In this part we take a look at the technologies that the Greedy Business ™ brought into this world and what have happened to them. Then we are going to discuss the future of the Greedy Business ™. In terms of technologies I am of course thinking of Digital Rights Management or DRM, which was an idea for keeping control of exactly what people did on their computers. First of the idea was introduced as a way of ensuring themselves against piracy. Naturally it didn’t affect piracy the least, or it can be argued that it did in fact even do the opposite. Pirates suddenly offered goods that were far higher quality for the consumer than what the Greedy Business ™ did. When the Greedy Business ™ discovered that their technologies didn’t work they found a different usage for this particular type of technology. Suddenly it was suppose to enforce the rights of the content owners, limiting how people used their computers, and then it quickly became a question of time before the Greedy Business ™ saw it fit to sell the rights you previously had for free now for a large fee. That meant that you no longer could make copies to yourself, in example for your car or on your portable music player, and they even went as far as to claiming that it was now illegal to do so. However, technology was not something that the Greedy Business ™ had any comptence at and their futile attempt at has always gone horribly wrong. In a matter of days or often even before released those technologies were already overruled. An example of their complete incompetence in this field can be seen in a recent case from the MPAA, where they released a toolkit to monitor everything on the universities. This toolkit was not only illegal software to use for the MPAA, but also allowed everyone from the outside to see anything inside the universities – a major security hole. They simply lack a complete understanding of the world of IT and could be outmanuevred by a nine year old in most fields of expertise here.
What they completely failed to understand was that DRM in fact had an impact – it was just a negative one. One example is the PC gaming market, which is slowly being killed by DRM technologies. So what the Greedy Business ™ is actually doing with their technology is ruining their future markets and offering an ideal situation for the pirates. Why they couldn’t see this is beyond my understanding. My guess is that they simply wasn’t ready to accept that their old way of distributing, which has not seen change in more than 25-30 years, was threatened and they needed to renew. This is seen clearly in the way the Greedy Business ™ have handled every new attempt at a renewed digital distribution model, which they have been extremely efficient at overtaxing and overlicensing.
While they were busy shooting down every alternative they got and kept throwing bad technologies that took basic rights from the digital consumer it soon became apparent to everyone but the Greedy Business ™ that this might backfire big time. You can’t expect consumers to keep buying your products when you are screwing their rights, their computers, their products and then suing them all the time… Most people would understand that! Of course what you would do if you lived in Nazi germany in the 1940′ies and had such a situation is to create your own news and create fake facts wrapped in propaganda, so that is exactly what the Greedy Business ™ are doing. The funny thing about this propaganda campaign, that is suppose to take the heat out of the consumer backlash, is that it actually admits that the RIAA and the entire music business is not giving the consumer what it wants.
Meanwhile the loathing of DRM continues around the world. Still it is only at the consumer level. Governments doesn’t understand the problem. They can’t see why DRM will never work, as their understanding of IT and technology in general is as fair behind as the Greedy Business ™ are, which means that governments in general buy the crap that the Greedy Business ™ are saying. Even after the complete fiasco of Sony’s rootkit, with another one on the way, they still allow themselves to be taking around the bush by the Greedy Business ™’s lobbyist. Of course you cannot expect every educated human to be as stupid as most politicians and therefore IFPI’s sad attempt at trying to extort the universities into teaching only the view of IFPI is going horribly wrong. They somehow can’t see the problem of making this non factual propaganda in schools as a problem – maybe we should send the entire Greedy Business ™ to China and let them see what the outcome of onesided brainwash is? And it is not the only place where they try to push their incorrect perception of the world and their propaganda into. Report after report, filled with incorrect statistics and erranous analysis on the “losses” caused by piracy comes out of the Greedy Business ™ press month after month.
As of late though an entirely different problem is hitting the Greedy Business ™. The musicians, whom they represent, have had enough of suing their own fans and incapacitated fan’s computers with badly made DRM. Sir Paul McCartney has already spoken up, talked about the many problems that the industry is facing and how they acted completely wrong, when faced with such challenges. You can even hear rock stars claiming that the fight against piracy was already lost in 1997, but they are still fighting it like it was 1997 and with that use of DRM they will just create enemies for themselves. With the artificial high prices customers are forced to pay for inferior products, filled with DRM, they will turn to piracy. Especially since pirates have understood how to make it available and easy to get – even for people who are not technic minded. The band, NiN, also agrees that the prices of CDs are simply too high and that people should pirate their songs! This is a bold statement, but there is a hint of truth in it. Compare the investments in making a full motion film to that of making a CD album. There are far many more people involved in the film and it takes far longer, requires far more equipment, and still the price of the two products are almost the same, when comparing a CD with a DVD – why? While it may be a bold statement by NiN Radiohead took it a step further and went public with their latest album without a record label and even let their fans decide what they wanted to pay for the album! Claims are that Radiohead has already earned around 6-10 million dollars on this distribution model – and they don’t have to share it with a thousand and one lobbyist, lawyer or boss at the Greedy Business ™.
Well, why don’t the big four then start to sell music without DRM? According to some stores DRM-free music outsells the protected tunes in a ratio of four to one… Fear, I guess! It took a company in trouble to see the light… EMI, when faced with dire economical problems and no buyer, needed to get a foothold in this new reality. Suddenly they began to understand that the future is digital and depending on CD sales will ultimately fail. Out of the blue comes the initiative… Suddenly Apple is offering DRM-free tunes on iTunes – rocking the boat again – together with EMI. This suddenly gives EMI an amazing sales boost on iTunes – even on old songs. Amazon cannot lets this go by and soon after signs a deal with EMI, where they want to offer high-quality, DRM-free music. Suddenly Walmart enters this arena as well and now the game is on!
Sony BMG is still sitting behind like a stone, refusing to see reality, like they always have. They are still wingshot at the fact that Apple did with ease what they failed at miserably in retail. Their latest attempt at digital distribution with Crackle is way beyond embarrassing and clearly shows why Sony will never become a software-centric company.
Meanwhile the writings continue on the wall with CD sales continuing to decline and digital music sales continue to rise! This causes the Greedy Business ™ to try and blow an ember of life into their dying goldchild, the CD, but this desperate last attempt already looks like a failure on all counts. What Apple and EMI has begun on iTunes with DRM-free music is already starting to have an affect on the big four… DRM is threatened!
Suddenly Universal shocks by not renewing their iTunes contract, but only to test an alternative way of distributing DRM-free tunes without Apple in charge. The real reason they wanted to leave Apple and iTunes behind is that their greed got the best of them. They wanted a cut of every iPod sold… It is not called the Greedy Business ™ for nothing! They just want higher prices and more money – the only reason they went for DRM-free! The chief of Universal shows just how greedy they have become…
In the meantime the CEO of Warner Brothers suddenl and might I add FINALLY, realizes that their anti-consumer campaign might have helped P2P networks and hurt their own business. Welcome back, sleepy head! This is the first step towards DRM-free tunes from Warner Brothers, and it doesn’t take long before they also went the same way as EMI, leaving Sony as the last of the big four to stay behind on the DRM-only wagon!
After being the last company in the universe to see the light Sony BMG finally yields to pressure and goes DRM-free as well. With Sony into the fields of DRM-free tunes the future for DRM in terms of music is suddenly looking bleak. This could mean that Apple will finally have to relinguish some of their power in the digital music distribution domain, which they have controlled with ease and DRM. I don’t know if the big four made their move out of their deeply burried holes too late, but time will tell..
Of course this is only in the music business – the problem of DRM is still a heavy issue in terms of movie and films, where embarassing moments such as this clearly shows why the amateurishness of DRM needs to go on all fronts! They may not realise it yet, but the writing on the wall is clear. DRM is loosing the battle…
What to expect from the future then? Well, the business could start by looking at what is done right for once. Take a look at what function piracy really fulfills, like using it for giving away free samples, which is a cheap altenative to hyping and expensive marketing! The change is coming, and those that aren’t going with it will die! The business needs to go back and treat customers like customers and do like EMI has done – leave the RIAA/IFPI and start offering people what they want instead! DRM will be gone, perhaps already next summer for music… Now what digitial distribution model will be chosen is too early to say, but it needs to be nurtured, not overtaxed or overlicensed. This will be the salvation for the music business and later the movie and game business… The sooner the companies embrace this change and the future we live in the better they will survive. Times will be difficult – the transition will be hard – but listen to your customers and you will survive! In order to earn money in the future you need to release your control…
