14 DAY TRIAL // While Apple's deal with EMI for DRM free content has given Apple a stronger position in the upcoming negotiations with the music labels, it looks like the labels are still going to put up a fight.
It is no secret that Apple and Steve Jobs have been pushing for the removal of Digital Rights Management for quite some time now. This initiative was regarded as a marketing push by Apple for a long time, and many argued that Apple will never drop DRM since it allowed them to lock in customers into their iPod, iTunes ecosystem. The deal with EMI put an end to all that speculation, and many expected the other labels to follow suit in order to not be perceived as attempting to maintain a lock-in by offering inferior quality, DRM laced songs.
But the labels seem to have different ideas. Amazingly enough, at the National Association of Recording Merchandisers annual convention, some of the label representatives tried to explain that introducing DRM free songs amongst the existing DRM laved offerings would only serve to confuse customers. While the many flavors of DRM in existence and their particular limitations could very well be confusing, it is unclear how DRM free, restriction free music, could add to that confusion. If anything, it would lessen the confusion by being the only universal constant across all stores and devices.
Despite talk of DRM confusion, at the end of the day, it looks like the main reason that the labels are afraid of DRM free music and are opposing Apple on the issue is no other than the bogeyman. "We don't want the whole world to be a college dorm. Because that's what a no-DRM world looks like--it's a world in which all product can just be cloned without limitation," said Thomas Hesse, president of global digital business and U.S. sales for Sony-BMG.
Beside insulting college students and calling them thieves straight out, this statement echoes what has now become a mantra for the music labels. Do they even know that they still make most of their money from sales of CDs? Do they remember that CDs have been selling their music for many years, all without DRM?
What is the difference between selling DRM free music on a CD and selling it on the iTunes Store? There is no difference, not for the customer. Apple understands this. But how long will it take for the labels to figure it out?