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Why DRM Will Kill Mobile Music

Posted by on 08.16.05 | 30 Comments

So it turns out Russell and I were both thinking about music today — great minds etc. etc. I want to follow up his earlier comments with some stuff I’ve been thinking about, brought into focus by something that happened to me yesterday. I was in a record store here in Austin, and I saw the CD of a band I’ve been hearing on XM and net radio stations that I’ve been wanting to check out. I was looking at it, flipped it over, and was presented with a compatibility notice detailing the restrictions caused by the CD’s DRM — the first time I’ve been confronted by something like this. It said that the CD could only be ripped in Windows Media Player, and would only work with MP3 players supporting its DRM, and could only be copied three times or something along those lines. I knew this stuff was out there, I’d just never seen it on something I was thinking about getting.

Although none of this would have been a problem for me, I still didn’t buy the CD — I’m not trying to come off as an activist or agitator, but I’ve got no interest in making a record label think that, as a consumer, I think that sort of thing is ok, because it’s not. It’s just stupid. What are we coming to when CDs need compatibility statements? And why should a record label get to dictate on what equipment I play music I buy? Apparently I’m not the only person that feels this way.

The upshot of all this is that you’ve got the record industry bitching about how file sharing — and now CD burning — is destroying their industry, therefore they need stronger DRM. As is par for the course, they’ve got it backwards: what’s going to destroy their businesses is DRM.

Story after story laments how “incompatibility” is slowing the growth of digital music. That’s slightly disingenuous: what’s hurting things is incompatible DRM, which itself is an obstacle the record companies implemented. Companies like to complain that Apple won’t license their DRM technology, but why is it there in the first place? Not because Apple likes DRM, but because record companies insist on it. So if labels aren’t happy about this “incompatibility” and think it’s hurting things. get rid of the problem by dropping their demands for DRM.

A parallel problem is that DRM often isn’t used to “protect” music, it’s used as a form of lock-in by device manufacturers and service providers. For instance, if somebody’s bought a bunch of music from iTunes, what kind of MP3 player will they buy — an iPod, or one that can’t play their music? The same thing will play out in mobile as service providers, labels and operators all jockey for top position on the food chain. This doesn’t really benefit anybody, least of which the end user.

What’s funny about all of this is that the DRM doesn’t work anyway. The latest Foo Fighters CD features similar copy protection, but that didn’t stop it from topping the file-sharing charts. Not only that, you’ve got bands and labels telling people how to circumvent the DRM — the Dave Matthews Band tells buyers to rip the CD through Windows Media Player, then burn a copy with it, then rip the copy into iTunes to get the music onto an iPod. Just so we’re clear: you’ve got one of the artists with DRMed CDs telling people how to work around the DRM and make “unprotected” MP3 files of the songs, with one of the labels giving the same advice. Why bother having DRM if you’re going to tell people how to get around it? If that’s not a tacit admission of its ineffectiveness, I don’t know what is.

(Of course, they like to act like this isn’t of their doing and point the finger at Apple: “Please note an easier and more acceptable solution requires cooperation from Apple, who we have already reached out to in hopes of addressing this issue. To help speed this effort, we ask that you use the following link to contact Apple and ask them to provide a solution that would easily allow you to move content from protected CDs into iTunes or onto your iPod rather than having to go through the additional steps above.” Well, if you didn’t put the DRM there in the first place…)

Now, how this all affects mobile is that there will be a huge tide of MP3 players from a number of different vendors coming into the market, in the form of music-enabled phones. So what’s going to happen when you’ve got all these different phones being billed by carriers as iPod killers or replacements and people come to find out their music won’t play on them, or they can only listen to music that’s been bought from one specific store or service? They’re going to get pissed off, that’s what’s going to happen. They won’t buy music that’s tied to a specific device or has onerous limitations on what they can do with it — which will probably rule out any carrier’s download store from being a success. Regardless of how the record labels see things, people want to own their music, and owning music means being able to do with it what you like, and play it on whatever device you want. This means that vendors that focus on syncing, rather than playing along with carriers’ dowload shop dreams, will be the winners. Few operators understand this, though, and their stranglehold on the retail channel means it’s going to be hard for manufacturers to succeed.

The RIAA likes to say that file-sharing costs them sales, a statement based on the completely flawed assumption that every person that illegally downloads a song would have paid for it. This simply isn’t true for any number of reasons, while there have been plenty of musicians who have gained new fans from file sharing. The reality of the situation is that pointless, stupid, ineffective DRM is going to cost them more sales than any file-sharing network.

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