The RIAA’s head technology guy says that the move away from DRM (anti-copying) technology by record labels is just a phase, according to a Greg Sandoval story at News.com:
“(Recently) I made a list of the 22 ways to sell music, and 20 of them still require DRM,” said David Hughes, who heads up the RIAA’s technology unit, during a panel discussion at the Digital Hollywood conference. “Any form of subscription service or limited play-per-view or advertising offer still requires DRM. So DRM is not dead.”
Last January, when Sony BMG became the last major recording company to sell DRM-free tracks at Amazon, plenty of observers considered the technology buried. Since then, a growing number of online stores have begun offering at least some open MP3s, including Walmart.com, Zune’s Marketplace, Amazon, as well as iTunes.
Not so fast, said Hughes, who predicted that DRM would reemerge in a big way. “I think there is going to be a shift,” he told the audience. “I think there will be a movement towards subscription services, and (that) will eventually mean the return of DRM.”
The imminent success of subscription services with DRM is more or less what the record industry was predicting several years ago. It didn’t happen, mostly because customers found the services clunky and inflexible – DRM at its worst. Nothing has changed to make DRMed subscription services more attractive. If anything, these services look even worse in light of the trend toward selling DRM-free tracks.
I can see the argument for selling large bundles of music rather than selling one track at a time. Bundling makes economic sense, given the huge storage capacity of today’s devices. The iPod of the future won’t be filled one track at a time.
But clunky DRM-based subscription services aren’t the only way to sell bundles of songs, and there are probably good ways to sell subscriptions without DRM. If you’re worried that a customer will subscribe for one month, download a zillion songs, cancel the subscription and keep the songs,then you can limit the number of downloads per month, or require a longer subscription period. If you can sell songs without DRM – and we know now that you can – there ought to be a way to sell a friendly subscription service too.
On this issue, the RIAA’s members may be ahead of the RIAA itself. There are encouraging signs that some of the major record companies are recognizing the need to rebuild their business strategy for the Internet era.