18 March 2007, 17:51
Report: DRM spending to reach $9bn by 2012
According to a new market research report from Insight Research Corp. DRM related spending will exceed $9 billion by 2012. This will include spending on soft- and hardware “technologies that enable the content owner and distributors to assign and control rights and conditions for viewing, listening, and employing the content present in digital media and applications”.
In 2007 total worldwide DRM spending will reach $1 billion.
Looking back “DRM evolved over the last two decades to serve corporations that needed a means to deal with information piracy, peer-to-peer file sharing, and various regulatory requirements. So in a sense DRM did not arise to meet the needs of end users, and in fact, it may be said to have evolved to spite the end user," says Robert Rosenberg, President of Insight. “… by and large the focus of the DRM industry is to protect the rights of the owner of the content, not the end user," Rosenberg concludes. However, more often than not it is the end user who finally pays the cost of development of DRM technologies.
Read more:
Content Protection Digital Rights Management Market Spending Exceeds $9 Billion Over Five Years, Says Insight Research Corp., PR Newswire
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Comments 51
1. by qpw3141, 25 March 2007, 14:32
"However, more often than not it is the end user who finally pays the cost of development of DRM technologies"
Well, where else does he think the money is going to come from?
2. by VS, 28 March 2007, 18:52
Well, an end user will always have an options not to spend money on this kind of products ;)
3. by nowaspsorbees, 2 April 2007, 16:45
Apple and EMI are currently canning it.
4. by Scott, 9 April 2007, 04:06
Spend 9 billion so they can keep from losing 1 billion...
DRM is Worthless! Want to bypass it.
Buy a Song. Burn it to Disc. Pop Disc in and Import as a New MP3.
Stupid DRM Idiots losing sleep over the few people who don't pay for their music. Get over it.
5. by greg, 10 April 2007, 18:28
scott, your method, while it does work, very significantly degrades the quality of the track.
the song you buy (online) is already compressed in a format that loses some quality. then changing to an audio file to burn it to a cd loses a bit more quality (but not too much). the real loss is when you then re-rip the disc you just created. compressing the track yet again (to mp3) is where you get another big hit on sound quality. it is really not worth it to do this.
6. by (Anonymous), 1 November 2007, 09:59
Sorry for such a delayed post, but I couldn't resist this topic.
First of all, Greg, what is your point? I would challenge anyone to pick the quality difference in track ripped at 320kbps or higher from the original. Being a DSP engineer, I'd be happy to go into the technical details, but let's just say that most people's HiFi equipment and hearing prevent us from hearig the tiny imperfections caused by compression at these rates.
On topic, The point is that the cost of any kind of technology development requires a huge R&D outlay. Like any technological process there is always a way around it. What's more there are always people smart enough and with enough time on their hands and motivation to spite those that would have DRM instated, to acheive the task. So, inevitably, the cost of development of these useless technologies is worn by the consumer who apparently already feels that media is too expensive!
I would imagine that 99.9% of the music listeners on the planet have a certain amount of money to spend on music and adding DRM is not going make money magicially appear. If they're anything like me, if they really like an artist or a compilation they will go out and buy the CD and rip it to MP3, since MP3 is so convenient these days. Having access to file sharing programs is not going to significantly change the amount of money that I, personally, am going to spend on music. If I'm not that excited about some particular music, I'm not going to pay for their music under any circumstances.
They will however change the amount of music I listen to and when I listen to something that I like, I'll happily pay for the music. If the listener really likes the artist, I believe the vast majority will feel compelled to buy the artist's music from that point on. This is exactly how I got into a lot of genres that I now purchase.
I made the mistake of purchasing one such compilation via iTunes rather than on CD one day, only to find out that, for almost the same price as in the shop, I only got 1/2 the songs and that many of the most decent tracks were left off! So I had to go and buy the CD as well. That was the last time I ever bought an album from iTunes.
On a side note:
The "right" thing: The tactic of pro-DRM compaigners is to claim that we're robbing artists of their rightful income by downloading music. Why is it that in recent times (and I believe because of file sharing and cheaper online music), the cost of double CD compilations has dropped to that barely above the cost of single CD? What does this say about the cost of production of a CD? Why is it that online albums (DRM) is nearly the same price as one in the shops? There are no outlet fees such as rent and wages and there are no distribution or material costs!
The amount of money that goes to an artist from a CD which sells (in Australia) for about $25, would have to be less than $1! A similar amount would go to the producer and manufacturer. The vast majority of the cost goes to people who otherwise add no value to music what-so-ever and it's these people that are driving the DRM movement as the digital revolution, quite rightly so, highlights their obsolescence. By controlling the supply of music to only DRM providers they continue to earn vast sums of money from other's talents and hardwork.
If they were to offset the cost of their DRM costs by making the music a reasonable price they'd probably come out ahead and without the sleepless nights wondering who is robbing them of their unworthy income! Or better still, be rid of them and DRM once and for all, have music at a price where people can purchase as much as they want, and the artist and producers who deserve it can thrive.
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