Calculating The DRM Tax On A Kindle
from the important-decision-making-tools dept
Via EFF comes this rather interesting calculation of the DRM tax of owning an Amazon Kindle. It's not a definitive number, as it would differ for different people based on what kinds of books they buy, how often and how many of those books they'd like to keep. But it's a good little thought experiment for those looking to buy a Kindle. The key recognition, of course, is that with a Kindle ebook you're renting, not buying the books:There is one other problem with DRM protected books. When the reading device reaches its end of life, you have to assume all the content you purchased will be lost. If, for instance, I went with a Kindle, all of the content I purchase can be used only on devices supported by Amazon.He's quite fair in calculating his own personal DRM tax, noting that he probably wouldn't want to rebuy all the books, but just a portion of them. He also knows that ebooks are cheaper. But, in the end, he realizes that this DRM tax makes the total cost of ownership of a Kindle much higher for him than just buying the physical books -- even if it's more of a pain to have to sometimes lug them around. In his case, he would use it mainly for technical books, which is a different situation than, say, recreational novel reading, where "ownership" may be less important. Still, he feels that the DRM issue is a problem and a serious hidden cost:
When, several years later, it comes time to replace that Kindle I may get a new Kindle -- but I can't assume that. Maybe somebody else will have a better device at that time. Or, maybe Amazon went bankrupt or evil or stupid and I need to switch to another vendor. There are any number of reasons I might like to switch my e-reader. If I do, I have to assume I won't be able to use any of the content I purchased for the Kindle.
Thanks to DRM, when my e-reader reaches its end of life, I will have to pay to acquire replacement books for the material that's locked out of the new e-reader. I call the amount of that purchase the "DRM tax" -- an added cost imposed by DRM restrictions.
Maybe someday Amazon (and publishers) will realize how much harm they are doing with DRM. If the DRM tax was removed, not only would more people get e-readers, but also, thanks to the low friction of e-book purchasing, they'd buy more e-content.This is actually a key point. Just the fact that he had to run through this calculation to determine if a Kindle made sense is a serious amount of friction. If Amazon made this calculation easy (i.e., no DRM tax) that would lead to more sales.
![Hide This Hide this](https://ii.techdirt.com/s/t/i/topclose.png)
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: drm, drm tax, ebooks, kindle, tax
Companies: amazon
Reader Comments
Subscribe: RSS
View by: Time | Thread
No sale around here
[ link to this | view in thread ]
Making a ton of assumptions
DRM in and of itself doesn't preclude a replacement device. There is no indication at this point that, if the Kindle reaches it's end of life, that Amazon will not permit some sort of transfer to another reader.
Heck, we are less than a couple of years total into the whole concept, and the market isn't even truly formed up yet.
It's very premature to be considering things only in this manner.
[ link to this | view in thread ]
Re: No sale around here
[ link to this | view in thread ]
[ link to this | view in thread ]
That's true, but you can remove the DRM
I'd like to be a digital warrior and refuse to buy anything with DRM, but I'm more practically wired and just think its easier to remove the DRM and make sure what I buy is mine. Eventually eBook DRM will go the way of music DRM, as most any eBook you want is already available through normal pirate channels, just like music. The only thing that keeps me buying rather than pirating is my respect for the authors and my desire to see them get their fair share.
[ link to this | view in thread ]
Kindle DRM
[ link to this | view in thread ]
The hardware replacement issue didn't even occur to me, yet, since I don't intend to buy one, but if we replace our computers every two years, I can see the Kindle being a very expensive way to lose one's assets over and over. At least when I replace my computer, I can save the data on the disk even if I buy a different brand or build my own.
[ link to this | view in thread ]
It is more than just DRM
Digital works are not a stand alone product. They requires several layers of software and hardware to even exist. I think just about everyone has had a computer crash or die on them at some point and they know what I am talking about.
What is the real value of a product that can be deleted accidentally or lost due to a hard drive crash? Even if you could re-download it that still takes time, and depending on your connection a lot of time.
I would argue that even non-DRM'ed products are worth far less than physical property. I would suggest a 1/10 or 1/20 pricing ratio for products that have been digitized.
I think people are absolutely insane for placing such high values on things like software and digital works. Especially with software that tends to have a life cycle of just a few years. Could you imagine buying a tool set for $500 just to find out it is obsolete or won't work with new parts just a few years later?
Placing such a high value on 1's and 0's is not only asinine, it borders on a complete lack of critical thinking IMHO.
[ link to this | view in thread ]
This, a thousand times this.
[ link to this | view in thread ]
e Reading is still at infancy stage.
[ link to this | view in thread ]
Re: No sale around here
[ link to this | view in thread ]
Re: Making a ton of assumptions
[ link to this | view in thread ]
I am sure they are working on doing the same for the Kindle.
[ link to this | view in thread ]
Re: Re: Making a ton of assumptions
Things have a way of changing, you know, evolution and all. It is a poor businessman that makes future plans assuming that todays' conditions will remain the same for the years to come.
[ link to this | view in thread ]
Re:
You can't easily duplicate your book. You can't lend it to someone and read it at the same time. If you sell it, you can't keep a copy. Damn thing is so restrictive, it's shocking that anyone buys anything on paper.
Worse, get it a little bit wet, and it is ruined, the dog might eat it, the kids might destroy it, and heaven help us if you get it near a flame.
Damn, talk about restrictive!
[ link to this | view in thread ]
Re: Re: Re: Making a ton of assumptions
> "for now".
> Things have a way of changing, you know, evolution and all.
> It is a poor businessman that makes future plans assuming
> that todays' conditions will remain the same for the years to
> come.
It's even more foolish to invest an assload of money into a book library that you know you can't currently transfer to another device in the hope that maybe that situation will change in the future, especially in the face of the fact that every facet of the entertainment industry is constantly pushing for more restrictive IP laws and devices.
[ link to this | view in thread ]
Re: It is more than just DRM
...
> Placing such a high value on 1's and 0's is not only asinine, it borders on a complete lack of critical thinking IMHO.
If you don't think software and digital works are worth the high value, don't buy them. On the other hand, if you have ever tried *creating* software or digital works, you would understand that the effort is not trivial.
[ link to this | view in thread ]
Re: Re: Re: Making a ton of assumptions
> "for now".
> Things have a way of changing, you know, evolution and all.
> It is a poor businessman that makes future plans assuming
> that todays' conditions will remain the same for the years to
> come.
It's even more foolish to invest an assload of money into a book library that you know you can't currently transfer to another device in the hope that maybe that situation will change in the future, especially in the face of the fact that every facet of the entertainment industry is constantly pushing for more restrictive IP laws and devices.
[ link to this | view in thread ]
Yeah, but Amazon *does* support other devices.
Although I'm not a proponent of DRM or Amazon's ebook policies, this statement is patently absurd.
It's easy enough to read kindle books legally without owning a kindle, using either a free PC or iTouch/iPhone readers.
If you are going to argue against DRM (and please continue to do so) at least do it with informed articles.
[ link to this | view in thread ]
Re: Making a ton of assumptions
[ link to this | view in thread ]
No to DRM on ebooks
[ link to this | view in thread ]
Re: Re:
When it becomes against the law to read a paper book without using a pair of reading glasses blessed by the publisher, then you can start comparing the two.
[ link to this | view in thread ]
Re: Re:
Damn, talk about restrictive!
[ link to this | view in thread ]
Anything you can't sell, you don't own.
The same goes for just about every form of digital media. I can trade in my old CDs or DVDs or videogames for cash or credit toward new ones. I can lend the same discs to a friend to listen/watch/play, but the versions I've bought from iTunes, Amazon, or Xbox Live Games on Demand are permanently stuck to me with no option to unload for any reason. Every buy a crappy CD/DVD/game that you couldn't wait to unload and recoup some of your investment? In the all-virtual wares world being crammed down our throats - yet some love in the name of false "convenience" - you're stuck.
This is particularly galling with services like Steam where games are tied to accounts. If they know you've got a copy of Call of Warfare: Modern Duty 3 on your account so you can download it to as many computers as you want, there's no practical reason why they can't note that your copy now belongs to someone else's account because you sold it. Sure, savvy h4X0rZ would find ways to copy the cached files and supply cracked exes to run the pirated warez, but they're doing it already. Imagine if Steam offered the ability for people to "sell" their games thru the system to other Steam users, taking a cut from the transactions, but otherwise just keeping the books. That'd sell MORE games, I'd wager, but since it's too fair and sensical, it'll never happen.
[ link to this | view in thread ]
Re: Re:
no, you can not lend your book to someone else and read it at the same time, but in your DRM'd version of the world that you have been very clear about pushing, you cant do that with an electronic version of the book either since that would be considered piracy.
but thats ok, dont let any facts get in the way of your arguments (like you ever do anyway).
if it gets wet... hey guess what, your ereader isnt going to do well in a bath tub either... and in this case my book might get wrinkled up (i have dropped a book in the bathtub once) but your e-reader will be completely toasted and, you will then have to rebuy all your books because *RIGHT NOW* because of the DRM issue.
the dog pees on my book thats one dead dog...
the dog pees on your e-reader... imma givin that dog a box of milk bones... good puppy! (by the way, my book? while stinky and gross would still be readable... how bout your electronic thing after a good st bernard hose-down?)
get the book near a flame... well flames and paper do not mix very well true...
but then, plastic and flames dont mix all that well either.
you really should put the crack pipe down....
[ link to this | view in thread ]
Re: Re: Re:
blargh.. nice typo...
[ link to this | view in thread ]
2 down, 1 to go
- evil, check
- stupid, check
- bankrupt...
[ link to this | view in thread ]
Re: Re:
It's common sense! Even you must be able to see the "other side" of the argument every once in a while.
[ link to this | view in thread ]
Re: Re:
[ link to this | view in thread ]
Re: Re: Re:
[ link to this | view in thread ]
Re: Re: Re: Re:
[ link to this | view in thread ]
Amazon E-books accessible by account not just by device
Your "ownership" of the Ebook is not just the digital copy on your device, it is registered at Amazon as "yours" to access there again in the future. Amazon calls your Kindle account "your library." You can also back up your E-books on your computer. Books can be shared between Kindles that are registered to the same account. Up to six devices can be used on one account. An upgraded Kindle registered to your account will be able to access E-books you accessed on an older Kindle.
You will not lose your E-books if you lose your Kindle.
This complicates the "rental" vs. "purchase" analogy. Instead of buying a physical copy, you are buying permanent access to digital data on a server somewhere, which is not really a "rental" relationship because it doesn't "expire" (unless Amazon does). Given that you always run the risk of losing your physical copy (whoops, left it on the plane!), having permanent access to a digital version could actually be a *more* permanent form of acquisition!
[ link to this | view in thread ]
Re: Re: No sale around here
Kindle owners aren't locked into buying Amazon only Kindle content.
Try Smashwords.com. DRM free formats, including .mobi for the Kindle.
Barring that, most ereaders seem capable of displaying PDF files; so buy non-DRM PDFs!
[ link to this | view in thread ]
Re: Making a ton of assumptions
[ link to this | view in thread ]
Re: Anything you can't sell, you don't own.
When the digital copies reside on a distant server somewhere, the need to clean them out is even less pressing.
The physical copies cost money to manufacture and distribute; the digital copies have nearly zero marginal costs for duplication/distribution.
So, while we demand that content producers lower the prices for digital copies because of those lower distribution costs, we still demand that we be able to *resell* those digital copies, copies that we know have *zero* value because they are digital? I think that is wanting to have our cake and eat it too.
Time for *everyone* to rethink the concept of "ownership"!
[ link to this | view in thread ]
Re: That's true, but you can remove the DRM
[ link to this | view in thread ]
Re: Re: It is more than just DRM
There seem to be many hard working people out there that are paid poorly.
Is that right? Probably not.
Is it the way it is? Arguably, yes.
Second, like it or not, courts have generally provided that the sweat of the brow is not a very valid framework for intellectual property.
[ link to this | view in thread ]
Re: Yeah, but Amazon *does* support other devices.
[ link to this | view in thread ]
Re: Re: Anything you can't sell, you don't own.
[ link to this | view in thread ]
Re: Making a ton of assumptions
[ link to this | view in thread ]
Re: It is more than just DRM
For your sake, I hope you never bought a video game system (they need to be replaced every few years!), a cellphone, a computer, any form of digital music (CDs or mp3s), or a dvd/bluray player. I also hope you never misplace or damage anything you do own. It's much harder to backup physical items instead of digital ones.
[ link to this | view in thread ]
Re: Re: Re: No sale around here
This is what I do. Only I actually prefer plain old text files to PDFs (PDFs have tons of usability issues that bug me, so I end up extracting the text from them anyway, which is a bit of a pain.) I have a number of devices that I use to read them, depending on my circumstances.
Still not going to buy a Kindle, though. Why should I? The advantages of it aren't significant enough to justify the expense, and I don't want to reward Amazon for a distribution system that I view as fundamentally flawed.
[ link to this | view in thread ]
Re: It is more than just DRM
And if you don't have the required hardware, that is a disadvantage to the digital format. If you already have the hardware anyway, and the data format is open and popular, you can pretty much count on being able to access the file(s).
I think just about everyone has had a computer crash or die on them at some point and they know what I am talking about. What is the real value of a product that can be deleted accidentally or lost due to a hard drive crash?
That is what backups are for. If you can't afford the money to back up your data, and you can't afford to lose the data, then you can't afford to keep it digitally. If you can do backups but choose not to, you get what's coming to you. If you do backups and lose your files, it's a minor inconvenience. Certainly it's better than losing a physical product (left it in a taxi or what have you).
I think people are absolutely insane for placing such high values on things like software and digital works.
My impression is most of the big money spent on those things is spent by companies on software, and the money is really for support, not the zeros and ones. Unless you consider 99 cents a lot of money. In other words, I think most people really don't place a very high price on digital goods.
[ link to this | view in thread ]
Re: Re: That's true, but you can remove the DRM
[ link to this | view in thread ]
Re: Amazon E-books accessible by account not just by device
Yup. You just need to buy another Kindle.
[ link to this | view in thread ]
Re: Re: Re:
but thats ok, dont let any facts get in the way of your arguments
it's my point exactly. The paper version has a whole bunch of physical restrictions on it, and DRM pretty much just mimics those restrictions. Nobody is bitching and saying they aren't going to buy paper back books because they can't share them. It's a fact of the purchase, you get a single copy, lifetime license. DRM and paper copy, it's the same thing.
the dog pees on your e-reader... imma givin that dog a box of milk bones... good puppy! (by the way, my book? while stinky and gross would still be readable... how bout your electronic thing after a good st bernard hose-down?)
I get the e-reader fixed, go back online with Amazon, and redownload all the books that I have a single copy, lifetime license for. You can enjoy your stinky book, and I will enjoy my nicely cleaned and repaired reader.
There is no crack pipe here. On the other hand, you may want to check for empty koolaid cups around your computer before posting next time.
[ link to this | view in thread ]
Re: Re: Amazon E-books accessible by account not just by device
1-0 Kindle
If you have a bag full of books, and you lose it, you can't get them back.
2-0 Kindle
Your house catches fire, and all your books are lost. Insurance gives you money to replace your kindle.
3-0 Kindle
we could go on, but I think you get the point. There are pluses and minuses to everything.
[ link to this | view in thread ]
microsoft's music service...
[ link to this | view in thread ]
Nice Post
[ link to this | view in thread ]
Re: Amazon E-books accessible by account not just by device
It's like the people who bought permanent access to music from the online Walmart music store then...?
[ link to this | view in thread ]
Re: Making a ton of assumptions
[ link to this | view in thread ]
Re: Amazon E-books accessible by account not just by device
[ link to this | view in thread ]
Re: Re: Amazon E-books accessible by account not just by device
[ link to this | view in thread ]
Re: No to DRM on ebooks
[ link to this | view in thread ]