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January 20, 23:29

$500 million or a reasonable notion?

Microsoft unveils new CD copy protection:

Universal Music and EMI, two of the biggest record labels in the world, "are very excited about this because it enables the industry to build a CD with their own protections built in," he said, speaking at the Midem music conference in southern France.

"Microsoft has invested $500 million in digital rights management, or DRM, for music, Fester said. The Toolkit was co-developed with technology partners Phoenix-based SunnComm Technologies and France's MPO International Group, he added."

Imagine how much cool stuff Microsoft could develop with those $500 million, if they just followed Apple's lead, and signed up to Steve Jobs reasonable notion: "Piracy is not a technological issue. It's a behavior issue".

Fed up yet? The way out starts at $999 in the snowy portable way. Or be thy more of a silver kind, it's just $1799.

Update: A great quote from an O'Reilly story of last year:

"I'm a Windows-only user and I plan to switch to the Mac on my next purchase because of XP's DRM approach. Using XP would be like voluntarily entering a jail cell and closing the door."

Challenge by Rasmus on January 20, 23:41

If Microsoft implements DRM, and Apple doesn't, no-one in their right mind will buy a Microsoft product again, ever.

Let's just hope that the music and movie industry lobbyists don't succeed in making DRM mandatory in the US.

Challenge by David on January 20, 23:44

Business 101: You don't make a half-a-billion-dollar investment if you don't intend to collect due rent. Microsoft already blew it on Passport, they can hardly afford another high-profile sinkhole.

Or at least I wish that's what they're thinking :)

Challenge by Morten Krog on January 23, 15:03

But Microsoft has a long history of throwing good money away: MSN, X-Box, Passport and several minor products as well. The recent fiscal reports from MS seems to indicate that only the OS and Office divisions are making money by themselves.

Challenge by David on January 23, 15:19

The important divide, however, is that Microsoft doesn't abandon money loosing projects. MSN, Xbox, Passport, and plenty of other non-profitable ventures are still in the Microsoft portfolio.

So even if the DRM strategy will be costly, Microsoft's behavioral history tells us that won't stop them.

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