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Originally Posted by kranu
If companies don't continually update their DRM to stricter standards, they are punished.
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On the contrary. The companies who try to invent more restrictive DRM are losing sales. Games might be slightly different issue because they require a lot of interactivity. But since they started to sell DRM-free music the sales are doing fine. Books are even simpler than music and movies and it's impossible to make hard to break DRM system without seriously inconveniencing the reader.
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As a result, there are plenty of Amazon books floating around the internet, with the DRM removed. In this particular case, Amazon's loss is probably minimal enough so as to not deeply concern them.
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I am betting that 99% of cases when DRM is removed from Kindle books it is to read them on other devices (Sony, Kobo, Pocketbook etc.). Most people don't bother putting them on internet. They occasionally might give them to friends to read if they are interested. Usually they are not and never read them but spreading the book still works like a free advertisement.
If Amazon would drop DRM altogether it would not change anything. Implementing a stronger (unbreakable for a general layperson) protection and making it impossible to read on other devices would decrease popularity of this platform.