Wednesday, June 06, 2007

CDs vs mp3s



Ok, the decline in CDs is largely due to internet piracy, but it is also partly because people tend to want mp3s these days and only want the CDs of their favourite artists. Peoples buying habits are changing, just as people wanted CDs instead of tapes in the 90’s. So assuming I want a new album in mp3 format, what’s the easiest way to go about it?

Lets face the issue head on; people can and do steal mp3s. Therefore, the record labels have a very difficult task of trying to sell something which is widely available for free. Luckily there are lots of people out there who are willing to do the right thing and pay for music. "Problem solved" I hear you say; sell the ‘free’ mp3s to those who will buy them. Yes, some people will still steal them, but lots of people will buy them. Sadly the problem was not solved like this. The major record companies decided not to simply sell mp3s. They decided to do something horrendously stupid in making the paid downloads less attractive than the free ones. Welcome to DRM.

Digital rights management software is embedded in the legally downloaded mp3 file. It means that you will be limited in how many times you can copy the file to CDs and to other computers. Some DRM also ties mp3s to particular brands of mp3 player. So if I own two mp3 players (e.g. a 60gb one and a 2gb one for the gym) I can’t put the song on both. And the record labels wonder why people keep stealing downloads instead of buying! The aim of DRM is to stop you buying a track and copying it for all your friends. Maybe a bit of stealing is a good thing. If I steal an mp3 which I wouldn't have otherwise bought and like it so much I buy 3 albums by that band, the record label wins. It doesn't work like that though; by limiting these minor copyright infringements labels are generating larger ones. People don’t like the restrictions on legal mp3s, so are illegally downloading on mass. DRM is fueled by greed and it has backfired horribly.

Apples DRM software is ironically called FairPlay.


An mp3 version of the album (complete with lovely DRM) is likely to cost around £7.99 on iTunes or similar. Selected new release CDs cost from £7.99 on play.com. For the same price you get a physical item, with all the packaging and artwork sleeves. Tracks are of a higher sound quality than mp3. There is no file protection, so you can back-up the CD to unlimited computers, mp3 players etc. You can also lend the CD to your friends. All of these things you won’t always be able to do with a protected mp3 file.

So not only have the labels made legal downloads less attractive than illegal downloads, they’ve also made them less attractive than CDs. It’s an odd decision, given that the costs of distributing CDs are large compared to mp3s. They have managed to make legal download sites the last port of call for music fans. This is yet another example of the music industry attempting to hold on to an outdated business model.

The flow of illegal, free music will be slowed at some point in the next 10 years. Something has to give. Maybe it will be the record labels. Maybe the retailers will persuade them to drop DRM. Personally I think DRM will largely stay, and people will continue to steal because of DRM. Only the death of the CD will signal the decline in illegal downloads. If an track is released ONLY as a DRM protected download there will be no unprotected versions of the files in the public domain and no mass sharing (until someone finds a way around DRM and the next chapter begins!)

At the end of the day, stealing music is wrong. Support the artists you love and pay for their music, but don’t get ripped off; buy it on CD.

The fight against DRM
Time Magazine DRM story

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