Universal to sell DRM free songs, but not on iTunes
It is safe to say that most folks aren't big fans of DRM, though Apple's flavor of DRM (FairPlay) is flexible enough that most will never run afoul of it. You might remember Steve's letter to the music industry in which he extolled the virtues of DRM free music. EMI has been the only major record label to adopt this DRM free stance, and much of its catalog is available via iTunes Plus for $1.29 a song (you can still get the DRMed versions for $.99). EMI is about to have some company in the DRM free music biz, pretty soon.The New York Times is reporting that the Universal Music Group is going to be selling part of its catalog sans DRM for the next few months to gauge consumer interest. This is great, but the only catch is that these DRM free songs won't be available via iTunes. Universal, in an effort to lessen Apple's dominance of the digital music market, will be offering up the DRM free music via Amazon, Google, RealNetworks, and Wal-Mart for $.99 a song (a price many accredit Apple to pioneering).
You might recall that Universal recently decided not to renew their contract with Apple to sell music in iTunes, and switched their commitment to a month by month basis. What does all this mean? I am betting that this experiment will succeed, and that Universal will reverse their decision and sell DRM free tracks via iTunes, why not sell your wares on the top online music store?
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It is safe to say that most folks aren't big fans of DRM, though Apple's flavor of DRM (FairPlay) is flexible enough that most will never...
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If they are .mp3s or .aacs then I will consider it, otherwise Universal can shove it where the sun don't shine because WMA's aren't compatible with my iPod and I'm not going to go through the trouble of converting songs that I payed for when Frostwire is sitting right there in my dock.
August 12 2007 at 4:01 AM Report abuse Permalink rate up rate down ReplyFree music from DRM? Cool! Oh, you mean DRM-free music...
August 10 2007 at 5:36 PM Report abuse Permalink rate up rate down ReplyGod they are so stupid. They bitch and whine about wanting more money for their crappy tracks, and then they shaft the biggest store, which offers 1.29 pricing instead of 99 cents, for stores no one shops at for .99.
The only logical way to explain this is that the record companies are completely insane, incredibly stupid, and don't give a rats ass about their shareholders, preffering instead macho posturing to making a healthy return.
I can't predict how this will pan out, nor do I care. I BUY all my music online from iTunes. If the artist is not there, I don't BUY it online. If I could, I would buy all of my music from iTunes, but I will not spend hours searching for it all over the net.
August 10 2007 at 10:15 AM Report abuse Permalink rate up rate down Replywell, for iphone users the amazon way of shopping would be one possible way of buying songs online. itms can't do this yet, or am i wrong?
this will be highly successfull as long as they keep away from the silly wma formats. uncompressed would be the smartest option anyway. i think excluding itms for the introduction phase makes perfect sense from a marketing point of view. competition usually is pro consumer...
well, i'm conflicted. i want to support these companies going DRM-free, but i don't want to support them not selling on iTS...because that's they setup i've chosen to use.
i guess what i'll do is purchase some non-DRM tracks through Amazon and/or Google (no way in hell i'm going through Real or WM), to at least send the message that i'd like to see them get rid of DRM.
My opinion is that the move by Universal has one easy explanation...
Music labels have lost almost all of their influence with the recent developments in music distribution.
The move by Universal, shifting from iTunes, is intended to brake the online distribution platform into peaces (many small stores, instead of one giant). So that music labels will regain lost power because they can say... Wait a second, either you comply or I am not distributing any of my music through your channel (i.e. you give me the share of revenue I want, make the prices I want, and so on).
Universal is following this strategy:
1) break the online distribution market into many little peaces
2) make deals on a "monthly basis" with as many distributors as possible
3) offer music that is DRM free so that the customer will be able to switch from a distributor to the other flawlessly
4) start to dictate conditions and menace to retire the catalog from stores that do not comply
Customers, in a DRM free world, will be able to switch from a store to the other in minutes, so that if a catalogue disappears from one, they'll simply switch to the other.
Labels are trying to strike back... And regain the power they lost in the last couple of years.
I don't like it... Not a bit, but that's the road they are following...
Even if we don't like it.
Universal is just the first one, all others will follow in trying to brake iTunes "de facto" monopoly.
kalessin, you are forgetting that the record companies are ALREADY offering their music on other stores than iTunes.
You can buy music from all the major labels on Amazon, Wal-Mart, Google, realnetworks... It's just that NOBODY buys their music there! That's not Apple's fault, that's up to the stores and the labels being in bed with Microsofts shitty WMA format and DRM.
And WHY would Apple give Universal a percentage of iPod sales? iPods sell because they are great music players, not because you can get the major labelss music in the iTMS. Most of the music on iPods comes from "other sources".... If Universal and other labels want to break iTunes' hold of the digital downloads market, they should:
a. Sell all music DRM-free in MP3 or MP4
b. Set reasonable mimimum prices for tracks, EP's/singles and albums
c. Accept that information wants to be free
Of course this will not happen in the near future because most record company executives have theur heads up their *sses and are self-centered greedy bastards who only care about money.
All this pathetic posturing shows why record companies are among the most reviled groups of businesses today.
In any Apple Keynote, Steve Jobs makes it seem as though everything Apple does is for their consumers. This, however, is clearly a case of the consumer getting shafted, simply because Apple wouldn't pay Universal a percentage of iPod sales.
It would be nice to think the people on this forum are representative of the marketplace, but they're not. Most consumers are sheep. If they want a track by Eminem, who's signed to Universal, and isn't available on iTunes, they'll go elsewhere. No problem. You can't expect sheep to boycott Universal, when Universal's content isn't available anywhere else.
So Universal will prove that iTunes isn't as powerful as everyone thought it was. The other record companies will follow suit and offer their content elsewhere.
Finally, without iTunes keeping the prices down (if Apple's hype is to be believed) the record companies finally get what they want.
I predict prices for some singles will have doubled by the end of the decade.
If they sell DRM-free music in MP3 or AAC format, *then* it will be an interesting experiment not in loosening Apple's grip but in market dynamics, because iPod users will be able to participate. If they sell WMA songs, well, who cares? Universal is not going to change the music player market by itself.
If they do choose an iPod compatible format, then all the more reason to buy an iPod--only iPod users can buy all the DRM free music available from ITS or elsewhere. So Apple sells more iPods, and those iPod users buy more music from the Store, because Universal doesn't publish all the good music, does it?
The power of holding overwhelming market share in two connected product markets is truly awesome to behold. (see, e.g. Windows/Office).
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