I my opinion I believe DRM technology limits competition and innovation. The recent announcement by Apple of their iTunes store going DRM free is reason enough to believe that they know people were frustrated with their DRM content and were looking elsewhere for content providers. With Apple using DRM on their content, they limited the purchased contents(music, videos, etc) use to only their products(iPod etc). This I believe gives them no incentive to improve upon their (Apple's) products because they knew if people wanted content they would have to buy it from them and people could only use the purchased items on their products. With the frustration of having content you purchased only working on one sole device and not others of similar nature caused a lot of frustration with people, who eventually started looking else where for content providers. Apple saw this and has now succumbed the the inevitable truth about DRM: it just doesn't work. People want to be able to do whatever they want with the content they purchase and not be limited by DRM. If a content provider forces DRM on its users, majority of those users will eventually look elsewhere for DRM free content providers.
FTC Town Hall to Address Digital Rights Management Technologies - Event Takes Place Wednesday, March 25, 2009, in Seattle #539814-00363
FTC Town Hall to Address Digital Rights Management Technologies - Event Takes Place Wednesday, March 25, 2009, in Seattle