"Apple was able to negotiate landmark usage rights at the time, which include allowing users to play their DRM protected music on up to 5 computers and on an unlimited number of iPods. Obtaining such rights from the music companies was unprecedented at the time, and even today is unmatched by most other digital music services."Boy, he ain't kidding. I thought it was amazing that they managed to wrangle that deal, and I still do. Look at the Zune license agreement, it's nowhere near as liberal.
"So if the music companies are selling over 90 percent of their music DRM-free, what benefits do they get from selling the remaining small percentage of their music encumbered with a DRM system? There appear to be none."
In 2006, under 2 billion DRM-protected songs were sold worldwide by online stores, while over 20 billion songs were sold completely DRM-free and unprotected on CDs by the music companies themselves. The music companies sell the vast majority of their music DRM-free, and show no signs of changing this behavior, since the overwhelming majority of their revenues depend on selling CDs which must play in CD players that support no DRM system.How, exactly, is selling 90% of music on CDs that are easily ripped and uploadable to the Internet NOT letting "their product go out on the wilds of the Internet unlocked?"
SJ:Bingo!
If the big four music companies would license Apple their music without the requirement that it be protected with a DRM, we would switch to selling only DRM-free music on our iTunes store.
He knows the record companies would never let their product go out on the wilds of the Internet unlocked, so while this statement looks like a bluff, it's one that will never get called. Never in a million years.
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posted by davebarnes at 12:54 PM on February 6, 2007