June 10, 2004
More on Mobile and Music, and DRM Lock-in
The Guardian (via PaidContent.org) has two interesting articles up.
First, an article on mobile and file-sharing. The article seems to focus only on the sort of wireless LAN file-sharing that Ernest emphasized last week (and I basically agree with) is not the really big issue with wireless. To me, it’s that, put together with the opportunities of wireless hotspots and WAN access that matter. The latter could make it much tougher to identify file-sharers, so that’s the key issue. It’s possible that once people are routinely file-sharing this way, they’ll be more likely to also take advantage of the possible LAN opportunities. But it’s also possible that people might first try out the LAN file-sharing, because that’s going to be a lot easier so long as free wireless hotspots are not completely and totally pervasive. People might get into wireless file-sharing that way and then be more interested in using the wireless hotspots for this purpose. The causal links can go both ways, I think.
In any case, there are also a couple angles that the author seemed to really not understand here. First, the mobile issues help reveal that it’s not clear how to lock down the system with DRM if “the system” is an environment with ubiquitous computing. There’s this Open Mobile Alliance, but what does that really mean? Maybe it touches the boundaries of “the system” today – but for how long?
Second, I’m surprised that the article didn’t talk more about how this could improve the legitimate digital music services. The mobile market gets us closer to the idea of the celestial jukebox. Increase convenience, you increase the likelihood that people will purchase through legitimate services.
Another article discusses the proposed Sony-BMG merger. The author clearly gets that this isn’t just about competition in the music market but in the electronics market as well. Because of the DMCA, owning the content can enable control over important standards and innovation. The DMCA in this way exacerbates the problems of high market power. Even if you don’t buy that Sony in particular would have this power, one must still reckon with the fact that the incumbent parties collectively have this power. Because of the DMCA, incumbents have more power to dictate how innovation proceeds. And what do you we know about the how the old handles the new? Whether it’s Sony alone or all the majors together (along with associated digital media stores), I think this should worry you.
Filed by Derek Slater at 11:49 pm under General news
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