It's just like tasting a mountain.

Tuesday, February 13, 2007

Jobs / RIAA SlapFight - none of it matters..

Lots of layers to the Steve Jobs / RIAA / DRM conversation..

Jobs, of course, recently called for an end to DRM. It's been speculated that this is less a genuine dislike of DRM (which has given Apple a lock on music distribution and allowed them to dictate low wholesale prices for downloads as a loss leader for iPod sales) and more of a response to the EU desire to open "FairPlay" (quotes intentional) DRM to other providers.

Blame shift to record labels - they make us use DRM.

The RIAA, in turn, has responded with a call (mirroring the EU) to open "FairPlay" DRM. This is likely less about a genuine desire to improve competition for consumers and more about bitterness at Apple's dominance and price-setting - coupled with a genuine desire to ensure that downloads are a horrible consumer experience.

Blame shift to Apple - they have a monopoly.
Blame shift to consumers - they're all thieves. (enter swat team raids and lawsuits against 13 year olds, despite an independent study showing that sharing has zero impact on record sales).

With 90% of the music industry's revenue coming from DRM-free CDs (the profitable atom-bit model of yesteryear), the consumer experience with a CD is mostly better than downloads. You can rip, mix, burn, move songs freely between devices in uncrippled form, etc.

And with 90% of tracks on iPods being DRM free and 'pirated' according to Microsoft's Ballmer, (Real's Glaser puts it at 50%, and the music industry would like to think it's all pirated), the recording industry would like nothing more than to have the Internet go away, downloads to disappear, and CDs to remain the dominant form of delivery. And entire CDs, to boot. None of this 'single track' stuff -- since there are maybe a few commercial hits at best on any given CD. It's more profitable and doesn't require any change of business model.

Ensuring that downloads are crippled with DRM keeps the old model a better experience (if more expensive).

Meanwhile, it all sucks for consumers. Who would like to be able to get the tracks they want at a reasonable price and use them in a fair manner on any device they want - without threat of expiration.

The bottom line is that the corporate slap fight in the media really doesn't matter - no one has the consumer's interest on the agenda. (and where are the aritsts in all this?)

If the two choices are either overpriced CDs with a few songs you want, or crippled downloads laden with restrictive DRM schemes, piracy remains the best overall consumer experience and will continue to flourish.

Now that AACS is utterly busted in multiple directions, the MPAA should bear this all in mind as they crawl in bed with Micro$oft.

And consumers should bear this in mind as choose vendors, services and as they vote.

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posted by NL Staff at 20:55

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