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Let’s face it, DRM is a completely flawed concept. The only purpose it serves is to fatten the wallets of wealthy studio executives and deprive the hard working consumer of some much needed cash. The worst part is that consumers have to deal with incompatible DRM formats which forces them to carefully evaluate what music device to purchase. In most cases, you only have 3 options:

1. Use iTunes and purchase only iPods
2. Use Urge and Zune only
3. Go with the outdated PlaysForSure (e.g. most other portable audio players)

The fanatic consumer is bound to stick with the venerable iPod manufactured exclusively by Apple. Savvy-less consumers would fail to realize that by purchasing the iPod, you may only purchase legal music through Apple’s own iTunes store. That means, you are stuck paying approximately $0.99 per track or $9.99 per album, generally. I think the rates charged by iTunes is acceptable but not at all enticing. What is worse is Microsoft’s approach with the Zune. Zune’s store, in junction with Urge, requires you to purchase “Microsoft Points” prior to purchase. This allows you to synchronize your purchases with Microsoft amongst your Xbox/Xbox360 and your Zune. Good luck with all those complexities.

BusinessWeek has an article that talks about how some consumers are standing up against the frivolous RIAA lawsuits against hapless consumers. By using DRM, the major labels and stores force you to use certain products and services and severely limit interoperability. So how does that affect you? Let’s say you were a long time iTunes customer with approximately 200 legally purchased tracks at $0.99 each. That means, you have invested approximately $200.00. Say you were in the market for a new mp3 player and you wanted to buy a Zune this time around. The problem is that all those tracks from iTunes would be rendered completely useless because they would not function on the Zune. However, you could still listen to the iTunes tracks using iTunes only. Now do you see how Apple has effectively locked you into a model that will prevent you to transfer your music to another device not manufactured or approved by Apple. In essence, you have simply wasted $200 and have no choice but to purchase pricey iPods.

Does that mean you should pirate music? Of course not. However, if you do, you do so at the risk of facing a lawsuit from the RIAA. Most of these lawsuits are settled out of court for roughly a few thousand dollars. The question that lingers is, is it worth it? I know many people who illegally download music and are perfectly fine. They take steps to ensure that the risk of getting caught is minimal, however, they still have the risk. In my case, I do not download music anymore since I have found that there are about 12 different internet radio stations that provide me with some great music. I primarily use my iPod to listen to many of the CD’s that I have legally compiled over the years.

Unfortunately, there is no solution in the near future. Apple will continue to force consumers to stick to iTunes and iPod and Microsoft will follow suit with their own service. I cannot imagine this system lasting very long, however. Already, some major music labels are already experimenting with DRM-free MP3 tracks. I personally think that the price for tracks and albums needs to fall to a level that would be equivalent to or below the opportunity cost for consumers. Look at it from this point of view. If I can wait 2 hours and download the album for free and save $9.99, why wouldn’t I do that? Sure, I can be legal by purchasing through iTunes, but if I “pirate” the album, I can now listen to the album on any portable audio device of my choice and transfer the songs to multiple machines that I own without any complications. That is how many consumers are starting to look at this dilemma and the major music labels and the different electronic store-fronts need to address this issue in a manner that is ultimately favorable to the consumer.

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