Keeping an Eye on the Music Industry
Today, the New York Times posted an article MySpace and Record Companies Create Music Site, which is not surprising and probably long overdue. The more options and opportunities that media has for delivering electronic content easily to the user, the better off our industry will be.
A while back, I promised to blog about a session I saw at the O'Reilly conference on what the book industry can learn from the music industry. Here, finally, is that post.
Far and away the best session I attended at O'Reilly's Tools of Change for Publishing conference was DRM, Digital Content, and the Consumer Experience by Kirk Biglione of Medialoper. Publishers are constantly thinking about issues of digital rights management (the industry term for any effort to use technology to protect copyrighted work). My own opinions change from day to day as I receive new information and watch trends. After this talk, I became pretty convinced the Biglione was onto something.
The first thing Biglione pointed out is that the book industry is simply waiting for its iPod moment. Kindle may not be it, but the next generation of devices may be. All media will be digital, and if we let fear of piracy and fear of changing business models stymie us, we will be left behind.
DRM of any kind, from the most "secure" to the mildly obtrusive (watermarking, for example), simply doesn't prevent pirates from being pirates. Instead, it prevents legitimate users from accessing the content that they desire in the form that they prefer and without frustrating obstacles. DRM can be very frustrating to customers, thereby preventing them from taking advantage of legitimate content purchasing venues. DRM often malfunctions, so there is also a cottage industry that now provides tools to help users break DRM systems.
Publishers are trying to learn from the music industry. As you know, the music industry spent over ten years suing their best customers instead of investing in a better way to legally deliver (and even charge for) the music that their customers wanted in a digital form. To attract the music industry to its system, Apple developed one of the better DRM solutions (which they are now dismantling, by the way). As a result, Apple iTunes now controls the digital music space while the music industry continues to sue and decline. The industry was so concerned with iTunes DRM that it gave up its control over pricing and distribution.
Yet publishers are not learning from the music industry. Our trade organizations have already launched a number of lawsuits against libraries, search engines, and bookstores, i.e. our best customers. You may have also heard that the publisher of the latest Harry Potter book decided not to release it as an ebook for fear of piracy. This means that they have not distributed (or sold) a single ebook. However, if you were to google "Harry Potter ebook" you would find so many pirated copies it would make your head spin. In effect, they have made their legitimate users into pirates and lost millions of dollars and potential customers in the process.
In the end, customers want a wide selection of reasonably-priced, inter-operable, DRM-free content, and in the digital age, the customer will win. We need to respect and trust our customers and spend our effort on delivering a better product.
At the end of the day, I fear that the damage is greatest when our best users can't easily get to the content. We should invest the money we might spend in lawsuits to develop better systems to also allow users to easily purchase, license, and credit content that they would like to borrow.
Laura Cerruti is Director of Digital Content Development at UC Press.















