Jobs puts his money where his mouth is
Apple have announced that they’re going to be selling all tracks from the EMI catalogue DRM-free from May. The DRM-free tracks will be 30 cents more, but be much higher-quality, so it’s not as if you’re just paying for interoperability. In addition, there will be the option to bulk-upgrade your existing FairPlay EMI tracks to the DRM-free, higher quality versions for only the price difference. This seems like a really positive step to me.
But then, I start to think about the politics behind this - let’s consider.
- Apple Computer and Apple Corps make their peace on the whole trademark dispute, opening up the possibility of the Beatles catalogue finally being available digitally in iTunes.
- Rumours abound of a Superbowl-advertised announcement, which never happens. Then it’s going to be Valentine’s Day, but that doesn’t happen either. However, the number of leaks suggesting it indicate that something is going on behind the scenes.
- Steve Jobs publishes his ‘Thoughts On Music’ essay, throwing down the gauntlet to the record companies by saying that DRM-free music
is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat. If the big four music companies would license Apple their music without the requirement that it be protected with a DRM, we would switch to selling only DRM-free music on our iTunes store.
- EMI call Uncle Steve’s bluff and it is announced that all the EMI catalogue on iTunes will be available DRM-free as of May.
To me, it’s impossible to conceive that this isn’t a coincidence. Presumably some kind of deal has been struck, or is in the process of being struck, between EMI and iTunes for the Beatles catalogue and presumably this deal includes some element of exclusivity. For the sake of argument, let’s assume Apple got a 6-month exclusivity deal out of EMI, during which time the Beatles catalogue will only be available digitally through iTunes. Now, whilst Apple are far and away the biggest player in the digital music world, it still must be a bit of a stinger to be a record company exec and knowing that by signing that exclusivity deal you’re limiting your audience to those with iTunes and iPods. It’s a massive majority, but it’s not everyone.
Then Steve Jobs makes his very public, very quotable, very inflammatory statement regarding how DRM is the record companies’ fault and how they’d dump it “in a heartbeat”. Suddenly, if you’re EMI you have a no-lose situation - you offer your catalogue, which will eventually include the Beatles, to iTunes DRM-free. If they refuse, you have them over a barrel for going back on Jobs’s manifesto. If they don’t, then you have an exclusive deal with iTunes where people can download the tracks but can play them back on any device. Even if they have an MP3 player that won’t play AAC, the lack of DRM means they can at least convert it to their preferred format.
Looks like the floodgates may be about to open…
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