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Content & Control Content & Control: Assessing the Impact of Policy Choices on Potential Online Businesses in the Music and Film Industries The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters Citation Fisher, William W. 2005. Content & Control: Assessing the Impact of Policy Choices on Potential Online Businesses in the Music and Film Industries. Berkman Klein Center for Internet & Society Research Publication. Citable link http://nrs.harvard.edu/urn-3:HUL.InstRepos:32866387 Terms of Use This article was downloaded from Harvard University’s DASH repository, and is made available under the terms and conditions applicable to Other Posted Material, as set forth at http:// nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of- use#LAA Content and Control: Assessing the Impact of Policy Choices on Potential Online Business Models in the Music and Film Industries Research Team This paper is a case study developed by the Digital Media Project team at the Berkman Center for Internet and Society at Harvard Law School. Gartner|G2 served as our research partner in this venture. Particular thanks to Mike McGuire of Gartner|G2. The authors owe thanks to William W. Fisher, Charles Nesson, and John Palfrey for comments. Thanks also to Ravi Agrawal, Erica George, Matt Krueger, Jack Lerner, and, as always, Mary Bridges for their support. Feedback would be appreciated at http://cyber.law.harvard.edu/comments. Digital Media Project Principal Investigator William W. Fisher, III Hale and Dorr Professor of Intellectual Property Law, Harvard Law School Authors Derek Slater, Meg Smith, Derek Bambauer, Urs Gasser, John Palfrey Researchers & Contributors Andrew Bragin, Joseph Jackson, Edward Locke, Stephen Mohr, C. Lee Wilson Digital Media Project Director Meg Smith Communications Director Mary Bridges Release Date: January 7, 2005 1 Contents Introduction ............................................................................................................................................4 Organization and methodology................................................................................................................................... 5 The impact of digital technologies .............................................................................................................................. 5 The three policy nodes............................................................................................................................7 P2P and other distribution mechanisms .................................................................................................................... 7 Illicit consumer distributors of content...................................................................................................................... 8 Digital rights management technologies (DRM) ...................................................................................................... 9 The business models ............................................................................................................................ 10 Exhibit: Comparison of how seeking control across nodes could benefit models...........................................11 Digital Media Store................................................................................................................................11 Overview .......................................................................................................................................................................11 Model structure .......................................................................................................................................................11 Potential impact on industry actors .....................................................................................................................12 Requisites..................................................................................................................................................................12 Evaluation .....................................................................................................................................................................12 Challenges ................................................................................................................................................................12 Supporting evidence ...............................................................................................................................................13 Policy implications.......................................................................................................................................................14 Impact from actions across the three nodes.......................................................................................................14 Policy options to support this model...................................................................................................................14 The P2P Store ....................................................................................................................................... 16 Overview .......................................................................................................................................................................16 Model structure .......................................................................................................................................................16 Potential impact on industry actors .....................................................................................................................16 Requisites..................................................................................................................................................................16 Evaluation .....................................................................................................................................................................17 Challenges ................................................................................................................................................................17 Supporting evidence ...............................................................................................................................................17 Policy implications.......................................................................................................................................................18 Impact from actions across the three nodes.......................................................................................................18 2 Policy options to support this model...................................................................................................................18 Collective Blanket Licensing ................................................................................................................ 18 Overview .......................................................................................................................................................................18 Model structure .......................................................................................................................................................18 Potential impact on industry actors .....................................................................................................................19 Requisites..................................................................................................................................................................19 Evaluation .....................................................................................................................................................................19 Challenges ................................................................................................................................................................19 Supporting evidence ...............................................................................................................................................20 Policy implications.......................................................................................................................................................20 Impact from actions across the three nodes.......................................................................................................21 Policy options to support this model...................................................................................................................21 Ancillary Products and Services............................................................................................................ 22 Overview .......................................................................................................................................................................22 Model structure .......................................................................................................................................................22 Potential impact on industry actors .....................................................................................................................22 Requisites..................................................................................................................................................................22 Evaluation .....................................................................................................................................................................23
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