DRM can help Indian music industry combat piracy

While the digital format helps music companies to expand their market, it unfortunately also reduces the control they have over content. Is there a way that music companies can turn the reach of the Internet to their advantage? Digital Rights Management (DRM) could certainly be one way to hand over control of content back to the rightful owner, says Srikanth R P

According to Jai S Rajagopal, the NGMA DIAS platform can enable companies to regulate and control the flow of content through mediums like the Web, peer-to-peer, PC and the mobile environment

According to a recent IFPI (International Federation of the Phonographic Industry) report, it has been estimated that the Indian film industry alone loses around Rs 3 billion each year due to piracy. The music industry on the other hand has to cope with losses up to Rs 5 billion per year. Given the paucity of good films and music, piracy can wipe out the Indian film industry in the years to come, unless there is a clear-cut mechanism to control easy duplication of content. Additionally, while downloading of files has gained acceptance among music lovers, it is also a fact that legally available digital content for sale on the Internet is still limited. This is because content owners are still not convinced that their copyrighted works are safe in the cyber world.

Is there a solution in sight? Digital Rights Management (DRM) could be one way of taking advantage of the reach of the Internet while maintaining the rights of the content owner. DRM in simple terms could be termed as a technology that enables the secure distribution, promotion and licensing of digital content. DRM could be more effective in a country like India, which produces the most number of movies in the world. But despite the big market potential that exists in a country of more than a billion people and millions of people of Indian origin abroad—the Indian entertainment industry still makes huge losses. One of the big factors contributing to these losses has undoubtedly been piracy. This is where the concept of DRM could help the Indian entertainment industry combat piracy and increase revenues through a medium not yet tapped by them—the Internet.

Looking at the potential of the Indian market, Next Gen Media Alliances, a specialist company in the space of DRM, is betting big on the adoption of the concept by the Indian entertainment industry. The company is pushing its platform called NGMA DIAS for enabling companies to get back control over digital content. Says Jai S Rajagopal, director, Business Development, Next Gen Media Alliances (NGMA), “The NGMA DIAS platform can enable companies to regulate and control the flow of content through mediums like the Web, peer-to-peer, PC and the mobile environment. Looking at the immense market potential, we aim to become the single gateway for Indian entertainment content on a digital platform that caters to the global market through the Internet and mobile platforms. This would ensure a payment for each download.”

In India, typically every ringtone download worth Rs 7 gives the developer only Rs 1.50 in return. The rest is shared between the music company, data carrier and the network operator. If the digital distribution of songs in India takes off, then the same situation could be seen—with no guarantee of regulation of content. NGMA wants to avoid this and is aiming to put control over content back in the hands of the owner.

Besides ensuring encryption of content, the platform even has an advanced search engine that can search the Internet for illegal storage of content on the Web. All an artist has to do is register content on the NGMA DIAS platform. The company is already in talks with a number of musicians and record companies who are looking at the Internet as a medium to grow their revenues. The platform could also be a shot in the arm for young and talented artists in India who have otherwise been overlooked by the big record labels. Using the Internet as a medium, these artists can gain valuable exposure. If their songs can manage a significant number of downloads, the artists can not only earn money by way of a license fee per download, but more importantly, go back to the record companies armed with statistics of downloads.

While the future of digital distribution has always looked bright, the key obstacle was piracy. If DRM can help in curbing this monster, then the Indian entertainment industry surely would be benefited immensely by the inflow of revenues through a medium (Internet) they have never tapped.

srikanth@expresscomputeronline.com