Tuesday, January 22, 2008

Digital Restrictions Management

DRM (Digital Rights Management) is the catch-all phrase for the encryption that restricts your right to play/use the music and movies which you fork out your hard earned dollars to buy.

It was the encryption tool the music industry claimed was needed to fight piracy. According to the RIAA (Recording Industry Association of America), CD sales have been plummeting. They blamed P2P networks and piracy for their problems. So they used DRM technology to circumvent the fair use provisions of copyright laws and tried to tell the consumer where and how they would be allowed to play their music.

The concept of fair use gives the consumer the right, among other things, to copy for personal use, musical works they buy. DRM interferes with those rights.

For example, music downloaded from I-tunes can only be played on an I-pod. RealAudio can be played only on MP3 players; you aren’t permitted to copy the songs to CD to use on your home or car stereo. Sony uses proprietary OpenMG DRM technology. Music downloaded from this store is only playable on computers running Windows and Sony hardware. Few of these technologies are interchangeable.

But consumers are fighting back, and the major record labels and the RIAA are beginning to see the folly of their ways. Amazon.com and the major record companies are now selling DRM free MP3’s online.

But, their insistence that piracy is the biggest contributing factor to declining CD sales shows they are not prepared to address the many real problems inherent in the product they sell. And, according to some reports the enemy is the record companies themselves, who have been slow in responding to changing consumer demand.

For example, I own several hundred LPs and cassette tapes. I can use my computer and a free software program like Audacity to record that music in MP3 format (or OGG, WMA, etc.). I can even digitally enhance my old mono records to simulate stereo. Why would I want to spend my entertainment dollars on high priced CDs, when I already have thousands of songs and musical selections in my record and tape collection?

I haven’t listened to a radio broadcast since the last big blackout in southern Ontario when I dug out an old crystal radio set to keep up with the news and listen to a few tunes. The reason is simple: I got tired of commercial radio with their limited play lists and constant repetition. And, with few exceptions, the music they play does not suit my musical tastes. Nor do I like the idea of radio stations or big record companies telling me what I should be listening to or buying. So, I listen to internet radio.

There are several sites on the web that allow new singers and songwriters to showcase their talent. I get to hear some great songs by some very talented musicians. I’d rather listen to a good song by an unknown artist than some of the garbage cluttering the air waves just because it was recorded by a “star”. And, because I’m not listening to the radio or CMT hype, I don’t buy the CDs.

Another reason for declining sales of CDs is that there is a limited number of entertainment dollars to be spent by the average consumer. For the price of two CDs a month, with the limited entertainment value they provide, I can pay for a broadband internet connection that provides a much bigger bang for my entertainment buck.

Also contributing to declining CD sales is the growth of “indie” labels that distribute their music over the internet, often for free. They’re not likely to get a lot of air play at any rate, because most radio stations cater to the big record companies and the big names they’re pushing. And, unless they’ve got a major hit, they’re not likely to make any money by signing with a major record label. It’s the record companies that rake in the profits from CD sales, not the artists. They make their money on the road.

The simple truth is that the big record labels have not adapted to the changing demands of the consumer. Maybe they should concentrate on providing a better quality product at a price the consumer is willing to pay, instead of whining and crying about piracy and suing everyone in sight.

The word "rights" in DRM is misleading. The proper term is “Digital Restrictions Management.” And, it’s one of the causes of declining music sales, not the solution.

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