DIGITAL RIGHTS MANAGEMENT (DRM) WITHIN THE MUSIC INDUSTRY AND HOW IT AFFECTS CONSUMERS

Transcription

1 DIGITAL RIGHTS MANAGEMENT (DRM) WITHIN THE MUSIC INDUSTRY AND HOW IT AFFECTS CONSUMERS University of Southampton Southampton ABSTRACT In this paper we will discuss the effects that digital rights management has upon the music industry. Whether it hinders the consumers experience and whether there is any actual benefit for the record company/producers of having DRM protected content. In addition we will be looking at current DRM systems and how they work, as well as looking into why people download music illegally and reproduce/distribute it. Finally we will be looking at future work within the field of Digital Rights Management, as well as the proposal for a new type of system. 1. INTRODUCTION Ever since there has been the medium for storing and playing back music people have been sharing it. Whether by lending a friend a CD or by burning them a copy of a CD. In addition to this, with the progression of the Internet and with digital media, there is the possibility of downloading music both legally and illegally through such sources as Peer to Peer Networks. With the introduction of Digital Rights Management systems, has the consumers listening experience become hindered? For example, if the user downloaded music from itunes to listen to on their ipod and then decided to move away from Apple products and use software such as Windows Media Player, their music catalogue would become obsolete and thus they would have wasted their money. We also need to pay attention to music being downloaded illegally, whose responsibility is it that the music has been downloaded? Is it the consumer or is it the subject that provides the means to illegally download the music? However, many current Digital Rights Management systems have problems, we will look into these and decide what decisions can be made to combat the problems that they have. 2. FILE SHARING AND ITS ROLE WITHIN DIGITAL RIGHT MANAGEMENT In recent years there has been a major increase in the number of online music stores. These online music stores are in particular targeted at members of society who have switched to digital music libraries for the majority of their music, with many of these downloading their music through different mediums, whether it is legally or illegally. In addition to this, they use different devices for the storage and playback of their music libraries. Due to this and the sharing of music that goes on, the music industry has introduced Digital Rights Management (DRM) to control access to this digital content. [4] In recent years the number of sales within the music industry has decreased. The main reason for this is the amount of illegal file sharing that has been taking place. This illegal file sharing has predominantly taken place on Peer to Peer (P2P) networks. These networks have enabled users to acquire almost any digital content they want, quickly, easily and at virtually no expense. [3] There are then a variety of choices the user has with what they can do with their digital content. For example, they can upload it to their personal MP3 player or write it to a CD, or they can even put it in a file sharing folder on a P2P network so that another user can then download it from them. Before the Internet, there were two main ways that a music consumer could acquire music; this was by recording the music from the radio or by buying a tape or CD. Copying was also very time consuming and the quality of the copy was inferior to the original. [3] Nowadays however, copying is a lot cheaper and easier as well as less time consuming, the quality of the copy is also comparable to that of the original. It must also be stated that copying does imply major risks for consumers; these risks however are perceived as being too low to discourage many in downloading and copying music. [3,4] It has also been proved that obtaining music files legally does work, the fact that itunes sold more than 1billion music downloads in its first few years of being active. This shows that consumers are willing to pay for music despite the fact that the same copies are freely and easily available. [3] It should also be taken into account the trends of downloading music, is there any correlation in the number of illegal downloads with regards to age? [4]

2 As well as whether there is any correlation between a consumer s income and their method of acquiring music. In order to investigate the situation regarding Digital Rights Management we have to compare the differences in digital content and a conventional CD. The first characteristic is indestructibility. For example a digital file is not going to deteriorate like a physical medium for storing music, such as a CD, which over a number of years is going to lose its quality and may not play. The second is the fact that a digital file can be modified or customised. The format of the music file can be changed, e.g. from MP3 to WMA or vice versa. This also leads to easier copying and sharing of music. The third is reproduction; a digital music file can quickly and easily be reproduced without any loss of quality. However, it is also possible and not very time consuming to copy a CD, but there may be the risk of losing some of the quality of the file. The fourth is divisibility; this means that it is possible to break up a digital file into smaller pieces which can be used in other places. [3] Copyright provides more of a base for protecting content against illegal reproduction and distribution, whereas DRM systems are used to limit the distribution. [1] For example, the number of times that the music file can be burnt onto a CD or can be put onto a personal MP3 player. Figure 1 shows the main components in a DRM system. In this type of system, limiting access is applied using an external server. One of the main problems that DRM systems face is, the code and architecture of the digital data must be changed in order to be able to protect it using a DRM system. Furthermore it is possible to use a web based license server for DRM systems, such as that of the Microsoft Media DRM system. The file formats that are used by Microsoft contain the support for DRM within their structure. This type of system is designed to provide secure distribution of audio content over a network to a consumer. [10] Figure 2 shows an example of using a web based licensing server and how the files have built in support for the DRM system. [2] 3. CURRENT DIGITAL RIGHTS MANAGEMENT MODELS Existing DRM systems do not currently protect digital data to the full extent that is needed. The main objectives for the music industry are income for artist s work, distributing the artist s work and rights of the work. There are a number of different types of digital rights management systems. Such as itunes FairPlay system and Windows Media DRM. [2] However, they essentially all work in the same way. Figure 2: Microsoft Media DRM Architecture. [10] Figure 1: Main Components of Digital Rights Management Systems. [10] With regards to Online music stores there are two main types; the first type is one like Apple s itunes, where users can download single tracks as well as being able to buy whole albums from an artist. The other is a subscription service, such as having a premium account with Spotify. The latter is one in which consumers pay a flat monthly fee subscription for the privilege to stream music directly from the internet. [1] Alongside this, users are now able to purchase music through a partner company called 7Digital. Listeners do not own any of the music

3 unless they decide to purchase it online from 7Digital. With regards to sites such as itunes, DRM sets the number of devices that a music track can be played on. As well as this, it also determines the type of device that it can be played on. The system that Apple currently uses controls the value of the music files that are downloaded from its site, all the way from the download on the itunes website to the player that it is stored and played on. Therefore, if a user decides to switch from using Apple s software and MP3 player their entire music catalogue that they have purchased from Apple will be unusable. Apple does provide music files at a competitive price but has a very strict DRM system. [1] Existing online music stores operate using a file format that locks the consumer into a single file format, a specific music player and specific playback device, such as an ipod. This means that many of the music files can only be reproduced on a personal computer and not redistributed, or can only be distributed a limited number of times. [3,5] 4. CONSUMER BEHAVIOUR AND TRENDS IN MUSIC. The discovery of new music is important to online music purchasing and to the artists themselves. The discovery of music can be achieved through a number of ways. The first is by listening to the radio. Many listeners will hear new music on a radio station and if it appeals to them they may go ahead and purchase the music. In addition to this, many consumers find new music from friends, magazines and newspapers, live performances and websites such as music stores. [1] An example of one of these online music stores is Amazon, when a purchase is made it will show a list of what people who have purchased one product have also purchased or have liked. Websites such as MySpace Music are also beneficial to the discovery of new music, as artists can upload information about themselves as well as being able to upload a sample of some of their music. During some promotional periods (e.g. before an album release) an artist may include their whole album on MySpace for a consumer to listen to before they decide whether to buy the artist s album. Because the value of a song can only be decided after it has been listened to a number of times there should not be the requirement of monetary compensation to the copyright owner. The copyright owner can claim the monetary compensation through other methods such as advertising [1] and subscription to music services such as Spotify. However, according to a recent magazine article, Spotify gives the artist pence for every play that the artist gets. [13] In addition to streaming music with subscription services, many users can experience new music through websites such as itunes who on a weekly basis offer a single of the week which they offer as a free download. This is just another way that consumers can discover new music. Figure 3: Consumer activity cycle adapted to the music consumer. [1] Figure 3 shows the cycle that a music consumer goes through when they discover new music through one of the mediums afore mentioned, the possibility of purchasing the music, and then listening to it within their music library and their portable device. Coupled with this, there is the issue of sharing music. The copyright act states, exclusive rights are granted to copyright owners to deal with their copyright works. However, certain uses of copyrighted material will not infringe copyright; these uses are described as fair dealing or fair use. [5] This breach of copyright primarily involves the use of P2P networks, and allows a user to directly access files stored on the computer of another user. The software is generally free to download and works by linking the computers of file sharers directly to each other. The music industry has stated that those that are providing this software are authorising copyright infringement. [5] However, it has been argued that the unauthorised downloading of music is detrimentally affecting the industry as well as being a breach of copyright. The area of economic detriment from file sharing is a contested area of research. As well as this, downloading has not displaced the purchase of CDs or going to concerts. [5] After a study was carried out it has been shown that the Internet has radically altered the strategy of record companies in the way that they distribute music. Thus affecting the way that the consumer, distributors and artists interact.

4 customers. Figure 5 shows the link between Fair Use, DRM and consumer s music activities. It shows how there is an ambiguous link between the consumers activities and Fair Use whilst there is the sharing is being restricted when DRM is brought into the equation. Figure 4: Characteristics of Samples analysed in Study. This study was carried out at the height of P2P network Napster. It shows a detailed illustration of a specific aspect of the development of music. Figure 4 outlines a sample of people who download music and the way in which they do this. However, because the study was carried out at a University it shows that there is a majority of students [4] (within the study) who download music. It also outlines the percentage of the sample that legally download music from MP3 sites as well as those who use P2P networks to obtain music illegally. Many of the participants of the study have stated that listening to music online is convenient. As well as this, they also state that the use of the Internet and digital technology alters the process of music consumption, by doing away with some of the conventional processes that may have once before been involved. For example, going into a store and purchasing a CD. Many have also commented that downloading is convenient. As well as being able to download music you can be engaged with doing something else. Another typical feature of downloading music is the ability to discover new music at the same time. Music enthusiasts are particularly attracted to listening to music online as there is a wide array of music libraries available. In addition, another attraction to online music is that it can be obtained freely as promoter s music pricing policy has made consumers search for alternative ways to listen to music, even if it means breaching copyright laws. With regards to being able to download music whilst doing something else, using file sharing programs coincides with using the Internet. People do not tend to go online solely to download music. Typically they will search for and download music whilst they are talking on programs such as MSN messenger, Skype or websites such as Facebook. [5] The nature of P2P networks is that they exist while other activities are taking place. DRMs, as they are currently used, restrict personal use activities such as file sharing, as well as restricting the way that consumers experience music. Therefore a certain negative aura is developing between the music industry and its Figure 5: Link between, fair use, DRMs and consumers music activities [5] 5. FUTURE WORK Current problems with DRM systems can be solved by introducing the possibility of being able to install different kinds of DRM on a Portable Audio, Visual Device (PAV). There is also the option of having data exchange between different DRM systems. For example, a system that can be used to exchange content between one DRM system and another DRM system. This exchange of content between the two DRM systems could be carried out by using neutral formats, in which two DRM systems could make adaptation from their own DRM content. We will assume that DRM 1 uses different content from DRM 2. The first step is to take the content from either one of the DRM systems and change it to a neutral format. Secondly the neutral format has to be taken and changed into the target format. We need to take into consideration that the neutral DRM format only exists during the adaptation process. The adaptation concept is described in a diagram in Figure 6.

5 Figure 6: DRM content adaptation concept [7] Figure 6 demonstrates how the content from one DRM is converted to the neutral DRM content and sent to a Personal Audio Visual Device with another DRM content, and then changed into the target format. The detailed process of the adaptation process is as follows: 1. DRM client 1 a. DRMs content unpackaged b. Sends content to source adaptation model 2. Source adaptation model a. Receives resources from DRM client 1 b. Packages resources into DRM content in neutral format c. Sends neutral DRM content to target adaptation module 3. Target adaptation module a. Unpackages neutral content b. Sends unpackaged content to another DRMs Personal Audio Visual device s manager 4. Another DRMs Personal Audio Visual device manager a. Packages into its own DRM content and sends to corresponding device. [7] Figure 7 shows a diagram of the content adaptation process, as described above in the detailed adaptation process. Figure 7: DRM content adaptation process [7] Despite this idea it is not feasible to say that all Personal Audio Visual devices would conform to one DRM standard even after it was broadly deployed. Many PAVs would continue to conform to one DRM standard. [7] Other possibilities of future works within DRM are the introduction of Self Licensing DRM (SLDRM). SLDRM is concerned with all licenses for content being stored locally, therefore there is no need to have a connection to the internet. It provides a method to prevent some parts of target applications from accessing some protected files, in order to achieve the most suitable control over target application inputs and outputs to provide a highly trusted DRM system. The SLDRM system uses a new encryption system based on the AES and RC4 standards and uses 512 bit encryption. In addition, it uses a combination of owner hardware signatures and project names which generate keys for encrypting the content. The license codes that have been generated are then encrypted using the user hardware signatures, therefore providing control over license distribution for the content. [10] 6. CONCLUSIONS Many existing DRM systems have problems. These problems include issues such as the control of content. As well as this, it can be complicated to control the content if there is no active Internet connection. Hence the possibility of having self licensing DRM. Self Licensing DRM would be beneficial to content providers as well as the users because there would not be the need to modify any of the content for playback on a personal device. [10] There is also significant proof that despite the fact that reproduction and distribution of music content is going on, consumers are prepared to pay for downloads legally, as well as be willing to pay extra money for these downloads if copying music was not actually available. [3,4] Music sharing has been around as long as the medium for storing music has been around. In a survey ( , before DRM actually existed) over 1/3 rd of people swapped tapes, CDs or records with each other. [5] It has always been in large disrepute that the downloading of music tracks has had a detrimental effect on the music industry. However, the main public music activity is going to see live music performances at concerts and gigs.[5,9] It is also seen that record companies also have the option of gaining money from means such as advertisement. [1]

6 Therefore, does Digital Rights Management actually help the music industry in stopping consumers from copying and redistributing music or does it just hinder the consumer from doing what they want with content that they now actually own? 7. REFERENCES [1] Chorianopoulos, K. Barria, J. Regner, T. Pitt, J. (2005). Cross Media Digital Rights Management for Online Stores. Proceedings of the First International Conference on Authomated Production of Cross Media Content for Multi-Channel Distribution. [2] Feng, M. Zhu, B. (2008). A DRM System Protecting Consumer Privacy. IEEE Communications Society subject matter experts for Publication in the IEEE CCNC 2008 proceedings. p [3] Fetscherin, M. (2006). Economics of Online Music and Consumer Behaviour. p [4] Fetscherin, M. Lattemann, C. (2007). Motives and WIllingness to Pay for Digital Music. Proceedings - 3rd International Conference on Automated Production of Cross Media Content for Multi-Channel Distribution, AXMEDIS 2007 p [5] Jackson, M. Singh, S. Waycott, J. Beekhuyzen, J. (2005). DRMs, Fair Use and Users Experience of Sharing Music. p8-15. [6] Jeong, Y. Kim, J. Yoon, K. (2008). Audio DRM Conversion between Different DRM Content Formats. Digest of Technical Papers - IEEE International Conference on Consumer Electronics, 2008, 2008 Digest of Technical Papers International Conference on Consumer Electronics, The Mobile Consumer, ICCE [7] Jeong, Y. Kim, J. Yoon, K. (2007). DRM content adaptation scheme between different DRM systems for seamless content service. Proceedings of the 2007 IEEE International Conference on Multimedia and Expo, ICME p [8] May, C (2007). Digital Rights Management: The Problem of Expanding Ownership Rights. Oxford: Chandos Publishing. [9] Odlyzko, A. (2007). Digital Rights Management: Desirable, inevitable and almost irrelevant. p [10] Sharifi, M. Lajevardi, B. Gholami, O. (2008). SLDRM: A Self Local License Digital Rights Management System Second IEEE International Conference on Digital Ecosystems and Technologies. p1-6. [11] Umeh, J (2007). The World Beyond Digital Rights Management. Swindon: British Computer Society. [12] (2009, December). My Gadget Life: Calvin Harris. Stuff Magazine. P52.