Do the record companies WANT to go out of business?

Furd brings us the latest incredibly stupid move by a record company. EMI targets the ‘mix-tape’ with ’secure CD’:

UK record label EMI announced yesterday it plans to introduce anti-piracy technology to its CDs that will restrict consumers’ ability to burn tracks to blank CDs. The technology, from DRM solutions firm Macrovision, will allow CD owners to copy only three full copies of a CD’s songs, and the burned discs themselves cannot be copied.

[…] The technology also prevents CDs from being transferred to an iPod.

(Emphasis my own). I really, really don't get it. It's obvious they don't either.

I'll say it again: People are willing to PAY for your music, even if it's of questionable legality, but they want to feel like they're getting value. Perhaps most importantly, they want the right to choose how to consume it. Putting DRM that prevents them from putting it on their iPod, which in many cases is why they bought the CD in the first place, will lead to a few possible results, none of which prevent piracy or increase sales.

The most likely result? They will go illegally download a DRM-free version from a P2P network (since we know DRM doesn't work and Macromedia's DRM is easily cracked).

Best case scenario for the record company? They begrudgingly buy the CD, since they have no other choice, and are forever resentful because they can't use something they paid for in a way that at least some record companies have already admitted in court is fair use.

Either way, both consumers and the record companies lose. It won't be the consumers going out of business though. 

Oh, and while we're at it, someone should have a talk with Dave Matthews too.

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