Setup

1
Setup

• Digital Rights Management (DRM) is the technology
  used to prevent music piracy
• In early April, EMI announces it will sell songs
  over iTunes without DRM
• DRM is controversial because it restricts the
  rights of customers
• Presenting as the marketing manager to upper
  level management

2
Ditch DRMWhy Digital Rights Management Software
is Bad for BMC
3
DRM is Bad for BMC

• It does not prevent piracy
• It is bad for our customers
• It costs our company money

4
It takes 1
Because music is digital,
it takes a single file to make a million copies
and distribute them over the internet.
5
DRM does not Prevent Piracy

• Every CD sold today, ships without copy
  protection (20 billion in 2006)
• Every DRM scheme has been compromised
• Sound is inherently impossible to protect

6

Why would the big four music companies agree to
let Apple and others distribute their music
without using DRM systems to protect it? The
simplest answer is because DRMs havent worked,
and may never work, to halt music piracy.
Steve Jobs CEO Apple, producer of iTunes Music
Software
7
DRM is Bad for Customers

• It locks consumers into a specific service and
  device
• It does not ensure future compatibility
• It is not convenient
• It is hard to use

8
With DRM
Restrictions in iTunes
Without DRM

• The track can be copied to only 5 authorized
  computers simultaneously
• A playlist can only be burned 7 times
• A track can be only be copied to CDs and iPods

• None.

9

This is the worst of all the ideas embodied by
DRM that people who make record-players should
be able to specify whose records you can listen
to, and that people who make records should have
a veto over the design of record-players.
Cory Doctorow Electronic Freedom Foundation
(eff.org)
10
DRM costs us Money

• DRM costs us money to license DRM technology
  (nearly 0.33/song)
• It restricts marketing and sales opportunities
• Reduces our companys bargaining power

11
DRM results in Lost Sales

• DRM is not good from customers (earlier)
• Customers who do not like DRM simply do not
  purchase digital tracks
• Alternatives such as piracy are often more
  flexible and convenient

12
Summary

• DRM does not prevent illegal copying of music
• DRM is bad for our customers
• DRM costs us money

13
Questions?