Yahoo Exec Says "Enough DRM"

bogess writes "Yahoo! Music General Manager Ian Rogers recently gave a speech to some music executives about the future of the Internet music business and promised his company will not be involved in Digital Rights Management anymore." Another straw in the wind: Nine Inch Nails has now followed Radiohead in ridding themselves of the labels and going independent.

Comments

Labels Wising Up?

[wdr1]

What record labels are finally learning is that just because they can steal, doesn't mean the majority of people will.

-Bill

Re:Labels Wising Up?

[arivanov]

Actually, it even more pronounced than this:

Some people will always steal and you are not going to succeed selling to them. They will always find a way to cheat even if you force them to buy the product through legislation. The percentage depends on geographic location, society, culture, etc. Usually these are a minority.

The rest will avoid stealing if they can. They will however steal if you force them by making the "legitimate" product unusable for them. These are the majority.

Re:Labels Wising Up?

[DigitAl56K]

I don't agree with that completely, Bill, but I think you're heading in the right direction.

I think that given the opportunity most people will take something for free if they can and there isn't much risk involved. The real point is that the people who [i]would[/i] have paid for the content originally are still likely to pay for the content regardless of what everyone else is doing. Maybe they enjoyed the content enough to want to support it's creators. Maybe for this group of people having the opportunity to access the content using a nice interface that's reliable (in terms of service level and making accessible what they're searching for) is worth the expenditure versus the effort involved in other methods. Maybe they just want to stick to the law.

I think many of us would make the argument, for example, that we have a) used the Internet to discover content that we've later gone on to pay for, but also b) we've also downloaded some content "for free" that really we would have never seen enough value in to pay for anyway (although perhaps we might have, if we could have chosen to pay less for it than was asked). So for certain pieces of content we fall into category A, and category B shouldn't really have much impact on a business - if I wasn't going to pay anyway who cares? The only impact is if the number of people in category A decreases.

And that's where I think the problem lies. The recording industry in particular has shot itself in the foot repeatedly over the years. Many of us simply do not believe that the artists get a real share of revenues these days, diminishing some of the reason that might cause people to fall into category A. Some of us don't want manufactured pop pushed on us all the time, and this means less content in category A because that's mainly what the industry spits out (as far as what is considered "mainstream" and well known). If we're smart, none of us want to be locked into a platform via DRM that limits where we can take our music and what we can do with it (again, fewer people in category A). And most importantly, the RIAA can [i]not[/i] cause people to psychologically move content from category B into category A via lawsuits.

This all goes back to what we've all been saying for a long time:
* Compensate creators well so that as a consumer I know that when I spend my money I am really supporting the creator
* Build many platforms competing for my business. I shouldn't be locked into iTunes if I want a wide selection, and I should be able to choose a platform that serves my needs.
* Territory restrictions need to go away. If we want to get our hands on a piece of music and you refuse to sell it to us legally, guess what is going to happen?
* Don't use DRM. Why do I want to pay money for content I really only have the option to use with your permission, and that I can't load onto any kind of playback device I might own?
* Allow me to contribute to an artist at less than retail price if I want to. In the past few days we've seen certain artists trying this out. It's better than a category B (aka "I wouldn't pay retail for this anyway") decision.

Finally, remember that each of us has a finite amount of disposable income to spend on music, and a finite ability to discover new music over time. The act of adding DRM does not suddenly make these problems go away. Even if you killed 100% of all piracy tomorrow that does not mean that we'd all suddenly buy more music. Which takes us back to where I started - it's all about making sure the people who are buying now still see the value in buying tomorrow. Look after category A and you'll be fine.

I'm really tired. I hope this post made sense.

Re:Labels Wising Up?

[Technician]

The rest will avoid stealing if they can. They will however steal if you force them by making the "legitimate" product unusable for them. These are the majority.

Well put. For those who don't get what he said, let me give examples...

You are asked by a bride to put together a slide show, here are my photos and here is the music I want played.. Now try to get permission from the school photographer to scan and project the images on the screen. Now get permission to play the show with a public performance music soundtrack. Now get permission to burn the show to DVD and give them to the bride and extended family. Now get all the permissions (photo, music, songwriter, ASCAP etc) to put the mess on YouTube or MySpace.

Most of us can't do any one of the tasks to do any of the above required steps. We don't ask. We just do the show and hope nobody cares enough to sue. Unless you are a pro-video production company, your chances as an individual of not intentionally breaking someone's copyright is pretty slim. If you took the copyright violations in my last wedding slideshow and charged me $5,000 for each violation, the total would be in the mega millions. There was copying the music (bride provided, I didn't own) copying the photos (lots of school and sports photos done by a studio), public performance of the resulting package, and duplication and distribution for putting it on DVD. The show ran 15 minutes and used 4 songs.

When will the industry learn that outdated copyright is preventing use of the product. There is no outlet of the industries providing anyplace where I can obtain the license to use the products. As a result, I no longer use photographers who won't sign my work for hire contract which gives me the copyright. They either adapt or lose the job to someone who will. Copyright reform is required. It does not recognise how the products are typically used anymore.

Re:Labels Wising Up?

[Jafafa Hots]

Thing is, if you're arrested, they don;t use a dictionary in court to define your crime. They use these things called laws.

Under the law, it is NOT stealing. It's copyright infringement. VERY different.

Who says it's not stealing? The Supreme Court says its not stealing. DOWLING v. UNITED STATES, 473 U.S. 207: "...interference with copyright does not easily equate with theft, conversion, or fraud. The infringer of a copyright does not assume physical control over the copyright nor wholly deprive its owner of its use. Infringement implicates a more complex set of property interests than does run-of-the-mill theft, conversion, or fraud. Pp. 214-218.""

Re:Labels Wising Up?

[Incongruity]

Thank all these people whom have uploaded/downloaded music/movies for years. They are the true freedom fighters against the evil corporations.

No they're not -- I mean, I admire the spirit you're trying to paint them in and all, but no, they're (for the most part) just greedy people, just like the record execs, trying to get more for less, even if it's not legal. Freedom fighters implies some higher purpose -- most of the time downloaders are just out for themselves and don't want to take the time and cash to buy the CD -- I can't really blame them on either account, don't get me wrong, but it's still about personal greed rather than some larger principled stand in a strong majority of the cases.

you...

[cosmocain]

...never can have enough DRM. really! see... you can have a mp3 for 0.99 or a value added wma with protection against EVERYTHING. even listening! how great is that?

i, for one, would prefer the newest single by britney spears in a totally unplayable format.

Re:you...

[Chouonsoku]

You, sir, are a visionary. What better way to protect our children against the auditory abomination that is today's pop artists? I feel that DRM is a wonderful thing, we simply haven't been using it correctly and to it's full potential.

cosmocain fo prez.

Won the battle...

[Anonymous Coward]

It seems that in recent days, the draconian overlords of music (RIAA) have won a local battle, suing and winning from a poor woman over $240,000 for about a dozen songs, and lost the entire war. Consumers kicked them to the curb 5 years ago. Now artists are starting to do it. Artists know how much companies take and how much they get. Its very likely that artists getting paid directly by fans for music on the web may have a better payday than if they stayed with the company. In general, it seems they won the battle and lost the war.

Re:Poor MAFIAA

[Romancer]

I will gladly pay the protection money to Yahoo to keep DRM away. Give me high bitrate and lossless choices and watch my downloads soar!

Re:Poor MAFIAA

[Korveck]

Not so fast, but RIAA and its beloved DRM will fail, within the next few years. RIAA still has control over majority of the music market. Not everyone is well-informed to know and seek for better alternatives. Some are happy to follow whatever the record labels throw at them. Only through words of mouth and coverage by media will people learn, and ditch the record labels for the better services. What RIAA fails to realize is that a successful business is all about what the customers want, not what the company wants. There are countless examples of failures because the company lost touch with the people. And here we are just witnessing another failure in making.

Re:Poor MAFIAA

[Hymer]

...and poor Microsoft who has totally fucked up Vista (and delayed it several times) just to implement a "unbreakable" DRM system... instead of fixing some of Windows' real problems.

More innovation from independent bands

[thbb]

> Another straw in the wind: Nine Inch Nails has now followed Radiohead in ridding themselves of the labels
> and going independent.

Since 2001, Einstürzende Neubauten has been exploring new ways to produce records and interact with their public while producing the album. Their last 3 albums were produced by a subscription. As supporters, we could attend the recording sessions via webcam, chat online with the band members, or use the forums to discuss about the directions taken by the band ; we obtained early versions of the songs, and attended private concerts. Unanimously agreed as a great experience!

They've been fairly successful so far, though they still want to polish their formula. There is
a nice interview about their latest album and the issues they face in going "label-free".