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The DRM Wars @ MIDEM

The future of digital music

By Florin Tibu, Editor, Software Reviews

23rd of January 2007, 15:30 GMT

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DRM: a word which has entered a rather short time ago in the IT vocabulary but has ever since generated strong passions and fierce theoretical and legal battles among those involved in the media industry. The Digital Rights Management policies embedded in different types of media have stirred things up so hard because of their inherent properties: a media file legally obtained and which possesses DRM will be playable only on the device it was first destined for...meaning you can't play a music album with Windows Media Player 11 DRM on an iPod and so many more situations when the DRM is nothing more but a pain in the back, if not even in the ass.

The digital music industry has grown quite well during the last year and almost doubled its flow around $2 billion; yet the officials say it's not enough. The MIDEM conference is being held this January in Cannes, France, and it has opposed again the two debating
sides. John Kennedy, head of the commercial body IFPI, has declared for Reuters that he's rather upset that people - despite their bitter comments on the quality of the DRM policies - have never offered any solutions and that "competing with free is impossible". Kennedy added that the DRM "it's the management of digital rights and if we weren't managing it the headlines would be 'irresponsible music industry ... creates anarchy." The only solutions for the DRM- music to become more usable and spreadable (in a legitimate way, of course) were advertising-supported services or subscription. Yet the growth of the market is steady, unfortunately it's not growing as fast as the leading sellers would like it to...

The criticism came with no delay as David Pakman, chief executive of eMusic (second seller after iTunes) complained that his company's efforts to provide large-scale selling of MP3 music (thus suitable for iPods also) have been left unnoticed, as the four major labels which control almost 2/3 of the actual music in the world have simply refused to supply for this particular issue.

Another notable voice, Chris Anderson of Wired Mag, smiled and said that a little piracy must be accepted, because nobody could reduce it down to zero: "if you try to get to zero piracy you will make the experience of consuming music so painful you'll have zero industry", he said.

Others would rather prefer to find and exploit to the max the opportunities created by the large-scale internet-socialization which these days is in a constant growth: instead of fearing the web, they simply "tamed" it while thinking (more than) smart and succeeding in taking advantage of what the internet and the online media can offer. Companies such as Warner, NMG (Network music Group - Canada) or EMI were totally happy that the web presence of the acts behind whom they are have managed could make it well financially, by means of innovative marketing concepts: Warned sold twice in premium by attaching videos or other free content, others were happy to finally get rid of plastic discs, while still others have started to take advantage of the true potential of peer-to-peer marketing.

The piracy-problem is undoubtedly one major concern for the big records companies, but I just have to agree with Mr. Anderson that other methods of fighting against illegal music must be found rather than further pressing on the shoulders, nerves and wallets of those who actually buy music. What will come out is soon to be seen, as the MIDEM meeting will be over in just a couple of days and hopefully we'll learn more from extensive press releases.

Photo credit: MIDEM, 2007.
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