DRM in the Music Industry

2010

DRM in the Music Industry.

Student Name: Avneet Singh

Student Number: S3206210
Subject Name: Electronic Publishing [COMM 1218]
Course Name: MBIT
Course Tutor: Mr. Laki Sideris
Term: PGRD Semester 2 2010

1 Name: Avneet Singh Student ID: s3206210

DRM in the Music Industry
2010

Table of Contents

Table of Contents..........................................2
Introduction..................................................3
What is DRM..................................................3
DRM and Controversies..................................4
DRM Opposition.............................................5
DRM Shortcomings........................................6
Recommendation and Future Developments. . .8
DRM awareness needs to be created for the
consumers....................................................8
Improve online customer care........................9
Paying consumers need more flexibility with
DRM .............................................................9
Older usage groups offer potential to online
music stores................................................10
End Subscription based DRM service.............10
Target Peer2Peer users ...............................10
Conclusion...................................................11
References..................................................13

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DRM in the Music Industry
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Introduction
This report attempts to discuss DRM in the music industry. According
to (Litman 2000), DRM is a technology to prevent unauthorized
redistribution of digital media. It also attempts to restrict the ways
consumers can copy content they've purchased.
From an electronic publishing point of view it is critical that we
understand that the media we download or the articles we publish
needs to be original and cannot be distributed if it a copyright
material. This will ensure we can avoid adverse legal actions. Basic
understanding of DRM is essential in today’s world to avoid legal
matters and control the circulation of pirated music. This report
attempts to understand DRM controversies and why people been
opposing it.
The DRM technology has been around for a while but has failed to
reach its goal and has been unpopular among the masses (Stallmann
1997). This report attempts to discuss the controversies that surround
DRM in the music industry and also discusses its shortcomings. Few
recommendations are provided to revive this technology and put it
back on track.

What is DRM
DRM is an acronym for Digital Rights Management, a broad term used
to describe number of techniques for restricting the free use and
transfer of digital content. DRM is used in various media but is most
commonly found in video and music files. DRM is a technical term
which mainly describes different technical formats that have
encryption on them. These “licensed encryption files” prevents anyone
from using or copying it illegally (Rayburn 2007).
Paying customers are given the encryption code so that they can use
the files for themselves but are prevented from sharing them around.

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DRM in the Music Industry
2010
DRM was introduced to ensure that only paying consumers would have
access to the digital media. This would ensure that pirated music
would not be freely distributed and profits would be created for
producers and distributors (Rayburn 2007).
In today’s world DRM has been deployed widely and is considered as a
measure for preventing the distribution on digital media illegally. For
instance Apple’s ITunes store has various DRM schemes embedded
into it to disable the number of devices that the music can be played
on. Many eBooks producers are using a similar DRM technology to limit
how many computers a book can be viewed on. For this report we will
focus mainly on DRM in the music industry.

DRM and Controversies

In most cases it is the artist or the producers that decides on how
many times their files can be viewed or played. This has led to more
controversies as the consumer does not actually own the file even
after they have bought it.
According to Furst (2004), DRM delivers very minimal consumer value
and often punishes its consumers. He advises that DRM technology
rules are so awkward and conflicts with the interests of the consumer
world. Furst (2004) points out that at times consumers have been
outraged by DRM imposed on online music because it has a limitation
on how many times it can be played and has restrictions that it can
only be played on a single device.
In today’s world of technologies it is essential to give users access to
play their media on multiple devices as users normally have multiple
gadgets. Pirates normally get away by decoding the DRM and it’s
normally the consumers that have legally bought the music that are
left frustrated and helpless. Recently there was an article that I read
online about the Kindle reader DRM controversy. Users were surprised

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DRM in the Music Industry
2010
to find out that their eBooks had been remotely deleted by Amazon
without their permission.

DRM Opposition
There are many people that oppose to DRM. According to an article in
The Digital Imprimatur, John Walker and Richard Stallman discuss that
"DRM is an example of a malicious feature - a feature designed to hurt
the user of the software, and therefore, it's something for which there
can never be toleration".
Cory Doctorow, who is a well-known writer, spoke on the Microsoft
campus criticizing the technology, the morality, and the marketing of
DRM. TechMediums.com argues that DRM-free music can lead to “free
marketing” for artists which in turn would generate revenues and a
viral market that the artists and independents can benefit from.
Techmediums.com delivers licensing options which encourages
creativity without deploying DRM. At CES meet in 2006, Bill Gates
spoke about the DRM issues and advised that DRM hasn’t reached the
point at which it should be and
hence it is causing issues for
genuine consumers.
Becker (2004) argues that DRM
manages rights in a way which is
illegally and un-ethical. Apple has
been accused of restricting users'
access to their music and videos
in an unlawful way.
Tassel (2006, p4) describes that people who oppose DRM argue that
the existence of DRM violates existing private property rights and

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DRM in the Music Industry
2010
restricts legal user activities. A DRM component would control a device
a user owns (such as a Digital audio player) by restricting how it may
act with regards to certain content, overriding some of the user's
wishes (eg: users cannot burn a copyrighted song to compile it or
review it).
All forms of DRM depend on the DRM enabled device (e.g., computer,
DVD player, TV). Restrictions are imposed to prevent users from
modifying the content. Tassel (2006) also points out that it is entirely
unclear whether owners of content with DRM are permitted to pass on
their property as inheritance to another person.

Techmediums.com has a list of tools

like FairUse4WM that can strip
Windows Media of DRM restrictions.
Harte (2006) states that "most DRM
strategies have been a failure and total
disgrace" because they tend to stray
away from consumers trust and
confidence. According to Arrington
(2008, p.47), piracy can be combated
by creating value for consumers
through good customer service.

DRM Shortcomings
The artists and the music industry firmly believe that DRM is the right
technology that attempts to protect their time and money. Having no
protection in place would contribute to free circulation of music.
Anyone could copy and distribute music which would impact the music
industry with loss of revenues. Having a copyright system like DRM

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DRM in the Music Industry
2010
ensures that some rights if not all are protected for the artists and its
distributors.
Zeng (2006) emphasizes that file sharing networks like Limewire and
Torrents enables millions of users to share music that has been ripped
from CD and transferred from other sources. He believes that DRM has
certainly placed some restrictions and controlled illegal distribution of
music.
Implementing this technology hasn’t been easy and has had its share
of shortcomings. One of the main shortcomings according to Becker
(2004 p. 16) is that DRM has failed in creating a fail-proof or “un-
crackable” DRM technology. Within days of release of a DRM
technology, there are common instructions on how to bypass various
DRM technologies on the Internet.
In most cases pirates succeed in cracking the DRM technology and
enjoy free music where as paying customers are often left with limited
access to the music that they have downloaded. Sometimes the music
that a consumer buys comes with restriction of how many times it can
be played or for what subscription period the music will be available.
Mostly the paying customers are frustrated with DRM technology as it
cannot be transferred to any other device, or cannot be converted to
any other format (Becker 2004).
Tassel (2006) comments that DRM can be a real headache. It can limit
a consumer’s music experience by placing too many restrictions on
them. He further adds that Apple iTunes ‘fairplay’ DRM system for
example restricts the number of computers a song can be played on.
According to Tassel (2006), this restriction can be argued to be unfair
due to it not infringing copyright but merely being an end-user activity.
Fair usage is interfered with because DRM stops the end-user from
being creative - remixing etc.

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DRM in the Music Industry
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Litman (2000, p.42) believes that at times there is a need to convert
music from one digital music format to another so that it can be used
on a different electronic device. But with the DRM technology, users
are restricted to do so.
DRM technology is not sophisticated enough at the moment to provide
a fair end-user experience while preventing copyright infringement.
The use of DRM may also be a barrier to future historians, since
technologies designed to permit data to be read only on particular
machines, or with particular keys, or for certain periods, may well
make future data recovery impossible (Zeng et al 2006).

Recommendation and Future Developments

DRM is currently surrounded by a lot of controversies and it gives an
indication that it’s not implemented correctly. Below are few
recommendations that could assist in reviving this technology or help
reach its full potential.

DRM awareness needs to be created for the consumers

With the popularity of digital music it is critical that the
consumers have an understanding for the legal use of digital
music.
According Rayburn (2007), majority of digital music users do not
know what DRM is or have the knowledge which would assist
them to make informed decisions when dealing with digital
music. He further states that most users do not know the legal
complications that are attached to digital music and points out
that more than half of the users do not care whether the music
they are downloading form the internet is copyrighted or not.
Hence it is crucial for DRM’s survival to educate the consumer on
what the technology is, if it needs to make an impact. Educating
the users will give the consumers a better idea on how to deal
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DRM in the Music Industry
2010
with digital music which will assist in preventing illegally
downloads.

Improve online customer care

Most of the users that buy digital music do not know if it was
DRM-protected or not. Having proper information and good
customer service, can assist in communicating to the end user if
their music is protected with DRM technologies etc. and what
their obligations are. Since a lot of online shops do not have a
physical presence it is vital that they improve their online
customer service and support their customers understanding and
using the digital files that they have bought (Rayburn (2007).
At times if the computer has been formatted, the DRM protected
files are lost and cannot be played unless the encrypting code
has been downloaded again. Hence having good customer
service will ensure that paying customers do not suffer and get
access to the music that they have bought.

Paying consumers need more flexibility with DRM

There are still a lot of customers that are not confident in buying
music online. More knowledge and added online shopping
security would definitely help them overcome this barrier.
Consumers normally burn their music to store it safe and copy
them on different devices. Hence it is essential to cater to their
needs to allow them to play the music that they have bought on
the mediums that they own, like iPods, CD players or car stereos.
Having restriction on playing their music on only one medium will
make them reluctant to use the technology which would further
force spreading pirated music. DRM technology need to improve
or evolve from its native state and cater for the needs to paying

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DRM in the Music Industry
2010
consumers. DRM technologies need to aim at supporting device
interoperability and sharing features in order to be successful.

Older usage groups offer potential to online music stores

Rosenblatt (2007) makes an interesting point that older users
are the new market that should be targeted for revival of this
technology. He states that while young Internet users are
currently the most frequent users of digital music, older age
groups show strong interest in using e.g. MP3 players in the
future. Digital music users above 40 download music from P2P
networks less often, but purchase music from online music stores
as often as younger user groups do. Older users often spend
money on digital music and CDs after having discovered new
music.
The efforts of digital music stores should therefore not only focus
on teenagers but particularly target older Internet users who are
most inclined to spend money on new music. They typically care
more about copyright and are better informed about DRM and
legal issues than younger users.

End Subscription based DRM service

Majority of the online users are not attracted to subscription
services. For users to pay for music files that expire after a
subscription period is not appealing. DRM technologies should be
implemented in a way that the consumer can listen to the song
that they have paid, as many times as they want.

Target Peer2Peer users

Peer2peer users share a common perception that they do not
want to pay for music. These users are the most active users of
digital music. This market can be used to create viral marketing

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DRM in the Music Industry
2010
to promote and generate revenues for the music industry (Furst
et al 2004).
This market can be targeted and DRM technology can be used to
control the spread of illegal music files but should have relaxed
rules to download and listen to their paid songs as many times as
they would like.

Conclusion
Even though digital music enjoys so much popularity, most digital
music users do not have enough understanding of DRM. Most users do
not want to know what DRM is or do not care about distributing
copyright material. Lack of knowledge has created lot of issues and
somewhat led to the downfall of DRM technology.
Also there is poor help from the digital stores that are selling digital
music and paying customers are often left with issues to sort on their
own. Having little or no knowledge makes consumers more vulnerable
to violating privacy laws.
Security issues, fair use issues, and issues of creative expression are
all at the forefront of the DRM battle, and DRM technologies will
undoubtedly be fought over for many years to come. Most of the
people in the media industry believe that DRM is their only savior.
Although a lot of companies have moved on to exploring different
alternatives accepting an ultimate defeat of DRM.
Some people believe that DRM has been implemented as a system for
accomplishing many goals with little cost. While others believe that the
reverse is true. DRM is a system for delivering less freedom to
performers and authors and the public while charging more.
Culture and music can be promoted through open licensing and
business models that is different from the current DRM strategy of

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DRM in the Music Industry
2010
treating customers like criminals. The iTunes Music Store manages to
make millions of dollars selling music that can be downloaded for free.
I think the assumption that the protection on the DRM technology has
to be 100% effective for it to be worthwhile is wrong. Similarly we lock
our houses but still know that it can be broken into any time. Even the
music industry knows that it’s impossible to completely stop pirates.
There needs to be balance with the rules and restrictions imposed on
the consumers, and the DRM technology. They both need to work hand
in hand.

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References
1. Arrington, M 2008, 'Bill Gates On The Future Of DRM' 14 Dec, p.2.
2. Becker, E and Buhse, W 2004, Digital Rights Management:
Technological, Economic, Legal and Political Aspects, Springer
Publication, New Jersey.
3. Doctrove, C 2004, 'Digital Rights Management', Issue 4, 21 Sept,
p.1
4. Furht, B and Kirovski, D 2004, Multimedia Security Handbook
(Internet and Communications), CRC Press, Canada.
5. Harte, L 2006, Introduction to Digital Rights Management (DRM);
Identifying, Tracking, Authorizing and Restricting Access to
Digital Media , Althos Publisher, London.
6. Litman, J 2000, Digital Copyright: Protecting Intellectual Property
on the Internet, Prometheus Books, London.
7. Moser, D 2001, Music Copyright for the New Millenium, Artistpro
Publication, New York.
8. Rosenblatt, W and Trippe, W 2007, Digital Rights Management:
Business and Technology, Wiley Publication, New York.
9. Rayburn, D 2007, Streaming and Digital Media: Understanding
the Business and Technology, Focal Press, London.
10. Stallmann, R 1997, 'Communications of the ACM', Volume 40,
Feb.
11. Tassel, J 2006, Digital Rights Management: Protecting and
Monetizing Content, Focal Press, London.
12. Techmediums, DRM what DRM, what the heck are copyright
holders going to focus on now, viewed 12 September 2010.
http://techmediums.com/2008/04/02/drm-what-drm-what-the-
heck-are-copyright-holders-going-to-focus-on-now

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13. Zeng, W and Yu, H2006, Multimedia Security Technologies for
Digital Rights Management, Academic Press, Washington.

14 Name: Avneet Singh Student ID: s3206210