Digital Rights Management in Media and Entertainment Market

Market Overview

The global digital rights management in media and entertainment market size was valued at USD 4.3 billion in 2022. It is estimated to reach USD 12.92 billion by 2031, growing at a CAGR of 13.0% during the forecast period (2023–2031).

The term "Digital Rights Management" (DRM) in the media and entertainment industry refers to a group of instruments, procedures, and rules that the industry uses to protect and manage the rights associated with digital content. Various controls are included in it that are meant to restrict the use of, distribution of, and access to digital media assets like software, music, movies, and other digital information. DRM systems employ encryption, authentication, and licensing methods to thwart unauthorized copying, distribution, and infringement by ensuring that only authorized users may access and use digital content. These systems may employ digital signatures, access controls, encryption keys, and watermarking mechanisms to enforce copyright protection and intellectual property rights.

DRM in Media and Entertainment principally attempts to safeguard content creators' revenue streams, combat piracy, and unauthorized distribution, enable secure content delivery through various channels (such as streaming platforms), and make it simpler for consumers to employ flexible licensing and usage models. The industry's DRM solutions also commonly stress striking a balance between preserving the legal rights of content creators and providing a faultless user experience to actual customers.

Market Dynamics

Global Digital Rights Management in Media and Entertainment Market Drivers:

Increasing Piracy in Premium Streaming Content

Consumers' adoption of enhanced connected devices and the rise in touchpoints have largely contributed to the significant growth in digital video consumption over the past few years. Partners in premium video content and streaming channels seeking to capitalize on the market's expanding business opportunities are searching for prospective mediums or platforms, such as OTT, to deliver high-quality audio and video content to engage consumers and improve the customer experience. In the race to provide high-quality video content via OTT channels, however, the lack of content security and the danger of content piracy pose significant obstacles. These obstacles hurt business performance and increase the need for content security solutions that protect privacy, digital rights, and the content's integrity. Premium video and audio content are susceptible to duplication and recording despite the pervasive use of encryption and decryption technologies. The increasing sophistication of illegal streaming content distribution across devices and applications harms content owners' and digital distribution partners' profits.

Increasing Need for Multi-DRMS

As the global consumption of digital content such as music, books, movies, and other entertainment applications increases, so does the necessity to protect copyright. The escalating threat of content piracy and unauthorized redistribution of digital media compels publishers and authors to adopt DRM solutions to regulate the use and accessibility of content. However, designing and constructing a DRM system is difficult, as native DRM technologies such as Apple Inc.'s Fair Play and Google LLC's Wide Vine Technologies target specific ecosystems and involve specific requirements, specific participants, and restrictions.

Streaming or publishing content supporting all formats, protocols, clients, and security features increases the cost and complexity of managing DRMs for publishers and authors due to the restricted use case of native DRMs. This has necessitated the development of multi-DRMs or multi-format DRM solutions. Multi-DRM solution providers are responsible for integrating and managing DRM across various devices and streaming formats. In addition to the full integration of multiple DRMs, these vendors have a robust ecosystem of partners, including vendors, technology partners, and transcoders. This expert support allows businesses, publishers, and streaming partners to concentrate on their operations instead of DRM management.

Global Digital Rights Management in Media and Entertainment Market Restraint:

Costly Digital Rights Management Solutions and Administrative Expenses are Soaring

The inexpensive DRM solutions will not be able to effectively secure the content from being accessed illegally. The high price of digital rights management solutions is anticipated to be a barrier to the market's progress. Most items now available on the market have a price strategy based on every month. Other cost-effective options on the market, such as watermarking and password protection, can serve as an alternative to the digital rights management solutions that are currently on the market. As a result, the high price of DRM solutions is likely to act as a barrier for consumers entering the market for digital rights management.

Global Digital Rights Management in Media and Entertainment Market Opportunities:

OTT Platform Expansion

Expanding demand for and consumption of over-the-top (OTT) services will present the industry with attractive opportunities. The over-the-top (OTT) content delivery model has emerged as the most prominent in the modern entertainment industry. YouTube has become a vital avenue for the entertainment business to reach new clients and keep the ones they already have. Every minute, more than 500 hours of video are uploaded there, and the site has over 2 billion visitors each month. In addition, paid OTT media firms enable their customers to experience high-budget content that DRM protects from the convenience of their homes. This is helping the emergence and spread of the digital rights management business as it makes it easier for over-the-top (OTT) platforms to grow, enabling various digital rights management policies to safeguard and monetize their content.

Regional Analysis

North America Dominates the Global Market

Based on region, the global digital rights management in the media and entertainment market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global digital rights management in media and entertainment market shareholder and is estimated to exhibit a CAGR of 12.8% over the forecast period. North America's position as a prominent region in the digital rights management (DRM) sector can be attributed to several factors, including large media and entertainment companies, the progression of technology, and the stringent enforcement of intellectual property rights. In addition to having well-established DRM systems and infrastructure, the region is defined by high levels of digital content consumption and a mature industry. Additionally, the region possesses mature DRM systems. Opportunities can be found in the continued growth of digital rights management (DRM) technologies and the constant rise of digital streaming services and digital distribution platforms.

Europe is anticipated to exhibit a CAGR of 15.3% over the forecast period. DRM, also called digital rights management, is an important European industry, particularly in the media and entertainment sector. The region has its unique identity because the nations that make up this region have a wide diversity of legal constraints and consumption trends for digital content. The adoption of DRM systems is sparked by a strong focus on copyright protection and data privacy in Europe. Some of the opportunities for this area of the economy include the growth of over-the-top (OTT) platforms, the transmission of information to several displays, and the desire for global content distribution that complies with local laws. Each of these components is closely related to the others.

The Asia-Pacific region's DRM market is now experiencing amazing growth. Many populations in nations like China, India, Japan, and South Korea consume digital material in addition to a thriving media and entertainment business in each of these nations. Numerous nations have sizable populations, with South Korea among them. Significant potential for DRM solutions is being created in the region due to the rising demand for streaming services, online gaming, and the dissemination of digital material. Despite this, the industry is incredibly diversified, and some of the difficulties that businesses have include worries about piracy, the need to localize languages, and different regulatory frameworks in various countries.

The Latin American media and entertainment sector market for DRM is still developing. Digital distribution platforms and streaming services are in more demand in this region due to the growing number of individuals consuming digital material there. Opportunities can be found as broadband availability increases, digital infrastructure is improved, and difficulties with piracy are addressed. Localizing content, considering user language preferences, and forming regional alliances are all important considerations when adopting DRM in the Latin American market.

In the Middle East and Africa, the media and entertainment industry is steadily progressing toward implementing DRM systems. The primary factors driving the industry are the increase in digital content consumption, the expansion of internet connectivity, and the development of digital media platforms. Opportunities can be found in video-on-demand (VOD) services, digital music, and online gaming. Implementing digital rights management (DRM) in the Middle East and Africa (MEA) market necessitates considering several important considerations, including localization, cultural sensitivity, and the need to combat piracy.

Segmental Analysis

The global digital rights management in the media and entertainment market is bifurcated into application and enterprise types.

Based on application, the global digital rights management in the media and entertainment market is bifurcated into mobile content, video on demand (VOD), mobile gaming and apps, eBook, and others. 

The video-on-demand (VOD) segment owns the highest market share and is predicted to exhibit a CAGR of 19.8% over the forecast period. Both the number of individuals who have access to the internet and the number of people who use smartphones have increased across the board in recent years. This trend can be seen in every region of the world. Users of smartphones now have an easier time downloading and watching high-quality premium video content available online. As a result of the increasing demand for high-quality video material, many premium content distributors and streaming partners are investing in digital rights management (DRM) technology to attract new audiences and boost their revenue potential. This is being done as a direct result of the growing demand for high-definition video content.

Based on enterprise type, the global digital rights management in the media and entertainment market is divided into small and medium enterprises (SMEs) and large enterprises. 

The large enterprises segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 15.9% over the forecast period. Employees from various divisions work together within a single major firm. These departments are expected to work with other departments within and outside the organization to fulfill their obligations. This requirement applies to both internal and external collaboration. DRM (digital rights management) systems are quickly being adopted by numerous businesses to manage the data of their huge customer bases. The success of this industry can be ascribed to the fact that the fundamental purpose of the vast majority of organizations is to deliver gratification to their clients and strengthen their general connection with the enterprise. This connection is the driving force behind the growth of this sector. Huge enterprises are utilizing computing in the cloud at an ever-increasing rate, which has increased anxiety regarding the security of their data.

Recent Developments

• March 2022- Bynder, a US-based digital asset management company, acquired GatherContent for an undisclosed amount. With this acquisition, both companies expand their unique, centrally-located platform's collaborative workflow and editorial processes for content creation to enable teams across industries to easily manage the entire content creation lifecycle, from visual production to text creation to approved structured content ready for distribution across all channels in an omnichannel strategy.
• August 2022- According to Finder.com Comparision UK Limited, a UK-based independent comparison platform and information service provider, in the last 12 months, 9 out of 10 Britons have utilized a streaming service. In the UK, 58% of all households have at least one streaming service subscription.