The global digital rights management in media & entertainment market size was USD 2.5 Billion in 2022 and is likely to reach USD 10.6 Billion by 2031, expanding at a CAGR of 17.8% during 2023–2031. The market growth is attributed to the growing demand for over-the-top (OTT) media services with a rising smartphone user base.
Piracy concerns for digital media and entertainment content are significant drivers of the market. Illegal access to content through various unauthorized web platforms is causing billions of dollars in revenue losses to the global media & entertainment industry. Digital rights management (DRM) tools and services play a key role in preventing content piracy, thereby, fueling the market growth during the projection period.
-
According to Q1 2022 Piracy Data Insights by MUSO, a data company providing insightful analysis on unlicensed media consumption and piracy demand, 52.5 billion visits were measured to piracy websites. This is a 29.3% increase over the 2021’s Q1 number of visits. The increase was observed in five major categories including TV Content (19.2%), Film (42.5%), Publishing (58.5%), Music (13.9%), and Software (9.6%).
Growth in smartphone subscribers and expansion of internet connectivity have opened several opportunities for industry players to distribute premium/freemium content through OTT platforms. However, it has given rise to content piracy. Makers of the content monetize their digital assets such as films, music, eBooks, games, and others, through paywalls or through providing ad-supported access.
Piracy and plagiarism significantly cut the earnings from that content, as they are easily accessible through unauthorized sites or applications. Adoption of DRM tools and services is essential to minimize or eliminate such incidences, which drives their demand in the market.
The research report finds that the COVID-19 pandemic propelled digital rights management in media & entertainment market. The lockdown restrictions implemented across worldwide regions compelled people to stay indoors. This, in turn, skyrocketed the browsing of online content, especially for infotainment or entertainment purposes. The growth of OTT users during this time led to an increase in demand for digital rights management solutions from various online content platforms.
Impact of Artificial Intelligence (AI) on Digital Rights Management in Media & Entertainment Market
AI is expected to support market growth during the assessment period by enabling advanced mechanisms for real-time content identification and access blocking. AI tools, including image recognition and natural language processing, are beneficial for content owners in tracking piracies. In particular, AI-powered Image recognition tools are playing a pivotal role in tracking piracy of visual content such as video, images, and other multimedia assets. AI technology integration in DRM tools is revolutionizing the way content Is tracked, protected, and monetized.
Digital Rights Management in Media & Entertainment Market Dynamics
Major Drivers
Growing popularity of digital content as an entertainment medium is expected to drive the market during the forecast period. Over the years, the number of smartphone subscribers has grown exponentially, with affordable prices and internet connectivity.
A major use of these devices is for accessing digital entertainment including music listening, content viewing, online gaming, and much more. To monetize on this rising demand, while protecting the content from piracy, the adoption of digital rights management solutions is growing steadily.
-
As per the Nielsen report in August 2023, the heavy digital content viewing levels in July have pushed TV streaming usage shares in the US to 38.7%, a new record. OTT platforms Amazon Prime Video, Hulu, Netflix, and YouTube use hit all-time highs with high consumption of popular TV shows and movies.
Growing availability of premium live sports and entertainment content on streaming platforms is another key driver of the market. Players in global sports, media & entertainment, and the online gaming industry are investing on OTT platforms to monetize their premium content through direct premiering or live streaming.
The encryption of streaming content through digital rights management tools prevents viewing of media even if anyone gets hold of it. This content is only viewed by the decryption key available to authorized users.
Existing Restraints
High cost of premium DRM solutions is likely to pose restraints for the market in the coming years. The low-cost solutions are not as effective as quality software solutions, in preventing unauthorized access with regularly evolving cyber hackings. Content producers, distributors, and publishers are required to implement tried and tested security mechanisms to ensure the highest safety of their content.
Due to cost factors, companies are likely to adopt password protection and watermarking solutions, which come with small investments. This, as a result, affects the growth of the market.
Emerging Opportunities
Rising adoption of cloud DRM by media & entertainment players is projected to create opportunities in the market. Cloud-based solutions and services enable enhanced security and flexibility over conventional DRM solutions.
The cloud platform allows seamless integration in addition to consistent automatic updates and patches to existing systems based on evolving cyber threats. Additionally, the introduction of blockchain technology in digital rights management is likely to expand opportunities for the players in the market.
Scope of Digital Rights Management in Media & Entertainment Market Report
The global research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Digital Rights Management in Media & Entertainment Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Component (Software and Services), Application (Video on Demand, Mobile Content, Social Media, Confidential Documents, Mobile Gaming & Apps, eBooks, and Others), Deployment (Cloud and On-premise), and Enterprise Type (Large Enterprises and Small & Medium Enterprises)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
Apple Inc.; Google LLC; Microsoft; Bitmovin Inc.; Bynder; NFA Group Inc. dba BuyDRM; EditionGuard LLC; Intertrust Technologies Corporation; EZDRM, Inc.; Irdeto; Kudel SKI SA; Vitrium Systems Inc.; Verimatrix; and Others
|
Digital Rights Management in Media & Entertainment Market Segment Insights
Component Analysis
Based on component, the digital rights management in media & entertainment market is divided into software and services. The software segment is projected to hold a major market revenue share during the projection period, owing to the adoption of piracy protection and streaming-encryption software solutions by large media & entertainment organizations.
With advancements in technology, DRM software solutions are facilitating multilayered security to digital entertainment platforms. Advantages of the timely adoption of DRM software include revenue stream protection and increased return on investment, IP rights control, theft prevention, and compliance with regulations.
-
In June 2023, PallyCon, a content protection, multi-DRM solutions specialist company, announced the launch of its multi-DRM client software development kits for React Native and Flutter. The company in a statement said that these SDKs promote cross-platform app development with integration of DRM-secured video content into the apps while ensuring robust anti-piracy and enhanced security measures.
The services segment is expected to hold a considerable share of the market with the growing availability of DRM as a Service platform. These services are accessed through the cloud, which makes it flexible, easily adaptable, and cost-efficient for media & entertainment companies.
Application Analysis
On the basis of application, the global market is segregated into video on demand, mobile content, social media, confidential documents, mobile gaming & apps, eBooks, and others. The Video on Demand (VOD) segment is projected to expand at a robust CAGR in the coming years, with growing entertainment consumption over smart devices.
Increasing internet affordability, and high-speed internet connectivity including 4G, 5G, and Wi-Fi are factors fueling the need for DRM solutions for boosting revenues and curbing piracy. With growing digital literacy, it is becoming easier for anyone to download premium content from unauthorized sources, which affects the revenues of VOD providers.
The DRM tools enable content owners to target new subscribers and increase revenue generation opportunities by giving authorized access through authentic subscriptions. Live event & sports broadcasters, television channels, and studios have begun investing in DRM technologies for monetizing content on a subscription basis.
Deployment Analysis
On the basis of deployment, the digital rights management in media & entertainment market is segmented into cloud and on-premise. The on-premise segment is expected to register a robust growth rate during the forecast period, owing to a preference for large and medium enterprises for in-house security systems. These solutions enable significant control over security mechanisms and eliminate concerns about third-party control over the platform’s digital media assets.
The cloud segment is projected to grow rapidly in the coming years, owing to their flexibility and cost-effectiveness. The cost is a crucial factor for many media & entertainment organizations, owing to the economic uncertainties in the sector with the changing dynamics of the business. Cloud services are offered at affordable rates on a subscription renewal basis from time to time. They are adaptable to most on-premise systems, which makes integration quick and convenient.
Enterprise Type Analysis
Based on enterprise type, the market is divided into large enterprises and small & medium enterprises. The small & medium enterprises (SMEs) segment is expected to grow at a major growth rate during the assessment period, owing to the expanding number of independent content makers worldwide.
These content producers and developers are required to ensure the security of their digital content to monetize it efficiently across different regions. The standard DRM solutions allow content owners to secure their creative copyright assets.
The large enterprises segment is expected to expand at a significant growth rate during the projection period, due to growing investment from major media & entertainment players in strengthening the security of their digital assets.
Large corporations such as OTT, live streaming, Pay TV, and large studios are increasing content on digital to attract consumers globally. DRM adoption is supporting this global expansion drive by preventing illicit access to the content, thereby, enabling improved subscription rate and revenue generation.
Regional Analysis
In terms of region, the global digital rights management in media & entertainment market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, owing to the growing consumption of digital content with the rising affordability of smart devices and the internet.
The consumption of online media including Video on Demand, mobile content, eBooks, and mobile gaming has exploded in recent years in emerging economies such as India, China, and Japan due to growing digital accessibility and literacy. The growing collaboration between content producers and OTT players to meet rising content demand is further fueling the market in the region.
-
According to the Asia Pacific Online Video & Broadband Distribution 2022 released by Media Partners Asia (MPA) in July 2022, the online video industry is projected to grow at a CAGR of 8% and reach USD 72.7 billion in 2027. Growing availability of quality local content and premium sports rights transition are some of the key trends in the industry, as per the report.
The market in North America is expected to grow rapidly in the coming years, owing to high spending on streaming platforms, VOD content, online gaming, and eBooks by the general population.
Growing investment by the major digital media & entertainment providers such as Disney, Amazon Studios, Netflix, and HBO is further supporting the market in the region. The major presence of key market players including Microsoft, Google, Apple, and others in the region is further boosting the DRM demand in the market.
Segments
The global Digital Rights Management in Media & Entertainment Market has been segmented on the basis of
Component
Application
- Video on Demand
- Mobile Content
- Social Media
- Confidential Documents
- Mobile Gaming & Apps
- eBooks
- Others
Deployment
Enterprise Type
- Large Enterprises
- Small & Medium Enterprises
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Apple Inc.
- Google LLC
- Microsoft
- Bitmovin Inc.
- Bynder
- NFA Group Inc. dba BuyDRM
- EditionGuard LLC
- Intertrust Technologies Corporation
- EZDRM, Inc.
- Irdeto
- Kudel SKI SA
- Vitrium Systems Inc.
- Verimatrix
- Others
Competitive Landscape
Key players competing in the Digital Rights Management in Media & Entertainment Market are Apple Inc.; Google LLC; Microsoft; Bitmovin Inc.; Bynder; NFA Group Inc. dba BuyDRM; EditionGuard LLC; Intertrust Technologies Corporation; EZDRM, Inc.; Irdeto; Kudel SKI SA; Vitrium Systems Inc.; Verimatrix; and Others.
These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. The competitive landscape covers key insights into growth strategies adopted by major market players.
-
In July 2022, Vitrium announced the enhancement of its single sign-on (SSO) features to its Advanced DRM system, providing users with different out-of-the-box SSO options. This enables digital media platform users to conveniently log in and access secured media files including videos, images, documents, and others with a single login.
-
In September 2022, Eros Investments, a private venture owning assets in media, sports, digital commerce, blockchain, and gaming, acquired a 90% stake in ENT Global, a Digital Rights Management company for an undisclosed amount.
Request For Customization
Enquiry Before Buying
Speak With Analyst
