Wednesday December 13, 2006

Will Zune Be The Death Of DRM?

After months of searching I think I’ve finally found something good to say about the Zune. It’s very possible that Microsoft’s new media player will be the death of DRM as we know it.

Before the Zune, DRM was merely a frustrating choice that consumers had to make. To legally purchase digital music released on a major recording label your choices were iTunes or one of several PlaysForSure music stores. Buying any more than a few songs from either source meant that you were essentially locking yourself in to one of the two proprietary copy protection schemes, or running the risk of having to repurchase your collection if you switched brands at some point in the future.

By presenting yet another proprietary DRM solution, Microsoft’s Zune further adds to the confusion consumers are experiencing over incompatible media players and music formats. The result? Microsoft seems to be baffling consumers, confusing the media, and scaring away content providers.

Thanks to the Zune the case against DRM may finally be reaching a tipping point.

It’s no secret that record labels have been unhappy about the control that Steve Jobs has exerted over pricing and other aspects of digital distribution. Unfortunately, the labels need to go through Apple to gain access to the massive iPod market.

To the music industry the Zune must look like deja vu all over again. By tethering their media player to the Zune Marketplace, Microsoft has essentially cloned the iTunes business model. If the Zune succeeds the labels know they’ll have to deal with Microsoft in order to get their music in the Zune Marketplace. First Apple, and now this? Right about now the labels must be wondering who DRM is supposed to benefit.

I don’t think it’s a coincidence that the major labels have finally started experimenting with DRM-free digital music — albeit on a trial basis in order to “gauge consumer interest” (which is sort of like Exxon experimenting with $1 a gallon gasoline in order to gauge consumer interest). For the labels, unencrypted music means iPod compatibility without Apple, and Zune compatibility without Microsoft.

It’s no wonder that record companies are finally starting to question the value of DRM. As we’ve noted many times before, DRM only punishes honest consumers. Pirates will freely copy digital media regardless of what restrictions are put in place. Add to that the fact that technology companies seem to be the only ones benefiting from DRM and, in the case of Microsoft, those companies are willing to change course on a whim, and you begin to see how pointless and risky DRM actually is for the music industry.

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6 Comment(s) so far

1. Clif Perry wrote on December 13th, 2006 at 4:02 pm

So how does yet alother baffling and confusing DRM music site/store (Zune) signify the end of DRM? Your blog is just as baffling and confusing plus uninformative.

2. Jim wrote on December 13th, 2006 at 6:04 pm

Clif,

Let me explain it for you. Slowly.

Too many different DRM schemes + Customers not having freedom to do what they want with their music = Customers rejecting all DRM’d music.

3. Kirk wrote on December 13th, 2006 at 7:30 pm

Clif - I’ll give you the executive summary.

1. Recording companies aren’t happy about being tied to iTunes to begin with.
2. Recording companies are looking for other options, but those options are shaping up to be a lot like iTunes.
3. Recording companies are now experimenting with DRM-free music.

Apparently I used too many words in my original post.

4. Philo wrote on December 14th, 2006 at 12:09 pm

Kirk, I agree with you, but also want to add that MSFT, by abandoning PlaysForSure (and all the money honest consumers have spent at MSN Music) has shown the truth behind the lie - that buying DRM’d music means you don’t own it, and if the DRM owner goes out of business you’re SOL.
Just one more factor souring everyone on DRM. Meanwhile the availability of ripped CD’s on BT means you can get undamaged MP3’s any time you want.

If you assume the average consumer wants to be honest, but they also want their life to be easy, it’s silly for the record companies not to put their catalogs online as high-quality MP3’s at $.99 each.

5. The Weekly ‘Loper - December 17, 2006 | Medialoper wrote on December 17th, 2006 at 10:05 am

[…] Will Zune Be The Death Of DRM? - See, for the past few months, we’ve been dissing Zune when in reality it’s obviously part of Bill “DRM Causes Too Much Pain For Legitimate Buyers” Gates’ strategy for convincing the majors to experiment with DRM-less music. And y’all thought that it was a mistake that the Zune didn’t support PlaysForSure. […]

6. Zune Accessory » Will Zune Be The Death Of DRM? wrote on May 16th, 2007 at 4:15 am

[…] post by Medialoper December 13th 2006 Posted to […]

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