Hated and Broken
Everyone hates DRM, but not everyone will admit it doesn't work.
More recently, the music business has insisted that Apple include DRM in tracks downloaded from the iTunes Music Store. If you are a legitimate, paying consumer of music online, you are restricted in what kind of devices you can use to listen to it, where you can listen to it and, potentially, for how long you can listen to it.
Were it to do so, Apple wouldn't be the first company to turn off its DRM after the business has wound down, leaving customers' music effectively dead on their hard drives, incapable of being copied elsewhere or played on a new system. Attempt to circumvent these restrictions, and you're a criminal under US law (and the law of many other countries). Had you pirated the music, certainly, you'd be a criminal in the first place - but you could do what you liked with it, and it would be yours forever.
The music business, thankfully, is waking up from this blatantly idiotic state of affairs. Increasingly, it is offering unencumbered MP3s from online stores such as Amazon's (and, in some cases, iTunes). John Riccitiello would presumably recoil in horror at such a concept - after all, he reckons that without the protection of DRM, EA would be "in business for free". Yet music companies - some of them far bigger and far, far more experienced than EA - clearly disagree.
They've recognised an essential truth which the videogames industry desperately needs to grasp. You cannot protect media products through technological means. In an arms race with determined pirates - many of them simply hobbyists working from their bedrooms for no reward other than kudos, and nigh-on impossible to track down - technology firms will lose every single time. If cunning hackers can crack the protection of closed, custom-designed hardware systems like the Xbox 360, the Wii and the PlayStation Portable, what hope does a software system running on a completely open platform like the PC have?
There are ways to stop pirates in their tracks, but they're all business solutions, not technical solutions. World of Warcraft is correctly fingered by Riccitiello as a perfect example (although he inaccurately describes it as "DRM", which it isn't - in fact, WOW notably contains no DRM worth a damn, and you can happily copy the game client around, install it on multiple PCs, lend the discs to your friends and so on). Relying on subscriptions for your income, with upfront sales being little more than padding on the numbers, is a perfect business strategy to minimise piracy - although of course, it only works for very specific types of product.
You could also try increasing the value of your retail product to make it worthwhile to buy it, rather than stealing it. Include one-time use codes which download in-game extras, perhaps (although they'll get pirated too, you're now loading the dice in your own favour - pirates will have extra hassle to access the new content, your users will get it with ease). Create limited editions with genuinely worthwhile product in them, and watch your pre-orders soar. Hell, simply engage your community and build loyalty - consumers who like your brand and find your developers personable are a lot more likely to open their wallets than those who think you're the Evil Empire.
But before you do any of that, there's a Step One to this reform programme. It's pretty damned obvious. First, you stop selling your legitimate customers crippled, encumbered versions of your media, versions which are notably inferior to the versions they're being offered by the pirates.
Media companies can whinge and moan about pirates until the cows come home, but the simple reality is that while your paid-for version of a product is less functional and more annoying than the free pirate version, you're driving your customers into the welcoming arms of Bittorrent.
If we're really going to make inroads into converting pirate downloads into retail sales, then the industry's executives need to start thinking with those rational business heads they're meant to have - rather than with with their impotent sense of outrage and injustice - and drop this defective, useless technology.
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