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Sony BMG Dropping DRM

Lally Singh writes "BusinessWeek is reporting that Sony BMG is planning on dropping DRM from their music. Salon's Machinest had an interesting take on this; 'Actually, what's happened is quite ironic. It was the industry's own DRM mandates that tied many music-lovers in to Apple's music storefront (we all had iPods, and the only way to buy digital music for the iPod was from Apple). Now Apple's become too powerful for the labels. They need an alternative distribution channel — they want to get music to our iPods, but they don't want to go through Apple to do it. The only way to do that is to offer retailers like Amazon the chance to sell songs as plain, unrestricted MP3s, which are iPoddable.'"

14 of 295 comments (clear)

  1. I Preferred the Root-Kit by Anonymous Coward · · Score: 5, Funny

    Back when Sony was putting root-kits in it's music CDs I felt justified in pirating their music.

    Now I just feel OK about it.

  2. Powerful? by earlymon · · Score: 5, Insightful

    What does it mean, Apple's become too powerful, so Sony needs another distribution channel? Is Apple driving the prices up? Is Apple restricting Sony to only sell DRM'd music? Is Apple incapable of supporting non-DRM formats? Does Apple not reach sufficiently worldwide.

    Like a guy who's murdered his parents pleading mercy as an orphan - Sony pleading innocence over where they're at with ecommerce of their music.

    --
    Pathological kinda promises Path + Logical - but instead, you get stuck with pathetic.
    1. Re:Powerful? by tlhIngan · · Score: 5, Insightful

      What does it mean, Apple's become too powerful, so Sony needs another distribution channel? Is Apple driving the prices up? Is Apple restricting Sony to only sell DRM'd music? Is Apple incapable of supporting non-DRM formats? Does Apple not reach sufficiently worldwide.


      More like, "Apple won't bend over and cede to our demands!"

      Everyone knows that Apple has a standard iTunes contract. Now that iTunes has proven to be the #1 place to get music legally, and is something like #3 in marketshare for music, the labels are worried because Apple has this store that sells to the #1 music player, and no other store has that potential. Apple could very well dictate the terms, basically by saying "This is our offer. Take it or leave it." (whether that includes iTunesPlus or not... I don't know).

      Amazon opens up a store that's DRM free, and backed by a relatively large and well-known company.

      Labels have a choice - bend over and accept Apple's terms, and keep DRM, and be usable on the #1 music player. Option 2 - make their own terms with Napster/Zune/etc, keep DRM, but be usable on the small subset of players. Now with Amazon, option 3 is, negotiate with Amazon (they need music), drop DRM, and be usable on the #1 music player.

      Labels have decided that temporarily, dropping DRM is better than Apple's terms, and hope to make it such that instead of Apple dictating the terms to the labels, the labels will be in the power to dictate terms to Apple ("We have Amazon. We don't need iTunes") and hope that Apple rolls over.

      It's really a power play. The labels are afraid of having terms dictated to them, and see if they can make Amazon a powerful music store, that hopefully they can leverage Amazon against iTunes. If Amazon is too powerful, they can ditch Amazon for iTunes. But in the meantime, they know that by weakening iTunes, Apple won't be able to standard-contract them.

      And if Apple closes the iTunes store, they can ditch Amazon as well, and we'll be back at square 1. So closing shop isn't a real option, but having iTunes and Amazon compete for labels is.

      For the consumer, it's "ain't competition grand?" for now. Once Amazon saps some of iTunes' strength, they'll put back in their demands of "demand pricing" or whatever other crap they want, knowing Apple will want to compete with Amazon.

      Interesting play, interesting times. I say, enjoy it while it lasts...
  3. serves them right by circletimessquare · · Score: 5, Insightful

    they could have built their own portals in 1999. they didn't. they filed lawsuits against soccer moms and college kids instead

    apple came, gave college kids what they wanted many years later, and so the big publishers, by denying reality of the changing business they were in, effectively handed apple all of the power they previously had, and could have retained

    they screwed themselves

    no sympathy

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  4. Re:this should be nice by sm62704 · · Score: 5, Insightful

    I would never do this

    I would. I have no problem whatever making life miserable for thieves and miscreants like those bastards who run the entertainment industries.

    "The VCR is to Hollywood what Jack The Ripper was to women" -Jack Valenti, head of the MPAA when he made that stupid comment.

    Fuck 'em all. When they start running respectable businesses I'l respect their businesses.

    --
    mcgrew's razor: Never attribute to stupidity that which can be explained by greedy self-interest
  5. Why should the labels be in control anyway? by jhfry · · Score: 5, Insightful

    What I don't understand is why the labels have such influence in the sales of music. Contrast it with retail sales and you will understand what I mean. In typical retail sales, the retailer purchases X items from a distributor or direct from the manufacturer and sells the for whatever they choose, allowing the retailer to compete and allowing the manufacturer sell the items for their desired profit margin, the only people who's profit margins are influenced by competition (of the same product) are the retailers.

    In the online music world, the Label places all kinds of stipulations and requirements on the seller. Wouldn't they simply be better off selling X licenses for Y cents per license to as many online sellers as possible and let them duke it out over selling as many as possible. You would see Apple's, and many other sellers', profit margins drop as competition raged. Consumers would be buying at lower prices, which would increase overall sales, and advertising would increase as different sellers tried to attract new buyers.

    Overall, a simple Manufacturer -> Distributor -> Seller -> Buyer structure where the manufacturer is hands-off on the sales end would probably make the most money for them. Even with piracy raging in the background, I guarantee that if I could pick up a bunch of music for $.25 per song (with $.24 going to the label), I'd be all over it. If the label want's more money for a newer track, simply sell it to the distributor/seller for a higher price and let them figure out how they want to move it.

    I would imagine you would see 2 for 1 deals, free downloads, and all kinds of other schemes where sellers would take a loss on the low cost music to see higher profit margins on the higher cost tracks.

    All I can say is... stop letting the labels set the retail prices, let competition and demand dictate the price. It's worked for almost every industry since the dawn of trade and there is a good reason, it makes everyone happy because they feel like they are getting a fair deal.

    --
    Sometimes the best solution is to stop wasting time looking for an easy solution.
  6. Re:That crackling sound you hear.. by greg1104 · · Score: 5, Informative

    The change of heart only happening after Christmas may have been because the holiday sales of CDs this year sucked, down 20%.

  7. Re:Travesty, thats all I have to say. by mce · · Score: 5, Funny

    In Soviet Russia, where the real hacking studs live, hackers soon will massively distribute DRM-ed versions of Sony's DRM-free music, just to show the world how much they hate the established music industry, irrespective of what it does.

    In the US, some wannabe high-school hackers will briefly attempt the same, but will be sued into the ground by RIAA laywers intent on showing who still owns the copyrights to and patents on the DRM concept.

  8. Morals aside - what's the end result? by Nerdposeur · · Score: 5, Insightful

    I have no problem whatever making life miserable for thieves and miscreants like those bastards who run the entertainment industries.

    In context, I presume you mean pirating their work. Without getting into a moral argument, I do think you should consider the practical effects of your behavior.

    We all know that labels screw artists and DRM is bad and blah blah blah, but what happens if your favorite action films cost $50 million to make, but suddenly all of the customers have "digital content wants to be free" philosophies?

    Frankly, if nobody pays to see movies, no movies will get made - or at least, only cheap movies where the person making them can afford to eat the cost. No more magical Hollywood special effects. You're not going to see Lord of the Rings get produced under a Creative Commons license.

    Even if the whole business isn't "respectable" by your standards, you obviously respect their work enough to watch it. To never pay is to vote for a world where that work is never produced.

    1. Re:Morals aside - what's the end result? by deathy_epl+ccs · · Score: 5, Insightful

      We all know that labels screw artists and DRM is bad and blah blah blah, but what happens if your favorite action films cost $50 million to make, but suddenly all of the customers have "digital content wants to be free" philosophies?

      This argument has no basis in reality, though... people are not going to universally stop paying to go to the movie theatre, and they're not going to stop buying DVDs.

      I remember another industry that piracy was going to kill. It used to be called the Video Game industry, and man, were they cool. When we were kids, we used to play the darned things all the time. Unfortunately, rampant piracy put them completely out of business and there are no more video games.

      Of course, in reality what's happened is that the video game industry has become one of the biggest modern growth industries there is... and you know what? People are still pirating the games too.

      I'm not coming out for or against piracy here, but when we have these discussions, we should at least try to look at things from a realistic perspective instead of dogmatic positions.

    2. Re:Morals aside - what's the end result? by Sancho · · Score: 5, Insightful

      But watching the films and listening to the music anyway just says you want the stuff but aren't willing to pay for it like everyone else. Well...yeah.

      Here's the thing: copyright is a balance between the insanity of allowing ideas to be owned, and the insanity of few people creating art because we need to eat. To maintain that balance, the government (the people) struck a deal with content creators--they get a limited monopoly on their work in exchange for creating it in the first place. But eventually, the people get the work, as they should, because owning ideas is idiotic.

      Unfortunately, the content creators don't feel the need to honor the deal--they just want to own the ideas outright, forever and ever. I don't particularly blame them--everyone's always looking out for number 1--but the fact remains that they're violating it every time they ask for extensions.

      It's not unreasonabe to wonder why one side should agree to a deal that the other side is violating.

      The key is that it has nothing to do with the content. A boycott is generally useful for when you don't like what someone is saying, or even how they're saying it. Copyright is a weird beast that really doesn't fall into either of these areas.
    3. Re:Morals aside - what's the end result? by dwandy · · Score: 5, Insightful

      Frankly, if nobody pays to see movies, no movies will get made
      I guess all that TV I watch is just my imagination hard at work? 'Cause I haven't paid for any TV content (the signal, yes if you have cable/satellite, the content is paid by ads)

      Don't confuse "how it's financed under the current system" with "the only way content will get financed"

      Beyond that, you're also ignoring the fact that large percentages of the costs of making movies is clearing copyright -- if movies get made using cc content, then they won't cost what they do now. Furthermore, there is nothing that Actor-X does that makes him worth $20-million for a movie. He gets paid that because there is an expectation that the movie will make enough to pay him that. Stage actors make working-type wages (since that is what stage can afford to pay) and they are still able to attract talent. Clearly if movies make less in general, the Big Name Actors and Big Name Producers and Directors will be the first to take massive pay cuts. That doesn't equate to "no more movies being made"

      And then the final question I always ask is: who cares if they don't make $100million films any more? If we actually care about the cost of a movie, then the question of "what could we do to make sure that $500-million movies get made?" becomes an equally valid question. Or perhaps 25% of the GDP should be directed at movies to make sure that multi-billion-dollar movies can be made?

      Purely speaking, "cost" isn't really a factor in determining the artistic merit, or even quality. "Relative cost" seems to be positively related to quality (roughly), but still no relation to artistic merit.

      So if the "cost" bar lowers from $50-million average movie to $1-million, those movies will still have excellent quality - the actors et.al will just be driving Toyota's like the rest of us instead of picking out the Porsche-du-jour.

      --
      If you think imaginary property and real property are the same, when does your house become public domain?
    4. Re:Morals aside - what's the end result? by grimwell · · Score: 5, Interesting

      Copyright is primarily an economic tool. It provides an incentive for people to create and share new works.

      Copyright is not an incentive for people to create and share works. You should put the flavor-aid down.

      Before copyrights and the concepts of IP, people were creating & sharing works. People naturally have a tendency to create, sharing is more of a cultural thing.

      Copyright is there is enrichen the public domain(and thus human culture) by granting the author exclusive distribution rights for a limited time.

      Copyright is basically a social contract between authors and society. Copyright has been perverted and no longer benefits society. It has become too one sided.

      Is it really any surprise for the party being ripped off in the social contract, to start to disregard the social contract?

      That's just one big straw man. We're not talking about copyright extensions here, we're talking about DRM and the ethics of piracy. And right now, give or take the current imbalance between fair use doctrine and technological protections (which is recent and mainly confined to the US), the use of DRM doesn't inherently break any part of the deal and piracy clearly does.

      DRM is an under the table extension of copyright terms by the author both in length of the copyright and removal of the end user rights.

      DRM doesn't know when a work's copyright expires, so this effectively puts the work under an never expiring copyright.

      DRM also limits what the end user can do with the work; e.g. time or media shifting.

      DRM and piracy both break the social contract of copyright. Kettle meet Pot.

      If you get a chance spend some time hanging out with groups of artists(little kids, music, writers, coders, actors, etc). They're naturally creating stuff all the time, some good, some bad.

      --
      If the govt becomes a lawbreaker, it breeds contempt for law, it invites man to become his own law, it invites anarchy
  9. An interesting artifact from the fossil record by earlymon · · Score: 5, Informative
    From http://www.apple.com/hotnews/thoughtsonmusic/

    Apple, Microsoft and Sony all compete with proprietary systems. Music purchased from Microsoft's Zune store will only play on Zune players; music purchased from Sony's Connect store will only play on Sony's players; and music purchased from Apple's iTunes store will only play on iPods. This is the current state of affairs in the industry, and customers are being well served with a continuing stream of innovative products and a wide variety of choices. and also

    Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. For Europeans, two and a half of the big four music companies are located right in their backyard. The largest, Universal, is 100% owned by Vivendi, a French company. EMI is a British company, and Sony BMG is 50% owned by Bertelsmann, a German company. Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace. Apple will embrace this wholeheartedly. That's from 11 months ago - so please, no sympathy for Sony's actions in this.
    --
    Pathological kinda promises Path + Logical - but instead, you get stuck with pathetic.