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  Microsoft Technology May Face Obstacles
Time: 19:24 EST/00:24 GMT | News Source: Associated Press | Posted By: Robert Stein

By Christmas 2003, some recording companies expect to be selling compact discs wrapped in technology from Microsoft Corp. and other companies in an effort to protect both copyrights and the bottom line. But depending on how restrictive the record labels choose to be, consumers may spurn the CDs. And ultimately, Microsoft's latest move to help drive adoption of its newest version of Internet audio and video software risks falling flat, analysts say.

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#1 By 11888 (64.230.17.244) at 1/23/2003 10:54:09 PM
Yes, that's right. People would rather have CDs they can't put in their computers at all. That's exactly what they are saying.

#2 By 2332 (65.221.182.3) at 1/23/2003 11:26:20 PM
No, what they're saying is that people would rather have CDs they can steal. Since record companies will not allow this to continue for much longer, the only alternatives are CDs using some kind of copy protection.

Since the Microsoft option is by far the best, least intrusive option - an option that still completely allows for fair use - people who reject it will likely either have no music, or music on a CD that prevents their own fair use.

I see technology like Microsoft's becoming much more common place, but since Microsoft is the first with their hat in the ring, it is likely that it will be their technology that takes the lead, and thanks to the fact it's Microsoft, it will likely keep the lead.

#3 By 135 (208.50.206.187) at 1/23/2003 11:56:35 PM
I guess I have to disagree.

In my opinion, if the music industry wants us to accept DRM, they need to motivate me, as a consumer, to buy into it. That means I want something in exchange... quid pro quo, which is my right as a consumer as I hold the dollars that they want.

DVD's have DRM incorporated into them, and I don't have too many problems using them. I've purchased far more DVDs than I ever did video tapes. I have like 70 DVDs and maybe 6 VHS tapes but DVD offered me something new and better, which is why I was willing to go buy it.

What does taking the existing CD and incorporating DRM stuff which will very likely break many existing CD players gain me? Nothing, absolutely nothing.

Yeah, you could make an argument that without this the recording industry is going to vanish. But I am not convinced that even with this the recording industry is not going to vanish. Fact is, DRM on audio CDs is NOT going to reduce music piracy.

Now, it will make it slightly more inconvenient, sure... But since the audio is a analog signal, and has to be that way for our existing amplifiers to work... it is exceedingly trivial for me to simply digitize right off the analog line into an MP3 or whatever. Yeah, it'll take longer, it'll be somewhat of a pain dividing tracks... but who is to say someone won't build a CD player that is controllable to alleviate those concerns? It's not that hard.

Once I've digitized that audio stream... up it goes to Kazaa.

Now I don't pirate music, so what I'm saying is hypothetical. But from my perspective it sucks because I will be suffering as a legitimate buyer, paying out the same amount of money as before and again... That's not a fair trade, to me, as a consumer.

#4 By 135 (208.50.206.187) at 1/24/2003 12:07:12 AM
Ok, so here's my alternative.

Recording industry needs to reform.

First they need to cut prices....

This means they need to cut costs, and look at reducing their risk exposure to introducing new artists. Also rather than spending millions hyping up an album, they should rely instead on radio stations playing music of their own selection and from listener requests.

This latter move, I think will do two things:
#1. It will lower marketing costs dramatically.
#2. It will result in fewer vertical mega-hits, but instead spread sales across a larger horizontal market. i.e. fewer 10 million sales albums, but more 500,000 sales albums.

There also needs to be copyright reform through the music industry. Music should be treated more like the book publishing industry, i.e. authors hold rights to material and negotiate publishing contracts only.

This would mean a major shake-up... a lot of worthless middle-management will lose jobs. There will be fewer perks, fewer wild parties, fewer drugs and prostitutes. They'll have to start acting like a real business.

Will it happen? probably not. But in Capitalism there is much to be said for companies going out of business... it helps to reinvigorate markets.

#5 By 2332 (65.221.182.3) at 1/24/2003 12:12:43 AM
#4 - Soda - you make some good points. I think you're correct in your assertion that it is basically impossible to prevent music piracy. But just like Microsoft isn't trying to prevent all software priacy, I don't think the RIAA really believes that DRM will prevent all music piracy.

Making it a little harder... making the music sound not quite as good... making it take significantly longer to make that copy... these things can go a long way, especially since the majority of pirates are people without a clue.

This tactic, combined with audio/video released directly to the net with DRM built in (such as the new WMP 9 series DRM content), will help keep the recoding industry alive. I recently downloaded a movie and went to play it, but instead of playing, a little dialog popped up and said pay 99 cents and you can view the movie. (It was an independant film, not porn, so shut up. :-)

I came pretty close to clicking OK... the only thing that prevented me from shelling out the 99 cents was the fact these people wanted my credit card number. I didn't feel comfortable doing that with this new technology... but if they had a paypal button, I probably would have gone ahead and done it.

So, with CDs harder to copy, and DRM content being cheap and convienent, this two pronged attack on pirates will, imo, dramatically increase the recording industry's life time.

#6 By 1896 (216.78.252.109) at 1/24/2003 6:37:40 AM
RMD what should you supposed to be able to do with a CD you bought? I want to be able to play it in my car, my computer, my CD player etc. I want to be able to make compilation therefore copying a song to a new CD together with other songs from other CDs I previously bought and play it wherever I want. Would I buy music form the NET? Sure as long as I can use it the same way I stated above, I can buy a new PC and still playing it etc. If the music industry disagree they can keep their digital music and and most of these new "artists" that are nothing else but the result of a marketing campaign paying "music" I am sure we will not listen to twenty years from now.
Btw I am against the stealing of music or movies, if I disagree I just don't buy it.

#7 By 7390 (63.211.44.114) at 1/24/2003 7:53:50 AM
Soda you make some good points but I view this as too little too late.


Words for reality:
I use Kazaa, I download music that I didn't pay for. I have an extensive MP3 collection (20 gigs) that I didn't pay for. And there are many that feel the way I do! They simply won't pay $15 for a CD any more and get 1 good song.

The music industry has missed the boat and was/is slow to react. Technology is the enabler that will change the music industry and the way they do business. If they raise prices it will only force more people to stop buying and pirate more. The only other solution is to reduce price. They failed to react in a manner that benefited their listeners and are now paying the price.


Their problem is that MP3 (and the other music formats) by definition are portable. I have no need for CDs anymore!

1. I have an IPOD and Sony network walkman.
2. My car radio plays MP3.
3. My stereo receiver plays MP3.

#8 By 7390 (63.211.44.114) at 1/24/2003 10:32:38 AM
#9 BrianK, more like what? More songs on the album? More included promotional videos (after the first time that you see it it's not cute any more)? I beg to differ on the price not going down! Clearly buying a CD in it's current form is a dinosaur and sales will continue to fall as more people turn to files (MP3 and what ever have you). What alternatives to they have to remain competitive? And they can rule out subscriptions.

Here is part of the problem: the process of downloading music for free has become part of our culture. Most kids that have broadband use Kazaa or some other file sharing tool and they all have a CD burner. And these are the target audience of the music industry.


1. A 100 pack of blank CDs = $5.99 or sometimes free with rebate
2. Broadband = cost already incurred
3. Kazaa = free

OR

New music CD = $15

#9 By 135 (209.180.28.6) at 1/24/2003 11:29:32 AM
RedHook - "They simply won't pay $15 for a CD any more and get 1 good song."

1 Good song? What kind of crap are you buying?(or not buying?)

I'm picky about what music I buy, and I tend to not buy the top-40 crap. But one thing you have to remember is that just because the album only has one song on the radio doesn't mean the rest of the album sucks. A lot of artists that I tend to buy may have one song get airplay, but the rest of the album is solid. Radiohead's OK Computer was this way. Tori Amos has been this way on several of her albums. Sting, similarly...

One of the albums I've been playing a lot lately is David Gray's A Century Ends.... Not one song on that received massive airplay, but I think the album is better than White Ladder. Another one in my changer is Brothers in Arms by Dire Straits. You probably recognize the MTV song, Walk of Life and such, but those are the weakest songs on that album... the best never received air play.

Maybe the problem here isn't the recording industry, maybe the problem here is your ability to pick and choose good music. Anybody complaining about 1 hit wonders is letting the music industry decide their listening habits for them. I really don't have much sympathy for that position.

#10 By 14091 (63.236.113.66) at 1/24/2003 2:16:39 PM
I so agree with #11.

For all you "only 1 or 2 good songs" whiners I have two words applicable to most music stores......."Listening Stations".
Not listening to an album you're unsure of before you buy it is like buying a car without driving it first. You pay your money you take your chances.

#11 By 7390 (63.211.44.114) at 1/24/2003 2:42:22 PM
soda and Kevmo are not being practical. Granted that the musicians that you like may able to carry an entire album but unforntunately the ones that I like cannot. I am sure that you will find most listeners agreeing with me.

And as for picking better arist, I like what I like and usual that means 1 or 2 songs from an album. One solution is to make every song available for individulal purchase along the lines of #11. With some minor changes!

1. I don't want a CD, I want the music file instead (more practical). No one walks around with CD player any more.
2. Why should I pay for the ability to make copies of the music that I bought?
3. I also want the ability to "re-download" the file.

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