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D&D Does Digital Part III: PDFs
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<blockquote data-quote="Nagol" data-source="post: 7685464" data-attributes="member: 23935"><p>You had the concern:</p><p></p><p></p><p>The balancing act for providers is how to limit piracy of content. In the worst case, piracy causes the content provider to fail and/or stop providing content (see Ozark Software and M.U.L.E.). In the best case, piracy causes no lost revenue and acts as a form of advertising (see Tecnobrega music). Like so much in life, almost all content providers fall into a middle ground.</p><p></p><p>Each provider must strive to limit the <u>actual</u> income damage caused by piracy. If a pirate would refuse to pay for the work at any price, they gain from the piracy, but the content provider does not lose from it so there is no actual loss. There are other drivers though. Some people pirate because (a) they can't get legitimate versions, (b) are willing to pay something but not the current listed price, (c) want to look before committing to purchase.</p><p></p><p>To minimize income loss, strive to make (a) tiny -- make the content available as universally as possible, ignore or promote (c) as a marketing tool, and try to minimize (b) to setting the price at the sweet spot on the demand curve. Also, consider offering differentiated products -- strip out the art and sell at a lower price point for those that want the text only. In other words, minimise the size of the potential pirate audience.</p><p></p><p>Only after that, bother with DRM. DRM automatically increases the potential pirate pool by increasing (a) and if the pool is large enough, it offers no at most very limited protection.</p></blockquote><p></p>
[QUOTE="Nagol, post: 7685464, member: 23935"] You had the concern: The balancing act for providers is how to limit piracy of content. In the worst case, piracy causes the content provider to fail and/or stop providing content (see Ozark Software and M.U.L.E.). In the best case, piracy causes no lost revenue and acts as a form of advertising (see Tecnobrega music). Like so much in life, almost all content providers fall into a middle ground. Each provider must strive to limit the [U]actual[/U] income damage caused by piracy. If a pirate would refuse to pay for the work at any price, they gain from the piracy, but the content provider does not lose from it so there is no actual loss. There are other drivers though. Some people pirate because (a) they can't get legitimate versions, (b) are willing to pay something but not the current listed price, (c) want to look before committing to purchase. To minimize income loss, strive to make (a) tiny -- make the content available as universally as possible, ignore or promote (c) as a marketing tool, and try to minimize (b) to setting the price at the sweet spot on the demand curve. Also, consider offering differentiated products -- strip out the art and sell at a lower price point for those that want the text only. In other words, minimise the size of the potential pirate audience. Only after that, bother with DRM. DRM automatically increases the potential pirate pool by increasing (a) and if the pool is large enough, it offers no at most very limited protection. [/QUOTE]
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