In January, Apple announced that entire iTunes catalog will be going DRM free by the end of 2009. In class, I raised a question about how this shift to DRM free will effect the online music industry. Jeremy kind of shook the question off saying that the average consumer doesn't really care about DRM versus DRM free music but I beg to differ. I think the shift to DRM free will fundamentally change the online music landscape.
(Disclaimer: I am an Amazon MP3 buyer that uses iTunes to manage my music)
DRM and proprietary file formats essentially created huge market barriers to entry for competitors and really allowed companies to force integration across a suite of devices (see Apple iPod, TV, and the Mac). This type of integration allowed Apple, through the simple sale of iTunes songs, make people want to buy more Apple devices. With music labels now willing to go DRM free this can set the stage for the return of more non-proprietary file format music stores (amazon) which lowers switching costs for users and makes the device integration stories less compelling. This could open the door for more market entrants and mean bad news for Apple.
There is still the issue of Apple continuing to use its AAC format with DRM free music, but why bother with the headache and deal with issues of device incompatibility and possible obsolescence.
A recent article also brings up an interesting privacy issue with AAC Apple will always know who you are.
Maybe it will take a while for people to realize the differences but all it takes is one good consumer awareness campaign. I already have a tagline: "Choose Freedom"
No comments:
Post a Comment