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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.'"

8 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.

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    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.

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    Modern copyright is theft of culture from everyone and it retards the progress of the useful arts and sciences.
  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 ;).

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    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.

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    Well, there's spam egg sausage and spam, that's not got much spam in it.
  6. 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.

  7. 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.

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    The phrase "more better" is acceptable English. suck it grammar Nazis
  8. 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?
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    Igor Presnyakov stole my hat