timing, as well as security measures put in place to limit multiple accesses to an event via a single password.
Subscription
Of all the business models that involve DRM, none has elicited more debate than the subscription model. This model, in various iterations, seeks to allow customers access to wide libraries of content, but to eliminate access to this content once a subscription has expired.
From Apple’s perspective, the continuing "subscribe versus buy" debate must seem like déjà vu all over again. When the first iTunes Music Store launched, it did so under a fairly simple premise—allow consumers to purchase and download music for $.99 per track, then play this content on up to five computers and unlimited iPods, plus burn it to up to four CDs.
But the success of iTunes hasn’t deterred others from trying the subscription approach. The most recent iteration of this model—or at least the one generating the most buzz—is the Microsoft-MTV partnership called Urge. Bundled with the new Windows Media Player 11 beta that Microsoft released in mid-2006, the difference in the Urge approach from previous subscription models is the depth and breadth of its catalog and accessibility.
Urge provides access to a sizeable library of songs, and those songs can be played both on the desktop in Windows Media Player 11, as well as on a growing number of compatible portable players. Microsoft is using this partnership to promote its "Plays for Sure" certification, which guarantees newer devices will play WindowsMedia content–something that not all older WindowsMedia-"compatible" devices were able to do.
The pricing for accessibility from portable players is the rub, however, as Urge requires different dollar amounts for different levels of accessibility. At the time of this writing, the following pricing schemes were available.
--Urge All Access. For $9.95 per month or $99 per year (with two months free), this option enables users to play or download 2 million full-length songs, enjoy 130 commercial-free CD-quality radio stations and more than 500 playlists, and save feeds of automatically updating playlists.--Urge All Access to Go. For $14.95 per month or $149 per year (with two months free), this option offers the same features as Urge All Access and the ability to transfer subscription music to compatible portable music players.--Urge by The Track. Consumers can purchase individual tracks for 99 cents, or purchase entire albums or playlists (prices vary). Users also can manage their digital music collection, rip and burn CDs, search and sample the 2-million-song catalog, enjoy 20 free radio stations, and access Urge editorial features, profiles, interviews, and Informer blogs.
The potential sticking point is the fact that Urge All Access and All Access to Go (subscription) content stops playing at the point at which a subscription ends, even on portable devices. If consumers approach the Urge subscription model the same way they approach premium cable channels—as a monthly subscription that they will keep for several years—the All Access approach is a compelling business model.