Why DRM is not cool and how ebooks won't ever completely take over the book market
Intellectual property is a fascinating, book-length (at least) topic, and the protection of intellectual property rights is a very real concern for artists, agents, publishers, and businesses worldwide. Billions of dollars are at stake. Trillions? Maybe trillions.
So I, of course, can't do it justice here, but I wanted to start briefly with intellectual property to show how trying to protect it is driving much of the ebook market, for better and for worse. The attempt to preserve revenue is central to Digital Rights Management (DRM) technology tactics in ebooks (and music files), but while trying to protect rights, DRM is also putting an upper limit on sales by wrecking the end user's experience.
I think the first and best topic to present here is the link between the music industry and the book industry in terms of their adoption of technologies to control the distribution of their products — methods that try to maximize legal distribution methods and minimize illegal distribution methods. (Spoiler alert: DRM works OK at deterring illegal distribution by the masses while frustrating the heck out of honest, legal users. And the tech-savvy people who want to pirate music/ebooks still find ways to do so.)
By all accounts — but mainly from the account of this convenient PBS Frontline timelime1 — the music industry has made illegal duplication its major beef for, like, forever. Note that as early as 1900:
...the unexpected boom in pre-recorded music leads to questions over copyright infringement. Music publishers appeal to the courts when the piano roll companies refuse to pay publishers for the rights to reproduce recordings on the player piano scrolls. The U.S. Supreme Court delivers a blow to the music publishers by declaring that copyrights will only protect those songs that can be read by the human eye -- thus exempting piano rolls and other machine-produced music products.
From wax cylinders to player pianos to vinyl records, 8-tracks, cassette tapes, CDs, and digital files, much of the music industry (but especially industry executives) has been concerned that the improvements in sound recording and playback technology would pose a threat to music sales. Nevermind the fact that with each technological advance, the industry has a real excuse to re-release every recording they own on a new format and thus generate new sales on basically the same source material over and over again (not to mention remasters, re-releases, compilations, boxed sets).
Remember when albums were released on CDs AND cassettes because some people didn't have CD players (or didn't have them in their cars, or didn't have portable CD players)? Now, with the resurgence of vinyl, albums are sold on record, on CD, as digital downloads, and as a stream (if you consider like I do that paying for a stream subscription is a "sale"). It's true that music sales have decreased, "from $11.8 billion in 2003 to $7.1 billion [in 2012]" according to the Recording Industry Association of America (as quoted by CNN Money2). But is this a direct result of piracy? What about songs being sold as individual tracks, untethered from the album format that had sold groups of songs as a package? Here's a neat chart from that same CNN Money report:
Look at those nice, little, uniform, satisfying waves! The picture it paints is kind of simplistic: as a new, more convenient technology is introduced, the market is slow to respond, then it adopts it wholeheartedly, then an even newer, more convenient technology comes along, and etc. But bootlegs have been around forever. People have been recording and redistributing music themselves, without permission from the music industry, since at least the beginning of this chart. (On an aside, here is a great New Yorker piece about the pirating of CDs via MP3: 3 >The Man Who Broke The Music Business.) Professionally recorded materials, live concerts, interviews and radio plays, limited releases, secret releases. It's all been bootlegged for decades. So that should be a given — there is a core set of consumers who bootleg, yet the industry continues to exist (i.e., it doesn't bankrupt the music industry). But do you really think that none of the bootleggers ever legitimately pay money into the music industry?
(Is this still a blog about libraries? Yeah, I suppose. Music can be found in libraries! But I think I'm going to get around to ebooks soon enough...)
Enter DRM: a lock-key-mechanism designed for the distributors of digital products to place a lock on their files so that only they (themselves) and their consumers (sometimes) can unlock the material. Again, the idea here is fairly simple: (A) music distributors want to sell as many products as they can (B) copying and resharing music is fairly easy for anyone with access to the right technology (C) music distributors want to shut down any copying or resharing of their products to maximize sales. The fact that the latest format/revolution in music products is digital only amplifies all of this: it is really super easy to reshare things now, around the world, nearly instantly. (Remember waiting 20 minutes to download a single song?)
The big monkey wrench thrown into the gears of the simple idea behind DRM is: sometimes (a lot of times) it messes stuff up for the person who legimately purchased the product. If you have a weak stomach you may not want to relive this moment with me:
(*despite knowing it's a screenshot on a blog post, nervously clicks "Cancel" repeatedly*)
I'm trying to say that DRM is killing the user experience and topping out possible sales, but according to the chart above, it looks like iTunes has swooped in and dominated the music industry. iTunes IS quite a big player, but the article mentions something that the chart doesn't: iTunes has only 63% of all digital music sales4, and that doesn't include paid streaming services. (Also note that that figure is extrapolated from the 13,000 responses given in consumer surveys conducted by NPD. Be wary of consumer responses to surveys.)
So music has been pirated, continues to be pirated, and will continue to be pirated for the foreseeable future. But somehow music keeps turning a profit: maybe more for technology companies like Apple and Spotify than for labels and individual musicians, but if there continues to be a market for new music there will continue to be people who profit off that market. So why nail everything down with DRM to try to maximize profits? Like the War On Drugs, it seems more cost prohibitive (including the cost of frustrating regular, honest users, who may in fact ironically move to alternative modes of distribution to avoid DRM restrictions).
I thought I had a lot to say about ebooks, but I think my descriptions and arguments from the music section carry over. So how about you head over to another blog to find out about the problems with ebooks?
Here is a great post about ebooks, how they work, how they’ve been performing, and how they will never take over market share:
What’s the matter with e-books?5
https://nvbinder.wordpress.com/2014/01/16/e-books/
Here are some highlights:
What functions make an e-book better than a printed book, that the open web can’t do better than both?
When you get down to the code level, an e-book (as in a .mobi or .epub format) is just a webpage. A webpage with weird formatting and restrictive DRM. A webpage that costs a lot of money. A webpage that is tied to a single device and a single user; that can’t be crawled by a normal search engine; that can’t be copied or shared or linked to; that can’t even be bought.
My hope and belief is that we will soon see “books” that take advantage of the web’s creative potential, that use the natural flow and motion of webpages to delight, charm and surprise readers. After being tremendously disrupted by digital, periodicals are nearly there. I can’t wait to see a fiction story that engages readers with the unique beauty, strengths, design and depth of the web. That day is coming, very soon, and it will be a great one for literature and culture.
1. "Chronology: Technology and the Music Industry," by: Callie Taintor, for: PBS, link: http://www.pbs.org/wgbh/pages/frontline/shows/music/inside/cron.html
2. "A decade of iTunes singles killed the music industry," by: Adrian Covert, for: CNN Money, link: http://money.cnn.com/2013/04/25/technology/itunes-music-decline/
3. "The Man Who Broke the Music Business," by: Stephen Witt, for: The New Yorker, 4/27/2015, http://www.newyorker.com/magazine/2015/04/27/the-man-who-broke-the-music-business
4. "The NPD Group — After 10 Years Apple Continues Music Download Dominance in the U.S." by: The NPD Group, for: The NPD Group, link: https://www.npd.com/wps/portal/npd/us/news/press-releases/the-npd-group-after10-years-apple-continues-music-download-dominance-in-the-u-s/
5. "What's the matter with e-books?" by: N.V. Binder, http://nvbinder.wordpress.com/2014/01/16/e-books/