Consumers Amenable to Music CDs with Copy Protection

Dallas, Texas February 24, 2005 – Contrary to widely held industry beliefs, U.S. consumers are not overwhelmingly antagonistic toward the concept of copy-restricted music CDs, provided these CDs come with the proper incentives, according to Parks Associates’ forthcoming report Digital Rights: Content Ownership and Distribution.

Among respondents in Parks Associates’ survey Profiles of PC Usage, when given a choice between a normal music CD and a "copy-once" CD priced $5 less, 33% of those who do not rip CDs and 27% who rip CDs preferred the copy-once CDs."

"The music industry proceeded with the idea of copy-protected CDs very cautiously last year, releasing only 10 million in the U.S.," said Harry Wang, research analyst at Parks Associates and author of the forthcoming report. "They were slow to deploy out of the concern that consumers would reject such a product. But our research indicates that it might be time for the industry to promote copy-protected CDs more aggressively, provided they can find the right price points, or other incentives that will attract consumers."

"CD piracy has been a serious problem for record labels," Wang continued. "The music industry has long been looking for a solution to balance content owner’s interest to protect copyrights and consumer’s need to enjoy music in the ways that they want. The copy-restricted CD is one such move. Our findings might indicate the start of a transition for consumers to embrace the concept of copy-restriction in music consumption."

According to Digital Rights: Content Ownership and Distribution, the long-term success of any digital rights-enabled solutions depends on such a balance, and equally important, a good user experience that meets consumers’ expectations.

Digital Rights: Content Ownership and Distribution provides an in-depth look at the significant issues, technologies, and players in the digital rights management (DRM) industry. It analyzes different stakeholders’ interests, reviews a variety of technologies, discusses current DRM-enabled content distribution models, and provides insights about future DRM adoption trends. Moreover, the report profiles key players in the DRM industry and features consumer data from several recently completed primary studies conducted by Parks Associates.
For additional information on Digital Rights: Content Ownership and Distribution, visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company’s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts Fall Focus and co-hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. http://www.parksassociates.com.