DRM to Support Subscription, Rental Services

The next version of Windows Media Digital Rights Management, Microsoft technology that lets content owners and distributors control how consumers use Windows Media Format files, could enable new business models for selling digital media online. Code-named Janus, the update paves the way for subscription-based and rental services that let users transfer digital media files to consumer electronics devices—something that content owners do not allow today because of piracy concerns. By enabling new business models, Microsoft hopes to help Windows Media–based services from partners such as Roxio and MovieLink, as well as its forthcoming MSN music service, gain on market leader Apple.

Enabling New Business Models

Today, there are several business models for selling digital media online:

Per-download. Under this model, users pay a set fee to download content to their computers’ hard drives for unlimited playback. Users may generally burn content onto removable media and transfer it to portable devices and other PCs, although limitations often apply. (For example, users may only be able to burn a song to CD five times.) Several stores, such as Apple’s iTunes Music Store and BuyMusic.com, use this model exclusively.