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In part one of two, the topics of discussion are music, Vodafone Live! and Microsoft, with 3G and wider DRM issues to follow. We begin with the iTunes phone...

MUSIC

Online download services are a hot topic, and the role of mobile phones as music players is gaining attention, so let's start with a very topical question: What is your reaction to Motorola's first iTunes phones? A first step in the right direction or a wrong turning?

Proprietary systems like the Apple iPod all meet boundaries sooner or later. The reason is simple: when I buy music I want to play it not only on my PC but also on my mobile phone or my home entertainment system, and vice versa. With the Apple iTunes, digital music services have certainly become very popular and it is certainly a step towards interoperability since the usage is no longer limited to a single device.

But to allow consumers to play their music anywhere on phones from many different manufacturers - within the legal framework as defined by the content owner - the usage of open DRM standards as defined from the OMA is required.

The mobile phone itself was a first step into this market, but I believe, the deal between Apple and Motorola to limit it to only 100 songs was not in the consumer interest.

The obvious disadvantages to music on a mobile phone music centre concern battery life and storage capacity. How do you see these issues playing out over the next couple of years?

Regarding the new iPods I clearly see the advantages of flash based memory and I am very confident that we will see an improvement for the life of batteries as well. I do not see that these minor tech issues are limiting the mobility of consuming digital content in the mid-term.

Even if mobiles do become established as 'content centres' - i.e. people use music download services direct to their phone - phone models are constantly changing. Will this not provide a barrier against phones becoming a personal media centre?

CoreMedia DRM has the broadest reach of all DRM solutions. Setting the benchmark for interoperability and flexibility it works seamlessly with over 400 handsets on the world market and the number is steadily increasing.

VODAFONE

You have worked closely with Vodafone recently...

Vodafone, is currently implementing our system into the service delivery platform of its global 3G multimedia services, Vodafone live! With CoreMedia DRM, Vodafone can offer content providers such as music labels a secure platform for the mobile distribution of premium content to Vodafone live! customers.

The DRM was developed in close cooperation between Vodafone, CoreMedia and leading mobile phone manufacturers. We have developed a cost-efficient, secure and scalable DRM solution based on the OMA standards. In view of the fact that 400 different mobile phones are now equipped for OMA DRM, Vodafone has significantly improved the interoperability and user friendliness of Vodafone live! through the implementation of CoreMedia DRM. They are now fully prepared for the rapidly growing premium content business.

Vodafone's move is the biggest step ever taken by the mobile business to implement a DRM solution. Actually, with the Vodafone deal, being the largest DRM deal so far in history, CoreMedia is now on

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the forefront of DRM technology worldwide. We supply Vodafone's global networks - servicing over 250 million mobile users - with our OMA DRM-based solution.

Does a close relationship with one service provider prejudice relations with the other major players?

No, certainly not. To work with a strong partner like Vodafone has strengthened our expertise in mobile DRM. And it helped to strengthen our partner network with very strong partners such as IBM, HP, Hitachi or Siemens in the Asia-Pacific region.

Telecommunications companies require high-performance and future-proof software solutions to process and market new types of mobile services. They require solutions to optimise existing business processes and open up new areas of success. That is what we deliver. Today, CoreMedia DRM is deployed by mobile operators across the globe on all continents.

What is to stop the likes of Vodafone, or O2 or, perhaps best of all, Virgin Mobile (with direct access to content) from carrying out the work that you do themselves? DRM issues are often carried out unseen behind the scenes as far as end-users are concerned...

We have a strong expertise in content and telco infrastructures. With our large number of content technology experts, we can actually respond at a high speed and be the fastest to implement innovations. Also, we are able to implement additional components that go way beyond the standard including work flows, interfaces or management capabilities - elements that we learnt very early from the area of content management. Combining our knowledge from digital rights management and content management actually is a very compelling offer for all our clients.

Where do you believe power lies between original content creators, service providers and handset manufacturers when it comes to mobile DRM implementations? Which party has the upper hand? Service providers have sourced the content, but handset manufacturers provide the hardware that can control the encryption/DRM that is possible...

The mobile content market will grow to $30 billion globally by 2008.
Mobile music alone is expected to be worth around $3 billion, or 10 per cent of the total music market. For operators to maximize the revenue from this opportunity, they need premium content. To gain access to content such as ringtones, full-track music, video clips and games, content providers need to be reassured that their copyrights will remain secure throughout the whole distribution chain.

This is what CoreMedia DRM is designed to deliver. And our recent news from today, the CMLA licence, underlines this strategy. We help ensure that digital media can only be played when the consumer acquires digital rights to do so in advance - either for preview or rental, with a limitation of usage frequency or of time - or with complete purchase of the media file.

MICROSOFT

Core Media recently introduced a PC element into its DRM support, providing interoperability between the Mobile OMA standard and Microsoft Windows Media DRM. How difficult a technical challenge was that, or are the Microsoft APIs quite straightforward?

CoreMedia is the only company offering this technology at this point - so it's not easy! APIs are not the issue but combining two different DRM schemes in a robust manner.

Is it inevitable that Microsoft eventually makes the most of its installed Windows user base to capture the DRM market, controlling access to content that flows across the Windows operating system?

Many operators are afraid of Microsoft's dominance and at the same time, Microsoft has had difficulties entering the cell phone and consumer electronics sector. So there will be co-existence of different platforms for a long, long time. And it needs players like CoreMedia to deliver technologies that overcome these platform gaps.

[Part 2 to follow tomorrow]