DRM-Free Music Reduces Piracy, Marketing Study Claims

In this article, the authors investigate the impact of DRM restrictions on the demand for music downloads. [A new model] estimates the impact of DRM on consumers’ willingness to pay for songs (both favorites and nonfavorites) and on the producer revenues and profits. Based on two studies of more 2000 college students, the results suggest that despite the potential advantages offered by some DRM restrictions, on balance the elimination of DRM has a net positive impact on producer revenue, profit, and consumer welfare.”


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