Simply AudioBooks Digital urges industry to embrace DRM-free titles
The following is the unabridged interview between DailyTech's Jason Mick and Simply Audiobooks Digital's Vitaly Petritchkovitch.
DailyTech: First, thank you for giving DailyTech the opportunity for this interview. Why don't you start off by telling us a bit about Simply Audio Books?
Vitaly Petritchkovitch, Director of Simply Audiobooks Digital: Simply Audiobooks started as an audiobooks on CD rental company. We are like the Netflix of audiobooks. Customers would rent books each month and could select from several price plans.
We started renting out audiobook CDs with free cross shipping. Then we branched out into also selling audiobooks on CD, cassette and download. CD rental is still our bread and butter, but digital audiobooks are our future. We also recently purchased a retail store in the "Wall Street" district of Toronto. Our new store is opening in Brooklyn, New York across from Grand Central Station, this Christmas. We operate out of 3 countries, Canada, the U.S. and the UK.
DailyTech: DailyTech readers are very interested in the fight, or debate you could say, over DRM technology. Why did you choose to be DRM free and how does that define you?
Petritchkovitch: The main reason we went DRM free was because of customer demand. Our member services Department handles all of our technical support and they are constantly flooded with calls from customers having DRM related issues. This is because using DRM is a complicated process.
First you must claim a license, then you must have an ActiveX add-on. Also, you need media player support, in our case PlaysForSure. For a lot of customers who are not tech-savvy, DRM is just too much. But basically customers demand a response and we gave it. It makes everyone happy. Also, we want the industry to go in that direction. And by going DRM free, we open our files up to the iPod market.
DailyTech: How do you think the move to be DRM free effects your DRM'ed competitors, such as Amazon? Does it “put the heat on them”?
Petritchkovitch: Actually we hope everyone joins the push to make movies, music and audiobooks DRM-free. DRM only hurts the people who pay for content. Pirates will still pirate. You will never stop piracy. We encourage the industry and our competitors to be on board with us and join the DRM-free movement. I don't think that few bad apples that choose to get their content illegally should spoil the bunch that is willing to pay for content.
DailyTech: Are any of the publishers reluctant to distribute their content DRM free?
Petritchkovitch: With any new trend there are always skeptics but overall the response has been a positive one. We have had excellent feedback from content providers who are as excited about the possibilities of a DRM free future as we are. It is one of our goals to prove to those skeptics that a DRM free market is beneficial to not only the consumer but to all parties involved.
We will continue to offer DRM audiobooks for publishers that are not ready for the switch. We are not "flipping the switch." We are trying to move towards being DRM-free and we welcome publishers to join us in our effort. Our goal is to convince majority of the publishers to offer DRM-free audiobooks by end of 2008.
DailyTech: One off topic question — a big topic in the news was that a Tuluth jury found a working mother of two guilty of $222,000 in fines for copyright infringement, for allegedly sharing 24 songs. The news reported that two jurors were dead set on the maximum fine of $3.6 million. Casual observers have noted that a first time offender could physically steal two audio cds from a store and pay less in fines. What do you make of this?
Petritchkovitch: Well, I feel it was unfair to her. Any major peer to peer network has thousands to millions of users on it at any time. She just happens to be the unlucky one they picked to prove a point and make an example of. But, the thing is piracy will never stop.
Again, pirates will continue to pirate content. But it is just a small percentage of the market. It is similar to when CD-media first came out. Manufacturers raised their prices slightly to incorporate losses to piracy, as people would burn their friends CDs. Now is the same kind of situation, but again it is only a small percentage. As for DRM, it just hurts people who legally pay for content. DRM-free is what the customer wants. I think people are naturally honest and are willing to pay a bit more for DRM-free content.
DailyTech: We really appreciate you taking the time to do this interview with us. Let's wrap up with telling DailyTech readers, in short, why you think Simply Audiobooks will become the leading online audiobook retailer.
Petritchkovitch: Simply Audiobooks' mission is to be a one stop shop for audiobooks. We have increased the access of our product through the world's largest rental program. Our download program is the 2nd largest in the world and will grow in size & scope once we provide DRM-free audiobooks in the future. We also have an offline presence in Toronto.
Our goal is to continue to be the one-stop shop,this is our strength, and is what will propel us to the top.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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