Digital Distribution is a form of software publishing that sells games digitally as opposed to using physical mediums like discs or flash memory. It has many advantages to standard distribution, including cheaper production, better stock control, and easier more widespread distrubtion. However, because a product that is completely digital is harder to verify ownership to, it neccesitates some way to control profit loss.
One way is to allow free distribution and make revenue of aspects of the software such as advertising and in software purchases both of which neccesitate an intermitten online connection, but is generally more lucrative.
The other way is via Digital Rights Managment aka DRM. Contrary to popular belief, physical media has a form of RM or rights management in that ownership of disc grants ownership of the license to use that copy. This is why when you buy, sell, rent, destroy, etc with physical media you are doing that to its license as well. FYI, if you bought a copy of the White Album, you own the rights to that copy and can play it whenever you wish, but you do not own the songs on the White Album nor do you own the Beatles.
Because there is no physical medium, these licenses must be maintained and their are two ways to do it. Offline and Online DRM. Offline DRM is difficult to design and easier to break then its counterpart. It requires a validation everytime the software is on the machine, but it itself is vunerable to hacking. However, good offline DRM can stop 60-90% of most pirates, and I know I'm pulling this stat out of my ass, but only a minority of dedicated pirates are really that bad, publishers try to make it look worse than it is.
The only difference in Online DRM is that the software verification is online, being less vunerable to hacking because its server side. However, there are multiple ways around this including modifying the cracked software to run offline. In comparison, it would block 98-99% of pirates.
On a side note: It's a fallacy to assert that physical media ensures ownership of the software license indefinetly, depending on the TOS, software or hardware that utilize that software can indirectly revoke that license. The only thing it guarantees is that the license on the disc cannot be modified. So if a patch is applied to someones account or hardware, it can disable the license from working on that machine or with that account.
In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank











