Sony BMG to Offer DRM-Free Music

[MacRumors]

Businessweek reports that Sony BMG is the last of the four major record labels to agree to offer their music for sale without Digital Rights Management (DRM) restrictions. The news comes a week after Warner announced it had added its catalog to Amazon's DRM-Free MP3 store.

This new DRM-free music agreement will be in place for the upcoming Pepsi/Amazon Superbowl promo, in which 1 billion songs will be given away.

These unrestricted MP3s will work with Apple's iTunes and iPod, with added benefit for the record labels to take some power away from Apple's iTunes store which continues to hold the majority of digital music marketshare.

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[mainstreetmark]

FINALLY!

The mine-mine-mine philosophy comes to an end.

[cubbie5150]

The same Sony BMG that installed spyware via their proprietary media player, wrecking numerous Windows machines a year or so ago?

[yoman]

For the industry as a whole this is good news...no DRM on music is what consumers want. Question is what price are they going to stabilize at. 99cents for old tracks? $2.49 for new ones?

I'm curious what would be the ultimate pricing structure....

[Avatar74]

The funny thing is, they're playing right into Apple's hands.

It's a logistical burden to manage the iTunes Music Store, and for little direct profit. With some competition out there, it allows Apple to reduce some of their operating expenditure of hosting such a large library but they'll still reap the profit.

How?

Well, unless competitors come out with more appealing hardware than iPod, and a more user-friendly, convenient integration system than iTunes for managing content between computer and Mp3 player, iPod will continue to dominate the market.

The beauty of Steve Jobs is not that he is a master marketer, but that he knows how to turn just about any situation to his advantage no matter what the competition does.

[Stike]

So, does that mean iTunes Plus from Sony/BMG coming very soon?

[sishaw]

Originally Posted by yoman

For the industry as a whole this is good news...no DRM on music is what consumers want.

Actually, most people don't even know what DRM is.

[Yuppi]

I would be interested if that automatically translates into ITMS being allowed to offer iTunes+. I would rather buy a 256kBits HE-AAC than a MP3.
Plus Amazon is not available in Germany

[Eric Lewis]

this sucks


there goes apple

now it will file bankrupt

[lazyrighteye]

It's like watching an infant try and make their first steps.
Only not as cute or fun.

[trickytrev]

I just don't get it.

I prefer iTunes (i don't care if it costs a bit more than others), and the only other online store I use for my DJing is beatport. The only quarm i have is i'd like longer previews.

So the labels that are not with iTunes are just missing out on my money.... I'm not the only one who thinks like this.

It's sad that record labels can be like they are.

[GSMiller]

Oh yes this is going to hurt Apple so much seeing as how these songs are compatible with the iPod

[Ha ze]

Originally Posted by Stike

So, does that mean iTunes Plus from Sony/BMG coming very soon?

More then likely not very quickly.
The companies seem to be going this route with Amazon in an attempt to reduce the market power iTunes has.
What I don't understand is, if you have consumers or customers, who are buying your products, and this seems to be the only way they are buying them now (digital v. physical) why try to make it more difficult then for the consumer? That's not even a technological question, its just plain smart business.

Originally Posted by Eric Lewis

this sucks


there goes apple

now it will file bankrupt

/sarcasm?

[notjustjay]

Now all we need is for these guys to recognize that there is more to the world than just the United States.

[soosy]

In 5 years, DRM will be ancient history and we'll look back and wonder why anyone ever put up with it in the first place.

[err404]

Originally Posted by Avatar74

...a more user-friendly, convenient integration system than iTunes for managing content between computer and Mp3 player...

The only problem is that iTunes isn't what it used to be in the Windows market. I like the interface, however it's just to fat. I actually bought my first MAC a year ago largely due to the horrible performance of iTunes for Windows. Don't underestimate how important the iTunes/iPod lock-in has been for Apple. The good news is that this might force Apple to step up their game on PC's.

While I agree that this is good thing in the short term (I refuse to buy DRM'ed music), this is just a first move in a long term strategy to increase the cost per song. If the recording industry was serious about removing DRM, they wouldn't be locking out iTMS.

[overcast]

Originally Posted by notjustjay

Now all we need is for these guys to recognize that there is more to the world than just the United States.

Canada doesn't count.

[hayesk]

I don't understand why the labels want to take "power" away from the iTMS. Do they try to take power away from other retail outlets like WalMart, HMV, or Virgin?

The iTMS is just a store. It makes them money - it's in their best interests to support the iTMS - especially since that's where all the iPod users are going to end up shopping. They're not going to go to some random music web site that they don't even know where it is. In fact, most of my relatives can barely find Amazon - when they remember that it exists - and they do own iPods.

[SFC Archer]

Originally Posted by trickytrev

I just don't get it.

I prefer iTunes (i don't care if it costs a bit more than others), and the only other online store I use for my DJing is beatport. The only quarm i have is i'd like longer previews.

So the labels that are not with iTunes are just missing out on my money.... I'm not the only one who thinks like this.

It's sad that record labels can be like they are.

The music labels have opened up and realized that the needs and desires of customers will continue doing the limewire thing until there is no need for it.

This is a major step in fixing the illegal sharing, however....and I totally agree with Trev....Opening up the DRM Free to only Amazon is really stupid and childish in the fact that they "think" they are sticking it to Apple when in all reality they are just hurting themselves and the artists with their childish "We can hurt Apple". What they fail to realize is that by opening their DRM free libraries they would double/triple their profits catering to those customers that buy the most music. Apple could really care less because their iPods and the like will continue being the number one PMP.

So...with that said: Great job and taking the DRM Free step Music Labels, now lets get over this child tantrum attitude and share with everyone...let the artists earn what they work for by expanding the market so that all can purchase where they want!!!

[twoodcc]

well i guess this is good for the people.

[err404]

Originally Posted by hayesk

I don't understand why the labels want to take "power" away from the iTMS.

Because iTMS doesn't allow for variable pricing. The labels feel that some songs are worth more than 99 cents.

[chicagostars]

Originally Posted by yoman

For the industry as a whole this is good news...no DRM on music is what consumers want. Question is what price are they going to stabilize at. 99cents for old tracks? $2.49 for new ones?

I'm curious what would be the ultimate priscing structure....

I don't think the DRM issue is as big as many of us on message boards make it; most people in the general public aren't familiar and DRM encoded tracks fit their needs just fine. As long as they can easily access it in iTunes and get it on their iPod (not Zune, Sansa, et al.) they'll bop along on their merry way.

I do share in the curiosity about pricing. The big four definitely have issues with Apple's "one-size" pricing format, but I wonder what the ultimate consumer reaction will be to such a non-uniform, multi-tiered pricing format. Perhaps they're right in assuming that the desire to have the hot song of the moment will mean more than paying a higher price for that track -- some people already rack up hugh cell charges buying hot ringtones -- but I personally feel that in their ignorance, they overlook the fact that a lot of the success of iTunes is due to it's relative simplicity. Not only in structure, but possibly in pricing. Just one guy's opinion.

Any other thoughts on probable pricing setups?

[Lone Deranger]

And so, slowly, one by one they all come crawling back with their tails between their legs.

[ChrisA]

I wonder if Apple and Amazon couldn't parner on music sales. Amazon does this already with everything else they sell. They always point you to many other supliers even if they have the items. It turns out to be a good deal for everyone.

So, What if the iTunes store had the ability to sell a track from Amazon? When you buy it Apple passes the money on to Amazon.

[Stevp1]

Someone correct me if I'm wrong, but wasn't it these very same music companies in the beginning of all this that made Apple come up with a DRM scheme in the first place?