A new era of online music began this week when EMI became the first major record label to sell songs over the internet without hidden codes limiting how they can be played.
April 4, 2007 (Press Release) --
A new era of online music began this week when EMI became the first major record label to sell songs over the internet without hidden codes limiting how they can be played.
In a move other labels are likely to follow, EMI said it would offer customers the choice of paying more for higher-quality tracks without software limiting copying or restricting their use to specific devices such as an iPod.
EMI said imposing limits on digital sales was unpopular with a public used to playing CDs or records without restraint.
At a joint press conference in London, US computer giant Apple announced that it would sell EMI's premium songs through its iTunes store, which dominates the online music business.
The decision means EMI's vast back-catalogue of songs from stars such as Robbie Williams and Kylie Minogue will be available on iTunes in near CD quality, and playable on all digital players, for 99p ($2.72) each.
That is 20p (55c) more than iTunes' normal download, which will still be protected with anti-piracy software known as digital rights management.
It will allow EMI, which is losing revenue from albums to single downloads and is the subject of a takeover bid from Warner, to make more money from digital music sales.
It also represents a new tactic in the industry's war against piracy, which has cost billions of dollars in revenue from fans copying music from websites without paying.
At the moment music downloaded from Apple's iTunes will play only on Apple's iPod rather than the other digital music players, limiting the music's "interoperability".
Such limits are increasingly likely to irritate the public and could encourage file-sharing.
"We believe that offering consumers the opportunity to buy higher-quality tracks and listen to them on the device or platform of their choice will boost sales of digital music," said EMI's chief executive Eric Nicoli.
Steve Jobs, Apple's chief executive, praised what he said would be an important development in online music.
"Today Apple and EMI are taking the next big step in the digital music revolution: the move to completely interoperable music," he said.
EMI's music will be available immediately to online retailers.
EMI New Zealand said the downloads would be available here, but could not say when.
EMI's u-turn followed a call by Mr Jobs in February for record companies to ditch DRM.
Then Mr Jobs argued there was no point in the restrictions because record companies sold 90 per cent of their music in unprotected CDs for which no viable anti-piracy system could be developed.
Martin Talbot, editor of the trade journal Music Week, remarked that removing DRM was significant.
"A few people have been saying that you have still got DRM but it's a significant step for EMI and Apple to say you can now do more with the tracks you buy from iTunes.
"There are significant economic issues behind this," he said.
"What is really quite sly about this, in a very positive way for EMI, is that they are going to be able to achieve a higher price for their downloads on the biggest service on the web, full in the face of Steve Jobs' constant bleating that he doesn't want variable pricing."
By backing the change, Apple could maintain its reputation for innovation and protect its lead in online sales, which, at 70 per cent, was "unsustainable in the long run", Mr Talbot said.
Mike Davis, senior analyst at the Ovum technology consultancy, said: "Everyone wants to buy premium products.
"Stella Artois has been advertising on telly for 10 years saying, 'Reassuringly expensive'.
"Will we pay an extra 20p a track? Of course we will."
Author: Martin Hickman
Source: http://www.nzherald.co.nz/
In a move other labels are likely to follow, EMI said it would offer customers the choice of paying more for higher-quality tracks without software limiting copying or restricting their use to specific devices such as an iPod.
EMI said imposing limits on digital sales was unpopular with a public used to playing CDs or records without restraint.
At a joint press conference in London, US computer giant Apple announced that it would sell EMI's premium songs through its iTunes store, which dominates the online music business.
The decision means EMI's vast back-catalogue of songs from stars such as Robbie Williams and Kylie Minogue will be available on iTunes in near CD quality, and playable on all digital players, for 99p ($2.72) each.
That is 20p (55c) more than iTunes' normal download, which will still be protected with anti-piracy software known as digital rights management.
It will allow EMI, which is losing revenue from albums to single downloads and is the subject of a takeover bid from Warner, to make more money from digital music sales.
It also represents a new tactic in the industry's war against piracy, which has cost billions of dollars in revenue from fans copying music from websites without paying.
At the moment music downloaded from Apple's iTunes will play only on Apple's iPod rather than the other digital music players, limiting the music's "interoperability".
Such limits are increasingly likely to irritate the public and could encourage file-sharing.
"We believe that offering consumers the opportunity to buy higher-quality tracks and listen to them on the device or platform of their choice will boost sales of digital music," said EMI's chief executive Eric Nicoli.
Steve Jobs, Apple's chief executive, praised what he said would be an important development in online music.
"Today Apple and EMI are taking the next big step in the digital music revolution: the move to completely interoperable music," he said.
EMI's music will be available immediately to online retailers.
EMI New Zealand said the downloads would be available here, but could not say when.
EMI's u-turn followed a call by Mr Jobs in February for record companies to ditch DRM.
Then Mr Jobs argued there was no point in the restrictions because record companies sold 90 per cent of their music in unprotected CDs for which no viable anti-piracy system could be developed.
Martin Talbot, editor of the trade journal Music Week, remarked that removing DRM was significant.
"A few people have been saying that you have still got DRM but it's a significant step for EMI and Apple to say you can now do more with the tracks you buy from iTunes.
"There are significant economic issues behind this," he said.
"What is really quite sly about this, in a very positive way for EMI, is that they are going to be able to achieve a higher price for their downloads on the biggest service on the web, full in the face of Steve Jobs' constant bleating that he doesn't want variable pricing."
By backing the change, Apple could maintain its reputation for innovation and protect its lead in online sales, which, at 70 per cent, was "unsustainable in the long run", Mr Talbot said.
Mike Davis, senior analyst at the Ovum technology consultancy, said: "Everyone wants to buy premium products.
"Stella Artois has been advertising on telly for 10 years saying, 'Reassuringly expensive'.
"Will we pay an extra 20p a track? Of course we will."
Author: Martin Hickman
Source: http://www.nzherald.co.nz/
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