DRM Has Boosted the Antiguan Economy

If you try to play an AACS-protected disc on an unapproved TV, the player is required to reduce the quality of the video, or refuse to play the video altogether. As a consequence, there are a lot of customers out there who would like to play their legally-purchased movies on their legally-purchased TVs, but whose legally-purchased HD-DVD or Blu-Ray players refuse to cooperate.

Ed Felten notes that the limited functionality of the official players has created a market for software that will allow them to play their movies on "unapproved" hardware. And thanks to the DMCA, such players cannot be legally developed in the United States. So not surprisingly, overseas firms are taking up the slack.

As Hollywood develops ever-more-elaborate and restrictive copy protection schemes, those copy-protection schemes come to inconvenience more and more customers. That, in turn, creates a larger market for circumvention software, prompting software companies to invest more in developing more powerful and user-friendly tools for removing copy protection.