Funny how you don’t see Steve Ballmer or Bill Gates reinventing digital music yet again, despite their claims of dedication to the market.
Today, at a London press conference, EMI Group — one of the “big four” music companies — together with Apple CEO Steve Jobs will announce that it intends to sell “significant amounts” of its music catalog (link to a WSJ story, only the first bit of which is in front of WSJ’s annoying pay-wall) without any DRM technology, which is anticopying software.
The London music company is to make its announcement at a London news conference featuring Apple Inc. Chief Executive Steve Jobs. EMI is to sell songs without the software — known as digital rights management — through Apple’s iTunes Store and possibly through other online outlets.
About two months ago, Steve Jobs himself penned “Thoughts on Music“, an essay discussing his feelings about DRM and how it needs to come to an end in order to open up the online music market to make it a credible distribution channel and not hostile towards actual, legitimate users.
Jobs talks about how DRM has never worked, doesn’t work and probably will never work. He discusses how the same companies who demand DRM-wrapped online music continue to sell the other 90% of their music — CDs — sans any DRM. He discusses alternatives for the future of music, finally settling on one that rids everyone — music companies, technology vendors and consumers– of the difficult and confusing cat-and-mouse DRM game.
Two months ago, Jobs boldly implored everyone, most notably the big four music companies, to consider selling DRM-free music via online stores. He argued that we should all do away with the failed experiment called DRM and open the market up and, in the process, give consumers the pinnacle in flexibility, choice and freedom.
Today, EMI will stand on stage with Steve Jobs and announce that they will be doing just that.
Today marks a massive milestone for the music industry. I suspect you’ll see other companies follow suit shortly.
Today marks a development that’s not only (obviously) tremendously beneficial for Apple, but also for you and every other music fan on the planet.
I’m happy to see Jobs pioneer this move, and I applaud EMI for shaking the fog of DRM superstition and coming forth with not only some clear-headed thinking, but also behavior.
If today’s event in London plays out like I and the WSJ think it will, the next few months will be very interesting to watch in terms of what the remaining three music companies will do in reaction.
23 responses so far ↓
william // April 2, 2007 at 10:17 am
I recall some folks criticizing Jobs’ DRM letter saying he was being disingenuous and that Apple uses DRM to lock people in. I don’t dismiss the idea that Apple might have done that and now feels secure enough in its position to abandon DRM. It’s possible. But still, this move is one that the skeptics thought would never happen, and here we have it.
Music news and much more » Steve Jobs singlehandedly pushes digital music into a new era. // April 2, 2007 at 10:20 am
[...] Original post by Jeff Ventura [...]
Mark // April 2, 2007 at 10:49 am
I still don’t get why it should cost MORE - if they really want people to buy their music online, it should cost LESS. Less is more, as the slick Italian once said.
When they start selling single tracks at 50 cents a piece and $5-$6 per album, you’ll see some changes - I don’t believe everything is going to change just because of the increase in “quality”.
I do recognise it as a step - heck, even a milestone - on the way, but we still have a long way to go before you’ll find me satisfied
Steve Jobs singlehandedly pushes digital music into a new era. « Graceful Flavor « Espresso Served Here // April 2, 2007 at 11:00 am
[...] Steve Jobs singlehandedly pushes digital music into a new era. « Graceful Flavor Steve Jobs singlehandedly pushes digital music into a new era. « Graceful Flavor [...]
» Steve Jobs singlehandedly pushes digital music into a new era. // April 2, 2007 at 12:03 pm
[...] unknown wrote an interesting post today onHere’s a quick excerptToday, at a London press conference, EMI Group — one of the “big four” music companies — together with Apple CEO Steve Jobs will announce that it intends to sell “significant amounts” of its music catalog (link to a WSJ story, … [...]
camera » Steve Jobs singlehandedly pushes digital music into a new era. // April 2, 2007 at 12:07 pm
[...] unknown wrote an interesting post today onHere’s a quick excerptFunny how you don’t see Steve Ballmer or Bill Gates reinventing digital music yet again, despite their claims of dedication to the market. Today, at a London press conference, EMI Group — one of the “big four” music companies — together … [...]
overthinker // April 2, 2007 at 12:26 pm
It may also alleviate some of the pressure coming from Europe. The idea that iTunes locks customers in to playing iTMS songs on the iPod was silly to begin with, given the easy workaround. But now Apple has taken a concrete step to follow through on Jobs’ “Thoughts on Music.”
I couldn’t view the full WSJ article; could someone state what the new price points are?
Jeff Ventura // April 2, 2007 at 12:31 pm
$1.29 for EMI music that’s sold via iTunes without DRM and with 256kb bitrate (double the standard, so it’s higher quality).
InRussetShadows // April 2, 2007 at 12:59 pm
The dam has burst wide open. The rest, as they say, is history.
Juha Haataja // April 2, 2007 at 1:20 pm
It will be interesting to see how this affects the music subscription service model. DRM is needed to make it work, at least that has been the understanding so far.
Paul // April 2, 2007 at 1:25 pm
@Mark,
The reason why the DRM-free tracks will cost $1.29 is pretty simple. Everyone makes more money and consumers get a higher quality product in return (DRM free AND double the bit rate).
It’s a game of poker. Let’s remember that all the labels just re-upped a multi-year agreement with Apple to sell songs for $0.99. The $1.29 pricing is a carrot Jobs is giving EMI. He’s saying, “Look, we’ll be flexible and give you guys the chance to make substantially more profit per song if you agree to remove the DRM.”
This creates financial pressure on the other 3 labels - either they stick to their guns and continue to sell songs for $0.99 per their licensing deal or they can also jump in and sell the same songs and make 30% more profit by signing the DRM-free contract.
No wonder Jobs is confident that half the songs will be DRM-free by the end of the year. In the music business, there’s no getting around the fact that money talks.
BTW, DRM-free music on iTunes pretty much kills the value proposition of subscription services, which all require heavy DRM to work.
Steve P // April 2, 2007 at 1:28 pm
I can’t QUITE agree with the headline and the essence of Jeff’s post. FIRST it must be seen as just an experiment.
It’s good that Apple (aka Steve Jobs) and EMI are willing to make the experiment but it’s not a done deal of a “revolution”.
Overthinker is correct re the EU and Mark is spot on regarding pricing. In addition, the price point ruins the experiment. We need to be able to compare the effects of DRM vs non-DRM sales, NOT DRM vs high price.
I do not see a revolution here. Only a way to convince other members of the “big 4″ to justify higher pricing.
I will continue to buy my music via CD on Amazon’s “used” section which generally has new CDs for half price!
When online pricing yields 256 or preferrably lossless at that equivalent (50 to 75 cents per song) with possibly a form of variable pricing for “hot” or new stuff, THEN you will see a revolution.
Steve P // April 2, 2007 at 1:35 pm
I guess a missing part of the answer is WHERE and HOW that additional 30 cents will be distributed. How much to the artists and how much to the “industry” and how much to Apple. If they indeed do not lose sales then it certainly is NOT a good deal to the consumer. Apple’s DRM is generally not a consumer burden and an increase to 256 is NOT worth 30 cents.
Steve // April 2, 2007 at 2:19 pm
A couple points worth noting…
1. The price of albums will apparently be the same for DRM and non-DRM music.
2. Overthinker is right, this move will alleviate pressure Apple is under.
3. Steve P. - An experiment is putting a handful of songs out there under this condition, not your entire catalog. While I agree that lossless should have been offered, I’m sure they left that open for a future price hike.
As for comments on price, you’re out of your mind. People like you will never be satisfied. You make claims that are completely unreasonable as a justification for not jumping on board. Don’t like 256 bit rate, fine. Expect lossless for 50 cents? You’re high! Also, you claim DRM is generally not a consumer burden? That’s ridiculous. Tell that to the people that have to keep authorizing/deauthorizing their computers and re-arranging their playlists for burning a new CD for their kids.
Like everyone else, I would have liked DRM removed from all songs, would have been happier if the extra price was for lossless instead of 256bit rate, etc. This isn’t a perfect deal, but it’s a huge step in the right direction and Jeff is right, both Apple and EMI deserve credit for making this happen!
As for price, nobody is happy about paying more, but try to imagine how the negotiations would go in order to make this happen. Jobs’ negotiation skills are very impressive when you think about what he’s accomplished.
sharpe // April 2, 2007 at 4:07 pm
“We need to be able to compare the effects of DRM vs non-DRM sales, NOT DRM vs high price.”
Won’t happen. What’s the incentive for EMI to remove the DRM if the price is the same? None, so why take the risk? EMI needs to see something in return for the absence of DRM and that is the price. 30 cents are not enough to justify DRM-less track for customers, which is why Apple upped the bitrate. There won’t be a simple comparison between DRM-ed tracks and DRM-less tracks because they are intended to be separate products.
You say you want to see the effect of DRM-ed vs. non-DRM-ed downloads, but you purchase used CDs to avoid DRM and you claim that it’s generally not a consumer burden. What a confusing stance.
Apple and EMI: And so it begins. « Graceful Flavor // April 2, 2007 at 4:26 pm
[...] FAQ ← Steve Jobs singlehandedly pushes digital music into a new era. [...]
communicateit // April 2, 2007 at 4:39 pm
Open the floodgates is right! It’s about to get rowdy….I live in Nashville and you wouldn’t believe the buzz I’m already hearing on this news from my buddies in the industry! Free Market baby…God bless Capitalism.
Steve P // April 2, 2007 at 10:33 pm
Steve:
Until the sales results are seen and compared this IS an experiment no matter whether it’s a few songs or the whole cataqlog compared to other companies. At least in my book.
Now, as to pricing, you may be correct that my sights are too low. However when you can buy a CD with NO DRM and NO compression AND with liner notes for roughly 10.00 online (8-12.00) we’re talking approximately 75 cents to 1.00 per track. You may, but I don’t, consider digital downloads that offer less for more a good deal.
They ARE convenient IF you just want a couple of tracks. I generally don’t buy that kind of music.
I also stand by my statement that APPLE’s DRM is not GENERALLY a consumer burden. I also did not state that I bought CD’s ‘to avoid’ DRM.
CD’s are cheaper than downloads, have no compression and have all the liner notes. IF digital downloads offered exactly the same thing at the same price I would use it. Even WITH DRM. No confusion.
I am only speaking for myself. It appears many people like digital downloads. I can’t afford them for what they offer.
I think lower prices would equal more sales. So would opening up more of the back catalogs - at a reasonable price.
Not to carry this too far, but I guess the real answer is in the profit breakdowns. I have not seen any complete ones. IF it indicated that a higher price was NEEDED for artists and music companies (and Apple!) to make reasonable profits then I might concede some of my pricing issues.
keptblue // April 2, 2007 at 10:34 pm
extremely awesome.
those with post-genre music blogs & links need to head to
http://www.extlabs.com
immediately.
EasyFlower // April 3, 2007 at 3:50 am
Jobs moves the world as always.
OwningXylophone // April 3, 2007 at 9:24 am
Why, just because it is Steve Jobs being a hypocritical asshole, the world bows at his feet? Remember Mr Jobs implimeneted that DRM in the first place… Thats like being robbed for $10,000 and then praising the thief for returning $7,500…
Apple should have done this from the start, not ran for 5 years with DRM then decide you want to change your mind. I have never bought anything from iTunes, and never will, plus as the proud owner of a real iPod (a Creative Zen) I couldn’t listen to them on that anyway.
This is the kind of douche-baggery that I’d expect from M$, not Apple… Lets hope that the EU antitrust case against Apple & Friends brings them down a peg or two.
John // April 3, 2007 at 12:14 pm
i can’t help but think there will be ramifications here that we haven’t thought of yet. what does this mean for TV shows that are sold via iTunes? what does it mean for downloadable movies?
if you follow that trail, you might be looking at a revolution that is bigger than music.
Jeff Ventura // April 3, 2007 at 1:53 pm
Owning: if you think this is Jobs “being an asshole,” I don’t think you have a firm grasp on the business realities of the situation.