Is DRM a dead Technology?

The question I propose as the subject of this post is a very intriguing one. It seems as if everyday, when I read an article from a technology news section of an online news website, I see the following headline in this form - "Company X makes deal to sell DRM-free MP3 tracks on whichever device". For example, just today Real Network's Rhapsody announced a deal with Verizon Wireless to provide DRM-free songs on seven of its current handsets. Customers can now get unprotected MP3 tracks via a $15 monthly subscription, as well as individual downloads to their mobile devices or PC. The subscription buys unlimited access to 5 million songs from all four of the major labels--Sony BMG, Universal Music Group, Warner Music Group and The EMI Group. (Check the new feed section for the latest new stories on the subject of this blog).This is just one such example.

This surely was not the case 8 years ago when Sony BMG, Universal Music Group, Warner Music Group and The EMI Group all championed DRM as the only to way ensure profits and protect their investments via digital distribution of music. It appears that the entire music industry has recognized the DRM technology is no longer a viable business Model. Rhapsody follows Amazon and Napster in offering DRM-free MP3 music from the big four labels and also independents. Napster was the most recent entrant, having launched its MP3 service in May with more than 6 million songs. Even, Apple iTunes offers DRM-free songs via its iTunes Plus service. For a complete breakdown of the popular online music stores, see the previous post.

DRM is being dropped from the big four labels' catalogs and the industry has embraced DRM-free streaming services like iMeem, LostFM, etc. This is a different stance taken by the Music Industry. In 2001 sites such as MP3.org were being sued by the record labels and the RIAA to stop sharing music using their then current business model. Now many online websites allow users to purchase and share DRM-free music. Times have change and DRM is taking a back seat. See the video below for online websites where you can get DRM-free tracks.

I also found this interesting and funny. Brian Cooley, editor at CNET imagines a world without digital rights management.

For those of you, who may not know. What is DRM?

It is the control and protection of digital intellectual property and other copyright work that includes the description, identification, trading, protection, monitoring, and tracking of digital media to ensure no unauthorized access takes place. Encryption and other forms of security such as licencing are usually applied to digital media to limit or prevent unauthorized use.

DRM was not about piracy. Many argue that it was concerned with controlling competition and eliminating disruptive innovation of MP3 introduced digital distributing of music. You can almost hear music industry execs saying, "If you want to play my content, I get to tell you how to build your player."

Not to mention DRM protection is easy to crack. The many lawsuits brought against consumers by the records labels and the RIAA haven’t deter piracy. There videos online that instruct you how to remove DRM protection (see the video bar). There is a high quality of bandwidth available that is driving piracy. The Music industry failed to satisfied customers, so they still look to alternatives such as Bit Torrent and will continue to do so until there are free to manage their music in the manner they want.

The points stated here all indicate that DRM is a dead technology. So what now? Filtering bandwidth may be next alternative to protect Intellectual Property Rights. Recent reports over the last months indicate that service providers were limiting the bandwidth of users who used Bit Torrent Technology. However, there are many issues that come with this practice. There will be more on this in later posts.

The entertainment industry is now concerned with DRM for videos with the growth of popular video hosting websites such as You tube. DRM Video rights is much stronger issue to be debated greatly in months to come.



References:

Bruno, Anthony. Napster Goes DRM-Free. Billboardbiz.com. Retrieve June 30th from http://www.billboard.biz/bbbiz/content_display/industry/e3i9189f73c48e7dd51e9a8af5824382c0a
Cooley, Brian. What if DRM went away?. CNETTV.com. Retrieve June 30th from http://www.cnettv.com/9742-1_53-29372.html

Kahney, Leander. How Apple Got Everything Right By Doing Everything. WIRED MAGAZINE: 16.04. 03.18.08

Kravets, David. Death of DRM Could Weaken iTunes, Boost iPod. Wired Magazine. Retrieve June 30th from http://www.wired.com/entertainment/music/news/2008/01/rip_drm

Merrit, Tomn. CNET Top 5: DRM-free Music stores. CNETTV.com. Retrieve June 30th from http://www.cnettv.com/9742-1_53-32374.html

Sisario, Ben. Lee, Felicia. Rhapsody Ends Restrictions, Cornering iTunes. NYTimes. Retrieve June 30th from http://www.nytimes.com/2008/07/01/arts/01arts-RHAPSODYENDS_BRF.html?_r=1&ref=arts&oref=slogin