Why DRM Cannot Open Up New Business Models 131
An anonymous reader writes "Techdirt has a cool post up that doesn't just explain why DRM is bad, but gives a really interesting economic explanation for why DRM cannot create successful new business models. Since the RIAA and MPAA keep insisting that DRM will create new business models, it's useful to see an argument for why that's basically impossible." As the article says, anyone can create a "new" business model. Creating a successful "new" business model is what is so elusive here.
Re:Say what? (Score:1, Informative)
Doesn't count as what?
Digital music is a non-scare good; however, adding DRM isn't adding value to the person paying for it. It is removing value by limiting the choices that the music can be played upon. In essence, you are subtracting value or functionality.
Remember that RIAA wanted to create a variable pricing model for digital music. Now lets apply that to the above example. How much woild you pay for DRM'd music that costs $2 - $3 dillars per song? At that price; 10 songs woild cost between $20 to $30 dillars for the same number of tracts to a CD. How much woild you pay for a:
1. DRM'd CD with less audio quality (128 bits aka not CD quality)
2. Only being able to play the music on one media player or one device
3. More flexibility for a standard CD purchase because there is no DRM
4. Limiting the amount of copies for personal use (IE creating mix / compilation CD's)
Granted you get the convenience of:
1. Getting only the songs you want
2. Buying the music online; aka avoiding a physical store
Ultimately IMHO the consumer is loosing more than their gaining. However, personal tastes and opinions may vary due to the value added or subtracted to each item listed above.