Steve Jobs is right again. In a post on the Apple web site he reacts to calls for Apple to open their Fairplay DRM system to licensing with an interesting (and insightful) proposal:
“The third alternative is to abolish DRMs entirely. Imagine a world where every online store sells DRM-free music encoded in open licensable formats. In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat.”
This has gotten a lot of coverage today, from Business Week to the New York Times. Jobs’ post was prompted by a number of European countries examining (and in some cases declaring illegal) the digital rights management (DRM) system that Apple uses with the iTunes music store and the iPod. The system is there to make sure that if you cough up $.99 for a song, you don’t spread it around the internet for free. These countries say the effect is to lock customers in to iPods and iTunes so they can’t buy another player without forfeiting their music.
Jobs’ response? He never wanted to have a DRM system in the first place. He would gladly dump the whole thing, and let you buy music anywhere you wanted and use any player you wanted - but it’s not up to Apple. Although you might buy your Ben Folds from iTunes, Apple doesn’t have any of the rights to that music - the vast majority of the time, the rights are owned by a major record label, with just four labels dominating the market. They require DRM.
That said, why wouldn’t Apple like the idea of DRM? A naive observer (or record company executive) would say it’s good for Apple, too, since it means iPod buyers will use the iTunes store and vice-versa, and it forces people to buy songs instead of pirating them. This is why Steve Jobs has been so successful. He thinks more people will pay for free music than music tied up in the rules and inconvenience of DRM. And he’s right.
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