4/19/09 06:46 pm - Copyright, DRM, Piracy - Part 01
Lately, issues of copyright and DRM have been on the forefront of my mind. The fact is that things are changing in a big way. Content producers are torn between embracing new models and distribution channels and clawing madly at the revenue streams of the past, lashing out at any perceived threat whether real or imagined. Meanwhile the public mindset is shifting, much quicker than anyone would have expected. A new generation of consumers who've never known a world without the internet, on-demand programming, and digital content are growing up and will be swaying the market accordingly.
As the disposable income is increasingly in the hands of individuals who place little to no value on boxed items, and instead only focus on sentimental and personal value in a world where most things can be had quicker and easier for free than going through the official channels that providers are willing to provide, the world of consumable media is in for some surprises.
Anyone who follows tech news will tell you that in the post-DMCA world, fair-use is a dirty word. And in the eyes of big media, any hint of ownership is synonymous with criminal. As originality becomes scarce in the arena of media conglomerates, the only recourse is to find new ways to make people pay for what they already own. And forces the consumer to prostrate themselves to beg for rights. Even people who know nothing of these issue can see the irony in record companies that claim the disc means nothing, that it's the “license” you have to listen than matters, yet at the same time claim that ripping your music to an ipod constitutes theft. They want it both ways, and something's bound to give as a result.
Even as record profits are being made across the board for film, music, game, and television, executives and lawyers claim that traditional media is dying at the hands of piracy. While I'm no expert on such matters, I have historically been a large consumer of media, both digital and traditional. I've been an early adopter fo new technologies. And I've seen how the landscape has changed, and how my own opinions have changed as a result. Below I'll site a few examples that more than anything signify why current models are failing.
DRM is a dirty word among tech-savy consumers, and yet is still considers to be some holy signet of warding to industry. Despite consistently being proven as ineffective, expensive, and even harmful both to end users and profit margins, the industry still pours money into the gapping maw of this. Nowhere but in the realm of organized religion have I seen such persistence in the face of overwhelming evidence to the contrary.
In the interest of trying to find ways of making DRM “uncrackable”, companies have managed to make content ever more undesirable to the public. In times past, there were only a handful of reasons you might pirate something:
-Lack of funds
-Scarcity
-Technical Challenge/Fun
-Sampling
Obviously a young teen who is unable to work and has no real meathod of acquiring funds is likely to steal a newly released album online. Especially given the historical lack of risk, and the alternative with is to be without it. Music DRM has posed very little challenge to illegal distribution. Likewise, a student or digital media enthusiast who wants to learn flash, photoshop, lightwave, or similar tools is staring down a fortune on software costs. Even less expensive student licenses can be cost-prohibitive to a large group of people. AS long as people have desires without means, piracy in some form or other will exist. Most of these people are good folks who would happily pay for what they have if able. Sadly, this pseudo-self-righteous fact only makes it that much easier to pull the trigger on an illicit download.
Scarcity was at one time a huge factor in piracy. As the world gets ever smaller, thanks to better communications technologies and diplomacy, there is simply an abundance of content that our grandparents could never have comprehended. This has been both a blessing and a curse to media companies. For example, there was a time, when anime was just catching on in the United States and VHS was king, that you could count the number of new domestic releases on one hand in a given month. But now there are more companies and more shows being produced than ever before. Distribution is faster than ever. This is something that is being mirrored in many other industries as well. As a result, the consumer has more options than ever when it comes to spending their hard earned cash. This fact is the real reason fewer people go to the movies or buy the latest DVDs. There's simply too much choice for your entertainment dollar, and in the case of theaters, far more cost-effective ones.
The scarcity issue is also a problem for the “license not sell” mentality of media companies, since much of that licensing is region-specific. I'm personally a huge fan of foreign music. But I'm simply unable to log onto a legal website and buy that latest JPOP track I hear on youtube. This lack of options drives many to piracy. Before the age of youtube, Amazon, etc.. if your local shop didn't have that specific film, album, or game, your option was piracy. Add this to the stereotypical OCD nature of most rapid media fans and you have a recipe for disaster. The tech-savvy teen who knows that 5 new anime he enjoys are being released this month, but can only afford 4, is unlikely to let that last release fall by the wayside when the “joy of completion” is a few clicks away. Extrapolating on this a little. Fans of a certain niche or genre often keep up with the goings on in the industry. In the age of the internet, it's simply too easy to be informed. So perhaps a new series from his favorite studio is airing in Japan this month. Our fan is excited, and knows that fan-produced, subtitled copies will be available within days. The alternative is to wait perhaps months for the American distributer to license and distribute it. This is particularly annoying, since fans of subtitled material routinely pay more than those of dubbed releases, despite subtitles being cheaper to produce.
Fortunately, scarcity is the easiest issue for content providers to overcome. Forget about release windows, street dates, and distribution channels. The fact is that once something exists... it will be online sooner rather than later. Cut out the proverbial middleman and get in on those profits by selling things online directly, yourself, and as soon as possible. Tiers is an incredible new revenue stream waiting to happen. I'm a busy guy and it's hard to find time to go tot he theater. Tack on the additional costs and time lost associated with a cinema trip (babysitter, gas, travel) and it becomes a less and less appealing option. However, I'd have no problem whatsoever paying more than standard ticket price for the ability to stream a theatrical release to my PC or (heaven forbid) my television. In this scenario, the industry already has the advantage on the pirates in terms of availability, time to release, and quality. People at large, and Americans in particular have shown repeatedly that they are more than willing to pay for convenience. Put that mindset to work for the industry instead of against it.
It's not uncommon to hear the media insiders to lament the leak of unreleased material. Losing money on unfinished material is bad news. There's no way to recover from it. But losing money on unreleased material is the fault of the providers. What's the that? The new Guns N Roses album is out? Where can I buy it? Oh, I can't? Only available illegally you say? That's the quandary many fans found themselves in recently. And taxpayer money was spent to track down the culprits your leaked that material. But my question is this... what self-respecting fan of capitalism has sits on a finished product that's in demand instead of fucking selling it immediately. If you aren't willing to offer your fans and consumers the product, rest assured that someone else will. If you don't have a digital equivalent of your product available on or shortly after day one, in my eyes it's almost publicly condoning piracy.
A much smaller considerations for participating in illegal files is the mere joy of it (why men climb mountains). In this category you have “sceners”. These are people who, for the love of digital traffickingg as a hobby, have built vast networks of supplies, crackers, and an efficient distribution chain to get their warez to thememberss of the scene. These people have no socio-political motivations for their actions. They are typically well-to-do individuals with the money to purchase the media they desire. It is all done for the love of the act. Most established sceners will tall you straight up that they detest peer-2-peer networks, bittorrent, and the like as much if not more than the industry at large. They take great effort to slow the spread of their releases into those channels and strongly urge everyone to pay for the materials they enjoy. The cat and mouse game between the media companies and sceners caused by ever more complicated forms of copy protection and sophisticated cracking methods only makes this more enjoyable and enticing as a hobby.
Lastly, you have the people you are just picky as hell about what they consume and want to sample a little of everything to find the so called, diamonds in the rough. As competition for the entertainment dollar increases, companies spend less money on risky or unproven ventures. Budgets for the blockbusters of the game and movie world are skyrocketing. Especially where video games are concerned, where banner titles routinely cost $60 on release. You core demographic faces tough choices when new releases arrive. If your a kid torn between to releases with the funds to procure only one, and you have no demo to go by, why wouldn't you pirate a them to try out before handing over your cash on a possible flop? While I agree that once you have a film, movie, or piece of music in your possession, you might be hard pressed to find the incentive to purchase it. But studies have consistently shown that those you do the most illegal downloading are also the largest consumers of legitimately purchased media as well. One can only hope that content providers eventually take notice or this fact, and stop assuming that everyone with an open bittorrent port is some “all information should be free” hippie who shuns and legal recourse.
Now, the topics I'm approaching are very large ones, and came be approached from many angles. As such, I'll likely be splitting this into several posts. But for now, I do want to mention a few recent examples I've faced where legally purchasing something has been an inferior experience. One that I fear would make someone else turn to piracy.































