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Film and TV studios and broadcast companies are keen to download their content to consumers' homes and mobile phones, but only if they are sure they will not help create an MP3-style file sharing culture in the process.

DRM software prevents downloaded files from being copied or shared over the Internet iwithout the consent of the content provider.

In response, Apple and other MPEG-4 supporters in the Internet Streaming Media Alliance (ISMA), are pushing for the ISMA to set a DRM standard by June.

'If they don't get DRM into MPEG-4 soon, the movie and television people will swallow hard and go with Microsoft, even though they prefer open standards,' said a US television network insider.

MPEG-4

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may be a non-proprietary technology that is backed by large IT and consumer electronics companies - including Apple, Philips, Real Networks, Sony, IBM, Dolby Laboratories and Panasonic - but it faces stiff competition from Microsoft.

Until recently, Apple's strong position in creative markets meant that Windows Media was not seen as a serious competitor, but Microsoft's aggressive move, which includes a $500m research and development investment in Windows Media 9's digital rights management technology, could change that situation.

When the Windows maker launched the finished version of its Windows Media 9 technology in January, Microsoft used built-in DRM technology as part of a strong pitch to film and TV studios and broadcasters. Then, later in the month, it set licensing fees for content providers using Windows Media 9 encoders and decoders at around half the price charged for MPEG-4's patent holders.

Microsoft's plans to expand the markets for Windows Media beyond the PC include making it the first choice for content producers and broadcasters who are keen to download movies over broadband connections.

MPEG-4's lack of DRM in comparison has meant that Apple had some way to go convince Hollywood executives that QuickTime and MPEG-4 are suitable methods of distributing movies.