Jul 23

Recently the Digital Entertainment Content Ecosystem (DECE), a group of 58 Hollywood studios and technology companies, announced they're cooperating to create a universal Digital Rights Managment (DRM) solution, Ultraviolet, that permits a "purchase once, watch anywhere" technology. I predict it will fail.

 

DRM is a lost cause, the industry just won't accept it

DRM is a failed concept. Sure it will linger on for some time, but in the end abusing your customers to try to prevent determined pirates is a losing battle. File sharing isn't going away - prosecutions only drive it underground. It's similar to the war on drugs. If there's a demand, someone is going to create a supply. DRM solutions have generally only succeeded in angering legitimate consumers. It seldom deters a die hard pirate and it hasn't really slowed down torrent sites.

Ultraviolet is solving a problem created by the distributors

Granted, the consortium's Ultraviolet solution proposes a new spin on DRM. It's embracing the concept of "licensing the content" and not the media. So instead of buying the same movie on different media every few years (VHS, DVD, BlueRay), you'd buy a license to the content and you'd be able to watch it anywhere (or so they say). It's a novel concept. One that couldn't have occurred until the internet matured. But in essence, it's still a restrictive solution. That, and until the details of how it will actually work or what it will actually cost emerge - it's only vaporware. Not to mention, groups like the DECE tend to collapse due to internal squabbles.

 

But while Ultraviolet is a unique solution, the problem is it's a solution for a problem that doesn't need to exist. In the near future, you won't be buying media at all - you'll buy a digital version of content. It's already happening.  I haven't bought a CD or a DVD in a long time. I simply use iTunes to purchase and download. The problem now, how do I backup, watch, and share this content with my family and across my devices? Ultraviolet promises to solve this too – but essentially it's only attempt to extend control into the digital world. Instead, the industry needs to remove DRM completely.

 

But what about piracy? Simple, lower the price

I'm the type that believes people are generally honest and willing to pay for things - if the price is fair. The problem is the media corporations cling to their old practices and pricing policies - even though in a digital world their distribution and production costs have evaporated. Apple's iTunes demonstrated that consumers will pay for content if the price is right. It's also shown that people will pay extra for DRM free content - a DRM'd music file costs 99¢ but a non-DRM'd file costs $1.29 (though most music on iTunes is now DRM free). Movies and television shows are no different - remove the restrictions for an additional cost and people will most likely pay the extra fee. But you have to price it right.

 

But the content owners aren't adapting fast enough. Music, Movies, TV, and Books are going digital and incorporating DRM but their pricing isn't reflecting reduced costs. I think the old saying "information wants to be free" should really be information wants to be cheap. So if costs decrease the price should lower too. Until this happens "young consumers" vote with their wallets - or that is - their torrent downloads.