Digital Rights Management ( DRM ) system are used on things like ebook and picture files to make them more difficult to share . During the Napster era the major record label got on board with Defense Reutilization and Marketing Service in a large way hoping that they could reduce piracy by lock their music lodge down . But a unexampled study render what we ’ve all thought for a recollective fourth dimension . It does n’t serve . And in fact it DRMs hurt sales .
A newpaperpublished byLaurina Zhangat the University of Toronto shows that revenues from digital music increase 10 percentage when labels drop DRMs . The revenue increment can be as high-pitched as 30 percent for album that deal low and retard over a recollective period , and there is no difference for the mellow - sell albums .
The research was possible because all four major labels have scenarios where they used DRM and then eventually dropped it on the same record album . Zhang read :
I exploit a natural experimentation where the four major record book companies – EMI , Sony , Universal , and Warner – remove DRM on their catalog of music at dissimilar meter to examine whether relax an album ’s sharing restrictions impact the spirit level and dispersion of sales event .
The longer a production ’s “ tail , ” meaning the longer it sells consistent numbers , the more remove DRM increases revenue . This may be because less democratic medicine do good much more markedly from single sharing compared to mainstream smasher . Time to swap some tunes . [ TorrentFreakviaTechMeme ]
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