• by Manning Field , February 8, 2007

Should it be a happy song like something from the B-52s? Should it be a sad song like something from Robert Smith? It's up to all of us...

One of the classic problem-solving strategies is to study and understand others to learn from their mistakes, so you don't make the same ones yourself. When it comes to content, I think the entire video industry (that's TV, movies, user-generated, etc.) can learn from the audio industry. It is a well-established story how the music industry fumbled its opportunity in the digital marketplace. They were insular and slow to react... a disrupter. Napster Robin-Hooded its way into your CD burner, retail instantly became less relevant, the industry then started prosecuting its customers (always a winning strategy), another outsider, Apple, provided a solution... and six years later, the industry has been massively disrupted, but digitally is much more advanced.

People have the devices. Most new cars have digital music capabilities. But with the exception of iTunes, distribution is still pretty weak. Where are the record companies? Still way far behind the consumer. What's the big holdup? DRM. Steve Jobs made a really interesting statement this week about his challenge to remove DRM from the content sold through his store. Why do this? The clumsy DRM out there doesn't work, and fundamentally it is a barrier to a completely interoperable marketplace/environment for the consumer.

So in the music industry DRM is a hindrance to consumer experience. It stifles both innovation on the device and distribution front. It encourages fringe hackers to beat your DRM system and put it on Digg.

What does this mean for the video industry? Don't follow this same path, but instead:

1) Simplify distribution. Having networks stream prime-time shows is an excellent experience, but how can I move that to a device?

2) Remove all the DRM software. It doesn't work, and just makes a multi-device world much harder.

3) Price it fairly and in a digestible form -- iTunes, iTunes, iTunes.

4) Use YouTube and peer-to-peer networks as a promotional channel. This is working for Andy Samburg, the new alpha media of promotion.

And here's a positive thing to learn from the music business: If consumers already own the content, don't make them buy again to move it to a device. Job says ripping of consumer-owned CD's accounts for 78% of all songs stored on the iPod. Don't make me repurchase "Seinfeld" seasons to legally put them on my iPod.

I love the video business. I love the music business. I want both of them to thrive. I want everybody to get paid. Let's learn from the mistakes of others and keep the consumer experience with the content in the forefront. It's the best and only way to make sure everyone gets and stays paid.

Albums I've bought and love this year so far: Field Music, Clap Your Hands Say Yeah, Deerhunter, The Shins.

TV shows I've digitally purchased: "The Office."