It is hardly surprising that Publishers, like record companies and movie studios, try to cling to old but profitable business models. They envisaged technology as leading to some sort of DRM heaven, where they could sell products with all sorts of limitations to suit their marketing needs. Work during the week? How about a discounted ebook or movie you can read or watch only on a weekend? Or that expires after a year? The possibilities must have seemed endless. Until reality caught up.
There are currently a number of DRM systems and I have not kept up to date with them, but when last I looked ebooks protected by all systems except Apple's could have the DRM removed relatively easily. And I will be surprised if Apple's system lasts for long. Hackers see these systems as a challenge, and are prepared to devote substantial time and effort to beating them, even in the absence of monetary reward. And now there are people and organisations with significant investments, albeit illegal ones, to fund the defeat of these systems. So it is extremely doubtful that any DRM system will work for long.
The miracle at the moment is that despite how easy it is to remove DRM from ebooks, or download unprotected ones, the vast majority of people simply don't. EBook sales are thriving, despite ridiculous pricing and even collusion. I would not like to own a traditional bookstore at the moment, as in the longer term I see no need for a physical retail shop which sells computer files. A very few will probably survive and continue to sell printed books, but to a drastically reduced market.
Publishers are terrified, and for good reason. An important part of their function up to now has been arranging for the actual printing and distribution of the books. This is a role which is declining in value. A computer literate author is capable of producing an ebook ready for the market. There is no need for it to be printed. And distribution does not now need to involve access and physical delivery to bookshops. Theoretically, an author could set up their own web-site and keep all the profits from their bestseller. In cases of very well established authors, this may well work. Someone like, for instance, Stephen King, may be able to carry this off. But for new authors and those without such an illustrious reputation, how would potential readers find their ebooks? Instead of a relatively scarce supply of printed books, virtually anyone who fancies themselves an author can now produce a product ready for the market. The role that needs to be filled is that of filtering all of this information to a level where potential readers can cope with it. Publishers currently fulfill this role because they have always done so. However, they are no longer the best placed to do so. Some interesting things seem to be happening at Amazon with so-called "Indie" authors, and one must ask why in the longer term a site like Amazon would deal with a publisher rather than perform a publisher's other roles themselves at a much reduced cost. Likewise Apple with music. If publishers do continue to fulfill these roles it will be at a much reduced share of the overall profits. One would expect that these savings will be divided to some extent between the new publisher/online retailer and the author. Perhaps then authors will even be able to make some reasonable money on their books without them being best sellers.
I do not believe DRM is the answer. People who want to will always be able to pirate ebooks, and the market will need to take account of this reality. In an extreme situation where no one was prepared to pay for books, there would still be books produced, at least by Authors who simply loved to write. But this will not happen. It seems most people are prepared to pay for their ebooks and one would think that more will be prepared to do so if prices are more reasonable.
In the meantime we must all sit through the death throes of the old business model and the birth of whatever is to replace it. Books and to some extent movies now seem to be moving towards a subscription type system, but it is anyone's guess if this will work. I tend to doubt it.
I have not tried my hand at writing a book. I am not an author. However, I do hope that whatever model we ultimately end up with results in the author receiving a vastly increased share of any profits made.
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