Apple on Music DRM
Apple posted a statement today about DRM-protected music. Essentially, it says that they would be happy to sell music with or without DRM. I'm glad to see this. I never understood why columnists would ask Apple for DRM-free music when it's clear the labels are the motivating force.In fact, if you've listened to the quarterly results conference calls during the last few years, Apple has repeatedly said that they essentially break even on iTunes Store sales. They're not interested in making money off the content, that's just part of the overall experience of owning an iPod.
I think this takes some off guard because it's the opposite of the Gilette model. Apple sells the razor and gives away the blades, with the understanding that blades are necessary to appreciate the razor.
I like this model better because it puts the ball entirely in Apple's court to continue making the best devices they possibly can. If their business was to essentially get you to buy an iPod then get you involved in a contract for continuing to buy music, they'd need DRM to sustain their business.
I think it's interesting to see this mentality applied to the mobile phone market. Apple wants to sell you an iPhone but doesn't care about the contract per se. They're only interested in it to the extent that it provides a solid user experience.
If the world suddenly turned on its side and everyone was using WiFi/VoIP service to make mobile phone calls, Apple probably wouldn't have much difficulty transitioning. The rest of the mobile phone industry, however, might be thrown completely off balance.
Apple on Music DRM
Posted Feb 6, 2007 — 17 comments below
Posted Feb 6, 2007 — 17 comments below
Chris — Feb 06, 07 3528
Scott Stevenson — Feb 06, 07 3529
It's certainly more convenient to play on an iPod (for reasons the Apple statement directly addresses), but I play music from iTunes in my car CD player all the time.
That's surely a big motivation for Apple to keep their DRM and it's a bonus for Apple that they can blame it on the music industry
I guess it's a nice bonus, but since they've gone on record as saying they would support DRM-free music, I think it's a moot point.
I believe the Disney movies are being sold on iTunes with DRM
I just did a get info on a Disney movie I have and it says FairPlay.
Mr eel — Feb 07, 07 3530
Also, I find the argument that since iTune Store customers have only bought a small proportion of their music from the store, there is essentially no lock-in to be… interesting.
Frankly I think that's a load of bully. An average is probably the worst example of statistics you can use. Not every iPod customer buys from the iTunes store — I certainly don't — and not all of those that do buy the same proportion.
The dude who bought 30k of music for example is well and truly locked in. Steve seems to be caught between his belief the DRM is pointless and a need to justify Apple's use of it up to this point.
It's also interesting to note that he didn't bother with any of the ethical arguments against DRM. I think he took the right tack in the case. I'm guessing his real audience for this statement is the major labels, so using a more practical argument makes sense.
All in all I'm glad to see him take this position and I'm hoping he has some sneaky plans to induce the labels to abandon DRM.
If that ever happens, me and my credit card will be paying a BIG visit to the iTunes Store.
Andrew — Feb 07, 07 3534
You can still buy CDs and use them in iTunes and you can buy music files from Emusic and then play it in iTunes... as well, you can download other sources of music and content on the internet such as mixes and podcasts... iTunes doesn't 'lock' you into anything...
Scott Stevenson — Feb 07, 07 3536
It seems pretty clear to me: Apple needs to use DRM to sell mainstream music owned by the record companies. They would be willing to abandon it if the record companies allowed them to do so.
I'm hoping he has some sneaky plans to induce the labels to abandon DRM
I saw some comments similar to this on Digg, and maybe it's even what Norway is thinking, but I think this is highly unlikely. Apple has a lot of pull, but the record companies are unbelievably stubborn. Maybe you have to know bands in the business to fully appreciate this.
If consumers and the governments want results, they have to talk to the record companies. Anything else is a waste of time or, at best, does more harm to consumers than good. If iTunes is forced out of Norway, consumers lose an option to purchase music. I'm fully aware of the implications of buying iTunes music and would not appreciate if legislation took it off the market in the name of helping me. I don't want to have to go to Best Buy and pay $16 for a plastic disc to get a single song.
Jussi — Feb 07, 07 3537
Well, the market for videos is different to music, you can't buy digital videos without DRM at the moment, at least as far as I know. On the other hand the market of digital music is almost completely DRM free.
Also from Apple's point of view the movie studios have not yet embraced iTunes Store so in order to keep them interested it is better not to pressure them too much.
Scott Stevenson — Feb 07, 07 3538
Hmmm. In terms of what? iTunes easily outpaces eMusic sales, doesn't it? Not to mention the other DRM-based services.
Mike — Feb 07, 07 3539
Jussi — Feb 07, 07 3543
Rob — Feb 07, 07 3544
I am sure of the following, if the labels went DRM free:
iTunes would work with more players.
I could legally make more copies of the music for my own use.
The iPhone could share music with more devices.
Everyone could duplicate the songs like crazy so I wonder how lables and artists will make money ? But here is why I think Apple is doing this but I am unsure of exactly how it works out ...
By removing the DRM the security of the OS and indavidual responcibility now protects indavidual copies from end up on repeating servers like spam. Thus, the music labels may release DRM free for Macs and iTunes but NOT ON WINDOWs, especially in China and India where people think bootlegging is good for the country!? And since this is a HUGE market for the iPhone this would be a really good thing to sell more iPhones and Macs.
iPodJon — Feb 07, 07 3545
Can you imagine Steve Jobs' reaction to Sony announcing that they'd love to publish Final Cut Pro (or other Apple software) on behalf of Apple, without any DRM?
Jobs would have a spluttering fit.
Jobs can say these convenient things, appealing to our grabby natures (who doesn't want things for free?) because he doesn't create the music. He has no risk, no downside in this.
This sort of PR posturing will only bite Apple in the end. If I can have my music without DRM (i.e. it's essentially free in a technical sense) then why not my production suite or my QuickTime Pro?
Rob — Feb 07, 07 3546
I think Apple should start a world wide user CO-OP once they have a few million users on the iPhone. Extend communications to Macs and make a user owned CO-OP network that is low power/radiation Wifi with WoIP services.
Subsidize the network a little and they could easily take over the cell phone market and become BIGGER THEN MICROSOFT ! Charge businesses or something like that.
Scott Stevenson — Feb 07, 07 3547
The point Jobs is making is that the overwhelming majority of music is already sold without DRM. In any case, I don't believe Final Cut Pro has any such protection right now. Mac OS X certainly does not.
iPodJon — Feb 07, 07 3550
Or QuickTime Pro
Or swap your iPod games freely
You will notice that Jobs has not announced that all Pixar DVDs will be released without encryption or Macrovision. And yet DVDs are widely pirated.
The "overwhelming majority" of computer software is pirated too, that doesn't mean it's good business, or good eventually for customers, to release it in to the wild without DRM.
When Jobs comes out and says he opposes DRM itself, then that will be news. Otherwise, he's just trying to _sell_ something to you that he hasn't created, under the guise of simplifying things for the customer.
Scott Stevenson — Feb 07, 07 3551
I don't think most people would classify a serial number as DRM. You can take that serial number and your Final Cut Pro CD to any Mac and use it without authorizing the computer over the internet. Again, the real point is that most music is already DRM free.
When Jobs comes out and says he opposes DRM itself
I believe that's exactly what that this letter says. The fact that Pixar DVDs are not free of DRM is a separate conversation. First, it would be a bit much to take on both the music and movie industries at the same time, particularly given that most movie studios have not signed on to iTunes.
Secondly, Steve Jobs does not personally have distribution rights to the Pixar movies. They are the property of Disney. Jobs is on the Disney board, but he can't make such decisions on his own. Regardless, the point is that this is a huge step into the future. Expecting it to solve every single challenge in 2,000 words is asking a bit much.
Vickie — Feb 08, 07 3556
I don't think that anyone believes that people who create music shouldn't be paid for it. The question is, how can this change as people move away (ie. to the Internet) from the traditional ways of distributing and promoting music ?
You've already mentioned the brilliant thinking of Steve Jobs regarding the conventional Gillette marketing model. Is he opposing DRM, or just thinking forward to how the next great thing will work?
Rob — Feb 10, 07 3561
You get Apple Inc. buying Apple Corps. and Apple Inc. instantly becoming a major music producer of DRM free music !!!