IDC Forecasts Worldwide DRM Software Revenues Will Skyrocket to More than $3.5 Billion in 2005

FRAMINGHAM, MA – JUNE 28, 2001 – A small, emerging market, digital rights management (DRM) is making a big splash as an important technology for securing, monitoring, distributing, merchandizing, and tracking access to any form of digital content. According to IDC, worldwide DRM revenues will increase at a compound annual growth rate (CAGR) of 106% from $96 million in 2000 to over $3.5 billion in 2005.

 

"While not yet widely understood or used, DRM is creating trusted services and ultimately providing a trusted infrastructure that brings individuals, enterprises, and content consumers closer together," said Joshua Duhl, analyst for IDC’s Document and Content Technologies research program. "It has the power to enable a whole new range of products, business models, secure information exchange, and revenue streams for a broad range of companies."

IDC identifies four primary market drivers for the overall DRM market: intellectual property (IP) protection, new revenue opportunities, protection of privacy and confidentiality, and competing standards. IDC believes the need to share IP will drive DRM growth in the enterprise and business-to-business (B2B) markets. DRM also gives its users new power to mix and match content with commerce, which creates new B2B and business-to-consumer (B2C) opportunities to profit from the sale or lease of content through both direct and indirect sales models.

Additionally, the mounting demand to maintain the privacy and confidentiality of digitally represented information will drive DRM. The vertical industries that are currently ripe for DRM use include the financial and legal markets, government, and law enforcement. Required access protection and audit trails for electronically distributed information is starting to heat up the healthcare industry.

Despite hot demand for DRM, IDC warns DRM adoption has a variety of challenges that may hinder its growth. "The overall DRM market is new and consequently has no reliable revenue track record. New business model uncertainty, vendor viability concerns, lack of expertise, companies’ resistance to change, and lack of clear legal precedent could slow market growth," Duhl said.

IDC’s report The DRM Landscape: Technologies, Vendors, and Markets (IDC #B24891) analyzes, sizes, and forecasts the worldwide markets for DRM software. This report reviews the evolution of DRM and discusses vendors’ offerings and strategies. Horizontal and vertical market opportunities, as well as market trends, are discussed. To purchase this report, contact Cheryl Toffel at 1-800-343-4952, extension 4389, or at ctoffel@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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