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Digital Wrongs, Digital Rights — May 31st 2007

By James Marcus

Readers of a certain age will recall the pure joy of cracking open a ten-pack of cassettes. With their miniaturized spools and narrow ribbons of tape, they were relatively flimsy objects. The plastic shells cracked, the screws came loose, the metallic oxides flaked off the tape itself. But for males (and females) with nerdish propensities, they had a futuristic allure. You could fit two LPs on each 90-minute cassette. If you paused the record mechanism during the needle drop, and experimented with the antediluvian Dolby switches, you got a very decent facsimile of the vinyl product. Everybody won--with the possible exception of the artist and the record company. Predictably, it was the industry that tried to stamp out the plague of cassette duplication. The British Phonographic Industry sponsored an infamous "Home Taping Is Killing Music" campaign in the mid-1980s. The BPI campaign made few inroads against copyright violation, but it did spawn innumerable parodies--including the one further below.



Which brings us to the latest wrestling match between the recording industry and its increasingly irate audience. In the Western world, at least, cassettes have long since bit the dust. So has vinyl, driven out of the marketplace by the ubiquitous compact disc. But the digital reproduction of music--with its promise of infinite and exact duplication--opened a Pandora's box for the industry. In this New York Times article published a few days ago, Jeff Leeds noted the cratering sales of CDs:

Despite costly efforts to build buzz around new talent and thwart piracy, CD sales have plunged more than 20 percent this year, far outweighing any gains made by digital sales at iTunes and similar services. Aram Sinnreich, a media industry consultant at Radar Research in Los Angeles, said the CD format, introduced in the United States 24 years ago, is in its death throes. "Everyone in the industry thinks of this Christmas as the last big holiday season for CD sales," Mr. Sinnreich said, "and then everything goes kaput."


Leeds goes on to discuss the industry's loosening grip on copyright-restriction software, or DRM (Digital Rights Management), which limits the circulation of music files purchased online. Steve Jobs--along with some shaggier proponents of digital democracy--has recently challenged the big labels to throw DRM overboard. The argument goes like this: freely circulating MP3s are both a product and a form of advertisement. Each kid who gets a free Shins track will be moved to pay 99 cents for another Shins track. A homeopathic dose of Kanye West leads to a veritable Kanye West addiction (of the nicest possible sort). This is the same pitch that used to be made on behalf of the humble cassette. For what it's worth, I think there's some truth to it. But will it fly?

Well, EMI has now broken the ice, as reported in this tgdaily dispatch. Starting yesterday, the British entertainment giant (itself the target of a recent bidding war) began selling non-DRM tracks through Apple's iTunes Music Store. Encoded at twice the resolution of regular iTunes files, the tracks cost $1.29 a pop. In other words, the customer pays a premium for the privilege of infinite duplication. Depending on your point of view, that's either the bargain of a lifetime or another shameless attempt at highway robbery.

Will the other labels follow suit? And will the abolition of DRM save the flailing industry? For some prognostication, I turned to Joanna Demers, the author of Steal This Music: How Intellectual Property Law Affects Musical Creativity. In her book, Demers focuses on the finer points of plagiarism and artistic appropriation rather than traditional piracy. But she is an astute observer of the industry as well as a freelance forensic musicologist (sure, I know plenty of those), and her answers are persistently enlightening:

Netscape: Now that EMI has made the first move, will DRM-protected music soon be as dead as the dodo?

Demers: I wouldn't think so (although I'd like to). Many executives still believe in all sincerity that DRM is the best way to protect their rights. There are many who feel that the most pressing issue is to develop better DRM rather than to dispose of it.

Netscape: Are you surprised that the music industry took this long to capitulate?

Demers: No. The music industry is like a very big ship that takes a long time to turn around.

Netscape: Will this be the salvation of the traditional recording industry--which is to say, will the freely circulating MP3s obtained legally through online retailers prime the pump for additional sales?

Demers: I don't think that the traditional recording industry can be salvaged. The way that system was set up, there were compelling reasons why labels needed such large resources allocated to publicity, marketing, etc. But with digital technologies being so affordable, musicians don't need that support system anymore.

Netscape: Could you expand on that a little?

Demers: The way the system used to be set up, artists would usually sign away rights for their recordings to a label. This meant that artists could only make money through touring and related promotion, or through song publishing (assuming that artists even wrote their own material).

Now, artists are savvier and realize that they don't need to be signed to a label, don't need to (and shouldn't) sign away their masters to anyone else, and can effectively publicize themselves online for very little. In this system, the traditional record labels have much less to offer artists than ever before.

Many artists recognize that non-DRM serves their interests; a well-placed, free, remixable download, for instance, is the normal mechanism by which many albums are advertised. And there are still many consumers who, upon listening to that free download, pay for the whole album or selected songs.

Netscape: In the final pages of Steal This Music, you write: "What kind of musical culture do we want in the future? Before answering, consider the type of musical culture we will have if we sit back and let content providers continue to run the show." Does the end of DRM signify a retreat by those very content providers? Or will the sale of pricier, higher-resolution files leave the ball in their court?

Demers: I'd like to think that higher resolution files would be more attractive, but given the preponderance of iPods and cell phones, it makes little difference what resolution you have, because the playback quality will be limited. Most teenagers don't care about file quality; they want portability, which is what makes the MP3 format so attractive.

I think that the retreat from DRM indicates that some content providers are willing to investigate alternative options. But again, more execs than not believe that with enough effort, the old regime can be regained.

Netscape: Finally, how will these changes impact the performers, as opposed to the music industry?

Demers: Again, my sense is that artists have long ago realized that the age of the multi-platinum, multi-million-dollar-earning artist is drawing to a close. If you look at Michael Jackson, David Bowie, Madonna, etc., they were all aberrations. At no other time in world history have musicians made such incredibly large fortunes. Superstar performers like those mentioned above were able to make money because the music industry was calibrated for a very specific historical moment--a thriving middle-class population with children who had money to burn, and recording media (records, tapes) that were difficult to pirate with any fidelity. It was great while it lasted. But for every Madonna, you had hundreds of other artists who had been signed onto major labels, but lost money out of their own pockets because they didn't make enough to offset their label's original investment.

Netscape: So it's a brave new world for the performers?

Demers: Today, I think many musicians realize that they may never become rich off performing. But if they make the right decisions (like being flexible in the way they advertise, not insisting on DRM, avoiding the major labels or creating their own labels, retaining their own copyrights, etc.), they can earn a modest amount of money.


Tags: drm,cassette,theft,joanna demers, Drm,cassette,theft,joannaDemers

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