Why DRM is Stupid for Small Publishers

David Gammel
David GammelConsultant at David Gammel's Web Strategy Report
Why DRM is Stupid for   By C. David Gammel
                        www.highcontext.com
     Small Publishers
Origins of Digital Rights Management

• Customers did not cry out for effective copy protection technology
  on the digital products they buy!

• Big media executives, however, did cry out for it once they figured
  out how easy it is to copy and distribute their files.

• Early DRM efforts were horrific for the most part, getting in the way
  of a customer using the content at best or breaking their
  computers at worst.

• Media companies are trying to protect a very large, existing, stream
  of income based on an old business model that the Internet is
  rapidly eroding.
                                        High Context Consulting. www.highcontext.com
Problems with DRM

• A small number of people refuse to buy products with DRM. They
  will even actively discourage people from buying these products,
  which is worse.

• Some portion of customers who do buy DRMed products won’t be
  able to use them if the technology is incompatible with their
  computer (I’m looking at you, Mac people!).

• It will cost you, the publisher, money and effort to implement DRM.

• Many DRM schemes get in the way of customers using the content
  fully or for very long. No print PDFs, expiring PDFs, files that
  require a key or password to access each time, etc.
                                        High Context Consulting. www.highcontext.com
You do not need to act like a big media
executive just because they do.
Where Do Small Publishers Typically Fall?

                No DRM       DRM Protected




                Big Sales!     Sales!
  High Demand




  Low Demand     Sales!      No Sale!
But what if someone shares our content with
someone who didn’t pay for it!
You should be so lucky.
Benefits of No DRM Digital Products

• No barriers to use by anyone who purchases them.

• It is easy to implement! No costly or challenging technical issues
  for the publisher.

• Some copies will be shared, spreading word of your brand to
  those who might not have seen your value before. This is not the
  end of the world! It’s even good for you!

• Most people are willing to not be criminals if there is an easy way
  to do so. (iTunes, for example.)

• You’ll sell more. I always like increasing revenue while reducing
  costs. How about you?
                                        High Context Consulting. www.highcontext.com
Some Things You Can Do without DRM

• Include language in the product encouraging anyone viewing it
  who did not pay for it to buy their own copy so you can continue
  to make more good things for them.

• Dynamically add the purchaser’s name to the product, indicating
  it is licensed solely for their use. (CON: This gets a bit technical
  but has worked for some small publishers.)

• Sell the rights to share. 5 packs, enterprise licenses, etc. Make it
  easy for your customers to not be criminals.

• Market the lack of DRM as a benefit! “We trust you!”

                                         High Context Consulting. www.highcontext.com
About C. David Gammel

• David is a consultant who helps his clients to use the Web
  effectively in support their overall goals.

• David really doesn’t like DRM and believes it is harmful for most
  small publishers.

• David writes a blog: http://www.highcontext.com/weblog/

• David (I love the third person) asks you to share this set of slides
  with anyone you think might benefit from the content. David
  trusts you! It’s perfectly legal!


                                         High Context Consulting. www.highcontext.com
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Why DRM is Stupid for Small Publishers

  • 1. Why DRM is Stupid for By C. David Gammel www.highcontext.com Small Publishers
  • 2. Origins of Digital Rights Management • Customers did not cry out for effective copy protection technology on the digital products they buy! • Big media executives, however, did cry out for it once they figured out how easy it is to copy and distribute their files. • Early DRM efforts were horrific for the most part, getting in the way of a customer using the content at best or breaking their computers at worst. • Media companies are trying to protect a very large, existing, stream of income based on an old business model that the Internet is rapidly eroding. High Context Consulting. www.highcontext.com
  • 3. Problems with DRM • A small number of people refuse to buy products with DRM. They will even actively discourage people from buying these products, which is worse. • Some portion of customers who do buy DRMed products won’t be able to use them if the technology is incompatible with their computer (I’m looking at you, Mac people!). • It will cost you, the publisher, money and effort to implement DRM. • Many DRM schemes get in the way of customers using the content fully or for very long. No print PDFs, expiring PDFs, files that require a key or password to access each time, etc. High Context Consulting. www.highcontext.com
  • 4. You do not need to act like a big media executive just because they do.
  • 5. Where Do Small Publishers Typically Fall? No DRM DRM Protected Big Sales! Sales! High Demand Low Demand Sales! No Sale!
  • 6. But what if someone shares our content with someone who didn’t pay for it!
  • 7. You should be so lucky.
  • 8. Benefits of No DRM Digital Products • No barriers to use by anyone who purchases them. • It is easy to implement! No costly or challenging technical issues for the publisher. • Some copies will be shared, spreading word of your brand to those who might not have seen your value before. This is not the end of the world! It’s even good for you! • Most people are willing to not be criminals if there is an easy way to do so. (iTunes, for example.) • You’ll sell more. I always like increasing revenue while reducing costs. How about you? High Context Consulting. www.highcontext.com
  • 9. Some Things You Can Do without DRM • Include language in the product encouraging anyone viewing it who did not pay for it to buy their own copy so you can continue to make more good things for them. • Dynamically add the purchaser’s name to the product, indicating it is licensed solely for their use. (CON: This gets a bit technical but has worked for some small publishers.) • Sell the rights to share. 5 packs, enterprise licenses, etc. Make it easy for your customers to not be criminals. • Market the lack of DRM as a benefit! “We trust you!” High Context Consulting. www.highcontext.com
  • 10. About C. David Gammel • David is a consultant who helps his clients to use the Web effectively in support their overall goals. • David really doesn’t like DRM and believes it is harmful for most small publishers. • David writes a blog: http://www.highcontext.com/weblog/ • David (I love the third person) asks you to share this set of slides with anyone you think might benefit from the content. David trusts you! It’s perfectly legal! High Context Consulting. www.highcontext.com