What WMG MP3’s On Amazon Really Means
COMMENTARY: With the addition of Warner Music Group product to its 2.9 million track DRM free mp3 catalog, Amazon is poised to to take on the mighty iTunes. The final piece of the product puzzle, Sony BMG, will inevitably be forced to join the other three major labels in freeing their downloads of unpopular and restrictive "copy protection".
Inevitably too, other digital retailers like Rhapsody, Napster and even iTunes will soon be allowed to sell WMG product without DRM. Universal compatibility also means that player manufacturers are now on a more equal ground when selling next to the iPod; although competing with consumer love of all things Apple will be difficult.
By giving Amazon a sales exclusive, WMG also joined Universal in attempting to counter the download sales dominance of iTunes. But while this is a coup for Amazon, Warner’s real blow to iTunes came from the act of dropping DRM itself and and is incomplete unless it makes its mp3’s available to all retailers.
Apple’s stranglehold on download sales came in large part from its own proprietary DRM which effectively forced millions of iPod owners to use iTunes exclusively. Only when consumers are certain that any track they purchase anywhere can be played on any device, will many feel safe leaving the Apple cocoon.
WMG’s other major contribution yesterday was in tipping the scales. By being the third of four major label groups to from DRM, Warner’s has forced any stragglers to do the same.
Of course the real winner is the consumer who will finally be able to buy music without restrictions from competing digital stores. And both consumers and the music industry will benefit from new innovative applications that are sure to blossom in a more open environment.
TELL IS WHAT YOU THINK.
its hard to believe that ‘no DRM’ will have any impact on selling more music.. how many people actually don’t buy a tune they want because of DRM? its more of a hassle than a deal-breaker…iTunes is 70-80 % of the digital sales market, and all their product has DRM
+1 @ barrym
Also, the only thing I think is going to make any real difference is price. If somehow this opens things up to actual price competition, then we may have something here. I have a hunch the average consumer (who probably doesn’t know or care what DRM is) would buy a lot more music if the cost was lower.
Of course, the big four want to raise the rates, so I know this isn’t going to happen.
My formula for an iTunes Music Store killer: iMS selection + iMS ease of use – DRM @ 1/2 iMS price. Ain’t never gonna happen, but there it is.
Barry, DRM has been a deal breaker for me from day one. I like making songlists and burning them for folks, sharing music any way I can.
The worst DRM was the one on the Sony discs.
As for Apple, the IPod needs to open up to all music formats, and stop being tied to the ITunes application. I use Windows Media for all of my music organization because it is a common program to many music players and other software.
I beleive that hardware, software and intellectual property should compete in an open marketplace. Let me decide what software I want to use with my mp3 player.
DRM is a failure and is gratefully on the way out. The fact that today, downloads only compose 3% of music sales is irrelevant to the future of music. CD’ are going the way of the VHS tape. DRM free is definitely a plus and a selling point for downloads.