I was talking specifically about paying customers, and how DRM probably doesn't reduce the revenue from that market very much even though it's clearly hostile towards those people.
Obviously the point of DRM is to try to reduce the number of people who are consuming the content without becoming paying customers, and given the assumption I'm making above, it doesn't need a very high success rate to be economically worthwhile.
If people still buy EA games like lemmings even after things like the SimCity fiasco, how many pirates do they really need to deter using DRM, and for how long, before it becomes an absolutely guaranteed revenue booster? Most games or major movies make an extremely disproportionate chunk of their revenue in the first few days after launch. If the suppliers can hold off piracy for even a week or two before a crack is out and get even a few percent of would-be pirates who are desperate to play the game or see the film to do it through a legitimate channel instead, that's potentially millions in extra profits on a AAA game or Hollywood blockbuster.
Obviously the point of DRM is to try to reduce the number of people who are consuming the content without becoming paying customers, and given the assumption I'm making above, it doesn't need a very high success rate to be economically worthwhile.
If people still buy EA games like lemmings even after things like the SimCity fiasco, how many pirates do they really need to deter using DRM, and for how long, before it becomes an absolutely guaranteed revenue booster? Most games or major movies make an extremely disproportionate chunk of their revenue in the first few days after launch. If the suppliers can hold off piracy for even a week or two before a crack is out and get even a few percent of would-be pirates who are desperate to play the game or see the film to do it through a legitimate channel instead, that's potentially millions in extra profits on a AAA game or Hollywood blockbuster.