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.'"

Comments

For more examples..

[Sloppy]

..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.

The tone of the article is a bit biased

[UnknowingFool]

"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.