It just got a whole lot harder for online music retailers to compete with iTunes. Although I stop purchasing music from iTunes years ago to buy only DRM-free music (I settled on a monthly subscription with eMusic – which will still be my jam for more obscure left-of-the-dial music for the time being), the announcement by Apple on Tuesday that they are immediately dropping DRM (Digital Rights Management) from 8 million tracks changes things slightly.

Here’s what this announcement means to me:

A) Labels are continuing to relinquish more control over their product (which is a good thing).
B) It’s likely that iTunes market share will increase over and above their already commanding 70%+ of the legal online download market (which is not a good thing for competition).
C) Other players (like the leap year bug plagued Zune) will be able to play music from the Apple store (but only after it is converted from AAC to MP3, which iTunes can do, but is not ideal).

The truth is, aside from folks that are deep in the music business, how many consumers are really going to notice a difference? Do many casual music fans with an iPod know that iTunes had DRM files to start with?

Overall, the fact that Apple is removing DRM is definitely a step forward for the music industry. But I do tend to think that the real game changer for online music will be some sort of collective licensing model along the lines of what the EFF proposes. According to the IFPI, the ratio of unlicensed tracks downloaded to legal tracks sold is about 20 to 1. There are extreme opinions on both sides of the very complex collective licensing model discussion, but finding a way to monetize this traffic in a way that positively affects artists will have a much greater impact to the music industry than Apple’s DRM announcement. Baby steps!

  1. Paul Carr says:

    Very interesting Blog. I would be interested in speaking to you about Zappa work at sometime as I have a long term research interest in him (please refer to my blog). Tried to find you on Twitter but failed, so perhaps contact me via my website.

    Best

    Paul

  2. AC says:

    While the iTunes decision isn’t a reason to buy music, it does reduce the reasons for downloading music illegally. I’ve probably bought 30 tracks from iTunes over the last 4-5 years and I bet I buy double that this year alone. We’ll see, though, there’s not necessarily that much new music for me.

  3. mking says:

    Hey Aaron,

    Yeah, me too, mostly major label stuff. I have the $14.99 subscription for emusic, so I am paying $.30 a track there as opposed to $.99 (or whatever the variable price is now). DRM-free, high quality permanent download.

    Mike

  4. mking says:

    Hi Paul. You have a nice site! Some great Zappa posts. Here I am on Twitter: http://twitter.com/atomzooey

    Mike

  5. Lee Jarvis says:

    Well put Michael. Similar to my blog on the subject last week too. I look forward to reading more from you, and hope you may enjoy my thoughts / writings also.

    Best, Lee.

  6. mking says:

    Hi Lee,

    I checked out your blog. Great stuff! I think we are going to have some fun in the Future of Music course!

    Looking forward to it!

    Mike

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