I just read a fascinating column by Steve Jobs. Addressing the anger over the Apple DRM system, Jobs explains why the system is in place and what the three alternatives are. To summarize:
1. Continue as we are: “each manufacturer competing freely with their own “top to bottom†proprietary systems for selling, playing and protecting music”.
Pros: Competition is good, it’s what capitalism is based on, and it will continue to provide consumers with choice and innovation.
Cons: We continue to be relatively locked to whatever mp3 player we happened to buy (*cough*Zune*cough).
2. Apple liscenses out it’s DRM technology, allowing users to buy their music from any online store and play it on any player.
Pros: Apple would receive a small fee for the technology, and consumers would no longer be locked to their hardware purchases.
Cons: With wider knowledge of the DRM technology, there is bound to be a leak that will compromise the system and upset the record companies (thereby halting all online sales).
3. Abolish DRM’s and let the music free.
Pros: The ability for smaller, innovative startups to compete in the online music market (see Amie St for an example), potentially creating more sales for the record companies. Oh, and we can do whatever we want with the music we buy with our own money.
Cons: Er…well, there are only cons for the record companies, who could potentially lose lots of money to music sharing. At this point they would either have to downgrade the plating on their toilets from gold to silver, or pay the musicians even less. I’m guessing they would choose the latter.
What does Jobs propose we do to acheive #3 (more likely than #2 and better than #1)? Convince the record companies. Once they’re convinced, he claims Apple will happily discard DRMs and come over to your house and trade some music with you, as long as you promise to let them play your Xbox for a bit and not tell anyone about it.
I’m extremely appreciative of Job’s candor here, and I understand that he’s running a highly competitive business. However, the end of this article does not exactly imbue me with hope and excitement. Convince the record companies? When has that ever worked? And is it at all reasonable to expect the millions of casual music downloaders (who don’t know a DRM from a BMW) that they should picket in front of Universal and stop their download of the new Norah Jones album? Not really.
I’m not sure who to put the responsibility on…I suppose Jobs could stand up and say “No more DRMs.” to the record companies. He certaintly has balls to write this public column that essentially condemns the record industry. And he has significant power, considering iPod’s are the top-selling mp3 player and Apple has such a loyal consumer base.
But if Jobs did put his foot down and the record companies refused to continue working with Apple, I somehow doubt the consumer feeling towards Jobs would be rosy. He’s in a tough spot.
The artists won’t be any help. It’s hard enough actually making money that you don’t owe to the record company as a successful band (See “So You Wanna Be A Rock’n’Roll Star?” for a great example of how a wildly successful album and quick rise to stardom do nothing to elminate your debt). And those that have been financially successful haven’t exactly been clamoring for DRM-free music (*sneeze*Lars Ulrich*sneeze*).
My conclusion? We’re not going anywhere for now, unless a big gun steps up to the plate or the rest of us get off our oh-well-I’m-going-to-burn-this-from-my-friend-anyway and what’s-a-DRM butts and picket. But it’s good to know that Jobs hears us and is not using DRM’s just to make us unhappy (that’s more like something Bill Gates or Carl Rove would do).
I welcome any suggestions that would put us in a better situation than the one I just suggested. Until then, invest in some Apple stock!
-Evan
evan at flock dot com
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