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Music DRM in Critical Condition?
ianare writes "Universal Music Group, the largest music company on the planet, has announced that the company is going to sell DRM-free music. The test will see UMG offering a portion of its catalog — primarily its most popular content — sold without DRM between August 21 and January 31 of next year. The format will be MP3, and songs will sell for 99 each, with the bitrate to be determined by the stores in question. RealNetwork's Rhapsody service will offer 256kbps tracks, the company said in a separate statement. January 31 is likely more of a fire escape than an end date. If UMG doesn't like what they're seeing, they'll pull the plug. UMG says that it wants to watch how DRM-free music affects piracy rates."
UMG says that it wants to watch how DRM-free music affects piracy rates.
Well they should look back over the last few decades then. They've been selling DRM-free digital music ever since CDs were invented.
UMG says that it wants to watch how DRM-free music affects piracy rates.
Bollocks. I mean look up every "piracy" "statistics", they always talk about this and that much gazillions of good old bucks being lost because of piracy, yet no living human being has ever managed to give a reasonable and acceptable explanation about how those numbers make sense. Now they say they want to see how those numbers change if they sell non-drm-encumbered music ? Well, flip a coin, that'd make more sense to decide to continue or not. A better way would be to actually listen to what those pesky customers want.
I am putting myself to the fullest possible use, which is all I can think that any conscious entity can ever hope to do.
Music companies have really just started waking up to why DRM is really bad, and it's nothing to do with their customers.
It has finally dawned on them that DRM - far from protecting them - will take control away from them and hand it to companies like Apple and Microsoft, who become the new gatekeepers since they own the DRM technologies that are popular. It's now dawned on the music companies that it won't be long before the likes of Apple and Microsoft get big enough in the music business to simply cut out the record companies and sign bands directly.
_That's_ why they are starting to drop DRM - they have finally come to the realisation that DRM is the trojan horse that will destroy them. Not piracy.
Oolite: Elite-like game. For Mac, Linux and Windows
That is hilarious. Universal refuses to sign a contract, and will do business with Apple strictly "at will".
Oh the irony! The music giant that doesn't believe it should have to sign a contract just to get distributed.
256kbps is good enough for me, though I'd really only buy if the price point was closer to 10 cents. Lots of reasons for this, though the main one is simply that I live in Asia, piracy is common. Like it or not, that's what they have to compete with. 10 cents per song is about double the profit margin over pirated CD's, though if I can reliably go to an online store from the comfort of my home, then that's where I'd rather be.
Isn't this the company that sued Sony in the 80's, and tried to make VCRs illegal? And, they are associated with the RIAA. I think it is too soon to start throwing money at any major record labels. The best solution would be to pirate exactly as much as you had been before.
Write your own Choose Your Own Adventure. http://www.freegameengines.org/gamebook-engine/
The recording industry themselves are entrepreneurs, and now they realise that the software companies are not just another mechanism to enforce their intermediation, but an attempt to introduce a new, and harder to evade, middleman.
All entrepreneurs seek to enforce their control, either legally or through other means (such as owning the channels of distribution, or by monopoly patents.)
Entrepreneurs have a part to play when a resource does not have a market, but they find it very hard to lie down and die when the market is established. We don't yet know who will win this battle for control over the electronic music market, but improved search engines and technology availability could disintermediate the market in a different way - e.g. by sites aggregating direct sales by many small bands, cooperatively owned.
Pining for the fjords
* RSITDANTMUFG = Random Stab In The Dark At Number That Make Us Feel Good Normally I'd agree completely, but aren't you starting to get the feeling that the people that run these giant media conglomerates just have a huge cigarbox in the boardroom for their cash? As in:
Suit 1: (opens box) "Hey, there used to be more cash in here! I want more!"
Suit 2: "Oh noes! Why did the box stop making cash?!"
Suit 1: "Maybe someone TOOK OUR CASH!"
Suit 2: "Took... you mean, like... pirates?"
Suit 1: (gasp) "Pirates! Yes, must be pirates! We must kill the pirates!"
Janitor: "Hey, don't you guys actually make money from helping new artists distribute their music to a wider audience?"
Suit 1: "Huh? Who are you? Someone throw him out... Now, let's vote, who wants to kill pirates and so the box makes more cash?"
Suits 2,3: "Yay! More cash!"
Surprisingly, Universal won't have DRM free music on iTunes
CATS/Diebold '08- All your vote are belong to us!
You buy if you want. As far as I'm concerned Universal can fuck off.
They're one of the worst. It is they who persuaded Microsoft to let them charge Zune users a Zune-tax. Let them lift that tax first.
They're still playing games. This time round, they are refusing to sell through the iTunes Store. This is an act of revenge. It's because Apple won't open their DRM to other distributors, because Apple doesn't want the hassle of maintaining this DRM (that it doesn't want in the first place and only has to use because companies like Universal insist on it) for every other distributor. IOW, Universal do want the DRM and are blaming Apple for not making it work for them across the whole industry - as if Apple, or anyone else, could.
YOU buy. YOU rush out and buy from these parasites. I shan't.
If I want to buy a download rather than a CD, I'll buy EMI at the iTunes Store or go to Magnatune or Linn records. Universal can go boil its head.
This has probably been posted a million times on slashdot, but we must repeat it until at least every slashdot person understands:
l abels may help. I seriously propose not buying in to the Sony, Warner, Universal, et al. game of hiding behind the word RIAA as if it is some, nebulous, vastly distantly related entity. It isn't. Substitute "major music label CEOs" for "RIAA". So for example this headline from Arstechnica:
THERE. IS. NO. RIAA.
Not as such. It is a like shell company so that the major music labels don't get their hands (or label names) dirty whilst suing dead people, stalking 8 year olds, and extorting grandmothers that have never even seen a computer.
Universal IS the RIAA.
http://en.wikipedia.org/wiki/List_of_RIAA_member_
Judge greenlights RIAA to dig into man's past, employers
Should actually read:
Judge greenlights Major Music Label CEOs to dig into man's past, employers
Those CEOs are people. They make the decisions. They are responsible. Normal people can get their heads around that and hold those people responsible for their actions, if they so choose. The RIAA is some faceless acronym, just another brick wall. As it is surely intended to be.
6 months back, he himself spoke against the negative effects of DRM and how Apple was implementing DRM only to comply with the wishes of the recording industry. Now fear of an Apple monopoly on DRM has finally forced Universal (for starters) to think about selling unencumbered music. So we have him to thank for scaring the recording companies into removing DRM! (hoping that they eventually will)
"..One hosts to look them up, one DNS to find them, and in the darkness BIND them."
I've always said, if there's a music store that sells good music without limitations, that's the place where I'll buy. Ok. The limitation part is gone. Now, let's talk about "good music"...
I predict there will be little if any change. We will certainly not see more piracy. Simple reason: DRM has not and will not stop someone from copying, so whoever wanted to copy already did and probably will continue to do so. An increase, because there is no DRM, makes no sense.
We might see more songs sold, though, since some people (like me) will turn to buying music online when there is no restriction on it anymore that limits my use in various devices of my choice. Goods I cannot use in the way I deem necessary have no value to me. If I cannot use it in my car CD player or on my MP3 player, the item is not what I want, and what I do not want I do not buy. This, though, the music without restriction, is what I want. So I will buy now when (and here's the catch) I find music that I would like to listen to. Sorry, but I don't buy the latest American Idol hypecrap just because I can media shift it.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
They're still holding tightly to their fantasy about P2P downloaders costing them millions and billions - but they have noticed that their introduction of DRM technologies has received an almost totally negative response from their former customers. So they'll back off on this a little and "see if the piracy rate goes up". That's not what they'll be looking at at all, that's just some spin for the media. What they're looking for is some kind of upward bump to their profits; when they added DRM their income went down - so let's remove the DRM and see if our income goes back up.
What they still can't see through their pride is that DRM doesn't reduce piracy in any meaningful way; all it does is cause inconvenience to their paying customers. It's driven more than a few customers away; buy one CD that won't play in your player and it's quite natural to avoid any CDs from that company in the future. What they also can't see is that those lost customers won't be coming back just because of some mealy-mouthed PR statement about removing DRM from some music for a short period - they've been fooled once already.
"Piracy" (copyright infringement) is an interesting thing - it only happens with items that can be duplicated and sold at a price substantially below the price of the original product. If the record companies sold CDs for 69 cents each then the "pirates" wouldn't bother with music CDs. The record companies would never willingly reveal their cost of production - but you can safely assume that it's much less than a dollar. When they over-price the finished product at 20 dollars they create their own piracy problem.
Will they ever see this simple truth? "Pirates" are a fact of life; eliminate one or a dozen and a hundred more will take their place. As long as there's easy money to be made then people will be lined up to get their share. There is nothing that the music companies, their lobbying lapdogs, the government, the courts, or anyone else can do to prevent it. As long as the product is priced far in excess of its production cost, there's going to be a "piracy" problem.
Even the folks who just "want to get it for free" would become paying customers if the price was RIGHT. But the music industry keeps turning out formula junk with one or two good tunes per CD and then asking 20 bucks for it - and then they wonder why people aren't buying it. This is the root cause of their decline - expecting top dollar for bargain basement material.
But they weren't satisfied with shooting themselves in that foot - they decided to start up their "legal" extortion racket and run people over the coals for thousands of dollars - for downloading a song that has a market value of less than a dollar. They even decided to sue some dead people, children, disabled seniors, etc. just to make sure that they offended everyone. This bone-headed plan is pure public relations poison - but they just can't stop. This turns a bunch more customers into former customers and the sales drop off even faster.
Having shot themselves in both feet, they turned to their kneecaps with DRM and rootkits. While it's tempting, I won't belabor the point about what a bad idea this was. Now they suggest that they'll remove the DRM from a subset of their catalog - provisionally, for a short period of time. It almost sounds as if they believe they're dealing from a position of strength.
What a bunch of closed-minded fools. Their doom is upon them and they act as if they're in control of the situation...
But surely that's the wrong figure. If sales double why does it matter if piracy triples?
...and I'll say it until I stop getting modded Insightful/Informative/Funny for it. Piracy is an economic indicator that you are not letting the market balance itself. Specifically, piracy is caused by artificially fixing prices too high. People refuse to buy the good since it is too expensive, but still demand the good, so they steal/copy it in order to obtain it. The only way to discourage piracy is to lower your price to the point that people would rather buy "the real deal" than a cheap knockoff. Perhaps if CDs were not pegged at $20 each, and were sold at the more reasonable $5 each, the public would find it more preferable to go to the music store instead of the torrent search engine.
~ C.
Consider that the majors have been trying to push bloody business models where one or more of those restriction apply to you:
1) Pay for each nail you hit with the hammer
2) Rent the hammer and pay monthly for ulimited strikes on nails - when the rent expires all your nails disappear
3) Be limited to use your hammer just in your room
4) Be limited to use only a specific brand of nails - In case this is overturned by a clever hacker all the nails can cease to work (see playsforsure against old MS DRM)
5) whatever else limiting to you but more profitable to them
6) Get sued if you lent/use a hammer from another person
7) Pay for a hammer that can be used to build 10 houses - Ops, sorry, after the sale terms are changes: only 7 houses (Apple FairPlay Cd burning)
From my humble point of view as noone would use such a tool . Conclusions: those corporations have been looking actively for extincion and fully deserve it.
I'll download a song, and if I don't like it, I'll go buy it.
Wow, you're like the best consumer ever!
Lets try another example;
fifteen or twenty years ago (when CD's were already fairly old technology) A computer probably not even as fast as the one you're using now was called a 'supercomputer' and cost about a quarter-million dollars. The cost of computing and the cost of network bandwidth has dropped two orders of magnitude since then.
The technology behind computers isn't just similar, it IS the technology behind distributing digital music. The processing power that cost a quarter million dollars twenty years ago costs a few hundred now. The cost of distributing a dozen songs (a CD that actually did cost a few dollars to stamp and ship twenty years ago) is now a download from a server that costs them only fraction of a cent, but they still want us to pay 1988 prices?
455fe10422ca29c4933f95052b792ab2
The technology behind computers isn't just similar, it IS the technology behind distributing digital music. The processing power that cost a quarter million dollars twenty years ago costs a few hundred now. The cost of distributing a dozen songs (a CD that actually did cost a few dollars to stamp and ship twenty years ago) is now a download from a server that costs them only fraction of a cent, but they still want us to pay 1988 prices?
While I somewhat agree with a couple of things you say, I must add; Do you even know what you're talking about? I think you're just wildly spewing out numbers because you want something for nothing. Back up your figures or stop making things up.
Besides, your model of "cost" only takes the cost of distributing into consideration. The cost of creation needs to be taken into consideration too. Look into the pricing on your average studio. At your price of $0.01 a song, it would take anywhere between 50000-100000 or more purchases to make a song break even. That's not even counting money for the artist(s) to live off of, or the cut that the record labels want to get for their efforts in advertising.
I'm not saying the current price model is fair, I don't know the break down. I'm also not saying I agree with the strategies of the large record labels, I personally dislike them and the stranglehold they have on the market. But, consider the larger picture before you shoot off that songs should be available for $0.01.
The underlying question is why is it reasonable to pay the artists over $200 grand a year? Why is it reasonable to pay executives so much?
I mean the average person earns $41k a year. The answer is- it's not reasonable. We got tons of music (and movies) in the 30's... 40's... and 50's... (and most of the 60's...) when everyone on the food chain made a lot less.
We got more of them because the artists had to produce more to make a living. And the idea of getting filthy rich didn't really start until the 70's.
There is no reason in today's world that we need 15 to 20 people feeding 200k+ per year incomes off of each song. This is why songs (and movies) cost so much. Because a parasitic industry has grown up around them due to their unique government protected monopoly.
Is there any reasonable way you can justify an author getting richer than the queen of england- becoming worth over a billion dollars in such a short period of time? Is there any other kind of work which pays that kind of compensation?
Clearly copyright is currently broken. It forces society to pay grossly inflated prices compared to most of the rest of history.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
Except for the lucky few, musicians or "artists" are rather on the poor side. I play in a local band, so many a time after a show we hang out with the headlining act. I see behind the scenes, behind the image... Signed musicians, and they sleep in their van, taking shifts driving to the next show. If they're lucky, someone in town offers them a place to crash for the night. That doesn't really sound like a bunch of people making >= $200k/year to me.
Yeah the stadium filling acts have tour buses and roadies and groupies and all that, but the vast majority of performing musicians make enough money to stay alive and on the road, if they're lucky.
Also, don't compare music and movies. Making music involves a band, a couple of engineers, and possibly a studio musician or two for the "extras". Next time you go see a movie in theaters, sit through all the credits... Try to count the names. Music involves a couple of handfuls of people to create, a movie requires hundreds. Now, to clarify, I'm not in any way for the high prices and I'm not defending current copyright laws (I believe the system is broken personally). I'm just pointing out that movies and music are on different levels.