Selling Digital Music without Copy-protection Makes Sense
A. It was uncharacteristically low-key for the industrys greatest showman. But the essay published this week by Steve Jobs, the boss of Apple, on his firms website under the unassuming title Thoughts on Music has nonetheless provoked a vigorous debate about the future of digital music, which Apple dominates with its iPod music-player and iTunes music-store. At issue is digital rights management the technology guarding downloaded music against theft. Since there is no common standard for DRM, it also has the side-effect that songs purchased for one type of music-player may not work on another. Apples DRM system, called FairPlay, is the most widespread. So it came as a surprise when Mr. Jobs called for DRM for digital music to be abolished.
B. This is a change of tack for Apple. It has come under fire from European regulators who claim that its refusal to license FairPlay to other firms has locked in customers. Since music from the iTunes store cannot be played on non-iPod music-players , any iTunes buyer will be deterred from switching to a device made by a rival firm, such as Sony or Microsoft. When French lawmakers drafted a bill last year compelling Apple to open up FairPlay to rivals, the company warned of state-sponsored piracy. Only DRM, it implied, could keep the pirates at bay.
C. This week Mr. Jobs gave another explanation for his former defence of DRM: the record companies made him do it. They would make their music available to the iTunes store only if Apple agreed to protect it using DRM. They can still withdraw their catalogues if the DRM system is compromised. Apple cannot license FairPlay to others, says Mr Jobs, because it would depend on them to produce security fixes promptly. All DRM does is restrict consumer choice and provide a barrier to entry, says Mr Jobs; without it there would be far more stores and players, and far more innovation. So, he suggests, why not do away with DRM and sell music unprotected? This is clearly the best alternative for consumers, he declares, and Apple would embrace it in a heartbeat.
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