Digital rights management


Why media companies are slowly strangling themselves
I think this one is right on the money.

The Sony incident, however, raises a host of questions. First and foremost is whether consumers are being duped when they buy content, only to find there are restrictions on transferring music to multiple devices or, even worse, that the DRM software exposes their computer to security risks. Other questions include: Is DRM worth the effort? How can you balance the rights of consumers with the rights of media companies? And what's the future of DRM?

One thing is certain: A few more incidents like Sony's "rootkit" flap and consumers may revolt. It's "important that DRM doesn't ruin the customer experience," says Wharton marketing professor Peter Fader. CDs that limit the ability to play, rip and mix music take restrictions too far, he adds, while controversies such as the one sparked by Sony's DRM system can cause consumers to think twice before buying digital content.

Wharton legal studies professor Dan Hunter says his problem with DRM has to do with the stringent restrictions favored by music labels and Hollywood. "Ultimately, those limits will lose customers," says Hunter. He isn't alone in that assessment. Ben Macklin, senior analyst at research firm eMarketer, notes in a report that "if the rightful owner does not allow consumers to get the content they want, when they want it and how they want to use it, they will get it elsewhere. Content providers can either get a piece of the action or put such tight (controls) on their content through DRM and restrictive terms-of-service agreements that consumers will simply avoid them."

I'm all for protecting an artist's rights. But I am not willing to trade a thousand buck computer for a fifteen buck CD. While I do hunt on the web for free music, most of the time if I like what I find I will end up buying the CD to rip to my iPod anyway.

DRM is going to kill the golden goose if the major media companies aren't careful.

And while we are at it, what is it with the DVD online features that require a Windows PC? For a minimal investment, some smart media company could provide content to other platforms and get goodwill. Not to mention selling more DVDs.

— NeoWayland

Posted: Wed - February 1, 2006 at 05:33 AM  Tag


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