developing the digital market october 23, 2006 mitch singer evp technology and new media sony...
Post on 27-Mar-2015
214 Views
Preview:
TRANSCRIPT
Developing the Digital Developing the Digital MarketMarket
October 23, 2006October 23, 2006
Mitch SingerMitch SingerEVP Technology and New MediaEVP Technology and New Media
Sony Pictures EntertainmentSony Pictures Entertainment
The End GameThe End Game
Consumer
Sto
res
“Let 1,000 retailers bloom.”
The Music Industry TodayThe Music Industry Today
Digital Music 2005Marketshare by Storefront
iTunes67%
eMusic11%
Rhapsody4%
Napster4%
MSN Music3%
Others11%
The digital music marketplace is dominated (67%) by iTunes with a proprietary format and device.
eMusic is #2 and distributes unprotected MP3’s.
eMusic is the only other storefront who can get content on
the iPod.
Yahoo and Rhapsody are primarily subscription models
(not sell-through).
Basic ObservationsBasic Observations
Copy count models do not work.
Domain is key.
Apple is the dominant domain.
It’s a movies and music world.
Other players cannot compete with Apple by pursuing closed silos.
The Failure of Copy CountThe Failure of Copy Count
1
Consumer uses 2 copies.
Spiderman: 2 copies left
A typical device failure scenario demonstrates the problem.
Using a hypothetical “4 copy” model as an example…
The Failure of Copy CountThe Failure of Copy Count
1 2
XPortable breaks.
A typical device failure scenario demonstrates the problem.
Using a hypothetical “4 copy” model as an example…
The Failure of Copy CountThe Failure of Copy CountA typical device failure scenario
demonstrates the problem.
Using a hypothetical “4 copy” model as an example…
Consumer buys new portableand new content.
Spiderman: 1 copy leftJerry Maguire: 2 copies left
1 2 3
X
Domain is KeyDomain is Key
Consumer’s Domain
DomainA set of registered devices on which a consumer
may freely access purchased content
In a domain, counting copies is not required. In a domain, counting copies is not required. Content can only play on devices in the Domain.Content can only play on devices in the Domain.
Proposed Domain ModelProposed Domain Model
User may register up to 20 devices with a service.
A device may only be registered by one user.
User may access content freely on registered devices.
Registered devices must renew domain participation once a year.
Digital Product OfferingDigital Product Offering
The digital product offering extends beyond the domain model.
Proposed Sell-Through Usage Model*
Unrestricted access acrossdomain of registered devices
Remote access beyond domainallowed with strong authentication
Physical disc
2
1
3
Key PointsKey Points
InternetInternet
Possible with today’s technology.
Multi-DRM / DRM agnostic.
Meet consumer needs / expectations.
Credible alternative to iTunes’ domain model.
Service level control.(vs. device or DRM)
Customer 1 Customer 2
Service Provider
Service Provider
Remaining ProblemRemaining Problem
Internet
A problem remains…
Operators end up performing two functions: store and domain.
The domain operator becomes the only available store.
A domain with a single store presents problems for content
owners and consumers.
DomainStore
Customer 1
Service Provider
““Let One Retailer Bloom”Let One Retailer Bloom”
Internet
iTunes is the best example of the problem.
The only place to buy the leading digital music
format is iTunes.
What We WantWhat We Want
Internet
Domain
Sto
res
Separation of store and domain.
“Let 1,000 retailers bloom.”
Sto
res
Domain is the ProductDomain is the Product
Domain
Sto
res
Retail and DomainRetail and Domain
Internet Consumer’s Domain
Domain ManagerRetailer
Token
Kiosk Website
Mobile and DomainMobile and Domain
Internet Consumer’s Domain
Domain Manager
Mobile Operator
Token
Blu-Ray and DomainBlu-Ray and Domain
Internet
Domain Manager
Consumer’s Domain
AACS
ManagedCopy
DVD and DomainDVD and Domain
Internet
Domain Manager
Consumer’s Domain
Token
Token
SummarySummary
Consumer
Sto
res
“Let 1,000 retailers bloom.”
top related