For those interested, Ive compiled some more background information about Real, Harmony and FairPlay.
What it doesnt do
Harmony does not break the DRM scheme used by Apple. Harmony does not allow you to transfer your iTMS files into RealPlayer. Harmony does not allow you to convert iTMS songs to Helix DRM or Windows Media DRM files. Harmony does not allow your iTMS songs to be played on any other device other than your iPod.
What does it do
The only thing the Harmony technology lets you do it transfer the songs you bought on the RealPlayer Music Store onto you iPod, in a format that is both DRM protected and understood by the iPod. In other words it allows you to convert Helix DRM protected files to FairPlay compatible DRM protected files.
First of all, Karl Lillevold, senior codec engineer at Real has confirmed my original theory on how Harmony works.
As you know, the RealNetworks music store sells songs in 192 kbps AAC (as opposed to iTMS at 128 kbps). When transferring your purchased songs to the iPod, the AAC itself is not touched, but the Helix DRM is transmuxed to the DRM used by the iPod, i.e. fully protected and without trans-coding. If you then transfer the file back to your PC (for instance with Anapod), you get an M4P file, that is a protected MPEG-4 AAC file.
Secondly, the windows version of the beta is now available on real.com, which Ive installed and played around with a bit.
Basically it works like this: Just like the iTunes Music Store and iTunes, you use RealPlayer to buy songs from the RealPlayer Music Store. It isnt as user-friendly as iTunes, but if you disregard the differences in user-interface design it basically works in the same way. When you buy a song using RealPlayer in the RealPlayer Music Store youll get a Helix DRM protected .rm file with a 192 Kbps AAC stream inside. This file is stored on the hard drive of your computer and can only be played by RealPlayer.
When you connect you iPod to your computer and start RealPlayer, the iPod will appear as a device in the Burn/Transfer tab. You can select the device and copy tracks onto it. The tracks you can copy are regular MP3 files, regular AAC files and RealPlayer Music Store files.
When you transfer a RealPlayer Music Store file onto your iPod using RealPlayer it will transparently decrypt the file and encrypt it again using a FairPlay compatible algorithm. The FairPlay compatible file is then copied onto the iPod.
The AAC stream inside the Helix DRM protected file is not touched by RealPlayer. Which means that the FairPlay compatible file will contain the same 192 Kbps AAC stream as the Helix DRM protected file.
So, it is now confirmed that:
- The files sold by Real are 192 Kbps AAC protected by Helix DRM
- You need to use RealPlayer to buy the songs and transfer them to your iPod
- The RealPlayer application does the conversion to FairPlay compatible DRM
- The file placed on the iPod by RealPlayer uses FairPlay compatible DRM
- The file placed on the iPod is also 192 Kbps AAC
- If you somehow transfer the file of the iPod, you cant play it in iTunes
Can Apple stop Real?
Yes, and it is actually pretty easy to do. The FairPlay DRM files sold by Apple are always in 128 Kbps. The FairPlay compatible DRM files used by RealPlayer are 192 Kbps. Apple would also need to release a new firmware for the iPod that checks the bitrate of the DRM protected file. If it is anything else than 128 Kbps, it is not an official song sold by Apple. Based on these criteria Apple could place a block in the firmware.
The drawback is that this would stop Apple from selling 192 Kbps songs in the future, because if Apple would also start selling 192 Kbps songs, they can no longer distinguish their own songs from RealPlayer Music Store files.
Can Real workaround a Apple blockade?
Yes, and this is also pretty easy to do. If the RealPlayer would re-encode their 192Kbps AAC stream to a regular 128 Kbps AAC stream the FairPlay compatible DRM file would be in disguisable from Apples own files. Apple wouldnt be able to block these files without revising the DRM scheme and making every song sold to date incompatible with the newer firmware.
The reason Real is doing this
Real is a software company. It doesnt make hardware MP3 players, so their Music Store depends on hardware devices made by other vendors. The RealPlayer Music Store uses their own Helix DRM format, so these other vendors must support Helix DRM if they want their customers to be able to play songs bought from the RealPlayer Music Store.
This is a big problem for Real, because up till now only one hardware player from Creative supports Helix DRM. So, up till today you could buy songs from Real, but you couldnt do much with it.
Real had to make their music store compatible with more players. They either had to choose between Windows Media DRM or FairPlay DRM. They asked Apple permission to move to FairPlay, which would allow their files to be played on the iPod. Apple told them they werent interested.
As it turns out they kept their own DRM after all, and chose another way to solve their problem. The Harmony technology which transparently convert your Helix DRM files to Windows Media DRM or FairPlay compatible DRM.
The disadvantages for Apple
There are of course disadvantages for Apple. The most important one is that Apple is going to have to compete with the RealPlayer Music Store. iPod users can now buy their songs from somewhere else, which could mean that the iTMS is going to sell less songs.
In reality I dont think this will be a big problem for Apple. Buying songs from Real isnt as easy as buying songs from Apple. Transferring these songs to the iPod using RealPlayer isnt as easy as using iTunes. And Apple has an incredible loyal user base who simply are not going to move to RealPlayer.
The advantages for Apple
The iTMS is a loss-leader. It doesnt make any money, but it helps sell iPods. Selling iPods does make a lot of money. So it is in Apples best interest to sell as much iPods as possible. Now consider all those RealPlayer Music Store users who now use a different hardware player. Previously they couldnt move the iPod without losing all their songs
now they can.
The advantages for the users
Choice is always good. It will force Apple to compete and innovate. And that is something they demonstrated to be very good at. They came very late to the market with their MP3 player and immediately turned it into a market leader. The same thing applies to the iTMS. With increased competition their products will get even better.
Apple should block Real or even better sue Real into oblivion
You can sue everybody for anything. If I dont like how you look at me I can drag you into a courtroom and make you explain yourself in front of a judge. But when I do that the judge is going to be pretty pissed at me for wasting his time. In order to win in a court of law the other party needs to have broken the law. Looking cross-eyed at somebody isnt breaking the law. Its very likely Real isnt breaking the law either. So suing Real wont do Apple much good.
Blocking Real is also something they might not want to do, because this could turn things around. Imagine Real suing Apple for anti-competitive practices.
This is so unfair!
No, this is just business. When you release a product you cant control how people use it or what other services other companies offer for it. GM can't force you to use only GM spare parts. Sony Music can't force you use only Sony CD players. Microsoft cant force you to use only Internet Explorer on Windows. Likewise, Apple cant force you to run MacOS X on your G5. Apple cant force you to use Safari on MacOS X and Apple cant force you to use only iTMS songs on your iPod.
Apple did have a choice in whether to cooperate or not with Real in making their songs compatible with the iPod. They chose not to work together with Real. Thats a fair choice. But it is also a fair choice of Real to make their song compatible with the iPod without Apples help.