To DRM or not to DRM, that is the question.
Digital Rights management is like Aesop's tongue. It can be the worst or the best of all things depending on who you ask. For consumers, it is often a synonym for big brother, second grade product experience and content usage restriction. For big music labels and movie studios, it is their best insurance policy against content piracy on the Internet, a distribution medium that fascinates and scares them at the same time.
A few months ago, Apple's Steve Jobs published His "thoughts on music" advocating the need for a DRM free world. The letter was accompanied by the release of iTunes Plus that provides DRM free EMI content to iTunes users. Of course, skeptics may find Steve Job's new credo too convenient. Indeed, these new thoughts appear to coincide with an increasing scrutiny from European regulators, who worry about the proprietary nature of FairPlay, Apple's homegrown DRM technology. iPod users however, already know that there are insanely greater reasons to stick to Apple music products than Apple's DRM lock on their tunes. Skepticism aside, Apple makes the compelling argument that music should be DRM free, arguing that consumers want DRM free content as it simplifies improves their user experience. Better user experience will drive more sales of digital content online, which should also be good news for the content owners, says Apple. Judging by the number of DRM free MP3 on my iPod and the constantly growing amount of traffic on Bittorrent, Steve Jobs may well have a point.
Although EMI has added strength to the argument, there are clear indications that the big content owners are about to throw the DRM baby with the digital content bath water (especially when it comes to video). However, DRM has made the digital content experience awkward at best. The competition between DRM systems and the lack of consistency in usage policy has led to a world of silos and content non-interoperability. This needs to be fixed or DRM will inevitably join the ranks of the powerful but extinguished technology dinosaurs. Labels and studios are fully aware of the stakes. To that end, in 2004, they created the CORAL consortium. CORAL mission was to provide interoperability between competing DRM solutions. The vision behind CORAL is powerful. It aims at re-creating the simplicity and elegance of the DVD model online. DVDs makes rights management invisible to the consumer's eye. One can buy a DVD from any store. DVD usage policies are simple and identical everywhere. One can run a DVD on any player from any manufacturer. It is simple and it just works. Yet, DVD content is not unprotected, proving that right management technology does not necessarily rime with bad user experience. CORAL has the right vision. Unfortunately, so far, it may have lacked the sense of focus and execution that has made the folks in Cupertino famous. But who knows, more than often, the second time may be the charm.
So DRM or not DRM? The prophecy is relatively straightforward. Content providers have one more shot at fixing the eco-system by creating an open marketplace for digital content. This marketplace should create interoperability across devices, and retail stores. Short than that, DRM will eventually disappear. The DVD has shown that a consistent format, DRM model and usage policy can lead to second to none user experience. There is still plenty of time to replicate the DVD model online. But it requires collaboration and coordination across the main industry stakeholders. In any case, the time has come to rethink the way digital content gets distributed online. Of course, it is not clear what formula will eventually triumph in the marketplace. Nevertheless, there is good news for you an me. Whether Steve Jobs or the content providers win, the DRM saga is heading towards a happy ending. At the end of this movie, consumers win, and that is all good.
