“As even digital music revenue growth falters because of rampant file-sharing by consumers, the major record labels are moving closer to releasing music on the Internet with no copying restrictions — a step they once vowed never to take,” Victoria Shannon reports for The New York Times.
“Executives of several technology companies meeting here at Midem, the annual global trade fair for the music industry, said over the weekend that at least one of the four major record companies could move toward the sale of unrestricted digital files in the MP3 format within months,” Shannon reports. “Most independent record labels already sell tracks digitally compressed in the MP3 format, which can be downloaded, e-mailed or copied to computers, cellphones, portable music players and compact discs without limit.”
Shannon reports, “For the major recording companies, however, selling in the MP3 format would be a capitulation to the power of the Internet, which has destroyed their control over the worldwide distribution of music. Until last year, the industry was counting on online purchases of music, led by Apple’s iTunes music store, to make up the difference.”
“But digital sales in 2006, while 80 percent ahead of the year before, grew slower than in 2005 and did not compensate for the decline in physical sales, according to an industry report released in London last week,” Shannon reports.
MacDailyNews Take: The ability to buy (or steal) singles – or only the good songs – cuts into the labels’ profits as they can longer rely on selling 1 or 2 good songs bundled with 8 or more filler tracks as they could with physical media like CDs.
Shannon continues, “”There is a groundswell, and I say that on the basis of private conversations,’ said Rob Glaser, chief executive of RealNetworks, which sells digital music protected against piracy through the Rhapsody subscription service. ‘It will happen between next year and five years from now, but it is more likely to be in one to two years,’ he said.”
Full article here.
Today’s easily-removed DRM only hinders legal users, not the pirates. Removing DRM will increase online music sales. Bring it on – the sooner, the better!
Related articles:
Report: Apple to license FairPlay DRM – January 17, 2007
Hollywood movie studios demand Apple strengthen DRM limitations before joining iTunes – November 29, 2006
Apple’s vs. Microsoft’s music DRM: whose solution supports more users? – August 17, 2005
Of course, this does not necessarily mean that iTunes songs would no longer have FairPlay. I do find it a bit interesting to look back and see all the people here that said that DRM is a necessity and that we will always have it.
It’s a sensible move, because DRM just punishes your paying customers and is not successful in preventing copying. I’ve read countless reports on how Apple are the bad guys in all this, but the
bottom line is that they were made to add DRM by the record companies. Another gripe I have is anti-piracy adverts at the start of every DVD, why do I have to watch that, I bought it.The guy watching the pirate doesn’t have to! Madness.
mp3 fils are not compressed. They are lossy files where part of the data is selectively thrown out during encoding.
Amazing how clueless people paid to report on this stuff are.
“Most independent record labels already sell tracks digitally compressed in the MP3 format, which can be downloaded, e-mailed or copied to computers, cellphones, portable music players and compact discs without limit.”
I absolutely hate it when these morons equate MP3 with DRM-free. OTHER FORMATS CAN DO EXACTLY THE SAME THING DESCRIBED! It isn’t about format – it is about DRM!
…I don’t want MP3 anyway – I want a updated compression format that sounds better than MP3 or a lossless format.
BTW, both Beatport.com and Bleep.com offer at least some music in lossless format already – .wav and FLAC, respectively. I’d much rather have the major labels chasing that than the current MP3 which is past its prime.
DRM free, _and_ increased quality for the files. Please, at least give us the option of something like 320 bps settings at a higher price. It’s more revenue to the companies and artists, and better for us consumers as well.
To the Music Industry:
You treat us like criminals, then we’ll be criminals…
Funny – interviewing Rob Glaser about what might be happening in the online music industry in the next 1-5 years. Glaser’s company probably won’t be around by the time all of this happens.
“…mp3 files are not compressed. They are lossy files where part of the data is selectively thrown out during encoding…”
Sorry, but this precisely describes compression — and .mp3 files ARE compressed, so check the attitude at the door. Furthermore, .mp3 files are created using first-generation audio compression technology. The newer .m4p compression (also called AAC) is an industry standard replacement for .mp3 that creates even smaller (more compressed) lossy files with an even better level of quality. The audio quality of Apple’s 128-bit .m4p AAC compression is roughly equivalent to 160-bit .mp3 compression.
Where exactly is it written that these clowns have to make more and more money every year? People aren’t paying for music as much because music is shit these days. When we are getting force fed the likes of Cold Play and Pussy Cat Dolls, you can only get crammed with so much garbage before you throw up.
Cpt. Obvious,
If it sucks, why are people stealing it? It’s not like they are being forced to steal music.
iTunes will be the next and only record label. You heard it here first……
And when the iPod still dominates its competitors after the demise of DRM, what kaka will the losers invent to blame Apple?
As usual, the clowns at the record companies are a day late and a dollar short when it comes to brains and seeing where the “industry” is going.
These people have always been short-sighted, making the music business a joke in the eyes of consumers.
From the days of payola and manufacturing groups to ride the wave of last year’s “breakthrough” new sound, these morons have been operating the same way for 60 years or more.
The record execs still seem to be clueless that the phenomenon of CD’s that saved their asses in the 80’s and early 90’s was not a permanent gravy train. They all keep hoping (like the movie folks do) that the next wave format (Blu-Ray, HDCD, whatever) will trigger another huge buying binge so they can sell all their back catalogs again.
Instead, they should be putting some thought into how they will generate future “oldies” – by releasing and supporting music from creative and talented artists today. But they can’t see that, so they’ll keep trying to milk the 50’s, 60’s and 70’s catalogs for as long as they can. Sure beats earning a living the old-fashioned way.
Phooey. I gots no use for these mimbos.
“The newer .m4p compression (also called AAC) is an industry standard replacement for .mp3”
Actually, m4a is the AAC standard format. m4p is AAC with Apple’s FairPlay encryption applied to it, making it somewhat non-industry-standard
Unless the music industry has a terrific incentive for people to buy unprotected music online (something good–not a legal threat), we will see the rebirth of the old Napster about 2 minutes after they start offering their catalogs DRM-free.
You can’t expect them to embrace change if it means lower revenues. To increase revenues, they have to up the ante on products: sell video which is more bothersome to pirate by way of size; release more versions – the studio tapes, live performances, interviews, the making of a song… etc., etc., etc.
And yes, remove DRM but sell the compressed [mp3] versions cheaper. Much cheaper. Cheap enough so that the ones who pirate are the ones who would never buy anyway. And properly tag the files with album art, lyrics, etc.
And while they’re at it, they might consider a different format with separate vocal tracks and optional display of karaoke-style lyrics. Or have an optional video track which can be turned on and off separately and does not necessarily include the artists performing, if you catch my drift. And if you’re selling cds, include extensive album art, lyrics, reviews or comments or anything that adds value…. Geeze, I could go on and on!
There’s lots to do if they got off their asses and tried innovating. Unfortunately, most of them can’t even figure out how to use a washlet toilet.
1) Kill DRM – it’s useless;
2) Cheaper online mp3s – much cheaper;
3) Product innovation;
4) Did I mention cheaper?
Excuse my grammar – I was in a rush.
“…”The newer .m4p compression (also called AAC) is an industry standard replacement for .mp3…Actually, m4a is the AAC standard format. m4p is AAC with Apple’s FairPlay encryption applied to it, making it somewhat non-industry-stand…”
Well, yes AND no. I am correct that AAC is the basic industry standard audio format designed to improve and eventually replace .mp3, and (Ryan is right in that .m4a files can be found in the iTunes folder (if the music is imported, using iTunes, from a CD). However, protected AAC files (.m4p, sometimes called AAC Plus) also can be found in the iTunes folder (if you purchase DRM-protected songs from the iTunes store). Protected AAC (AAC Plus) is just a basic AAC file with Apple’s Fairplay DRM wrapper added.
The point is, their actually is a difference between AAC and protected AAC (AAC Plus) files, but only one (AAC) s an actual audio file type.
Make that read…only one (AAC) is an industry standard, audio file type.
This would be great for online music. Unfortunately, I’ve heard that Apple has stated they will not remove DRM from iTunes even if the RIAA no longer requires it. If this turns out to be true, then it will prove that Apple is using DRM to lock you in to their products. If in the future, I can purchase songs online in a DRM free format, preferably FLAC, then I’ll be a very happy camper and Apple can kiss my ASS.
I love all my Apple computers, but I value open standards more.
Lets hope that if this does happen, then Apple follows along. It will be nice to have real competition for once with online music.
So I take it all these beleagured record companies will allow iTunes user to download previusly unprotected purchased music again in a higher quality format. When they do that I will believe they are sincere.
mw: efforts as in they are making numerous efforts to try to end Apple’s successful efforts at providing a legal alternative to piracy. Poor record companies. Apple must have made them use DRM.
Apple will not remove DRM you pop-tarts.
They have as much at stake as the labels do – unprotected = theft.
You babies have proven them right and have only your thieving selves to blame.
MDN: your take is as stupid as the reasons are for stealing music.
Thieves are thieves.
In fact, I’m going to start a website and “borrow” all of your material.
We’ll see how YOU like it.
I, for one, will believe a DRM free universe when I see one.
The guys who run The Labels are greedy bastards who are convinced that the MP3 player manufacturers, artists, technicians, backup singers, backup musicians, music composers, lyrics writers and consumers are all out to screw them out of ‘their’ money.
There is no way they will open up ‘their’ music to make it any easier to steal ‘their’ money.
There is only one word to describe people who cannot comprehend why others sample music by downloading it from P2P networks: ignorant. I guess if you have no friends and live under a rock somewhere without broadband, you can vomit up your malformed ideas as a troll on MDN.