A DRM-Free World

April 2, 2007 will mark the day that DRM began its inevitable downfall. EMI announced a deal with Apple's iTunes that they will license their entire catalog of music without digital rights management (copyright protection) for $1.29, 30 cents more than the standard 99 cent rate for iTunes music. This DRM-free revolution began with Apple CEO Steve Jobs' letter to the music industry back in February and now EMI has set the precedent for the rest of the industry to follow suit. Now that consumers are getting what they have been asking for, will they stop file sharing?

This is my opinion. As a former file sharer and a current consumer of the iTunes 99 cent model, I do not believe that consumers will stop file sharing just because they can use EMI files any way they want. First, music consumers today do not think of music in terms of labels. People will not choose EMI over other labels just because their music does not have copyright protection; they will choose the content they want. I cannot imagine EMI assumes they will make more money from this innovation unless all of their content is outstanding. Secondly, the average consumer does not even know what DRM is and how it affects their music consumption. People file share because they do not want to pay for music, not because they think DRM cramps their style. Some people, whether industry or technology enthusiasts or people who just like to share their music like myself, do feel the effects of DRM and will appreciate this legal option, but that population is very small relative to all the music consumers in this country. Lastly, iTunes is charging 30 cents more for DRM-free downloads than regular downloads. That is the biggest mistake in this agreement. Why would consumers pay more for DRM-free music when they can get the same thing for free through file-sharing? Yes, the sound quality on these songs will be better than even the average 99 cent download, but sound quality matters to about the same small percentage of consumers that like to share all of their music. If given the choice to change all of my current EMI iTunes music to DRM-free for 30 cents a piece, I would not do it. I should not have to re-purchase my music. I will be much more picky about my purchases if they are over a dollar than if they are 99 cents. Its merely change but we are a frugal society.

There are positives to this new development. Although the single downloads are $1.29, albums are still $9.99. Since online downloading has become a large portion of music distribution, we have become more of a singles culture, which I think has contributed to the decrease in CD revenues. If singles are more expensive but albums remain constant, consumers might be more inclined to buy albums. This could be a very positive element of the new DRM-free world.

So we are forging ahead into a DRM-free world. Steve Jobs called it and EMI stepped up to the plate. We just have to wait to see if they hit the ball out of the park or strike out. But, like all of Apple's endeavors, they will look good in their uniform.