14 DAY TRIAL // Apple's deal with EMI to bring DRM-free music to the iTunes Store took many by surprise. Despite Jobs repeatedly saying that DRM is not the way to go, many saw Apple as wanting the DRM lock-in to protect both their devices and service, some even going as far as saying that he is lying and would not offer DRM-free tracks even if the labels allowed it. Despite being quite the surprise, the deal is a landmark one that not only got the ball rolling, but also promises to bring significant change.
While it is still early, preliminary reports indicate that EMI might see increased revenue from sales of online music without copy protection. Unlike most music available online, the DRM-free tracks have no limitations and offer a much higher sound quality than your average download.
Apple's iTunes store, the largest online music seller, began offering unprotected EMI recordings May 30, with the introduction of iTunes Plus. "The initial results of DRM-free music are good," Lauren Berkowitz, a senior vice president of London-based EMI, said Wednesday at a music industry conference in New York. Though the deal with Apple is what got the ball rolling, others are joining in, last month Amazon.com Inc. saying it planned to sell EMI's unprotected music when it opens a digital-download store later this year. PassAlong Networks, a provider of technology to run on line music stores, has also acquired a license from EMI to sell unprotected music from the EMI digital catalog.
According to Berkowitz, early results from iTunes indicate that the DRM-free offerings will boost revenue from sales of digital albums as well as individual songs. Sales of albums such as Pink Floyd's Dark Side of the Moon have risen since the DRM-free digital versions became legally available. Good news and a perfect example of a solution where everybody wins.