[QUOTE=Shalmanese]
Subscription style services are the only economic model that require DRM to work. The only way subscription style services can work is if you can shut off somebody’s music if they drop the sub. Otherwise, what’s going to happen is people are going to pay the $10, download every song they could possibly want onto local store and then drop the sub and listen to cached versions for the rest of the time. At 160kbps, you could store the equivalent of the entire 1 million song catalog of itunes onto a 3 terabyte HD taking 1 month to download at 10Mbps average transfer rate. Where’s the incentive to pay any more than that if you have the entire world’s music at your fingertips?
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My plan would be that this is just part of your ISP bill. If you want to be connected to the internet, part of that monthly ISP fee will go to pay royalties. And all reputable ISPs will collect royalties this way.
Of course there’s no difference between “streaming” and “downloading”. They’re the exact same thing, except a stream isn’t saved to your hard drive, just to your memory, and you tell your computer to throw away the information after you’ve listened. Sure, there could be some software/hardware solution where you can prevent people from saving streamed music, that’s what DRM is all about. Except these schemes will always be a pain in the ass, because they’re trying to prevent a computer system from doing something that is a trivial task…save a file to a hard drive. Which means no more general purpose computers, you’d have to make today’s desktop computer illegal to really kill “piracy”. And the idea is to throw out DRM completely, to stop fighting technology but embrace it instead.
Of course, you can save video as well, people do it all the time. Your TIVO or VCR allows you to download a streamed video, and play it back as many times as you like. So why aren’t movie companies terrified that people are getting HBO for a month and taping every movie shown? Because there’s always new movies, and after you’ve seen E.T. 30 times you’ll probably want to watch something new. Music is different, you can listen to the same album 100 times without getting tired of it.
If you toss out the “streaming” model, you toss out the fear that people will “download” music. You don’t CARE that people download that file and listen to it 5000 times on their local memory. The only information that needs to be sent is that the file was accessed 5000 times, so the creator of the file gets 5000 shares of this month’s royalty fund. A couple of gigs of memory on your player and you’ve got a full day’s worth of music. You only need to download something new when you change your playlist…your device downloads it and plays it from local memory until you delete the item from your playlist. Sure, for some things it’s much better to be sitting at home at your home media center with a broadband landline if you want to be sure of getting CD quality music. But if you’re listening on headphones on a mobile device you don’t need CD quality music. If you want to search out obscure tracks in CD quality you might get–gasp!–gaps in service if you rely on a wireless connection to a mobile device. But all you have to do is wait until you get home and you can download those obscure 1920s jazz tracks to your heart’s content, and preload them on your mobile device for later listening.
But this requires throwing out DRM, throwing out the concept of “copyright”, and embracing a world where it doesn’t matter where a file is stored or how many times you access it or where you got it from, as long as you agree to upload usage information for royalty purposes. And the fee for this isn’t from a separate subscription service, but rather just part of your monthly cable TV/ISP bill, which will probably be the same entity, and you can’t save money by opting out any more than you can save money by opting out of cable channels you don’t want.