by Mike Masnick
Wed, Oct 12th 2011 2:16pm
We've been noting for years that, contrary to the popular wisdom within much of the content industry, adding DRM to a product is not good for business. DRM restricts the legitimate buyer, thus making the product less valuable. When you take away value, it shouldn't be a surprise that fewer people are willing to buy. This seems obvious to some of us, but many companies still insist that DRM somehow increases sales. A new academic study has backed us up with empirical evidence that DRM hurts sales, and removing DRM actually tends to decrease infringement, because the product is more valuable to buy. Again, nothing in this research strikes us as that surprising, but we're wondering when the content industry will finally realize this basic fact about the counterproductive nature of DRM.
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