Music labels losing sales over DRM

Iria · Nov 28, 2005, 11:54 PM

It's not news that consumers hate DRM, especially the kind that keeps Little Johnny from ripping that Velvet Revolver disc to his iPod on Christmas morning. What is interesting, though, is how little the major record labels care. As reported a few weeks back, Thomas Hesse, President of Sony BMG's global digital business division, told NPR that consumers didn't understand his company's DRM... and therefore didn't care.

Hesse had reason to feel this way; DRM has had little effect on sales so far. From a business perspective, the Velvet Revolver disc, for example, was a smashing success. It may have annoyed Little Johnny, but it sold by the truckload. Their album Contraband shot to the top of the charts, becoming the first disc with DRM to hold the number one sales spot in the US. The lesson to RIAA members was simple: everyone loves DRM.

Not anymore. A recent story in the E-Commerce Times suggests that the labels are now losing customers to their aggressive DRM tactics. The article suggests that in Canada, at least, customers have started to shy away from those "copy-controlled" logos. Even some in the music business see the current strategy as short-sighted. Terri McBride, president of Canadian label Nettwerk, argues that

"The average consumer who's not tech-savvy is going to buy the CD, thinking that they can load it onto their iPod ... They're going to be royally pissed off."

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Read More / Source: Ars Technica

**temeteus82** · Nov 28, 2005, 11:57 PM

Well, now they will see the stupidity of this DRM shit

**dj_stick** · Nov 29, 2005, 12:41 AM

hurray for vinyl

but seriously DRM is useless. It WILL not stop pirates, it WILL not stop anyone who knows how to use google

Zelig · Nov 29, 2005, 01:58 AM

DRM is mostly just annoying, it wastes a bit of my time ripping music that I BUY.

**temeteus82** · Nov 29, 2005, 10:35 AM

Quote:

Originally Posted by dj_stick

hurray for vinyl

but seriously DRM is useless. It WILL not stop pirates, it WILL not stop anyone who knows how to use google

I think that DRM has negative effect in music sales, I mean more people goes to P2P networks to dl music to their mp3 players ...

Nov 28, 2005, 11:54 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 87	Music labels losing sales over DRM It's not news that consumers hate DRM, especially the kind that keeps Little Johnny from ripping that Velvet Revolver disc to his iPod on Christmas morning. What is interesting, though, is how little the major record labels care. As reported a few weeks back, Thomas Hesse, President of Sony BMG's global digital business division, told NPR that consumers didn't understand his company's DRM... and therefore didn't care. Hesse had reason to feel this way; DRM has had little effect on sales so far. From a business perspective, the Velvet Revolver disc, for example, was a smashing success. It may have annoyed Little Johnny, but it sold by the truckload. Their album Contraband shot to the top of the charts, becoming the first disc with DRM to hold the number one sales spot in the US. The lesson to RIAA members was simple: everyone loves DRM. Not anymore. A recent story in the E-Commerce Times suggests that the labels are now losing customers to their aggressive DRM tactics. The article suggests that in Canada, at least, customers have started to shy away from those "copy-controlled" logos. Even some in the music business see the current strategy as short-sighted. Terri McBride, president of Canadian label Nettwerk, argues that "The average consumer who's not tech-savvy is going to buy the CD, thinking that they can load it onto their iPod ... They're going to be royally pissed off." __________ Read More / Source: Ars Technica

Nov 29, 2005, 01:58 AM	#4
Zelig HardwareHeaven Extreme Member Join Date: Jun 2003 Location: Canada Posts: 3,187 Rep Power: 69 System Specs	DRM is mostly just annoying, it wastes a bit of my time ripping music that I BUY. __________________ --