How Digital Rights Management Hurts Major Music Labels

While hard-core audiophiles might not embrace digital music, mass consumers have. From the iPod to music servers to Media Center Edition computers, digital audio is here to stay.

But despite the demand -- reported iTunes sales "collapse" aside -- the music industry is holding back what consumers can and can't do with legally purchased music with those ugly three letters: DRM.

DRM (digital rights management) prevents songs purchased in certain music stores from being played on certain devices. iTunes music can't be played in Media Center Edition (at least without some finagling), and not all formats are compatible with iPods.

Bob Archer received some agreement from commenters after arguing that the RIAA should focus their efforts on producing good music and not hindering legal music buyers from using their music however they'd like.

Recently, a number of bloggers were invited to Microsoft headquarters, where they met with head honcho Bill Gates. Steve Rubel reports on Gates' opinion of the future of DRM at Micro Persuasion.

Q) Is digital rights management (DRM) sustainable over the next 10 years?

A) DRM is not where it should be. In the end of the day incentive systems (for artists) make a difference. But we don't have the right thing here in terms of simplicity or interoperability.

Gates said that no outlet has gotten DRM right, reports TechCrunch.

Gates said that no one is satisfied with the current state of DRM, which "causes too much pain for legitimate buyers" while trying to distinguish between legal and illegal uses. He says no one has done it right, yet. There are "huge problems" with DRM, he says, and "we need more flexible models, such as the ability to "buy an artist out for life" (not sure what he means). He also criticized DRM schemes that try to install intelligence in each copy so that it is device specific.

His short term advice: "People should just buy a cd and rip it. You are legal then."

The interesting angle here is that EMI, one of the largest music labels, has decided to sell DRM-free music on Yahoo! Music, potentially leading the way for other labels to follow suit.

If the music industry fails to treat consumers as legitimate buyers -- and instead makes them feel like criminals by locking away what they can do with what they legally own -- then the beautiful capitalistic economy we live in will do the rest of the work.

Consumers want digital music, but they don't want to be stopped from using it however they'd like. And they shouldn't be.