DRM

Hell freezes over: DRM is dead!

Last year we saw EMI, Vivendi and Warner drop DRM, only to see Sony BMG drop it in the first week of 2008. DRM is officially dead!

Ars Technica did a nice piece on the continuing decline of CD Sales late last year -- looks like the big labels finally realized that people are giving up the CD in favor of digital downloads. And they finally realized that DRM prevents sales altogether, so previously there was no viable transition from CD income to download income. But now without DRM, they stand a chance to survive.

Now it remains to be seen if the labels can reinvent their businesses to survive on the Internet. I have one concrete suggestion on how to save money: Stop funding the RIAA -- your customers are increasingly boycotting artists who publish music on labels that support the RIAA. If you pour the money you give to the RIAA to serving your customers and taking care of your bands, you may have a viable business model again!

2007 was quite the turning point for DRM. I wonder if the rest of the industry can wake up in 2008 and finally embrace the Internet fully!

Posted by Mayhem at January 4, 2008 12:36 PM