Archived Edition of Chromatic Musings

More thoughts on DRM

Tim Oren, VC out in CA, makes some observations on DRM and it's impact to consumers.

• Copy protection DRM always destroys end user value, in both convenience and robustness. When you see DRM in a business plan or analysis, it is always there to benefit someone other than the end user. Find out who, it will indicate where power lies in a content value chain.
• The mere presence of DRM indicates a failure to deliver end user value. If the information object were to lose value when extracted from the bundle or service from it was derived, DRM would not be felt necessary. Therefore the presence of DRM suggests a vendor that is behind the curve, failing to find a new value to deliver as their chokepoint disappears in the digital world.
• DRM almost always means there is trouble afoot for aggregators ('infomediaries'). If it's an aggregator inserting the DRM, their value added is in question. If it's information originators mandating DRM, then they feel they can damage the aggregator's value with impunity, and will likely try to drive end users' attention to themselves.