The DRM Revolution 2.0
With Apple and record labels like EMI jumping off the DRM bandwagon, it appears that the DRM Revolution is over. Like the dot.com bubble of the 1990s, the DRM bubble seems to have burst. But appearances can be decieving... this is as far from the truth as possible. What has really happened is that DRM's biggest supporters have just realized they will not be the prime benefactors of this new technology. Instead of supporting the corporate bottom line, DRM technology is more geared to providing easier access for independent artists who, thanks to the advent of the Internet, no longer need these large media conglomerates to gain a foothold with new audiences. Against all appearances, the DRM Revolution has just begun. We are only witnessing the beta testing of the new system.
DRM was initially devised as a means for distributing copyrighted material over the Internet while protecting the content against piracy. The Major Record Labels and Movie Studios lauded DRM as the solution they were waiting for. To finally plug the digital hole the Computer Age had inadvertently opened in their distribution channels. They expected DRM to solve all their problems, yet in the end it will prove to be their undoing.
How Major Record Labels Killed your Local Music Store
Spinning Into Oblivion
The major labels wanted to kill the single. Instead they killed the album. The association wanted to kill Napster. Instead it killed the compact disc. And today it's not just record stores that are in trouble, but the labels themselves, now belatedly embracing the Internet revolution without having quite figured out how to make it pay.
Therein lies the crux of the problem. Major Record Labels were founded on their ability to produce high volumes of physical media. Vinyl records, 8-tracks, tapes, CDs... these all represent a significant investment when produced in volume.
However, the digital age has said quite clearly that these older physical means for distribution are completely unnecessary. At this point in time, all the Majors exist to provide is marketing money. Money that can take a mediocre artist and make them famous, even if their music is actually quite terrible. While this kind of 'Mediocre Music' model has existed since the birth of the Recording Industry, the rise of digital distribution should finally end it.
Honesty in Advertising
Digital distribution has the ability to offer customers a new experience in music and media purchasing. Free previews of anything they wish to purchase. In days gone by, a fan might purchase an entire album of music only to discover that the one track they'd heard on the radio was the only good one. This system of defrauding the consumer is no longer necessary to ensure a profitable music industry.
Since digital distribution formats are no longer tied to physical media, we see a two-fold revolution over the old formats. First off, fans can pick and choose the music and media they wish to purchase individually. Bands that turn out to be 'one-hit wonders' can still make some money from their single, but won't be forcing consumers to shell out $20 for one song. The second benefit from the DRM revolution is that CDs and other forms of compact physical media can find new life.
How to Save your local Music Store
CD Audio, while enjoyed by consumers as the simplest means for enjoying their purchased (or stolen) music, is an ancient format. As the Sony Rootkit DRM debacle demonstrated, it's much too old to even attempt to save as a prime distribution channel. And mp3s, while another a much enjoyed technology for the consumer, can not save the CD either. Even if it's possible to pack 150 mp3s onto one CD, no one will pay $150 for 1 CD. And if more reasonably priced, the artist suffers. Thankfully, DRM can provide a middle ground that can save the physical media format.
Using files with DRM tags, similar to the Weedshare format, CDs can now be massive compilations, featuring entire archives of music for a fraction of the price of a traditional Audio CD. The album itself can retail for a mere $2 (or lower) to cover physical manufacturing costs, dropping the price to the consumer to a mere %10 of the previous standard. This new album format allows a consumer to preview a much larger volume of music and select the individual tracks they'd like to purchase. Instead of an absolute value of $20, the CD now has a potential value of over $150 (based on 150 tracks valued at $1 a piece). This is a potential value limited on a per customer basis. Should these CDs be passed around the other friends, the potential value of individual CDs skyrockets.
What about the Music Stores?
Music stores have traditionally been repositories for older formats of media as well as featuring new artists. Using these new distribution formats, these stores can now stock over 10 times as many artists in the same volume of space. And where a customer would previously purchase 1 album for $20, the can now purchase 10 full compilation albums for preview at the same price. This also leaves more money in the consumers pocket while inside the music store, meaning this money can be spent on older formats such as CD, tape or vinyl that they may wish to purchase.
In using DRM formats similar to the now disappearing Weedshare format, the music store sees an additional benefit. They can become record labels themselves. They can compile their own selections of music to feature alongside the mass produced compilation albums. And, provided the incentive program remains in place, they can see an additional benefit from the digital sales as well.
The Environmental Impact
Finally, one must examine the environmental impact of establishing a new physical media distribution model. CD Audio represents an inefficent distribution model. Compiling 10 times as many bands onto 1 CD means that you cut your petroleum waste by 90%. And as the medium scales upwards to DVD, HD-DVD and BluRay and beyond, these environmental savings increase exponentially.
A Clean Sweep
Thus, while dealing one crushing blow to the Major Record labels in favor of independent artists, saving the local Music Store, DRM also has the potential to help save the environment by providing for an exponential decrease in petroleum waste.
The revolution has only begun.
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