Digital distribution

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Digital distribution, also referred to as content delivery, online distribution, or electronic software distribution, among others, is the delivery or distribution of digital media content such as audio, video, e-books, video games, and other software. [1]

Contents

The term is generally used to describe distribution over an online delivery medium, such as the Internet, thus bypassing physical distribution methods, such as paper, optical discs, and VHS videocassettes. The term online distribution is typically applied to freestanding products; downloadable add-ons for other products are more commonly known as downloadable content. With the advancement of network bandwidth capabilities, online distribution became prominent in the 21st century, with prominent platforms such as Amazon Video, and Netflix's streaming service starting in 2007. [2]

Content distributed online may be streamed or downloaded, and often consists of books, films and television programs, music, software, and video games. Streaming involves downloading and using content at a user's request, or "on-demand", rather than allowing a user to store it permanently. In contrast, fully downloading content to a hard drive or other forms of storage media may allow offline access in the future.

Specialist networks known as content delivery networks help distribute content over the Internet by ensuring both high availability and high performance. [3] Alternative technologies for content delivery include peer-to-peer file sharing technologies. Alternatively, content delivery platforms create and syndicate content remotely, acting like hosted content management systems.

Unrelated to the above, the term "digital distribution" is also used in film distribution to describe the distribution of content through physical digital media, in opposition to distribution by analog media such as photographic film and magnetic tape (see: digital cinema).

Impact on traditional retail

The rise of online distribution has provided controversy for the traditional business models and resulted in challenges as well as new opportunities for traditional retailers and publishers. Online distribution affects all of the traditional media markets, including music, press, and broadcasting. In Britain, the iPlayer, a software application for streaming television and radio, accounts for 5% of all bandwidth used in the United Kingdom. [4]

Music

The move towards online distribution led to a dip in sales in the 2000s; CD sales were nearly cut in half around this time. [5] One such example of online distribution taking its toll on a retailer is the Canadian music chain Sam the Record Man; the company blamed online distribution for having to close a number of its traditional retail venues in 2007–08. [6] One main reason that sales took such a big hit was that unlicensed downloads of music were very accessible.[ citation needed ] With copyright infringement affecting sales, the music industry realized it needed to change its business model to keep up with the rapidly changing technology. [7] The step that was taken to move the music industry into the online space has been successful for several reasons. The development of lossy audio compression file formats such as MP3 could take 30 MB for a typical 3-minute song and bring it down to 3 MB without any serious loss of quality. [8] Lossless FLAC files can be up to six times larger than an MP3 while, [9] in comparison, the same song might require 30–40 megabytes of storage on a CD. [7] The smaller file size yields much greater Internet transfer speeds.

The transition into the online space has boosted sales, and profit for some artists. [10] [ citation needed ] It has also allowed for potentially lower expenses such as lower coordination costs, lower distribution costs, as well as the possibility for redistributed total profits. [7] These lower costs have aided new artists in breaking onto the scene and gaining recognition.[ citation needed ] In the past, some emerging artists have struggled to find a way to market themselves and compete in the various distribution channels.[ citation needed ] The Internet may give artists more control over their music in terms of ownership, rights, creative process, pricing, and more. In addition to providing global users with easier access to content, online stores allow users to choose the songs they wish instead of having to purchase an entire album from which there may only be one or two titles that the buyer enjoys.

The number of downloaded single tracks rose from 160 million in 2004 to 795 million in 2006, which accounted for a revenue boost from US$397 million to US$2 billion. [7] Downloading peaked in the US in 2012, after which it started falling due to the rise of music streaming services. In 2017, physical formats overtook downloading again for the first time in six years, [11] but despite the vinyl revival and CDs holding its own, the physical formats account for only 11% revenue as of 2023, while streaming services are dominant with 84% of the US industry. [12]

Videos

Many traditional network television shows, movies and other video content is now available online, either from the content owner directly or from third-party services. YouTube, Netflix, Hulu, Vudu, Amazon Prime Video, DirecTV, SlingTV and other Internet-based video services allow content owners to let users access their content on computers, smartphones, tablets or by using appliances such as video game consoles, set-top boxes or Smart TVs. [13]

Many film distributors also include a Digital Copy, also called Digital HD, with Blu-ray disc, Ultra HD Blu-ray, 3D Blu-ray or a DVD.

Books

Some companies, such as Bookmasters Distribution, which invested US$4.5 million in upgrading its equipment and operating systems, have had to direct capital toward keeping up with the changes in technology.[ citation needed ] The phenomenon of books going digital has given users the ability to access their books on handheld digital book readers. One benefit of electronic book readers is that they allow users to access additional content via hypertext links. These electronic book readers also give users portability for their books since a reader can hold multiple books depending on the size of its hard drive. [14] Companies that are able to adapt and make changes to capitalize on the digital media market have seen sales surge. Vice President of Perseus Books Group stated that since shifting to electronic books (e-books), it saw sales rise by 68%[ citation needed ]. Independent Publishers Group experienced a sales boost of 23% in the first quarter of 2012 alone. [15]

Tor Books, a major publisher of science fiction and fantasy books, started to sell e-books DRM-free by July 2012. [16] One year later the publisher stated that they will keep this model as removing DRM was not hurting their digital distribution ebook business. [17] Smaller e-book publishers such as O'Reilly Media, Carina Press [18] and Baen Books had already forgone DRM previously.

Video games

Online distribution is changing the structure of the video game industry.[ citation needed ] Gabe Newell, creator of the digital distribution service Steam, formulated the advantages over physical retail distribution as such:

The worst days [for game development] were the cartridge days for the NES. It was a huge risk – you had all this money tied up in silicon in a warehouse somewhere, and so you'd be conservative in the decisions you felt you could make, very conservative in the IPs you signed, your art direction would not change, and so on. Now it's the opposite extreme: we can put something up on Steam, deliver it to people all around the world, make changes. We can take more interesting risks.[...] Retail doesn't know how to deal with those games. On Steam [a digital distributor] there's no shelf-space restriction.

—  Gabe Newell, Rock, Paper, Shotgun (2007) [19]

Since the 2000s, there has been an increasing number of smaller and niche titles available and commercially successful, e.g. remakes of classic games. [20] [21] The new possibility of the digital distribution stimulated also the creation of game titles of very small video game producers like Independent game developer [22] [23] and Modders (e.g. Garry's Mod [24] ), which were before not commercially feasible.

The years after 2004 saw the rise of many digital distribution services on the PC, such as Amazon Services, Desura, GameStop, Games for Windows – Live, Impulse, Steam, Origin, Battle.net, Direct2Drive, GOG.com, Epic Games Store and GamersGate. The offered properties differ significantly: while most of these digital distributors do not allow reselling of bought games, Green Man Gaming allows this. Another example is gog.com which has a strict non-DRM policy [25] while most other services allow various (strict or less strict) forms of DRM.

Digital distribution is also more eco-friendly than physical. Optical discs are made of polycarbonate plastic and aluminum. The creation of 30 of them requires the use of 300 cubic feet of natural gas, two cups of oil and 24 gallons of water.[ citation needed ] The protective cases for an optical disc is made from polyvinyl chloride (PVC), a known carcinogen. [26]

Challenges

A general issue is the large number of incompatible data formats in which content is delivered, possibly restricting the devices that may be used, or making data conversion necessary. Streaming services can have several drawbacks: requiring a constant Internet connection to use content; the restriction of some content to never be stored locally; the restriction of content from being transferred to physical media; and the enabling of greater censorship at the discretion of owners of content, infrastructure, [27] and consumer devices.

Decades after the launch of the World Wide Web, in 2019 businesses were still adapting to the evolving world of distributing content digitally—even regarding the definition and understanding of basic terminology. [28]

See also

Related Research Articles

The first-sale doctrine is an American legal concept that limits the rights of an intellectual property owner to control resale of products embodying its intellectual property. The doctrine enables the distribution chain of copyrighted products, library lending, giving, video rentals and secondary markets for copyrighted works. In trademark law, this same doctrine enables reselling of trademarked products after the trademark holder puts the products on the market. In the case of patented products, the doctrine allows resale of patented products without any control from the patent holder. The first sale doctrine does not apply to patented processes, which are instead governed by the patent exhaustion doctrine.

<span class="mw-page-title-main">Steam (service)</span> Video game digital distribution service

Steam is a video game digital distribution service and storefront managed by Valve. It was launched as a software client in September 2003 to provide game updates automatically for Valve's games and expanded to distributing third-party titles in late 2005. Steam offers various features, like game server matchmaking with Valve Anti-Cheat measures, social networking, and game streaming services. Steam client's functions include game update automation, cloud storage for game progress, and community features such as direct messaging, in-game overlay functions and a virtual collectable marketplace.

<span class="mw-page-title-main">Retrogaming</span> Cultural activity with old video games

Retrogaming, also known as classic gaming and old school gaming, is the playing and collection of obsolete personal computers, consoles, and video games. Usually, retrogaming is based upon systems that are outmoded or discontinued, although ported retrogaming allows games to be played on modern hardware via ports or compilations. It is typically for nostalgia, preservation, or authenticity. A new game could be retro styled, such as an RPG with turn-based combat and pixel art in isometric camera perspective.

Triton was a digital delivery and digital rights management service created by Digital Interactive Streams, which abruptly went out of business in early October 2006.

<span class="mw-page-title-main">Digital goods</span> Intangible goods that exist in digital form

Digital goods or e-goods are intangible goods that exist in digital form. Examples are Wikipedia articles; digital media, such as e-books, downloadable music, internet radio, internet television and streaming media; fonts, logos, photos and graphics; digital subscriptions; online ads ; internet coupons; electronic tickets; electronically treated documentation in many different fields; downloadable software and mobile apps; cloud-based applications and online games; virtual goods used within the virtual economies of online games and communities; workbooks; worksheets; planners; e-learning ; webinars, video tutorials, blog posts; cards; patterns; website themes; templates.loan

SpiralFrog was a very early music streaming service based in New York City that launched in the United States and Canada on September 17, 2007. SpiralFrog offered free and legal music downloads, all supported by advertising, and was the largest site of its kind in North America. On March 19, 2009, SpiralFrog terminated operations due to loan recalls. While SpiralFrog was not successful in the end, it nonetheless helped shaped the digital music industry shift from the purchase to streaming models, and its ultimate revenue recovery

AWOMO is a Germany-based internet game distribution and delivery system, first developed by Game Domain International Plc. and completed by GDC Game and Download Company AG, Düsseldorf, Germany. AWOMO claims to deliver online game content in drastically shorter times than rival download services by allowing users to play games before they are fully downloaded. AWOMO also optimizes which parts are downloaded first based on usage statistics from other users. It looked likely to be a viable rival to Steam, but seems to have been given up in 2015 as shown by the internet archive. Steam, a similar pay-to-play game site, which originally envisioned a similar streaming-style content delivery mechanism, but abandoned it in favour of permanent local storage.

Downloadable content (DLC) is additional content created for an already released video game, distributed through the Internet by the game's publisher. It can either be added for no extra cost or it can be a form of video game monetization, enabling the publisher to gain additional revenue from a title after it has been purchased, often using some type of microtransaction system.

<span class="mw-page-title-main">Impulse (software)</span> Defunct video game distribution platform (2008-14)

Impulse was a digital distribution and multiplayer platform. Originally developed by Stardock to succeed Stardock Central, it was purchased by GameStop in March 2011, and was subsequently rebranded as GameStop PC Downloads, with the client being renamed GameStop App. The client was discontinued in April 2014.

Digital rights management (DRM) is the management of legal access to digital content. Various tools or technological protection measures (TPM), such as access control technologies, can restrict the use of proprietary hardware and copyrighted works. DRM technologies govern the use, modification and distribution of copyrighted works and of systems that enforce these policies within devices. DRM technologies include licensing agreements and encryption.

<span class="mw-page-title-main">Copyright infringement</span> Illegal usage of copyrighted works

Copyright infringement is the use of works protected by copyright without permission for a usage where such permission is required, thereby infringing certain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to produce derivative works. The copyright holder is usually the work's creator, or a publisher or other business to whom copyright has been assigned. Copyright holders routinely invoke legal and technological measures to prevent and penalize copyright infringement.

GamersGate AB is a Sweden-based online video game store offering electronic strategy guides and games for Windows, macOS, and Linux via direct download. It is a competitor to online video game services such as Steam, GOG.com, and Direct2Drive.

<span class="mw-page-title-main">GOG.com</span> Digital video game distribution platform

GOG.com is a digital distribution platform for video games and films. It is operated by GOG sp. z o.o., a wholly owned subsidiary of CD Projekt based in Warsaw, Poland. GOG.com delivers DRM-free video games through its digital platform for Microsoft Windows, macOS and Linux.

A digital locker or cyberlocker is an online file or digital media storage service. Files stored include music, videos, movies, games and other media. The term was used by Microsoft as a part of its Windows Marketplace in 2004. By storing files in a digital locker, users are able to access them anywhere they can find internet connections. Most digital locker services require a user to register. Prices range from free to paid, divided according to the complications and strength of the lock.

<span class="mw-page-title-main">RealNetworks</span> American technology company

RealNetworks LLC is an American technology company and provider of Internet streaming media delivery software and services based in Seattle, Washington. The company also provides subscription-based online entertainment services and mobile entertainment and messaging services.

Liquid Audio Inc was a US software company based in Redwood City, California.

Green Man Gaming is an e-commerce portal from the British-based online video game retailer, distributor and publisher Green Man. It has gained 4.7 million users since its release in the year 2010.

<span class="mw-page-title-main">Music piracy</span> Copying and distribution of music without the consent of creators or copyright holders

Music piracy is the copying and distributing of recordings of a piece of music for which the rights owners did not give consent. In the contemporary legal environment, it is a form of copyright infringement, which may be either a civil wrong or a crime depending on jurisdiction. The late 20th and early 21st centuries saw much controversy over the ethics of redistributing media content, how much production and distribution companies in the media were losing, and the very scope of what ought to be considered piracy – and cases involving the piracy of music were among the most frequently discussed in the debate.

In the video game industry, digital distribution is the process of delivering video game content as digital information, without the exchange or purchase of new physical media such as ROM cartridges, magnetic storage, optical discs and flash memory cards. This process has existed since the early 1980s, but it was only with network advancements in bandwidth capabilities in the early 2000s that digital distribution became more prominent as a method of selling games. Currently, the process is dominated by online distribution over broadband Internet.

<span class="mw-page-title-main">Desura</span> Digital distribution platform

Desura was a digital distribution platform for the Microsoft Windows, Linux and OS X platforms. The service distributed games and related media online, with a primary focus on small independent game developers rather than larger companies. Desura contained automated game updates, community features, and developer resources. The client allowed users to create and distribute game mods as well.

References

  1. ↑ "Digital Distribution Law & Legal Definition". Legal Definitions. USLegal. Archived from the original on 30 August 2017. Retrieved 25 April 2012.
  2. ↑ Helft, Miguel (16 January 2007). "Netflix to Deliver Movies to the PC". The New York Times. ISSN   0362-4331. Archived from the original on 5 February 2021. Retrieved 1 June 2019.
  3. ↑ "What Is a CDN? How Does a CDN work?". Cloudflare. Archived from the original on 3 June 2019. Retrieved 1 June 2019.
  4. ↑ Kern, Philippe. "The Impact of Digital Distribution – A Contribution" (PDF). Think Tank. Archived from the original (PDF) on 17 April 2012. Retrieved 26 April 2012.
  5. ↑ Goldman, David (3 February 2010). "Music's lost decade: Sales cut in half". CNN. Archived from the original on 27 June 2020. Retrieved 3 August 2020.
  6. ↑ Canadian Press (29 May 2007). "Sam the Record Man to shut its Yonge St. doors". Entertainment section. The Toronto Star. Archived from the original on 5 September 2008. Retrieved 18 January 2009.
  7. 1 2 3 4 Janssens, Jelle; Stijn Vandaele; Tom Vander Beken (2009). "The Music Industry on (the) Line? Surviving Music Piracy in a Digital Era" (PDF). European Journal of Crime, Criminal Law and Criminal Justice. 77 (96): 77–96. doi:10.1163/157181709X429105. hdl: 1854/LU-608677 . Archived (PDF) from the original on 29 July 2020. Retrieved 25 September 2019.
  8. ↑ "How Does MP3 Compression Work?". LedgerNote. 21 July 2016. Archived from the original on 21 May 2022. Retrieved 20 June 2022.
  9. ↑ Pendlebury, Ty. "What is FLAC? The high-def MP3 explained". CNET. Archived from the original on 20 June 2022. Retrieved 20 June 2022.
  10. ↑ "Facts & Stats — IFPI — Representing the recording industry worldwide". Archived from the original on 21 June 2020. Retrieved 16 October 2019.
  11. ↑ https://www.riaa.com/wp-content/uploads/2018/03/RIAA-Year-End-2017-News-and-Notes.pdf [ bare URL PDF ]
  12. ↑ https://www.riaa.com/wp-content/uploads/2024/03/2023-Year-End-Revenue-Statistics.pdf [ bare URL PDF ]
  13. ↑ "9.4 Influence of New Technologies". Understanding Media and Culture: An Introduction to Mass Communication. 22 March 2016. Archived from the original on 17 May 2022. Retrieved 20 June 2022– via University of Minnesota.
  14. ↑ MacInnes, Ian (2005). "Impediments to Digital Distribution for Software and Books". International Journal on Media Management. 7 (1–2): 75–85. doi:10.1080/14241277.2005.9669418. S2CID   54694065.
  15. ↑ Rosen, Judith (16 April 2012). "Distribution in a Digital Age". Publishers Weekly. ProQuest   1002661729. Archived from the original on 24 December 2021. Retrieved 24 December 2021.
  16. ↑ "Tor/Forge E-book Titles to Go DRM-Free". Tor.com. 24 April 2012. Archived from the original on 9 March 2018. Retrieved 24 April 2012.
  17. ↑ Geuss, Megan (4 May 2013). "Tor Books says cutting DRM out of its e-books hasn't hurt the business – A look at the sci-fi publisher a year after it announced it would do away with DRM". Arstechnica. Archived from the original on 21 March 2018. Retrieved 7 July 2013. Early this week, Tor Books, a subsidiary of Tom Doherty Associates and the world's leading publisher of science fiction, gave an update on how its decision to do away with Digital Rights Management (DRM) schemes has impacted the company. Long story short: it hasn't, really.
  18. ↑ "Tor/Forge Plans DRM-Free e-Books By July". Publishers Weekly . 24 April 2012. Archived from the original on 25 April 2012. Retrieved 24 April 2012.
  19. ↑ Walker, John (22 November 2007). "RPS Exclusive: Gabe Newell Interview". Rock, Paper, Shotgun. Archived from the original on 12 May 2014. Retrieved 28 June 2013. The worst days [for game development] were the cartridge days for the NES. It was a huge risk – you had all this money tied up in silicon in a warehouse somewhere, and so you'd be conservative in the decisions you felt you could make, very conservative in the IPs you signed, your art direction would not change, and so on. Now it's the opposite extreme: we can put something up on Steam, deliver it to people all around the world, make changes. We can take more interesting risks. [...] Retail doesn't know how to deal with those games. On Steam [a digital distributor] there's no shelf-space restriction. It's great because they're a bunch of old, orphaned games.
  20. ↑ "The Secret of Monkey Island: Special Edition Tech Info". GameSpot. Archived from the original on 16 January 2010. Retrieved 15 November 2011.
  21. ↑ Onyett, Charles (2 June 2009). "E3 2009: The Secret of Monkey Island: Special Edition Preview". IGN. Archived from the original on 27 May 2012. Retrieved 15 November 2011.
  22. ↑ Garr, Brian (17 April 2011). "Download distribution opening new doors for independent game developers". Statesman.com. Archived from the original on 21 April 2011.
  23. ↑ Stuart, Keith (27 January 2010). "Back to the bedroom: how indie gaming is reviving the Britsoft spirit". The Guardian . Archived from the original on 5 April 2019. Retrieved 8 November 2012.
  24. ↑ Senior, Tom (16 March 2012). "Garry's Mod has sold 1.4 million copies, Garry releases sales history to prove it". PCGamer. Archived from the original on 28 April 2021. Retrieved 28 June 2013.
  25. ↑ Caron, Frank (9 September 2008). "First look: GOG revives classic PC games for download age". Ars Technica. Archived from the original on 20 December 2021. Retrieved 27 December 2012. [...] [Good Old Games] focuses on bringing old, time-tested games into the downloadable era with low prices and no DRM.
  26. ↑ "Why digital is greener than the boxed video games?". CodesWholesale.com. 22 April 2016. Archived from the original on 21 August 2016. Retrieved 4 August 2016.
  27. ↑ Kharif, Olga (4 September 2018). "YouTube, Netflix Videos Found to Be Slowed by Wireless Carriers". Bloomberg. Archived from the original on 11 September 2018. Retrieved 27 June 2019.
  28. ↑ Furr, Nathan; Shipilov, Andrew (July 2019). "Digital Doesn't Have to Be Disruptive". Harvard Business Review. Archived from the original on 16 August 2019. Retrieved 16 August 2019.
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