Frost & Sullivan Reports Growth in DRM Solutions Market

Oct 11, 2002

New analysis from Frost & Sullivan, "The U.S. Digital Content Protection Market," reveals that the digital rights management industry generated revenues totaling $285.6 million in 2001. Total market revenues are expected to reach $864 million in 2007. This ongoing growth opportunity analysis is part of the firm's Information Technology Services Coverage, which also includes market insights on U.S. Web Hosting Markets and U.S. Web Content Management Markets. According to Frost & Sullivan's research, the acceptance of extensible rights markup language (XrML) as a global digital rights language is an important step towards unifying the industry, in addition to helping DRM solution interoperability, and accelerating market revenue growth. Healthcare and financial services already use sensitive and personalized digital content and have a legally mandated need to protect it. With the rapid evolution in web technology and dynamic generation of content, market verticals such as government, media, and the entertainment industries appear ready to standardize the implementation of the technology. Another factor aiding the expansion of the DRM solutions market is the increasing willingness of vendors to try corporate-friendly pricing models. Business models for content protection solutions that eliminate transaction charges are expected to encourage industries such as publishing that have slim margins to increase digital publication.