This is from the February 7, 2007 program of CNBC's Morning Call.
CNBC On Why DRM Should Go Away (Quicktime - 16 MB)
CNBC On Why DRM Should Go Away (MP3 - 8 MB)
This story was inspired by Steve Jobs' recent
campaign to
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kill Digital Rights Management (DRM) in iTunes.
The argument supporting this position was best described when the commentator started off saying:
"Mr. Sherman, your anti-piracy software doesn't work anyway. What's the point?"
Long story short:
-DRM is only a hassle for consumers. Real "pirates" hack it anyway.
-DRM doesn't need to exist for new business models - there are numerous subscription services already without DRM.
-For this reason, a subscription service that doesn't let you move your music around between your different devices is already "broken" (while also depriving you of your fair use and first sale rights to make legal copies of media you've purchased legally).
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I have NO problem with DRM subscriptions services... not the .0001% of the market that uses them.
The thing is is the PRIMARY and most OBVIOUS business model as so proven by emusic and others is the one record labels are so obviously avoiding.
There\'s really only two options... either you rent music...a\' la\' drm\' or you own music, NO DRM... playfair is a lie... at best it\'s glorified rental.
The thing is people want and like to own and it\'s all the majority will accept. Music with any kind of drm will never be ownership.
What\'s more there\'s the WHOLE range of \"experience\" based business model this idiot is ignoring... focusing on merchandising, concerts, specialy music formats and albums... there\'s more than a market then ever for this stuff. People will even still by CD\'s or other future high def quality packages of music, video, art.
Hell the music industry could make more money selling music posters then CD\'s. Each way of experiencing a band has a different quality and value. My absolute favorite example of experience based marketing is ArtistShare. It simply rocks. $10 will get you the mp3\'s. $16 will get you the CD... and you can work your way all the way up to $18k which will get you dinner with the artis, a walk in the park, and a special mention on the album credits. In between are everything from DVd\'s to concert tickets.
$10 alone for the mp3\'s and an email when they are released is worth the convience.. and that\'s $10 of pure profit not spent on the overhead of packaging.