January 3rd, 2010
Why I believe the Kindle DRM hacks will hurt the platform
I wanted to share my thoughts on the Kindle DRM hacks that occurred over the 2009 winter holidays. For those unfamiliar, recently a team of hackers broke open the digital rights management (DRM) features of Kindle books. This DRM protects the content and effectively “locks” the books to your particular Amazon account, allowing only your personal devices (PC, Kindle, iPhone, etc) the ability to view the books you have purchased. The hackers were able to completely circumvent this DRM, making it possible for anyone to convert their purchases (or perhaps other people’s purchases) into a DRM-free MOBI file. This .mobi file is still readable on the Kindle, but will also let any other MOBI compatible eReader or program view the book. Additionally, it now makes it possible for purchases to be shared with other people, albeit illegally.
Normally, I applaude hacker communities to break apart hardware and software in efforts to extend functionality or serve as educational exercises for how to further secure various platforms. For many, many years I have strongly agreed with activities that give users more flexibility to the hardware they buy, especially when the manufacturer implements limits that prevent basic functionality (such as Apple with the iPhone). And really, I still support it.
However, with that said, I am very concerned with the possible outcomes attached to the recent Kindle DRM hacks. While quite revolutionary, Amazon’s relationship with publishers and the offering of low-cost eBooks may be further at risk moving forward. It seems that publishers already have the upper hand, considering they are capable of forcing Amazon to remove key features (such as the text-to-speech) from the platform with simple threats. It’s very understandable, since Amazon made large steps forward in changing the publishing industry; that can frighten anyone in the publishing industry. This makes for an instable, but new and exciting world of opportunities for everyone involved.
Knowing that Amazon may be struggling to keep publishers offering eBooks for $9.99 and under, we must realize that excessive theft of eBooks moving forward will only force publishers to subsidize the losses by increasing the cost of books significantly (even if some of the pirates would never have purchased an eBook to begin with). This hack will intensify publisher requests that Amazon fix their DRM problems, further removing Amazon from the ability to innovate and improve the platform, because let’s remember this: Amazon is no longer the only player in the field, and likely has no ability to force their publishers to avoid DRM entirely. Sadly, this will force paying consumers to consider other platforms that have lower pricing (due to better agreements with publishers as cause of more effective DRM), or, accept the responsibility to pay higher product prices.
As an entrepreneur and software developer, I do believe that people should pay a fair price for quality products, and not just get everything for free. The people making quality products need the ability to sustain their efforts to build those quality products. They should be rewarded. If they aren’t, the products will no longer be of top quality, and your favorite products will begin to disappear, leaving only the corporate giants to making them (big business has often shown us that their products are not always superior; often quite terrible). DRM allows the publishers to feel secure offering their wares to the public electronically, and Amazon’s excellent negotiation tactics have helped us get reasonable pricing ($9.99 and below for most books).
With all that said, I don’t believe that DRM is the right approach to begin with, but, it’s the only thing keeping publisher pricing reasonable. Without DRM, I believe the Kindle book pricing would more closely reflect print pricing, making the platform less attractive and versatile. Publishers would also avoid participation, reducing the availability of eBooks on the Kindle platform by huge numbers. Subverting the DRM entirely may lead to mass theft of these products, possibly upsetting the balance that Amazon has created with their publishers. I worry that my investment in the Kindle platform by purchasing the Kindle and many eBooks may be at risk, if the platform begins to become unsustainable or incredibly overpriced.
Only the future can really reveal itself, day by day. I do vie for a day when information is ubiquitously available, for prices so reasonable that anyone can afford to educate themselves anywhere in the world (hopefully electronically). In the meantime, I hope that Amazon can mend the imbalances possibly caused by this recent attack at the DRM, even if breaking the DRM was “the right thing to do.”
Read more about the Amazon Kindle DRM hack:
Hackers break Amazon’s Kindle DRM (The Register)
Kindle DRM cracked (Hack-a-Day)
What are your thoughts on this issue?













