Posts filed under 'Technology'

How the digital music market is changing

It all began with EMI. Well, not really, there were quite a number of Indie labels that tried it successfully before them, but they were the first major label to allow DRM-free downloadable music. Of course they first did it with iTunes, which is a bit like opening a vault within another vault that remains locked, but in the last couple of months, things have really started moving.

At the time EMI started experimenting with DRM-free downloads, many music industry executives were still thinking of such a move as suicidal. It seems they have pretty much all come around by now. Amazon now has (at least in the U.S.) a huge selection of music in MP3 format and they are planning on expanding that to other countries later this year, which means I will finally get to download all that music that so far I had to buy on CDs and rip.

So what happened? Did the music industry cave in to consumer pressure? Did they finally realize that DRM isn’t going to help them in the long run? One might be tempted to think so, but I think the truth is that they have started to see DRM-free music as a business opportunity. iTunes Music Store was in a position to pretty much dictate how much the music industry could charge for a download and they “stubbornly” refused to sell music for more than 99 Cents. But the industry wanted tiered pricing. The only way to make that possible was to provide an alternative that would still play on the majority of devices – and Apple’s iPod is the market’s leading portable music player, but it only supports Apple’s DRM, which they won’t license to third party music stores. But of course it plays DRM-free MP3 files. So in order to enable other downloadable music stores and break Apple’s quasi-monopoly in the downloadable-music market, the music industry had to bite the bullet and do away with DRM. They didn’t like it (although they may start to notice that it’s not hurting them the way they feared it would), but once the first two major labels had started, there really was no turning back. And you can see that it’s working the way the music industry wants by looking at the pricing at Amazon – there it is, the tiered pricing model the music industry wanted, where they can charge more for their “top tracks” and less for old archive material. It’s not a generous move by the music industry and they were thinking more of themselves than of the consumers – but still we benefit from it and have no reason to complain.

In the long run, the price for downloadable music may go down towards zero – advertising based business models are starting to emerge already. The music industry certainly can’t sit back and relax just yet – actually, their time may be over pretty soon, as the internet enables artists to take distribution into their own hands and already even some major artists have opted for non-traditional ways of distribution. If they go out of business, they will have to blame themselves – for too long they tried to keep up a way of doing business that was contrary to what customers were expecting. You can’t treat your customers that way for very long or they will find the solutions they were looking for from somebody else. If the music industry hadn’t focused on “going to war” with their customers instead of producing the solutions they were looking for, the situation would look very differently today.


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Add comment February 8th, 2008

DRM free music – EMI teams up with Apple

The press conference in London is still underway, but the press release is already available on EMI’s website and earlier rumours that were started by a Wall Street Journal article yesterday have been confirmed: EMI is releasing “DRM-free superior quality downloads across its entire digital repertoire” and “Apple’s iTunes Store will be the first online music store to sell EMI’s new downloads”.

This is exciting news indeed – regular readers know that I have explained more than once why DRM is not a good idea and will hurt our cultural heritage as well as the music industry’s bottom line in the long run. Let’s hope that this is the beginning of the end of DRM – EMI is only the third largest label, but if this is a success (and my prediction is that it will be), the others will have to follow suit. And there is hope that what works in the music industry might work in the movie download business as well.

Why is this a good idea for EMI and won’t it hurt their sales figures? I believe that it’s a good idea because finally consumers are given a choice. So far, illegal downloads have provided a better user experience than legal downloads – it was always possible to freely copy illegally downloaded music, burn it to as many CDs as the user wanted, use it on many different digital devices etc., whereas DRM prevented a lot of legitimate uses. I resorted to buying CDs, others may have just downloaded DRM-free tracks from illegal sources. Now, for the first time, will I even consider buying downloadable music – and chances are that EMI will have most of what I’m looking for because many bands I like are with christian labels that are part of EMI’s christian music group. I personally wish EMI a lot of success with their smart move, which many in the industry may see as bold and some even as suicidal.


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3 comments April 2nd, 2007

EMI and DRM-free downloads

A friend just pointed out a post to me that suggests that EMI may be starting to experiment with DRM-free downloadable music. This is the first time I know of that a major label is trying something like this and I certainly wish them a lot of success with it. They seem to be going about it in a rather smart way, giving customers not only (pre-release) access to the MP3 file, but also to some exclusive extra features like video footage and artwork from the release. In my opinion, that’s the way to go – do away with restrictions and create an incentive to buy by providing extra features. At least that would work for me – I’m often willing to pay quite a bit extra for a nice DVD set with special features (which you usually don’t find on an illegal download), so I can see this working in music as well.

I’ve written a few times about the pitfalls of DRM in general and especially the dangers to our cultural heritage. If the major labels do see the kind of success they are hoping for with this and we will see more DRM-free releases in the future, there is still some hope. After all, MP3 is a pretty well documented standard and we’ll always be able to write players for that, even on hardware that hasn’t even been invented yet. So let’s hope and give every encouragement we can to trials like this.


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1 comment December 1st, 2006

Putting the phish in the tank

SecurityFix reports on an interesting new idea to combat phishingPhishtank is a service operated by the same people that also brought us OpenDNS. It is a reputation based community service that invites users to submit suspected phishing sites and then puts them up for voting with a screenshot. If a site gets enough votes, it will then be classified as a phishing site (and when I said “reputation based” earlier, that means the votes of regular submitters and reliable voters count more, so phishers can’t game the system), which means it will be blacklisted in OpenDNS. There is also an open API that others can use to integrate the results of the service into their own applications. There are even RSS feeds, so for instance an ISP can get a live feed of all the suspected phishing sites in their IP range.

There is one noticeable problem with the service at the moment – it only displays the URL and a screenshot of a suspected site. If I want to look at the sites and determine which are genuine and which are phishing sites, it would be much more helpful to have the email that the URL came in available as well. Voting can be difficult if there is only a screenshot to look at – the whole point of running phishing sites is to make it look genuine, the email might be the thing that tips the scales when I need to make the distinction between a legitimate and a fraudulent site. So hopefully at some point, there will be an option to see the email together with the URL before voting on it.

But I like the idea of a reputation based service and the way it’s been implemented makes a good first impression. This could really become yet another way of combating phishing – now what’s needed is a simple way to get the results of this service to those end-users who are unlikely to even worry much about phishing. If it gains enough momentum to be included in browsers or used by ISPs, it could become a really useful tool.


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2 comments October 6th, 2006

GPL upheld in court in Germany

Earlier this month a court in Germany ruled in favor of gpl-violations.org that D-Link had violated the GPL by including GPLed code in a hardware device without adhering to the terms of the GPL. Specifically, D-Link did not include a copy of the license with the device and did not make the parts of the source code that were GPL licensed available.

The full text of the decision is now available here for those of you that can read German and it is an interesting read. The court clarifies that licensing source code under the GPL does not mean the author of the code is waiving all his rights under copyright law. ยง4 of the GPL, that specifically prohibits distribution of the software in violation of the conditions set forth by the GPL, is fully valid under german law and D-Link thus had no right to distribute the device in question. D-Link had argued that the provisions of the GPL violate competition laws and cannot be enforced. The court stated that even if that was true (and it didn’t have to decide on that claim), then D-Link would have had no right at all to use the source code because an invalid license would also have voided the right to use it under its terms.

D-Link, in a statement that I find rather funny, said they are not going to appeal the ruling and praised themselves for not settling the case, so that now the GPL has been properly tested in court and can be relied on. They are certainly putting a good spin on their stubbornness :) .


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Add comment September 22nd, 2006

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