This is a start at trying to round out the value chain. Compared to the DM Value Chain Player Definition and Cost/Benefit Matrix of 030822chiariglione 01, I have added a group labeled Producers which includes the studios, labels, sound people, etc. that take a raw creative work, refine it, and move it toward distribution.

Below I have added a cost/benefit stack. It establishes categories for cost and benefit elements, so that it will be easier to quantify a player’s cost/benefit associated with DM. The elements, for illustrative purposes, are at break even. Should the sum of the cost as compared to the benefit push the centerline into either the red or black, that player along the chain could be viewed to have an incentive/disincentive to do its part in helping to realize an end to end DM framework.

For the players in the chain each of the elements below is in play, but have a different magnitude and significance. For media companies, soft costs may be the most formidable, the potential for loss of IP being a more obvious one, but the requirements of cultural change perhaps being the more intractable. The aggregators and disseminators have formidable infrastructural capital expenditures to make the DM conversion. The CE manufacturers and software developers can have huge R&D costs to create products that are capable of meeting the market’s requirements, let alone making a profit.

I have renamed the matrix provided in 030822chiariglione 01. The next step is to make sure all players are listed, better define them, and then create a more detailed list of cost and benefits. From there, exploring each cost and benefit will help us define the relative preparedness of each of the players to respond to DM opportunities.

This is not the ultimate model, but I think it is a start at allowing us to quantify the perceived and actual cost/benefit of players along the chain.

 

Note:	"+"	benefit
	"-"	cost
	*	R&D is considered an elemental business function of a given organization, such as a software development firm. Planning costs for an organization less engineering oriented, such as a traditional media company, would be considered a soft cost.
	**	Sunk hard costs are not considered as part of new cost structure.

DM Value Chain
Player Definition and Cost / Benefit Matrix

 

Player	Definition	Examples	Costs	Benefits
Creators	Composer, Screen writer, Performer, Artist, Engraver, Music Copyist		A: Time to develop of new skills (training) B: New Equipment (Hard and/or Software)	A: More opportunities to have creations remunerated (relates to C:) B: reduced dependence on producers (they don't have to be paid) C: widening of market presence (e.g. via internet)
Producers	Film/TV/Music studios Publishers	Sony - film Brill – TV RandomHouse	A: Loss of control to creators B: Equipment/SW	A: Increased range of product types / variations C: Potential for control of more value chain elements C: New platforms
Content repositories	Library Studio	SF Public Lib Turner Classic Movies		C: Possibility to provide universal access to content
Rights societies	Rights intermediary and standards developer	ASCAP HFA	B: Loss of levies	A: Opportunities of new services C: Broaden base geographically
DRM solution providers	Provider of Rights Management Systems, and integrators	SAP, Rightsline, BearingPoint	A: Sales and Marketing C: R&D	A: Opportunities to deploy solutions. Potential for new products
Media companies	Managers and owner of content, and often production and distribution facilities	Sony NYTimes HBO	B/C: Accelerate transition to digital	A: More opportunities to distribute content; e-commerce, data asset; consumer application sales B: Radical reduction of piracy
Apps providers			A: Sales and Marketing C: R&D	A: Creation of new markets C: Standards allow expansion
Aggregators (network)	Cable, and IP based content providers	TW CNN	A: Change in model, retraining, new staff B: Servers… C: R&D	B: No need to be concerned with end-user devices C: More ways to offer content
Aggregators (broadcast)	Radio / TV Stations Where does satellite go?	CBS Clear Channel	A: Change in model, retraining, new staff B: Digital Trans C: R&D	B: No need to be concerned with end-user devices C: More ways to offer content
Back-office apps providers	FICO, DAM, Ad, DRM, Customer Date Base, etc.	SAP,	A: Sales and Marketing C: R&D	A: Demand for new applications C: New opportunities to deploy solutions (content management, e-business, billing etc.)
Connectivity providers (network service providers?)	Two Way-IP based service providers	TW, Earthlink,	B: Service Provisioning C:Infrastructure upgrade	A: Opportunities to bundle infrastructure services with higher-level services C: More connectivity/bandwidth required by users
Network service providers (Same as above?)			Cap Exp for development / risk	More access required by users Opportunities to bundle network services with higher-level services
Portals	Gateway to key digital media services	Amazon, e-Music	A: Right negotiations B: Core business development C: Discovery/planning for Products	A: More services than possible today C: Opportunities to bundle search services with actual content offers
Device manufacturers (HW)	Devices required for management, and consumption of DM all along the Value Chain	Scientific Atlanta, MAC, Sony	A: Sales and Marketing C: R&D	A/C: Creation of a dynamic market of devices
Device manufacturers (SW)	OS, game, DM Management SW	Palm, Real Player, Sony Java, JINI, Windows CE	A: Sales and Marketing C: R&D	A/C: Creation of a dynamic market of software applications
End users	Consumer of Media, commercial and non commercial	Teenage, Restaurant, Magazine Publisher,	A: Time to update skills B: Acquisition Costs of HW, SW, and DM	Richer access to content Increased range of utility Access determination / time - location