EMI's DRM-Free Talks Unlikely To Change Online Music Stores
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TechWeb - Steve Jobs and Apple's influence in the online music market is forcing some labels to rethink their strategy even though profit margins on CDs are higher than on music downloads.
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With Sony's move to sell music unburdened by digital rights management schemes, all of the Big Four labels have now thrown DRM on the dump heap of history. But Sony and Universal are experimenting with digital watermarking -- an anti-piracy tool that has implications of its own.
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The move is a blow to Apple's iTunes Store, which has persuaded only EMI and a handful of independent labels to let it offer their tracks in the DRM-free iTunes Plus format it launched in May.
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Edging cautiously into the water where Amazon, Apple's iTunes, eMusic and other services are already frolicking, Sony BMG Music has announced plans to offer a tiny set of DRM-free tracks online... if you go to one of their brick-and-mortar stores first.
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The announcement that Apple would be selling DRM-free music generated a lot of buzz among music enthusiasts, who had been agitating for just such a development ever since music was first offered for sale online.
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The European Union's patchwork of rules on copyright levies, which can mean hundreds of dollars in price differences between conries on goods such as mobile phones, MP3 players and even paper, will not be overhauled in the near future despite pleas from industry groups, artists, and France.
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The world's largest music company will sell restriction-free music downloads at Amazon.com and other online vendors. But not at Apple's iTunes store.
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EMI Group Plc., the world&#39;s  third-largest music company, is expanding its strategy to sell  digital music without copy-protection software to more retail  sites through a deal with PassAlong Networks.
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Then charges back out again The world's biggest record label is touting a scheme that would permit internet users to swap DRM-free music under a blanket license, according to a report. Universal Music Group's "TotalMusic" program would allow customers of ISPs who signed up to the program to exchange files freely - but only if the ISP signed up.â¦
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Sony BMG Music Entertainment will crack open the door to its music vaults on Jan. 15, taking the DRM copy-prevention wrapper off a limited selection of downloadable tracks.The tracks will be offered in MP3 format, without DRM (digital rights management), from Jan. 15 in the U.S. and from late January in Canada.The move is far from the all-digital service offered by its rivals, though. To obtain the Sony-BMG tracks, would-be listeners will first have to go to a retail store to buy a Platinum MusicPass, a card containing a secret code, for a suggested retail price of $12.99. Once they have scratched off the card&#39;s covering to expose the code, they will be able to download one of just 37 albums available through the service, including Britney Spears&#39; &quot;Blackout&quot; and Barry Manilow&#39;s &quot;The Greatest Songs of the Seventies.&quot;In contrast, online retailer&#160;Amazon.com offers 2.9 million DRM-free tracks&#160;in MP3 format from the catalogs of EMI Group, Warner Music Group, Universal Music and a host of independent record labels. Apple&#39;s&#160;iTunes Store has around 2 million DRM-free tracks&#160;in the AAC format supported by its iPod and many mobile phones. No store visit is necessary to download those tracks, and an album typically sells for $9.99 or less.About 4,500 retail outlets in the U.S. will sell the Platinum MusicPass cards by the end of the month, including Best Buy, Target, Trans World, Fred&#39;s, and Winn-Dixie, according to Sony-BMG. In Canada, the cards will sell through Best Buy, CD Plus, and Wal-Mart, and later through record store HMV.Online sales will &quot;ultimately be part of the game plan&quot; for at least one of those retail outlets, said a source familiar with the offering.With Valentine&#39;s Day approaching, Sony-BMG is counting on demand for gift cards to boost sales of the downloads, as well as the collectible nature of the cards themselves, which feature images of the artists and information about the albums.Sony-BMG will offer &quot;expanded&quot; versions of two of the initial offerings -- Celine Dion&#39;s &quot;Taking Chances&quot; and Kenny Chesney&#39;s &quot;Just Who I Am: Poets &amp; Pirates.&quot; These will retail for around $19.99 and in addition to the Platinum version will also include an additional album from the artist&#39;s back catalog.When they first considered online music sales, major record labels initially insisted that download services such as Apple&#39;s iTunes Store encrypt their tracks with DRM technology to prevent copying.Smaller labels sold unprotected MP3 files through sites like eMusic.com, gambling that the increased sales and notoriety that would come with easier access to their music would outweigh sales lost through unauthorized copying.That argument eventually won favor with Apple, which last May began offering tracks from EMI without DRM for a small premium, later bringing the price down to the same $0.99 it charges for other tracks with DRM.Amazon followed suit in September, selling unprotected MP3 files from EMI and Universal. Warner joined them on Dec. 28.The record companies all say they hope the move will lead to greater online music sales.Sony-BMG said it hopes its combined model, selling a download pass through a physical store, will lead to greater sales of physical and digital music.Albums need a boost, as the number sold in the U.S. dropped again last year, even as the number of music purchases rose, market watcher Nielsen SoundScan reported last week.U.S. music buyers made 1.4 billion music purchases in 2007, up from 1.2 billion a year earlier, Nielsen said.Nielsen counts a purchase as an album, single, CD or online download. Within that figure, digital track sales rose from 582 million to 844 million as buyers cherry-picked the tracks they liked from albums available online, while physical album sales (whether sold in-store or over the Internet, but excluding downloads) fell to 451 million in 2007, from 556 million in 2006, it said.But if U.S. consumers are making more music purchases, they may be spending less: Nielsen also counts something it calls track-equivalent album sales, in which it counts 10 track downloads as the equivalent of an album. By that measure, track-equivalent album sales fell 9.5 percent to 585 million in 2007, from 646 million in 2007.&#160;
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(InfoWorld) - Just because three major online music retailers bind their music stores to specific portable players doesn't make it acceptable, a Norwegian consumer group leading the charge against Apple's DRM (digital rights management) policy says. "ITunes Music Store and others are unfair to consumers no matter how many download services follow the proprietary approach," wrote Torgeir Waterhouse, a senior advisor at The Norwegian Consumer Council, in response to a letter written by Apple CEO Steve Jobs andÂ posted on the Apple Web siteÂ on Tuesday. Jobs examined why DRM exists and discusses alternatives to the current set-up in his open response to calls for Apple to allow users to buy songs from the iTunes store and play them on any device. Norway's consumer representative hasÂ threatened legal action against AppleÂ for violating Norwegian law by limiting iTunes customers to playing their music only on iPods. Consumer groups in Denmark, Sweden, Finland, France, and Germany haveÂ joined Norway's complaintÂ against Apple. Jobs points out that Microsoft and Sony also sell music that can only be played on their players, supporting a model that serves customers well with choice and a continuing stream of innovative products. He also suggests that groups like Waterhouse's "redirect their energies" toward convincing the music labels to sell music without DRM, technology that aims to restrict how buyers can copy or use the music. The four biggest record labels forced Apple to employ a proprietary DRM system as a condition of the agreement that allows Apple to sell their music, he said. Ideally, he said, the labels wouldn't require DRM. "This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat," Jobs wrote. While Waterhouse agrees that the record companies carry some fault for the situation, the iTunes music store and others like it are ultimately responsible. "They're still the company that's selling music to the consumers and are responsible for offering a fair deal according to Norwegian law," he said. Still, with his letter, Jobs' appears to have stirred up some additional pressure on the record labels to change their DRM policies. EMusic.com Inc., which claims to be the second largest music download site, only sells DRM-free music from thousands of independent labels. But the site would like be able to sell music from the four biggest labels. "We are hopeful the remaining four will one day join [the independent labels] by licensing their complete catalogs and reap the benefits of consumer demand," David Pakman, president and CEO of eMusic, wrote in a response to Jobs' letter. Even though Jobs didn't hint that a solution might be impending, Waterhouse appeared to see a glimmer of hope. "If this means that Apple is willing to the kick the lock in technology from the [iTunes/iPod] combination this is really good news -- news that should be put into action as soon as possible to bring us all one important step closer to a well functioning digital society," he wrote.
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EMI is said to have discussed proposals to sell unprotected files through an array of digital retailers, including Apple, Microsoft, Real Networks and Yahoo.
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Or dearer. Or disappear? So last year's " Future of Musicâ¢", the DRM-encumbered digital downloads model pioneered by Apple, has stalled. What now?â¦
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Record labels say no deal has been finalised with site which promised legal downloads of over 25m tracks
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Apple Inc. Chief Executive Steve Jobs  on Tuesday called on the four major record companies to start  selling songs online without copy protection software known as  digital rights management (DRM).
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Our countdown to next week's CES centers now on whether the CE industry will at last reach a solution to the DRM conundrum. The new trend toward DRM-free music doesn't appear to be shaking the Blu-ray and HD DVD folks, who continue to cling to proprietary disk formats. Will consumers seek a video alternative, and might it come from China?
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The online retail giant finally unveils its long-awaited music store. In a double punch to Apple, it's DRM-free--and cheaper.