EMI sticks with DRM. Looks like crap still lives.

Feb 27, 2007 08:48 GMT  ·  By

Hmm, this morning I thought how right I was in naming some DRM-related articles "the DRM wars"... because wars they are! After we all rejoiced at seeing EMI on the right path of abandoning the Digital Rights Management system, it's now time to sob as we gaze at EMI's fall back (see how polite I am as to avoid the "treason" word). Indeed, EMI has turned away from the bright, DRM-free future of music industry and has replaced the revolutionary speech with the corporate crap.

As you already know, EMI had allied last fortnight with SanDisk, Yahoo Music and Apple in the battle against DRM. Even more, they claimed that the experiments they had made releasing DRM-free music online had turned out to be a huge success as a large wave of customer positive feedback and EMI were oh boy-oh boy so glad that they initiated talks with online music sellers regarding the future of the DRM-free tracks.

Much to our disappointment, EMI has ceased these talks: the have asked the online music merchants for up front money to guarantee their revenue and man, this money was something big, not the 15 cents you could be thinking of. After sacking chairman and CEO Alain Levy in January, EMI is still looking for the best way to go. And since they seem not too confident or willing to make the step in the non-DRM world, it's somehow understandable that they are prowling around for some more dimes.

Last year's physical sales went down 10-15 % in all industry and great expectations developed for digital sales; with all the DRM fuss and angry customers, the binary music hasn't made it to where the big 4 wanted so it took almost all the blame. And if this was not enough, there are rumors that the big 4 could soon become the big 3 as "EMI has made approaches to Warner, yet there can't be formulated an official statement from this point of view".

Now, what was this supposed to mean? Is Warner going to buy EMI? Or is it just backing up EMI's back-to-the-DRM actions? Is this a proof of good will from the high heavens of the "major 4" meaning some sort of corporate representation of the "return of the prodigal son"?

I am just sure things are going crappy somehow, somewhere, I just don't know what and where. Anyway, releasing such evasive content is fishy... take a look: "Further to recent press speculation, EMI Group plc ("EMI" or the "Company") confirms that it has received an approach from Warner Music Group. There is, however, no proposal currently for the EMI Board to consider. There can be no certainty that this approach will lead to any proposal or offer being made for the Company. If a proposal is made, it will be considered with a particular focus on conditionality, the regulatory and operational risk profile, and on valuation in relation to the Company's stand alone value and the value creation available from a combination." Well? Have you any idea on what's going on? I thought so... The only thing ist odo now is wait a little and see what will come.

By the way, why aren't Apple and Yahoo music getting closer to start developing relations with Merlin?...