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Music Execs Say Apple's DRM Hurting Industry
EMB Numbers writes "C-Net says last year saw a 131 percent jump in digital sales, but overall the industry still saw about a 4 percent decline in revenue. Some executives at this week's Digital Music Forum East conference lashed out at Jobs, blaming Apple and its CEO for their troubles. The impression at the conference was that Jobs' call three weeks ago for DRM-free music was anything but sincere. As the article puts it, 'Apple has maintained a stranglehold on the digital music industry by locking up iTunes music with DRM ... and "it's causing everybody else who is participating in the marketplace — the other service providers, the labels, the users — a lot of pain. If they could simply open it up, everybody would love them.""
I agree. I read the summary and was simply dumb struck with how oblivious those Music Exec. are to the true cause of their suffering. Maybe instead of blaming everyone else, look in the mirror you idiots! You have fought digital online music since your first heard the term "MP3". Top that off with suing your own customers in mass, and its no wonder your revenue is falling! People don't want to buy from you!
Space for rent, inquire within
Apple, in it's traditionally clever way, has turned the tables on the music industry. The music industry, in initial negotiations, simply stated that they wanted "DRM." Apple designed and built a form of DRM that (A) minimally inconveniences their customers, (B) complies with the letter of the agreement, and most importantly, (C) uses the DRM to lock iTunes to its player, thereby profiting from the arrangement and effectively killing any other competitors. (Even MS can't break into the market.) As Apple has the only digital music store anybody would want to use, they use their considerable muscle to bully the music industry into doing what they want.
This is NOT what the music industry wanted. When they say "DRM," they mean DRM that protects *them,* not resellers. So now they're crying for Apple to "open" their DRM. They still want DRM, just DRM that doesn't give Apple the above benefits, the goal being to effectively give their competitors a chance to flourish. If this happens, the music industry will regain the upper hand in negotiations, and start forcing Apple to do its bidding. This will, of course, result in higher prices and poorer service.
The music industry is betting the public won't understand the difference between "opening" DRM, and doing away with it. The former helps nobody but the music industry. If they succeed in convincing consumers that the industry is opposed to DRM, and mean old Apple is forcing it on them, they'll be able to turn public opinion against Apple and get their demands met. This has nothing to do with helping the consumer, and everything to do with the music industry trying to wrestle its way out of Apple's iron grip on its throat.
We'll see how this turns out.
Formerly GNU/Anonymous Coward. This message has been determined to cause cancer in laboratory animals.
Man, I laughed my ass off when I read this one. So, there's a 4 percent decline in overall revenue. The only reason they could find is Steve Jobs? Of course, it wouldn't have anything to do with the fact that their products suck, would it? No, they would never look at themselves and wonder why sales are down. I guess their latest "pop tarts" aren't bringing in the money they were a long time ago. Oh, and I'm sure the lawsuits aren't affecting the revenue line. Nah - it's got to be Steve Jobs, isn't it?
Please. How lame can you get?
It is not our abilities that show what we truly are... it is our choices.
I've heard that limiting prints is indeed part of the problem. What the music industry doesn't talk about is that the number of albums they release is also down.
Fewer albums released -> lower sales -> less income
I don't read AC A human right
How many songs are there that are on multiple "albums"? How often do record companies put out a "Greatest Hits" compilation and add a new song just to get the fans of that band to "need" to buy it?
Now, they don't need to. The iTuner gets the new "<fiction>Van HalenRunning With The Devil f. Alanis Morrisette on vocals</fiction>" for a buck, instead of shelling out $17.99 for that and 17 reruns. That's a 94.4% drop in revenue, and DRM has nothing to do with it.