Some initial thoughts on DRM that will eventually become an objective analysis of the topic:
- DRM is implemented on digital content to enforce use-rights (extent of copying, pass along, read aloud, etc.)
- Use-rights may have been established by author contract, third-party asset contract, or publisher policy
- Use-rights may also be a condition of distributing in a particular format, platform or channel
- Publishers, authors or others will most likely implement DRM when they fear some degree of lost sales
- Pass along with no criminal intent
- Outright piracy of the digital edition
- Risk of lost sales rises with:
- Increased value of the information
- Propensity of the consuming population to pass along the material
- Lack of other ways to monetize the material other than its direct sale
- Increased popularity of the material
- Interconnectedness of the user population (how well they know each other)
- Risk of lost sales decreases with:
- Degree of personalization of the material
- The degree to which the content in monetized in some way other than direct sale (a library subscription, for example)
- The degree to which any particular piece of content is relevant to only a small group of users
- The degree to which the material is best consumed in print (leading to an increase in print sales)
- DRM is generally platform-specific and non-interoperable
Publisher decision matrix:
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Benefits |
Risks |
Maintain DRM
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- Teach people to find pirate sites/crack DRM (unlikely for most consumers)
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Remove DRM
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- Increase sales (of print editions) from increased awareness
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- Increase in unauthorized/casual pass along
- Increase in piracy (risk seems low in most markets)
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Some hypotheses: - Make it easier to find and buy a legitimate copy than to find and use a pirated copy.
- Inhibit casual or innocent pass along that can result in significant loss of sales
- Maintain the legit/pirate effort differential until a services or ad-supported
business model can replace it.
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