Digital Identity

Apple iTunes: A Case Study in DRM

Apple's iTunes and its associated music store provide a real-world example of DRM in action. iTunes will play unprotected MP3 format audio files, but when a user purchases music form the Apple music store, the audio file is downloaded in a format called AAC. Apple wraps the AAC file in a DRM system called Fairplay. The standard rights allow a purchaser to listen to the song in an unlimited way on up to three computers and to burn the song to a CD.

This set of rights was chosen to try to match the value that user's place on the audio file to the price Apple wanted to charge. For example, Apple could disallow burning AAC format songs to CD, because they control the client, but that would decrease the value of the file for many people.

Apple also has to be able to administer rights remotely to provide customer service. For example, if I purchased a song, installed it on three computers, and then sold one of those computers and bought another, I can contact Apple to have the rights reset on my music collection, allowing it to be installed on my new computer. Without this ability, audio files purchased on iTunes would quickly lose their value as people upgraded their computers.

This case study is a good example of the additional burden placed on a company in controlling access to content using DRM. Restricting rights for content costs real money, because the content has to be administered and it reduces the value of the content to users.