Gentlemen,

The tug of war between consumers and music companies is quite simple
really. 

Music companies (because of their excessive overheads) try to apply
downstream price-discrimination. DRM is a way to apply price
discrimination and segment the market. The problem is, the good that is
being sold, the digital song/piece of music, is inherently replicable ad
infinitum. As simple as that. There is no way, given the technology
available, to enforce the desired market segmentation by forcing the
consumer to have only 1 copy of their music. This was attempted, and in
its worst form, lead to the SONY rootkit scandal. 

As an example of the difficulty to enforce the current pricing model,
consider the following. You can subscribe to Napster for about 15
dollars a month (Napster To Go), and download as much DRM music (in wma
format) as you want. You then download a re-recording software, such as
MuvAudio (www.muvaudio.com), which makes bit per bit copies of your
original music (at up to 10x the speed, you can easily leave a machine
on overnight). You now have a perfectly legal copy of your original
DRM'd piece, but in another format of your choice. The question at this
point is quality. 

I think there is a good rationale for companies to charge the consumer
on the margin for his choice of quality. So if you want lossless, you
will have to pay a little more. You have to price music by size
(www.allofmp3.com, for all of its illegality, used this pricing
scheme).  I have no issues with THIS kind of price discrimination. 

But this is a kind of "local" price discrimination which is acceptable.
"Global" price discrimination, that is, to treat (or better, to FORCE
the users to accept) each copy of their music as an unicum - i.e. more
copies more money, is simply a fallacious attempt by the music industry
to muddle the issue and buy more time, until they agree on a new and
more correct pricing strategy. 

The gates are open now, because DRM, as a tool of global price
discrimination, is dead, and starting to smell.

Giacomo


-- 
gbruzzo
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