Software company Microgen has published a new research report that reckons that the adoption of “digital supply chain data standards” could cut the digital content industry’s costs on meta-data creation by two-thirds, and reduce data management costs by a quarter.
The Microgen-commissioned report, undertaken by Forrester Consulting, focuses on the benefits of the previously reported DDEX Standards, an initiative backed by various rights owners, digital content firms and technology companies, including Microgen, that encourages digital content providers and player makers to adopt standards on data, making everything much more compatible, and reducing the need for content firms to provide data in multiple formats.
The study, that involved in depth interviews with various stakeholders, reckons that the adoption of DDEX standards would result in “a reduction in data feed creation and integration expenses of 66% over five years” and a “reduction in data feed maintenance expenses of 25% as proprietary feeds are replaced with DDEX feeds”. Further cost savings would come from a reduction in training requirements and more efficient processing of takedown requests.
The report concludes: “All of the organisations we interviewed were unanimous in their desire to lower the costs of managing data exchange in their part of the digital music supply chain. They also wanted to make their business operations more flexible and agile, improve the transparency and auditability of sales data, [and] lower the cost of entry for new players into the digital music industry”.
Microgen’s Martin Redington added: “Microgen firmly believes in the benefits of implementing standards and the Forrester Consulting study clearly outlines the value of adopting the DDEX message formats and choreographies. With the ever increasing volume of digital music and media transactions, the only way for the digital media supply chain to be efficient is to adopt these standards across the ecosystem”.