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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."

7 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 Khuffie · · Score: 5, Informative

      Apple has been given permission by indie labels to sell their music without DRM, music said labels sell without DRM in places like eMusic.com. Apple refuses to sell unprotected AAC files, even at the request of copyright holders.

    2. Re:Undermining Apple? by nine-times · · Score: 5, Informative
      I doubt Apple would ever switch to MP3s. They've got too much invested in their format to abandon it now.

      On a side note, it's not "their format". AAC was made by many of the same groups that put together MP3, and it's just as standard as MP3, but actually less patent-encumbered than MP3 (though still not patent-free), and with generally superior quality at the same bitrate. Apple's DRM is proprietary, but the AAC format is not.

      And no, they won't switch. There's no compelling reason for Apple to move to MP3, and technically Apple would have to pay patent-holders to distribute MP3s. According to the wikipedia article, AAC doesn't require licensing fees to be paid to patent-holders for content distribution.

    3. Re:Undermining Apple? by tyme · · Score: 5, Insightful
      GizmoToy wrote:
      I doubt Apple would ever switch to MP3s. They've got too much invested in their format to abandon it now.

      When, in the last decade, has Apple shown any reluctance to abandon proprietary technologies, in which they had a large investment, rather than adopt industry standards? Hm, lets see:
      • I doubt Apple would ever switch to PCI. They've got too much invested in Nubus to abandon it now.
      • I doubt Apple would ever switch to IDE. They've got too much invested in SCSI to abandon it now.
      • I doubt Apple would ever switch to USB. They've got too much invested in ADB to abandon it now.
      • I doubt Apple would ever switch to USB2. They've got too much invested in Firewire to abandon it now.
      • I doubt Apple would ever switch to Intel CPUs. They've got too much invested in PowerPC to abandon it now.
      • I doubt Apple would ever switch to PDF. They've got too much invested in QuickDraw to abandon it now.
      • I doubt Apple would ever switch to VGA/DVI. They've got too much invested in their proprietary video connector to abandon it now.
      • I doubt Apple would ever switch to a multi-button mouse. They've got too much invested in the single button mouse to abandon it now.
      Apple just hasn't shown, in the last 10 years, any reluctance to abandon existing, home-grown, technologies when the market has provided an adequate alternative.

      Besides, the iPod and iTunes already support MP3s, all Apple would need to do is switch the format that iTunes uses to distibute purchased music.

      --
      just a ghost in the machine.
    4. Re:Undermining Apple? by shakestheclown · · Score: 5, Insightful

      God, it never ceases to amaze me the extremes that people are willing to explain away to justify the companies that they like. And then they never miss an opportunity to read evil into the actions of a company that they dislike.

      News: Apple doesn't sell music without DRM. Response: Oh, the labels won't let them.
      News: Some labels gave Apple the opportunity to sell music without DRM, but Apple refuses. Response: Oh, what if there was a mistake? The legality! Apple is safer this way.

      Give me a break.

      And just as bad is the post above about how Apple only uses a proprietary DRM to combat Microsoft's EVIIIL proprietary DRM.

  2. 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
  3. 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.