UK retailers to record labels: DRM is killing us

Galen

By Ryan Paul | Published: November 21, 2007 - 08:57AM CT

In response to declining music sales in the UK, the Entertainment Retailers Association (ERA) has called for the music industry to put an end to DRM. The organization—which represents retailers who sell music and DVDs—blames draconian digital copy protection technologies for the slow growth of the digital music market.

Consumers are increasingly dissatisfied with copy protection systems that erode fair use rights and impose limitations on where and how content can be used. To make matters worse, market fragmentation has led to the emergence of incompatible DRM formats which often confuse consumers and leave them wondering whether or not the content they buy will work on all of their electronics devices. That makes file-sharing more attractive for some consumers.

Many companies in the recording industry still refuse to adjust their business models to account for consumers' preferences when it comes to DRM, believing instead that the near-ubiquitous practice of file-sharing can be abolished with more draconian copy protection mechanisms and litigation. Music retailers appear to be more in touch with consumer expectations and see a very different picture.

Speaking on behalf of UK music retailers, ERA director Kim Bayley told the Financial Times this week that the copy protection mechanisms are "stifling growth and working against the consumer interest." Citing a recent study conducted in the UK which indicated that consumers overwhelmingly prefer music without copy protection mechanisms, Bayley says that DRM "puts consumers off."

According to the Financial Times article, the music industry generates 40 percent of its revenues during the fourth quarter, but retailers are concerned because early sales this season have ramped up slower than usual. The ERA hopes that the music industry will reevaluate its position on DRM in time for the holiday shopping rush.

Some recording companies, like EMI, have already lopped off the locks and are selling unencumbered music. EMI has reported strong sales after dumping DRM, which reinforces the fact that giving the consumers what they want is really the only viable strategy for turning around sagging sales.

RangeR

Original article link?

Galen

http://arstechnica.com/news.ars/post/20070412-drm-lock-ins-and-piracy-all-red-herrings-for-a-music-industry-in-trouble.html