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Making Money Selling Music Without DRM

phaedo00 writes "Ars Technica's Nate Anderson has an excellent writeup on the rise of eMusic and how they're suceeding despite their unwillingness to hop on the DRM bandwagon. From the article: 'The Holy Grail of online music sales is the ability to offer iPod-compatible tracks. Like the quest for the mythical cup itself, the search for iPod compatibility has been largely fruitless for Apple's competitors, whose DRM schemes are incompatible with the iconic music player. For a music store that wants to succeed, reaching the iPod audience is all but a necessity in the the US market, where Apple products account for 78 percent of the total players sold. Perhaps that's why eMusic CEO David Pakman sounds downright gleeful when he points out that there's only two companies in the world that can sell to them--Apple and eMusic.'"

14 of 383 comments (clear)

  1. Re:Allofmp3.com by Ingolfke · · Score: 4, Insightful

    Not cheaper... but they have a good selection of indie artists you will not find on AllofMp3.com. As the other poster noted, they are legal... not quasi-legal like AllOfMp3.com. Also, it appears that AllofMp3 may be on its way out of business... or at least on hiatus while they work things out with the Russian Mob... I mean government.

  2. For more examples.. by Sloppy · · Score: 5, Insightful

    ..of companies that make money selling digital music without DRM, look at just about every company that has sold CDs for the last 20 years. It's not like the model hasn't already proven itself. Even the big media companies know they can profitably sell unDRMed stuff, because that's how they became big media companies. DRM is a "solution" looking for a problem.

    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  3. Unexpected Success? by Digital+Vomit · · Score: 4, Insightful
    I'm getting the impression that a lot of people/business seem to think that selling music without Digital Restrictions Management and other anti-consumer technology is somehow difficult or not expected to be successful. Um, hello? Does nobody remember the Cassette era, when purchased music was freely recordable and many players had two decks in order to facilitate copying? I don't recall any sort of music industry collapse back then. Sure we didn't have the internet back then, but people still traded music. A lot.

    *SHOCK* *AWE* You can make money selling music that people can freely copy? ZOMG!!1!

    Businesses who think that selling unrestricted music that people can freely copy need only look to the bottled water industry to see that it's possible. In the west we have (effectively) free, clean drinking water, yet people spend billions each year buying it from stores. Sure, anyone can "turn on the tap" of the internet and get their fill of mp3s, but that doesn't mean stores can't make a huge profit selling those exact same mp3s.

    Bottled water sells because of psychological tricks and convenience. MP3s can sell the same way.

    --
    Modern copyright is theft of culture from everyone and it retards the progress of the useful arts and sciences.
    1. Re:Unexpected Success? by Frankie70 · · Score: 3, Insightful


        Does nobody remember the Cassette era, when purchased music was freely recordable and many players had two decks in order to facilitate copying? I don't recall any sort of music industry collapse back then. Sure we didn't have the internet back then, but people still traded music. A lot.


      Few things
      - I assume you had to make 10 copies of the cassette for 10 of your
      friends - you would have spend a few hours doing it - with digital files you
      could email it to 10 of your friends in 10 seconds.

      - There was no cost associated with emailing it to 10 of your friends. Back then,
      you would have to buy 10 blank cassetes to tape on.

      - Assume you had a copy, anyone could look at it & tell that it was a copy,
      not a paid for one. You can't with a digital file.

      - The only people you could copy was for your friends, here you could post it
      for the whole population of the world to download.

    2. Re:Unexpected Success? by Maxo-Texas · · Score: 3, Insightful

      Yes and no.

      The largest content torrent that I've seen had about 750 leechers on it.

      The *typical* large torrent has bout 120 seeders to 120 leechers. This is usually anime or a 1st run television show that was just shown.

      However 99% of content torrents that I've seen has 1 to 2 seeders and 8 to 20 leechers.

      It costs money and time to store downloaded material- and there is *always* a chance you will lose it.

      There is a *solid* market for a copy (Vongo perhaps?) that sells me a lifetime license to a song/show/movie/book/etc. and stores a copy on their end.
      They then charge a *reasonable* re-download fee (say 10% of the minimum wage), a reasonable annual storage fee (say 2 cents per gigabyte- a typical 400 movie library is about 1600 gigabytes- but they only have to keep 1 copy of each for "N" users) and allow me to re-download the song/show/movie/book/etc. a reasonable number of times per year (say once per year) with a small number of floating downloads which allow me to download twice for when things go wrong (an exceptions for cases where I can show them a police report).

      But seriously--- most torrents are very small and it takes days (weeks...) to download things. There were a few things on emule (not a torrent) that took literally almost 3 month to download. I think almost anyone would pay some money to get it *now* vs getting it 3 months from now (or 12 days from now).

      If the media cartel had not driven prices up so high (-- $20 mil for an actor? Should be more like $500,000-- with similar reductions all along the food chain with movies costing $5 to see as a result). However, they have raised their prices so high that people are finding many other less expensive forms of entertainment.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  4. Re:Selling music online the correct way by Tx · · Score: 4, Insightful

    $0.045 is 4.5 cents, not "less than half a cent", it even uses that figure directly later in the article you linked to. Other than that, I agree with you ;).

    --
    Oh no... it's the future.
  5. The tone of the article is a bit biased by UnknowingFool · · Score: 5, Insightful
    "The Holy Grail of online music sales is the ability to offer iPod-compatible tracks. Like the quest for the mythical cup itself, the search for iPod compatibility has been largely fruitless for Apple's competitors, whose DRM schemes are incompatible with the iconic music player."

    This article makes it seems that Apple compatibility is holding back companies from selling music online. An iPod will play MP3s. The problem is that the studios will not allow anyone to sell music online without DRM. FairPlay was Apple's solution to this problem. Apple doesn't want to license it, and that's their choice and right. So these companies don't have many choices, but Apple wasn't the one that created the problem. They found a solution that works for them.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  6. Re:Emusic is cool but there are many great others by Mister+Whirly · · Score: 3, Insightful

    "Honestly, why is Google & Apple always owning or claiming to own the rights to the word "innovate"? For what reason? Anyone?"

    Because they are the most brilliant thieves.

    "Good artists copy, great artists steal." - Picasso

    --
    "But this one goes to 11!"
  7. Re:well, it is legal by 1u3hr · · Score: 4, Insightful
    allofmp3.com is NOT legal, despite what many people say.

    "Many people", including the Moscow Southwest regional prosecutor.

    Allofmp3.com let off the hook
    3/7/2005

    Moscow Southwest regional prosecutor's office has apparently decided that a loophole in Russian copyright law (it only covers infringement via physical media, e.g., CDs and DVDs) allows Allofmp3.com to continue operations. In addition, Russia employs the concept of compulsory copyrights, where the copyrights belong to the artist or music label, but copyright owners are required to license it to anyone who making a request.
    allofmp3.com violates the spirit of the law, if not the exact wording. It is like saying that identity theft was legal because when it first started happening, there was no specific law against it

    Why don't you just say it's "like pedophilia" or "supports terrorism" if you're going to use absurd analogies. As for the "letter" and "spirit" of the law; the mechanism AllofMP3 is using is basically the same as applies to radio stations; they don't have to negotiate with every label for every song, they just pay a lump sum to a collection agency. If AllofMP3 isn't making these payments, they would presumably have been prosecuted.

  8. Adding to the gushing by dodongo · · Score: 3, Insightful

    I've never paid for a tune from iTunes -- and since discovering emusic.com, I probably never will.

    Everyone else in the thread has already said it, but I just wanted to add to the chorus of people urging emusic virgins to check the service out.

    In addition to picking up new music from old favorites like Sufjan Stevens, The Decemberists, and The New Pornographers, their insightful reviews and helpful, music-lover-friendly emails have led me to find a bunch of new music I love. Calexico, Tarkio, Gomez.. A bunch of random electronic tracks... Oh, and a bunch of B-3 jazz / blues, like Tony Monaco, Jimmy Smith, Joey DeFrancesco, et al.

    Seriously, it's great. It's like Christmas every month when the downloads renew and I can go grab a couple more albums. I dig it :)

  9. Re:Allofmp3.com by Tweekster · · Score: 4, Insightful

    The problems Russia is facing with piracy are mass production piracy outfits that bootleg dvds by the hundred thousand, not a website that actually is legal under Russian law and can no long be considered a loophole (it would have been "fixed" by now otherwise)

    RIAA and MPAA want crackdowns on the real pirates that are selling bootlegs produced in quantity. Legal manuvering can take care of allofmp3.com by making them cough up more and through a bit of treaty work that makes the copyright cartel in Russia pay up.

    allofmp3.com is like a fly compared to what is going on in Russia to the RIAA. a non entity when there are bigger problems to deal with. They probably have another 3-5 years before any real changes occur that will matter.

    --
    The phrase "more better" is acceptable English. suck it grammar Nazis
  10. Re:Emusic is cool but there are many great others by dylan_- · · Score: 4, Insightful
    So electrons aren't material objects now?
    Are you joking? Did you really think that when you download something from there that Russian electrons are sent to your computer?
    --
    Igor Presnyakov stole my hat
  11. The Holy Grail of online music sales? by J.+Random+Luser · · Score: 3, Insightful
    The ability to offer iPod-compatible tracks? Sheesh the iPod can play
    MP3 (8 to 320 Kbps), MP3 VBR, AAC (8 to 320 Kbps), Protected AAC (from iTunes Music Store, M4A, M4B, M4P), Audible (formats 2, 3, and 4) and WAV. Specs
    and that's the cheap Shuffle. Unprotected AAC is often described as mp4. If eMusic is the only outfit that can make a business model of this, then the others deserve to die...

    My big regret is that Fraunhofer gave up the fight and MP3 became the de facto standard, rather than the technically superior MP4.
  12. Re:well, it is legal by Software · · Score: 3, Insightful

    >Moscow Southwest regional prosecutor's office has apparently decided that a loophole in Russian copyright law ... allows Allofmp3.com to continue operations
    ...
    >they just pay a lump sum to a collection agency

    I think you misspelled "regional prosecutor".