on demand distributionmedia warehouse product design & packaging release management offer...
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On Demand Distribution
Developing a Business Model in Europe :Experience at the Forefront OECDOECD
Paris, 3rd June 2004
Europe’s leader in digital musicOECD Broadband Content Panel
Working Party of the Information Economy
A highly risky ventureNo Standard format
Codec : MP3, WMA, AAC, ATRAC, Liquid, RealDRM : Intertrust, WMDrm, Fairplay, OpenMagicGate, Liquid, Helix
Competition from PtoPAll the repertoire (don’t bother with licensing)Free
No assured contentProducers’ exclusive right to authorize and forbidLicensing negotiations
A highly risky venture, really !
No existing business modelConflicting demands from the food chain stake holdersImplosion of the SDMI
No defined legal frameworkPerformance or mechanical publishing ?Rights territoriality or EEC free circulation ?Country of VAT ?Patent legal suit for downloading and DRM processes ?Conflict between copyright and competition laws ?
12 Countries45 Services5 currencies3 m visitors750 000 clients
Distribution OptionsFULL INTEGRATION
DVD TS CD DlXML
Invoice PPD
download
WHITE LABEL SERVICE
%WebAudio
Net
AFFILIATION SCHEME
E-compil
XML
How does it works ?Label
reportMediaservers
Licenceservers
Royaltymanagement
User
Encrypting
Fullfilling platform
Packaging Encoding
Retail partner
SACEM/SDRM
General view of the Architecture
Ingest
Encode
Release offer data
Hosted Copy
Deliver Media & License
Auth. Transaction
Retail & Label Reports
Commerce System Customer
Media Delivery System
Label PublishersRetail site
reports
Content Preparation & Ingestion
Media Warehouse
Product Design & Packaging
Release Management
Offer Management
3rd Party Retail Interface
eCommerce Platform
Subscription Engine
Media Distribution & DRM Clearing
Retail Accounting
Royalty Accounting
Management Information
Direct eMarketing
Physical Product Promotions
Client Applications
Recommendations Engine
The building blocks ofa digital distribution
Share of the value chain
Digital Distribution
19,60%
5,00%
10,35%
10,35%
48,28%
0,00%
6,43%
VAT
Payment gatew ays
Retailer
Distributor
Label
Manufacturing
Publishing copyrights
Physical distribution
19,60%
0,00%
12,06%
27,34%
25,97%
9,00%
6,03%
VAT
Payment gatew ays
Retailer
Distributor
Label
Manufacturing
Publishing copyrights
A new industry ?Some compare the coming digital distribution to the advent of CDs :
=
In fact, it is a new sector ?
Music Publishing
Record production
Digital distribution
20° 21°19°
Vente
et
diff
usi
on d
e m
usi
qu
e
A thinking revolutionFrom sales of products to marketing of services
Music everywhere :
HOME
CAR
DESK/POCKET
The key questions
How to ensure the place of digital music operators in the value chain ?
How to support the development of pure players : the Digital Music Service Operators ?
EURO-LEADER