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The DRM Virus Is Spreading – A Pandemic May Be Near

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Last week we were startled to learn about Zune’s viral DRM system. As it turns out, the whole thing may have been a miscommunication on the part of Microsoft’s Zune Insider. But that doesn’t mean that Zune isn’t responsible for spreading the DRM virus. On the contrary, there’s mounting evidence that Zune is directly responsible for a mutation of the virus.

With the release of Zune, Microsoft has intentionally turned its back on its previous DRM standard – the PlaysForSure system. As a result, PlaysForSure partners are starting to drop support for Microsoft’s old DRM system in favor of their own proprietary DRM systems.

On Monday Real Networks and SanDisk announced that the Rhapsody music service will be switching from PlaysForSure to Real’s own Rhapsody DNA system. In an attempt to emulate Apple’s iTunes/iPod experience, SanDisk will release a new player that will be tightly integrated with the Rhapsody music service. The move is designed to position both companies against the upcoming Zune Marketplace as well as iTunes.

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The Futility Of DRM

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2006 will go down in history as the year the entertainment industry finally started to take digital content distribution seriously. So far this year we’ve seen television networks and film studios experiment with a surprisingly wide variety of new distribution models, while the recording industry has started to realize that there may be a future in downloadable music. If there’s a downside to the recent explosion of digital content it has to be the entertainment industry’s unhealthy obsession with digital rights management (DRM).

In the past entertainment companies have been hesitate to distribute content digitally due to piracy concerns. Those concerns have apparently been replaced by a complete and total faith in DRM. Or, at the very least, a belief that it will be possible to build viable new business models around DRM protected content.

There’s just one problem — DRM doesn’t work. It’s a futile exercise in artificial scarcity that punishes honest consumers while doing little to slow the tide of piracy.

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