Gartner Says 60 Percent of E-Commerce Sites to Use Digital Rights Management Applications by 2002
Analysts Examine Emerging Technology During Gartner Symposium/ITxpo 2000
Lake Buena Vista, Fla., October 18, 2000 - By 2002, more than 60 percent of enterprises adopting e-commerce will use some content security tools or services, such as digital rights management (DRM), according to Gartner Group, Inc. (NYSE: IT and ITB). These findings were presented today during Gartner Symposim/ITxpo 2000, which is taking place through October 20 in Lake Buena Vista, Fla.
"The market for secure content delivery over the Internet is just emerging. Routing electronic content securely with encryption, delivery certification and audit trails will allow businesses many benefits, including faster client service and supplier interaction," said Alan Weintraub, research director for Gartner.
Enterprise strategies are promoting DRM because they want applications focused on one secure content solution. DRM provides for the persistent protection of digital information over an intranet, extranet or on the Internet. Users are granted only the privileges the media sender allows.
DRM technologies are targeting the music and book industries first as they migrate from traditional distribution of physical media to new, networked, online methods of selling electronic content. DRM offers these publishers and enterprises the ability to control and protect the distribution of their valuable content and thereby maintain their revenue associated with that content.
"Until the advent of DRM technology, many content distributors viewed the Web as only offering what they most feared: uncontrolled access to valuable content," Weintraub said. "With DRM technology, the Web becomes a channel that allows all types of electronic content to be distributed and protected in a controlled manner."
DRM applications will have significant effects on the business-to-business (B2B) as well as the business-to-consumer (B2C) markets. In the B2C area, the challenges will be centered on money and standards. The B2B area will likely recognize the need for protecting their intellectual property but will be challenged with questions focused around infrastructure and spending.
"While determining if they need a DRM strategy, Internet retailers will be faced with questions regarding consumers' acceptance of the need to charge for electronic content and how much the consumer will be willing pay," Weintraub said. "B2B companies will have their own challenges, such as determining if their organization has the infrastructure to support DRM and even recognizing the need to implement a DRM strategy."
The quickest way for an enterprise to implement a DRM strategy is to outsource the entire operation. The content provider delivers the content to the outsource provider along with the rules that govern access to the information. The outsource provider will encrypt the information, apply the rules, post the information on its Web site, administer financial interaction, and maintain and provide access keys.
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