FeedburnerReuters has written an excellent article covering the future of digital music, DRM (Digital Rights Managment) and the rebirth of the MP3.
Here are five places to watch this year’s DRM developments:
AMAZON
The online retailer reportedly is itching to get into digital downloads but is holding out for a DRM-free service. It sells as many iPods as anybody and is a haven for music that is disappearing from physical retail shelves. “They already have a relationship with our consumer the way that a lot of others don’t,” Blue Note GM Zach Hochkeppel says. Viewed as the biggest threat to iTunes, Amazon has the power to force a DRM strategy shift.
LIMEWIRE
Still in the process of settling with the music industry, the P2P file-sharing service wants to start charging its 40 million users $1 per download and share the revenue and user-behavior information with the music industry. But it wants to stay DRM-free. The company hired TAG Strategic consultant Ted Cohen, a former EMI exec, to convince the majors to at least test the idea for six months.
MYSPACE
The most popular Internet destination in the world is working with SnoCap to launch a music download service that would let musicians sell music directly from their profiles and that of their fans. But it will only sell files as MP3s. It is moving ahead by focusing on independent and unsigned artists willing to release unprotected music, and a successful showing would make the majors take notice.
EMUSIC
The indie-only specialist just surpassed 100 million downloads; it’s the second-largest digital music retailer after iTunes, all sans DRM. CEO David Packman says he is not interested in selling major-label fare, but he may have no choice if majors suddenly allow his competitors to sell in MP3 as well. But even if the majors did relent to MP3 sales on eMusic, the company’s business model would have to change--no label will agree to 50 downloads for $15 per month.
YAHOO MUSIC
GM David Goldberg has convinced Sony BMG and EMI Music Group to test the DRM-free waters with limited, promotional “experiments” involving Jessica Simpson, Jesse McCartney, Relient K and Norah Jones. The lessons learned from these tests will either speed or slow their path to eliminating DRM.
