Friday, April 13, 2007

EMI to Remove DRM from Online Songs


In a move that could shape the future of online music sales, record company EMI announced on April 2 a deal with Apple that affords Apple the right to sell most of EMI's song catalog via Apple's iTunes store. What makes this deal unique is the fact that the songs offered for sale will have all of their Digital Rights Management (DRM) software removed. Other companies in the music industry fear that the deal could lead to major sales and copyright implications.

DRM software is installed on songs to block users from copying songs purchased online. In addition, DRM restricts users from listening to songs on multiple players (i.e. songs purchased on iTunes can only be played on iPods). As a result of the EMI-Apple deal, users will be able to copy the DRM-free songs freely as well as play and listen to the songs on multiple players. The deal calls for iTunes to offer the songs for $1.29, thirty cents more than its existing songs. The DRM-free songs will also have a smaller compression rate and twice the sound quality of existing downloads.

The long-term impact on the music industry as a result of the deal is largely unknown. Other major record labels are sure to be influenced to follow EMI's lead, but many questions remain. Will the other labels follow suit? If so, will the deal hurt or hinder online music sales? Do artists have any copyright claims in the matter? How will Apple's iPod sales be affected? For now, only time will tell.

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