DRM will Die in 2008, British Music Service Predicts
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Quality DRM-free tunes sell well, says 7digital, which plans to drop copy-protection this year.
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Yahoo is reportedly in talks with major labels about a DRM-free music store. to offer them either for sale or for free in an ad-supported model.
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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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British music giant HMV on Wednesday announced plans to launch a digital music service next year, using software being developed by Microsoft.
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The lead analyst of last week's JupiterResearch report showing a majority of music industry executives in the EU agreeing that a world without digital rights management would be a world with greater revenues, told BetaNews in an exclusive interview this afternoon that his firm believes a single, open, interoperable, standard DRM scheme would still be rejected by consumers.
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Steve Jobs' essay questioning the wisdom of selling DRM-wrapped tunes is still spurring lots of discussion about the future of music, and rightly so. In Listening Post.
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Also: Yahoo: DRM-free music by year's end. Read these stories and more from around the Web on News.com Extra.
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Harmony, which is incorporated in version 10.5 (and will also be in the next version of the RealRhapsody music service), allows the player to manage Digital Rights Management (DRM)-protected
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A year after the stillborn iTunes competitor was launched, Sony to finally bury music service sometime after March 2008.
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The first time I heard the phrase "digital rights management" was in 2000. It came from the mouth of Dick Brass, who at the time headed up Microsoft's (MSFT) automotive computing division.  I didn't like the phrase from the start.
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The Web 2.0 darlings can't pay - won't pay Guest Opinion So 2008 brings another battle in the war over the value of music.â¦
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At the Consumer Electronics Show this year, it&#39;s clear that consumers are making choices that are driving industry changes, and nowhere is that more evident than in the digital music business.Music industry and technology executives convened for the Billboard Digital Music Live conference Wednesday to talk about what those in the business need to do to meet the needs of music fans who appear to be running the show.&quot;2008 has to be the year we get real or the business as we know it goes away,&quot; said Fred Goldring, an entertainment attorney with Goldring Hertz &amp; Lichtenstein. He said that consumers will access music regardless of whether artists, labels, publishers, and digital music distributors approve of the means or receive money from the exchange.Since Napster turned the music industry on its ear in 2000, the digital-music business has been rocked by dissent among artists, labels, publishers, and the breed of technology companies distributing and selling music online that emerged in Napster&#39;s wake. All of these parties want to derive revenue from their contribution to the business, but have been arguing for years about how everyone should get paid.As this drama unfolds behind the scenes, consumers continue to find ways to bypass DRM and emerging revenue models to download and share music, making it not just impossible for the music industry to make money from traditional means, but also difficult to make money at all. In the meantime, artists have embarked on their own revolution, using social-networking sites and other online means to get their music directly in the hands of fans and finding other ways to derive revenue from their work.An example of the latter is the controversial and much-publicized move by U.K. rock band Radiohead to sell its new album &quot;In Rainbows&quot; direct to consumers without going through its record label or Apple&#39;s iTunes Store. The album first went on sale in October on Radiohead&#39;s Web site, allowing users to choose their price for the record; a few weeks ago, Radiohead released the record to iTunes and other retail channels.Scenarios like this will continue to happen, both among major-label artists and independent or unsigned artists. Whether they work is not the point; it&#39;s what the industry will do to work within these models and support them rather than continue to resist that will decide how the industry will fare in the future, said Terry McBride, CEO of Nettwerk Music Group. Nettwerk is a Canadian privately owned record label and artist management company.&quot;The corporate side of it has to shift,&quot; he said. &quot;The corporate people have not allowed us to do what we know we have to do. This is about the consumer, about monetizing their behavior and giving them choice. For all of the people that believe in controlling the&#160;[intellectual property]&#160;and how [the music] gets to consumers, the game is over. It was over seven or eight years ago, and soon your business will be over.&quot;Goldring suggested the industry focus on business models built solely around the networks that allow users to download music and find ways for everyone involved to make money that way.&quot;We have to stop trying to keep our old business alive&#160;... and figure out how to monetize the pipes [music files] are going through,&quot; he said.Barney Wragg, head of digital, EMI Music Group, said that in a perfect world, scenarios like the ones McBride and Goldring propose would exist. However, the needs of different artists vary, and there are still concerns about the integrity of their work and how they will be compensated for it as new business models emerge.&quot;I have artists that don&#39;t want to be involved in certain business models,&quot; he said. &quot;I have to balance those conflicts. ... There are a whole bunch of artists who are worried about how they&#39;re going to get paid, and what this is going to do about their representation or their art.&quot;Allowing their music to be distributed through ad-supported online music services is a particularly hard sell for artists who worry that having their work be associated with advertising &quot;devalues&quot; it, Wragg added.Subscription-based models such as Rhapsody that don&#39;t give users ownership of their music have struggled to take off. Wragg compared music fans&#39; view of subscription models to the early days of e-mail, when people wanted files to be stored locally and were adverse to the concept of e-mail existing only on a remote server.That concept changed over time, as will the perception of subscriptions if they are marketed to consumers in the right way, he said.Another factor that should boost the popularity of subscriptions in the future is the increased spending of younger fans who are naturally more comfortable with the idea of not owning their music, said Matthew DeFilippis, vice president of new media and technology for the American Society of Composers, Authors and Publishers, a membership organization representing the rights of artists.&quot;Ownership is a generational thing,&quot; he said. &quot;Even though kids today are buying from iTunes, I don&#39;t think they care about owning a thing. As they become the new generation of homeowners and bill payers, [music subscription] will be moving toward a cable [TV] model.&quot;
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DRM-free at last? Amazon looks set to plough into the digital music market next year. The retailer started romancing music labels last week.â¦
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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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And then there were none Sony BMG, the last major record label that won't sell you music without DRM kneecapping will reverse its stance in February, according to a report today.â¦
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The Internet may have forever changed the music business, but online downloads will keep playing second fiddle to compact discs for at least the next five years.
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Part of the UK's national sound archive could be lost as a result of copyright law, the British Library warns.