educational

DRM In 2005: Part 1

The proliferation of peer-to-peer file-sharing networks and the increased availability of home broadband Internet connections has brought the sharing of digital content, both audio and video, into the mainstream.

In fact, the traffic generated by P2P networks during evening hours accounts for nearly double the traffic produced by normal HTTP requests.

Until recently, the mechanisms to deliver digital content were largely based on the "honor system." Users subscribed to a provider's site, agreed to membership or license conditions — which usually required that the user not redistribute the content or download any or all files on the site.

However, there are very few controls that can effectively enforce this type of licensing agreement. In many cases, the user can freely distribute the downloaded content on a P2P network or simply store the file on their computer in a folder shared with a P2P network.

This lack of control over digital media has hampered revenue generation for content providers. In much the same way that the music industry has been affected by the loss of revenue from the virtually unlimited distribution potential of music files, content providers of all kinds, including adult video, have been hit hard by the widespread use of P2P file-sharing networks. This actual impact varies by study, but somewhere between $3.5 billion and $7 billion dollars is usually reported as lost annually due to the piracy of digital music and video content.

Successful strategies to counter this form of infringement are few and far between, but it is an issue on the minds of many content distributors. Some services, for example, flood P2P networks with bogus files in order to frustrate users into purchasing the content. Fortunately, this has proven mostly ineffective, as P2P users have adapted quickly by sharing knowledge of bogus files or avoiding files that appear several times in P2P searches.

Infringement of this scale has forced content providers into a few different business models. Some adult content providers offer services in a subscription format, charging users a monthly fee to access a password-protected site, while others provide streaming media services. More complex delivery models, such as rental and try-before-you-buy, require the installation of software controls to be enforced.

DRM Provides Solution
Digital rights management, or DRM, solves many of these issues. The new technology provides a mechanism to "lock" content in such a way as to control the type and amount of use. By embedding information into the content files themselves, providers can distribute "smart" files, which will contain their own rules for playback and distribution. These technologies are quickly making their way into the marketplace and are already being integrated by large content providers such as Napster, Time-Warner and numerous adult businesses.

For a DRM solution to be commercially viable, it must posses several qualities in order to be accepted by consumers. After all, it is difficult to persuade an entire community of users that have grown accustomed to getting free content to suddenly begin paying for it. Effective use of DRM technology doesn't seem to be scaring away possible consumers on P2P networks, though.

"Users are not shying away from DRM content on P2P networks," said Jason Tucker of PlayaDRM, a provider of DRM solutions. "They see it as a new tool being used by producers and the reality is that this is something they will have to accept. The window between DRM and non-DRM content is closing."

In addition to protecting content from unauthorized distribution, a DRM solution must be reliable, flexible and transparent to the user. Any solution that requires significant end-user interaction will be rejected as too time-consuming or complicated.

Finally, a secondary benefit of DRM technologies for adult content providers is that they will achieve compliance with legislation that prohibits content from being viewed by minors. Without a DRM solution, a content provider distributes video on a website to subscribed users who have only proven their age through use of a credit card. Transmission of that content to minors by subscribers cannot be regulated, though, unless the providers incorporate some form of DRM, something that Christopher Levy of BuyDRM.com believes can be a very useful tool.

"DRM is yet one more technology that can prevent unauthorized minors from accessing pornographic content," Levy said. "Using downloaded DRM protected content that expires offline after a predefined period will cut down on a large portion of these illegal re-views. In another approach, DRM can be used to revoke content that is deemed to be illegal or ordered by a court to cease and desist. That's a powerful step toward ending unauthorized use and distribution of content."

Stay tuned for Part 2, where we'll explore how DRM works, its use as a plug-in, and its future...

Josh Ewin is managing director of Florida-based web hosting provider H2oh Hosting. Ewin can be reached via email at josh@h2ohhosting.com.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

What DSA and GDPR Enforcement Means for Adult Platforms

Adult platforms have never been more visible to regulators than they are right now. For years, the industry operated in a gray zone: enormous traffic, massive data volume and minimal oversight. Those days are over.

Corey D. Silverstein ·
opinion

Making the Case for Network Tokens in Recurring Billing

A declined transaction isn’t just a technical error; it’s lost revenue you fought hard to earn. But here’s some good news for adult merchants: The same technology that helps the world’s largest subscription services smoothly process millions of monthly subscriptions is now available to you as well.

Jonathan Corona ·
opinion

Navigating Age Verification Laws Without Disrupting Revenue

With age verification laws now firmly in place across multiple markets, merchants are asking practical questions: How is this affecting traffic? What happens during onboarding? Which approaches are proving workable in real payment flows?

Cathy Beardsley ·
opinion

How Adult Businesses Can Navigate Global Compliance Demands

The internet has made the world feel small. Case in point: Adult websites based in the U.S. are now getting letters from regulators demanding compliance with foreign laws, even if they don’t operate in those countries. Meanwhile, some U.S. website operators dealing with the patchwork of state-level age verification laws have considered incorporating offshore in the hopes of avoiding these new obligations — but even operators with no physical presence in the U.S. have been sued or threatened with claims for not following state AV laws.

Larry Walters ·
opinion

Top Tips for Bulletproof Creator Management Contracts

The creator management business is booming. Every week, it seems, a new agency emerges, promising to turn creators into stars, automate their fan interactions or triple their revenue through “secret” social strategies. The reality? Many of these agencies are operating with contracts that wouldn’t survive a single serious dispute — if they even have contracts at all.

Corey D. Silverstein ·
opinion

Building Sustainable Revenue Without Opt-Out Cross-Sales

Over the past year, we’ve seen growing pushback from acquirers on merchants using opt-out cross-sales — also known as negative option offers. This has been especially noticeable in the U.S. In fact, one of our acquirers now declines new merchants during onboarding if an opt-out flow is detected. Existing merchants submitting new URLs with opt-out cross-sales are being asked to remove them.

Cathy Beardsley ·
trends

How to Handle Payment Disputes Without Sacrificing Trust

You can run the best-managed and most compliant website out there, but that still doesn’t completely shield you from the risks tied to payment disputes. Buyer’s remorse, an unclear billing description or even a simple misunderstanding can lead a customer to dispute a transaction. Accumulate enough disputes, and both your reputation and revenue could be at risk.

Jonathan Corona ·
profile

Sienna Day Talks Creator Life, Longevity and Loving the Work

When Sienna Day heard her name called onstage at the Euro XMAs in Amsterdam, the newly crowned 2025 MILF Creator of the Year froze — then floated.

Jackie Backman ·
trends

WIA Profile: Taylor Moore

With a 70-person team and a growing slate of tools for content creators, the Teasy Agency has developed a reputation for putting talent first. That commitment owes a lot to co-founder Taylor Moore’s own experiences as a cam model.

Jackie Backman ·
profile

WIA Profile: Cathy Turns Creator Platform Experience Into a Model-First Playbook

As both a model and industry executive, Cathy lives in two worlds at once. “Since I do both things, I can act as the liaison between the model community and the rest of the SextPanther team,” she tells XBIZ.

Jackie Backman ·
Show More