Apple needs DRM and Closed Platforms
I am a huge fan of Apple. They make great hardware as well as software, but when Steve Jobs wrote an “open letter” denouncing DRM I knew it was just a stunt. The reason Apple is doing well is because they work under closed platforms and DRM’s. Apple has created a monopoly within their own products and services.
iTunes/iPod: iTunes works exclusively with Apple products (ie iPod, iPhone). If you don’t have an iPod, then you can’t use iTunes to its full capabilities. The iTunes Store has DRM on its video and (most of its) audio files. I know Apple has added some DRM free music, but it’s just a PR stunt. If for some reason all of the major music labels went DRM free, Apple would be in serious trouble. People would no longer have to buy iPods to use the iTunes Store, which would indeed hurt iPod sales.
OS X/Computers: Why haven’t we seen OS X on non-Apple built machines? With Vista having trouble, it’s only a matter of time before we see emulation software. Apple won’t go for this. Apple will do anything to keep OS X off of 3rd party machines because some people like the OS, but aren’t willing to pay extra for an Apple machine. A $499 Dell, running OS X could be coming, which would help Apple’s operating system sales, but leave hardware sales taking the hit.
“Universal” Port/Dock: Apple calls their iPod ports “universal,” but its only universal amongst the iPod line. With the port, Apple can charge accessory makers a fee to incorporate it into their products. iPod accessories are incredibly popular and Apple makes a very nice chunk of change for using a patented port.
Apple keeps saying they they are against DRM, but they need it to survive. The only thing that helps Apple, if they did start offering DRM free files and opened platforms, would be because of their well designed products.
August 31st, 2007 at 11:31 pm
The thing about Apple is that, for all the great software they make like OS X and iTunes and others, they’re a hardware company at heart. Really the software and operating systems exist just so folks have something to do with their slickly-designed Apple hardware.
Which works, obviously, or I wouldn’t be happily typing away from my MacBook while my iPod recharges, but you can’t really get away from it.
I think all the other stuff about Apple relying on DRM makes a lot more sense when you view it from that perspective. And actually there’s a lot to be said for the approach. They do some very slick integration that kinda looks like magic on the user end but in reality comes down to simply having a very predictable environment — one designed by Apple specifically to be compatible with other Apple products.
I don’t think it’s even so much that they’re actively rejecting the idea of interoperability with other people’s products so much as they’re just completely indifferent to it. If you were them, would you bother?