June 21, 2004
Consumers versus DRM

Suw links to Cory's presentation to Microsoft on Digital Rights Management:

When MP3 rolled around and Sony's walkman customers were clamoring for a solid-state MP3 player, Sony let its music business-unit run its show: instead of making a high-capacity MP3 walkman, Sony shipped its Music Clips, low-capacity devices that played brain-damaged DRM formats like Real and OpenAG. They spent good money engineering "features" into these devices that kept their customers from freely moving their music back and forth between their devices. Customers stayed away in droves.

Today, Sony is dead in the water when it comes to walkmen. The market leaders are poky Singaporean outfits like Creative Labs -- the kind of company that Sony used to crush like a bug, back before it got borged by its entertainment unit -- and PC companies like Apple.

That's because Sony shipped a product that there was no market demand for. No Sony customer woke up one morning and said, "Damn, I wish Sony would devote some expensive engineering effort in order that I may do less with my music." Presented with an alternative, Sony's customers enthusiastically jumped ship.

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hey, think you've a gmail invite to spare? :)

Posted by: ting on June 22, 2004 10:14 AM
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