sony


So the big news is that Sony BMG has announced that it will begin some arrangement for selling its music without DRM; details to follow. See the Business Week article for details. This means all four major record companies have begun to let go of DRM. EMI was the first, selling some of its catalog DRM-free through Apple’s iTunes Music Store. Universal partnered with Amazon in the fall and is rolling out its own TotalMusic service (the idea there is that a low subscription cost would be bundled into the cost of mp3 players — read: not the iPod). Warner offered some of is catalog to Amazon in December, and its alt-label Nonesuch has begun providing DRM-free mp3s with the purchase of CDs.

It is important to note that none of these labels are making their entire catalogs available without DRM just yet, so this is still toe-in-the-water time. Subscription services like Ruckus are still using DRM, as is Apple. Many of the online video providers remain committed to DRM. However, for the major record labels, who have for years been so vociferously committed to DRM, to change their policy like this suggests that the DRM issue has substantively shifted.

It would be nice to think that this move was precipitated by consumer activism, the ideological challenge of alternative models, or (dare I say) scholarly critiques. Sadly, I don’t think this is so. It’s possible that some of the activism against DRM helped focus attention on the problem of consumer frustration, though this is not the same as making the case that DRM is politically or culturally problematic. Rather (and this seems to often be the real story) it is business interests that are accidentally solving the problems caused by business interests. DRM first seemed to the labels like a viable barrier to online file-trading — and, as I have argued, it may have promised to act as a powerful new tollgate for attaching a price tag to more dimensions of music use. But this depended on hardware regulating the use of content. In a way, DRM worked too well: by inserting the hardware into this position of importance, it handed a great deal of power to hardware makers. When one emerged — Apple — who was willing to  enter the music-selling business, had a hot technology people wanted, and a powerful cultural ethos, suddenly they were at the center point of this mechanism of sale and control. DRM locked the content to the hardware, helping to drive sales of the iPod and cement Apple’s place in the digital music market. Apple could negotiate with the labels in a way that individual consumers could not. Now the labels, especially Universal, are miffed that Apple won’t budge on how they price their songs, and are finding it more advantageous to join with Amazon or experiment with new models themselves.

I spend much of my teaching and writing suggesting that cultural discourse is important, that the way we characterize issues of public importance can change how we deal with them, that civic participation is vital to bringing about progressive change. But I can’t help but acknowledge that all of that may pale in comparison to how the shifting efforts of corporations in the pursuit of profit brings about change — change that can occasionally have socially beneficial results, as in this case, but almost always accidentally, as an incidental benefit of the play of the market.

(Many apologies for the recent hiatus; life got ahead of me. And happy new year.)

Sony introduced Crackle yesterday; it’s their overhaul of Grouper, a user-generated video site a la YouTube that Sony bought for $65 million last year. Crackle is now designed to offer not “amateur” web video, but the work of aspiring filmmakers and animators.

Farhad Manjoo at Salon pointed out yesterday that part of what Sony is offering is the benefits of its own diverse corporate assets:

The company is now leaning on what MBA-types might call “synergy.” Sony owns many entertainment properties — movie studios, record labels, a huge video game business — and can thus offer attractive rewards to creators looking for more than YouTube fame.

The rewards Crackle offers to filmmakers for uploading their videos include a potential pitch to Columbia Pictures, a two-day apprenticeship at Sony Imageworks Animation Lab, and a night performing on the stage of The Improv. As far as I can tell, Sony does not own any of The Improv, but is certainly in a position to negotiate sweet deals with partner organizations to assemble its rewards for its content providers, not unlike what they do for Survivor or Project Runway. User votes will decide who receives these rewards in various categories.
I just wanted to point this out; I suspect you will see more about Sony on this blog in the months
to come. What we’re seeing is a series of corporate players working out the viable economic and cultural positions they’re willing to occupy and their customers are willing to embrace, all amidst the shifting dynamics of digital culture: changes in the economics of information and distribution, current re-thinking of the evaluation of amateur and professional expertise, the appropriate relationship between culture and commerce. One viable intersection point seems to be the YouTube model: company makes possible the uploading of content and the maintenance of the community that forms around it; advertising is delivered alongside for the purposes of revenue. Another seems to be this contest model, where company hosts content loaded there in pursuit of rewards, viewers are offered both the content and the role in adjudicating the contest. Farhad’s observation is one reason why I think this is an appealing model to the Sony and the like: the contest can also deliver, dirt cheap, the cream of the crop into their entertainment / star system, and presumably on their terms — just like American Idol contestants winning exclusive but restrictive recording contracts with a Sony/BMG sub-label and a management contract with Simon Fuller’s 19 Entertainment. User-generated content also becomes a form of A&R, with user votes replacing the assessments of music label reps.
I think Sony is in an intriguing, though perhaps not unique, position in regards to these maneuvers — being a company that offers content and tools, hardware and software, computational technology and consumer electronics.