• by Wendy Davis , Staff Writer @wendyndavis, June 16, 2005

The record industry is about to launch a major initiative against piracy by beginning the widespread distribution of copy-protected CDs. And one result, perhaps unintended, is that the plan could end up giving a boost to online music stores. But another potential result is that consumers could become so frustrated with the music industry that they seek out peer-to-peer networks in even greater numbers.

Sony BMG Music Entertainment intends to copy-protect music CDs by the end of the year, while EMI will soon introduce copy-protected CDs in the United States -- all of which potentially bolsters online music downloads, according to a report in yesterday's San Jose Mercury News.

Copy-protection takes various forms, but the record companies, for now anyway, say their software allows consumers to burn or rip at least a few copies for personal use. Still, what the record companies apparently fail to understand, is that one of the main reasons why consumers still prefer CDs to online downloads is because people like feeling that they own something tangible - and, part and parcel of ownership is the ability to make copies.

As of last year, only around 5 percent of adults had purchased tracks from online music stores, according to a study by JupiterResearch. The majority of adults--51 percent, according to that study--said they prefer possessing things, such as CDs, to digital songs. One of the reasons, said JupiterResearch analyst David Card, is because people want to be able to transfer their music: "You can rip a CD and get all of the digital benefits," Card told OnlineMediaDaily at the time.

If the record industry takes that ability away from consumers, there will be less reason to purchase a CD, as opposed to downloading tracks. For now, the copy-protection also means that the CDs aren't compatible with Apple's iTunes or iPod - the phenomenally popular device that revolutionized how consumers listen to music.

Unless Apple and the record industry can fix that problem, iPod users will have little choice other than to purchase music through iTunes, rather than CDs.

But, it's also possible that consumers, in disgust and frustration, will simply escalate the piracy wars, using peer-to-peer networks in greater numbers, while also creating a demand for software that nullifies the copy-protection codes.

If the record industry really wants to fight piracy, it must come up with a plan that will let it keep whatever goodwill consumers still have.