Slashdot Mirror


Music Companies Mull Ditching DRM

PoliTech writes to mention an International Herald Tribue article that is reporting the unthinkable: Record companies are considering ditching DRM for their mp3 albums. For the first time, flagging sales of online music tracks are beginning to make the big recording companies consider the wisdom of selling music without 'rights management' technologies attached. The article notes that this is a step the recording industry vowed 'never to take'. From the article: "Most independent record labels already sell tracks digitally compressed in MP3 format, which can be downloaded, e-mailed or copied to computers, cellphones, portable music players and compact discs without limit. Partially, the independents see providing songs in MP3 as a way of generating publicity that could lead to future sales. Should one of the big four take that route, however, it would be a capitulation to the power of the Internet, which has destroyed their monopoly over the worldwide distribution of music in the past decade and allowed file-sharing to take its place."

10 of 318 comments (clear)

  1. Undermining Apple? by P(0)(!P(k)+P(k+1)) · · Score: 5, Interesting

    From TFA:

    [DRM-free music] could change the equation for Apple, which has dominated the sales of both Internet music and digital music players.

    Makes me wonder if they're not motivated to undermine Apple, who fought tooth and nail to maintain $0.99/download against the industry's will.

    The record industry views the Occident, paradoxically, with more suspicion than the Orient, though we're their biggest customers; it wouldn't surprise me, therefore, if they began to roll this out first in the East:

    EMI Group last week said it would offer free streaming music on Baidu.com, the leading Web site and search engine in China, where 90 percent of music is pirated.

    Can someone say, “chutzpah?

    1. Re:Undermining Apple? by simm1701 · · Score: 4, Interesting

      The industry wanted higher prices however. If they came in selling mp3s at double the price on apple, it would be very interesting to see which way customers went...

      On the other hand apple might decide to ditch DRM at that point also - I don't think its ever been completely decided if DRM helps ipod sales and loyalty or not (I dont have a single ITMS store track on my ipod and its full) - its certainly possible that apple would use mp3 instead if they had the option - first and foremost DRM was used to appease the record companies and persuade them to let their music be downloaded legally.

      --
      $_="Slashdotter";$syn="OTT";s;..;;;sub _{print shift||$_};s!ash!Perl !;s=$syn=ack=i;tr+LLEd+BLAH+;_"Just Another ";_
    2. Re:Undermining Apple? by PygmySurfer · · Score: 4, Interesting

      It'd be interesting if the rest of the industry started selling DRM-free music, yet Apple was forced to continue selling their DRM'd music (it's likely in their contract, after all). I'm sure they'd love to stick it to Jobs, especially after he screwed them out of their variable pricing scheme. I think all that would do is hurt the iTunes Store, though, and not iPod sales.

    3. Re:Undermining Apple? by a_nonamiss · · Score: 4, Interesting

      Man, I'm all for this idea in theory, but do you realize that the Beatles didn't tour from 1966 - 1970? Concerts for generating 100% of the revenue might work for some bands, but if that model had been in place 40 years ago, we'd have no Sgt. Pepper's, White Album, Magical Mystery Tour, Abbey Road. Pretty much all of their best stuff.

      --
      -Arthur
      Cave ne ante ullas catapultas ambules
  2. About time by koan · · Score: 4, Interesting

    From where I stand (or sit) DRM wasn't much of an issue, as it was released it was promptly circumvented. I am old enough to recall buying vinyl and when CD technology was introduced the complaint then was the cost of CD's.
    The music companies said the cost would come down with acceptance of the tech but it never really did come down.
    God bless the Internet.

    --
    "If any question why we died, Tell them because our fathers lied."
  3. Re:Achilles' Heel by ack154 · · Score: 4, Interesting
    If this report is true, perhaps some in the industry are finally coming to their senses.

    I doubt that. It'll probably end up being them claiming it was their great idea all along and it's "best for the artists" and blah blah blah. They would never admit that DRM is a failure.
  4. Apple would just sell DRM-free music by RalphBNumbers · · Score: 5, Interesting

    Those who think that this would somehow immediately undermine Apple's dominance with the iPod are misguided as to why the iPod is successful imho.

    The tinfoil headgear sporting subset of /.ers might like to see Apple's DRM solely as a lock-in scheme, and while no doubt Apple finds any lock-in a reassuring safety net in case they do someday drop the ball on iPod design, for the moment (and for the foreseeable future with the iPhone) Apple doesn't *need* lock-in. The iPod isn't selling because people have huge collections of .m4ps they need to keep compatibility with, it's selling because it's slickly good at what it does and it's a brand a lot of people are pleasantly familiar with.

    The simple reality is that if the Music companies start allowing DRM-less downloads, then Apple will probably make even *more* money selling iPods than they are now, as more people start to buy unencrypted music via their computers to put on said iPods. In the long term their share of music sales may be hurt, but as the world's 4th largest seller of music, they already have plenty of momentum and market power; combined with their slick store and integration in iTunes, I would think they can do just fine in a less partitioned market, and retain a good deal of influence with the music industry selling unencrypted music.

    --
    "The worst tyrannies were the ones where a governance required its own logic on every embedded node." - Vernor Vinge
  5. This has been coming for some time by mce · · Score: 5, Interesting

    Last week I had a chat with the former managing director of one of the big four labels in my country (and in a few others as well). His personal opinion is that DRM has to go. When asked directly, he stated that in the music industry boardrooms, about 50% of the people are by now convinced that it has to go, whereas 50% have not yet reached that point. One of the things that's holding them back, is that the movie and especially the games industries are putting pressure on the music one not to drop DRM because they fear the domino effect.

  6. Mulled Whine by Doc+Ruby · · Score: 4, Interesting

    Can you imagine what "mulling" is like at the executive level of these big music publishers?

    A roomful of people unfit to work in any industry not underwritten by a century-old monopoly. Whose added value lies in conning artists into working for a tiny fraction of the value they create, or their weight in drugs, whichever is less. Or in conning consumers to pay over and again for either some good products produced as "pop" generations ago, or some awful products produced more recently that they sell to children as soundtracks to free music videos and the lives of talentless celebrity models.

    These people don't "mull". All they can do is whine and fail when their crooked old tricks don't work so good any more. Years of lying about DRM and piracy hasn't reversed the drop in their profits, as the least-dumb people have all fled their business. Their decisions are made mainly by listening to tech vendors tricking them into broken tech protection of a broken business model, instead of changing the model. If they do drop DRM before they go permanently broke, it'll be because they can't afford it themselves, or just because they screw up their stupid strategy by making irrecoverable mistakes implementing it.

    Information might not want to be free, but nature abhors a vacuum. The empty space at the top of the music content pyramid is sucking control of all that content inevitably out to unimpeded access by any consumer who wants it.

    --

    --
    make install -not war

  7. How controversial can it really be? by Sloppy · · Score: 4, Interesting

    The record companies have made most of their revenue selling unprotected CDs (and unprotected tapes and unprotected vinyl discs). Selling non-DRM music is a known good, safe, conservative, proven business model to which the record companies owe just about every penny they have. Without this business model, they simply wouldn't exist today.

    DRM was a radical, speculative tell-the-customers-fuck-you-we-don't-want-your-mon ey-go-away model that has a track record of failing. Look at the software industry of the 1980s when copy protection was widely used. It didn't make a dent in piracy (because no one ever invented copy protection that actually works), but the interoperability problems sure as hell pissed people off (e.g. "whaddya mean this won't run on my new AT?!?", "whaddya mean my defrag utility trashed the 'secret' sector that wasn't allocated to a file?!?") and increased support costs.

    Nobody knows if the record companies will actually decide to continue to remain in the having-customers business, but one thing is for sure: it's the obvious no-brainer thing to do, if protecting/increasing shareholder value is anywhere on their list of priorities. There's nothing controversial about wanting to maximize profits. Telling customers, "sorry, our new product isn't compatible with your equipment, costs more, and doesn't work as well as what you're used to, because we really just don't like you, so please buy someone else's music instead" on the other hand, is pretty out-there.

    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.