« Display Ads Expected to grow 20% by 2009 | Main | Des Moines Register poll versus the CNN-Opinion poll - A Lesson in Checking Motives »

Jan 4
Last Major Music Label - Sony BMG - Planning to Drop DRM

Warner Music Group (WMG), EMI and Vivendi's Universal Music Group have all initiated plans to drop digital rights management, and it finally spurred Sony (SNE) BMG to take the step as well, according to BusinessWeek.com.

Details of the change aren't available yet, but for sure a large portion of the music giants' catalog will be available free of DRM. Songs will be available without DRM sometime in the first quarter.

The reasoning behind using DRM software was to keep people from illegally sharing songs on peer-to-peer networks. Rather than do that though, it infuriated consumers who paid for the music by making them burn it to a CD before they could upload it to play on their chosen device. The result was the quality of the music was degraded.

"DRM tends to punish the innocent more than the guilty," says Rob Enderle, principal analyst at the Enderle Group, a technology research company. "It was hurting folks who were trying to follow the rules more than the folks who were pirating the music."

SonyBMG%20dropping%20DRM.jpg

Not only will this improve good will between lovers of music and the industry, but it will allow much more flexibility in the way music can be offered by the companies, possibly resulting in much higher digital sales. We'll probably see a lot more interaction and ideas coming concerning social networks and selling  of music by the major labels in the months ahead.

This doesn't mean the end of DRM, as it will continue to be used by subscription services so customers can't continue to play songs if they quit the service; but that's a small slice of the overall industry.

As far as the major music labels go, EMI decided to go the route of offering their songs at a 30¢ premium through Apple iTunes, but it wasn't long before the DRM-free songs were selling for 99¢.

The other labels are looking to help develop a more robust, competitive market be working through Amazon (AMZN) to make them a viable music competitor to Apple (AAPL), who by far has the upper hand and is calling the shots at this time.

This strategy could work with Amazon becoming the first service to offer music from the four major labels without DRM.

Whatever happens, this is a good move by the industry and Sony BMG, albeit a late one. It'll put the onus back on finding ways to increase the selling music and not trying to retain an outdated business model.


2 Comments/Trackbacks




» Sony BMG Joins other Major Music Labels in Dropping DRM from BizofShowBiz
Sony BMG (SNE) has become the last of the  major music labels to commit to offering digital music downloads without digital rights management (DRM). Warner Music Group (WMG), EMI and Vivendi's Universal Music Group had already made that d... [Read More]

» Sony BMG Last Major Music Label to offer DRM-free Music - Protective Managing and Unintended Consequences from ManagersRealm
The announcement by Sony (SNE) BMG that it would start offering digital music downloads free of digital rights management (DRM) is a good study in unintended consequences within an entire industry.As mentioned here, "The reasoning behind using DRM... [Read More]

submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« Display Ads Expected to grow 20% by 2009 | Main | Des Moines Register poll versus the CNN-Opinion poll - A Lesson in Checking Motives »

Advertise

sponsored ads



subscribe


Prefer Email?
Subscribe below-

Enter your Email:


Powered by FeedBlitz What's this?

Current News

Support This Blog

My site was nominated for Best Marketing Blog!

business social media

Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

BIZZlogos - Add your logo - free link to your site
BIZZphotos - Add photos of your products and people
BIZZprofiles - Submit your profile and build your online visibility
BIZZspotlight - Spotlight your business with free links
BIZZvideos - Videos about businesses, products and business people.
BIZZbites - "Digg" for Business - Submit your articles and posts

know more media network

View Network Map

Network Feed List (OPML)

Know More Media Network
Feed


we support unitus

PRWeb

Influencer



TheAlphaMarketer is a member of the Know More Media network of business related blogs.

Here are some current headlines from some of our business publications:

ProductivityGoal

CallCenterScript

AdHurl

TheBizofKnowledge

LandingTheDeal

CustomersAreAlways

HealthCareVox

BrainBasedBusiness

TheInsurancePolicy

MarketingBlurb