Skip to main content

Big Media will Follow Indie DRM-Free Lead

In today's consumer electronics products, hardware IC features play little role in protecting copyrighted content. Popular digital rights management schemes that depend on secure software implementations such as Windows DRM, Fairplay, and AACS are routinely targeted and hacked.

However, processor companies are enhancing their architectures and embracing security features that will simplify secure software implementations and make it much more difficult to copy and share protected content. By 2013, more than 60 million CE devices are expected to ship with hardware security.

That is one of the key conclusions of a new study and market assessment from ABI Research entitled "Hardware Security in the Consumer Electronics Market."

"There are basically no secure processors in consumer electronics right now. They will start showing up in commercially available devices in the next couple of years, and will take hold rapidly starting in 2009," says principal analyst Steve Wilson.

This hardware-assisted security will find a home in PCs, portable video players, and digital media adaptors, as it already has in cable set-top boxes and elsewhere. "Hardware features supporting security have already been embraced in the PC environment for business-class devices," says Wilson, "and are penetrating mobile handsets. The pressure to create more secure networks for content distribution is what will drive PC and CE manufacturers to use more secure platforms. Don't expect Hollywood to start releasing DRM-free movies."

There isn't a standard way of implementing security at the system level, and the industry is trying to work that out. But hardware security features being built into processors fundamentally embrace certain world-standard cryptography methods and common underlying approaches to security. They are DRM-agnostic and security system-agnostic.

"The successful vendors in this field will be those who are working closely with the studios, content suppliers, and distributors," concludes Wilson, "working to meet their needs for secure platforms. Suppliers in this market are starting to figure that out."

In contrast, I believe that all the successful players within the digital content ecosystem will stop denying or resisting the end-customer desire to avoid DRM implementations that serve no meaningful purpose, from a customer's perspective. Indie producers have taken the lead thus far, by making their content DRM-free. Big media producers will follow, eventually. I predict that semiconductor-based DRM will become yet another technology in search of a market.

Popular posts from this blog

The $150B Race for AI Dominance

Two years after ChatGPT captured the world's imagination, there's a dichotomy in the enterprise artificial intelligence (AI) market. On one side, technology vendors are making unprecedented investments in AI infrastructure and new feature capabilities. On the other, there's measured adoption from customers who carefully weigh the AI costs and proven use case benefits. Artificial Intelligence Market Development The scale of new investment is significant. Cloud vendors alone were expected to invest over $150 billion in capital expenditures in 2024, with AI infrastructure being the primary driver. This massive bet on AI's future is reflected in the rapid growth of AI server revenue. Looking at just two major players - Dell Technologies and HPE - their combined AI server revenue surged from $1.2 billion in Q4 2023 to $4.4 billion in Q3 2024, highlighting the dramatic expansion. Yet despite these investments, the revenue returns remain relatively modest. The latest TBR resea...