Kindle review takes a look at why DRM is still such a big thing in eBook markets:
DRM means permanent lock-in. Once you get permanent lock-in, readers don’t switch. They don’t switch because the cost of switching is losing all existing books bought from the vendor. Readers are locked-in – once again at the mercy of Gatekeepers. Authors too are at the mercy of the new Gatekeepers. If people don’t leave the two biggest stores because of DRM related lock-in, then we’ve just replaced The Big Six with The Terrible Two.
Authors have no means to get to readers without ‘pleasing’ these two big ebook stores.
This is why Amazon never puts in that extra effort to make its hardware superb. It doesn’t have to. This is why B&N never goes out of its way to match Amazon prices – it doesn’t have to. This is why eReaders are evolving at a snail’s pace. Amazon and B&N know that they could add ZERO new features in the next 5 years and their readers would still be reluctant to switch because they have $500 to $2,000 to $5,000 worth of books locked into the ecosystem,