The overall messages from these studies are: higher-priced DRM-free downloads resonate with a percentage of consumers but not a very large one; while consumers do not exactly love DRM, they are both more educated and more tolerant about it than they were two years ago; and in the long run, DRM is not going away. 

The last significant research of this nature was undertaken in early 2005 in Europe by Berlecon Research of Germany for the EU-funded INDICARE project.  The Berlecon/INDICARE study indicated that people would be interested in paying double the price of a DRM-packaged music track to get it without DRM, which echoes a similar 2003 finding by Jupiter Research regarding copy-protected CDs. 

In contrast, the EMR/Olswang study found that only 43% would prefer "paying a little extra" for DRM-free tracks; and the In-Stat study found that only 19% would be willing to pay 30% more for a DRM-free track, as opposed to 29% who would not (44% said that it depends on other factors). These findings suggest that some consumers will take EMI up on its offer of DRM-free content but that EMI (and other record labels) should continue to view DRM-free as a choice to offer rather than as an exclusive business model to migrate to.

The EMR/Olswang study -- which is an annual digital music survey and actually focuses primarily on social networking -- also indicated that 42% of respondents knew at least "something about" DRM, up from 27% in 2006, and that 88% had at least heard of the term.  In-Stat's research showed that 60% had at least heard of DRM.  An analogous number in the 2005 INDICARE study was only 36%.  Clearly, awareness of DRM is on the rise, even though people who claim good understanding of it are still a small minority.

The EMR/Olswang study also finds that consumers are ambivalent, rather than unilaterally hostile, towards DRM.  On the one hand:

• 61% of respondents agreed that DRM "invades the rights of the music consumer to hear their music on different platforms," versus 18% who disagreed (the rest responded "I don't know").
• 49% agreed that "it's a nuisance and I don't like it," vs. 28% who disagreed.

But on the other hand:

• 63% agreed that DRM "is a good idea because it protects copyrighted music from illegal file sharers," vs. only 22% who disagreed.
• 42% agreed that "The fuss about DRM will die down as music consumers get used to the idea," versus 36% who disagreed.

The In-Stat study measured general overall attitudes towards DRM.  The responses, far from being overwhelmingly negative, were a fairly standard bell curve with a slight negative tilt and 36% -- the biggest percentage -- voicing a neutral opinion.

The In-Stat report also compiled findings suggest that DRM is not going to go away, particularly if the definition of DRM is expanded beyond file encryption.  In-Stat's conversations with technology vendors indicated a shift towards "forensic" technologies, especially watermarking.  Its findings also confirmed the idea that the shift to DRM-free content is a music industry "experiment" that should not affect other segments of the media industry.

On the whole, these studies paint a picture of consumers who are becoming more accepting of DRM, even if they do not embrace it.  The message for content owners ought to be a familiar one: that they should continue to find ways of protecting their content from misuse that enable new business models and provide decent consumer experiences.

Special thanks to In-Stat analyst Mike Paxton for his generous help with this story.

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