“[The late] Steve Jobs said it best: ‘Why would the big four music companies agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven’t worked, and may never work, to halt music piracy.'” says marketing professor Dinah Vernik. “And our research presented a counterintuitive conclusion that in fact, removing the DRM can be more effective in decreasing music piracy than making the DRM more stringent.”
Because a DRM-restricted product will only be purchased by a legal user, “only the legal users pay the price and suffer from the restrictions,” the researchers write. “Illegal users are not affected because the pirated product does not have DRM restrictions.”
“Removal of these restrictions makes the product more convenient to use and intensifies competition with the traditional format (CDs), which has no DRM restrictions,” Vernik says. “This increased competition results in decreased prices for both downloadable and CD music and makes it more likely that consumers will move from stealing music to buying legal downloads.” Read full article here.