Huesman: I think that it’s brilliant as well because it certainly represents a winning strategy.
It will be very interesting to see what the ripple effects continue to look like. I think the contradiction that some people have pointed out makes it all the more delicious and I think makes it all the more credible for him to be saying it. I think that it has much more impact than if it came from one of the industry insiders. I think that it’s absolutely brilliant on his part. It was just a question of who was going to say it first and how the industry would respond. I think this is a move that’s been a long time coming. Knowledge at Wharton: Steve Jobs has suggested that the record companies should drop DRM from their digital content. With the battle lines drawn between those who want to assure that digital content is controlled and those who think it is to everyone’s benefit if music files can be freely copied, we asked Wharton marketing professor Peter Fader, and Don Huesman, senior director of information technology at Wharton, for their views on the subject. Individual music companies, such as EMI, have stepped into the fray as well.
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The recording industry was quick to respond, indicating that it feels Apple, not DRM, is the problem, and urging Jobs to license its copyright-protection software, called FairPlay, to competitors. In the memo, Jobs stresses that the requirement to protect music from unauthorized copying comes not from Apple, but from those who own the content, primarily the “big four” music companies - Universal, Sony BMG, Warner and EMI - all but one of which are owned in whole or in part by European companies. On February 6, Apple CEO Steve Jobs added to the controversy by posting an open letter on Apple’s web site entitled “Thoughts on Music,” in which Jobs proposes that the recording industry simply do away with DRM all together. The issue of using hardware- or software-based digital rights management, or “DRM”, to restrict how music and movies can be copied or shared has spurred fierce debate between those who think DRM is essential to protect content from unauthorized use, and those who believe it undermines consumers’ rights to do whatever they want with the content they purchase.
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