Presentation on theme: "Developing the Digital Market October 23, 2006 Mitch Singer EVP Technology and New Media Sony Pictures Entertainment."— Presentation transcript:
Developing the Digital Market October 23, 2006 Mitch Singer EVP Technology and New Media Sony Pictures Entertainment
The End Game Consumer Stores Let 1,000 retailers bloom.
The Music Industry Today The digital music marketplace is dominated (67%) by iTunes with a proprietary format and device. eMusic is #2 and distributes unprotected MP3s. eMusic is the only other storefront who can get content on the iPod. Yahoo and Rhapsody are primarily subscription models (not sell-through).
Basic Observations Copy count models do not work. Domain is key. Apple is the dominant domain. Its a movies and music world. Other players cannot compete with Apple by pursuing closed silos.
The 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 Count 12 X Portable breaks. A typical device failure scenario demonstrates the problem. Using a hypothetical 4 copy model as an example…
The Failure of Copy Count A typical device failure scenario demonstrates the problem. Using a hypothetical 4 copy model as an example… Consumer buys new portable and new content. Spiderman: 1 copy left Jerry Maguire: 2 copies left 123 X
Domain is Key Consumers Domain Domain A 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.
Proposed 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 Offering The digital product offering extends beyond the domain model. Proposed Sell-Through Usage Model* Unrestricted access across domain of registered devices Remote access beyond domain allowed with strong authentication Physical disc 2 1 3
Key Points Internet Possible with todays technology. Multi-DRM / DRM agnostic. Meet consumer needs / expectations. Credible alternative to iTunes domain model. Service level control. (vs. device or DRM) Customer 1Customer 2 Service Provider Service Provider
Remaining 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 Internet iTunes is the best example of the problem. The only place to buy the leading digital music format is iTunes.
What We Want Internet Domain Stores Separation of store and domain. Let 1,000 retailers bloom.
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