Thursday, April 5, 2007

EMI spells no-more-DRM

RECORD label EMI has broken from the rest of the industry and announced plans to start selling music free of software copy-protection measures through Apple’s iTunes music download service.

Analysts are already calling the announcement the beginning of the end for current copy-protection measures. Called Digital Rights Management (DRM) software, copy-protection is seen by many as an unnecessary inconvenience to consumers.

Others say DRM is anti-competitive. The DRM used on Apple’s iTunes does not work with other services, and does not work with devices other than the Apple iPod – locking customers into the iPod hardware platform.

The EMI/Apple announcement comes as European Union competition regulators said they were broadening an investigation of the iTunes service to determine whether its rights management policies were anti-competitive.

The EMI-Apple service will let customers pay a premium US.30 cents (A.37 cents) more for a copy of songs without copy-protection.

The deal, announced this week by EMI chief executive Eric Nicoli and Apple chief Steve Jobs would cover the entire EMI catalogue – except The Beatles. The Beatles back-catalogue has yet to be released to download sites in any form, although Mr Nicoli said the company was “working on it.”

But while The Beatles’ tracks won’t be on offer in the new format, all other EMI artists – from Coldplay, the Rolling Stones and Norah Jones – will be.

Mr Jobs had recently called on the record industry to change its policies on copy protection. He has said it did not make sense for the industry to sell music through CDs (which accounts for 90 per cent of global sales) without copy-protection, and then to add DRM to the sales online.

Apple said the DRM-free tracks from EMI would be offered at higher quality 256kbps AAC encoding. The current versions available today use 128kbps encoding.

IN addition to the greater convenience of the DRM-free versions, the companies said they believed customers would be prepared to pay a 30 cent premium for better quality downloads.

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