Some time ago I noted that some silly fellow was suing Apple to get them to make iTunes music play on players other than iPod. It didn't seem worth developing arguments about this at length because I couldn't imagine anyone taking this seriously. Then Congress took up the subject, and our Fearless Leader Ray Gifford testified. Since those who testified at the hearing were generally opposed to top-down rules for DRM, one hopes the idea has now been dropped.

Just in case, however, any legislators are still considering embracing this, here's a recap of the arguments for and against.

For: It may inconvenience customers who have purchased in iPod to buy their music only from iTunes (then why did they buy an iPod? Okay, I just don't get it. Why would someone buy a media player that costs hundreds of dollars without thinking about what can be played on it and what can't?). It may inconvenience consumers who have purchased iTunes to have to play them on an iPod (then why did they buy them from iTunes? Sigh). Why would the iPod/iTunes system be enjoying such a substantial market share if it inconveniences customers? It is extremely doubtful that sellers of tunes face an inelastic demand curve.

Also on the "for" side, there is the (strange) argument that selling music from one service won't guarantee an adequate income stream to creators. But licensing the music to one service doesn't stop the creators from licensing it to another service as well (as music producers are now moving forward to do in seeking relationships with other mobile hardware producers).

Mandated interoperable DRM is a bad idea for many reason. The music industry is in a state of upheaval regarding pricing. Everyone is demanding that music get a new business model, but no one is sure what will work. The technology is evolving. In this environment, interoperable and closed systems and different tech needs to compete. More particularly, Apple took a risk in tying iTunes to iPod. Investors that take risks need to be able to capture the rewards, or they won't take those risks. Meanwhile, consumers are awash in competing sources of music (legal and illegal) and competing formats. Far more than ever before.

I do hope that I will not have to address this subject again!

posted by Solveig Singleton @ 8:47 AM | DRM & Watermarks, etc., Standards

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