I like to tell anyone who will listen that the content download industry is in its infancy. We have no idea which models for which content will appeal to consumers. We have no idea what new innovations await us. And it doesn't matter, because the market, if left alone, will sort all this out. It will also sort out a balance on DRM; picture those supply and demand curves from Econ 101, and you can picture the protection vs. usability curves of DRM. When the market reaches the equilibrium of "good enough" protection for content creators and "good enough" usability for end-users, everybody will win.

There's still more evidence that the market is moving toward that equilibrium. Two big news stories today support that. NBC has gone from protesting its content on YouTube (which it had every right to do) to striking a deal to place NBC content on YouTube (today's WSJ front page). Separately, Warner Bros. is going to sell and rent movies through Guba.com.

This daily flurry of announcements is just what you'd expect from a nascent market still finding its feet. Some experiments will fail, others will succeed, and those who failed will copy the successes. DRM will play some role in this -- Warner Bros. is using a Microsoft DRM for its Guba.com offerings -- so we'll get to let the market speak as to what extent it is willing to tolerate DRM in exchange for access to and flexible use of content.

posted by Patrick Ross @ 2:55 PM | Access: Commons, Fair Use, Orphan Works, Public Domain, DRM & Watermarks, etc., Markets: Business, Investment & Innovation, Media: Video, Music...

Link to this Entry | Printer-Friendly | Email a Comment | Post a Comment(0)