Warner Music Group Embraces Amazon's DRM-Free Music Store
Warner Music Group (WMG) is following Universal and EMI in offering DRM-free music through Amazon's MP3 digital music store, the companies announced in a news release Thursday. WMG SVP Michael Nash said allowing consumers to buy songs in MP3 format "will only encourage the sale of more music."
Amazon now claims 2.9 million tracks for sale at its Amazon MP3 store, which opened in September. Terms were not disclosed but Amazon is undercutting Apple (APPL) on pricing for most of its songs, selling them for $0.89 (rather than $0.99) per track. Of the 6 million songs offered by Apple's iTunes, 2 million are offered DRM-free through iTunes Plus.
With the deal, WMG becomes the third major label to do a deal with Amazon in hopes of breaking Apple's death-grip on digital music sales. The deal comes a day after reports surfaced that Apple (APPL) is set to announce a movie rental deal with News Corp.'s 20th Century Fox.
WMG's deal with Amazon leaves only Sony-BMG holding the line against DRM-free music. Yet reports indicate even Sony-BMG is planning to capitulate to the anti-DRM crowd, though details remain sketchy. Billboard reports Sony-BMG will offer "artist-specific digital download album cards" in MP3 format in mid-January.
Amazon now claims 2.9 million tracks for sale at its Amazon MP3 store, which opened in September. Terms were not disclosed but Amazon is undercutting Apple (APPL) on pricing for most of its songs, selling them for $0.89 (rather than $0.99) per track. Of the 6 million songs offered by Apple's iTunes, 2 million are offered DRM-free through iTunes Plus.
With the deal, WMG becomes the third major label to do a deal with Amazon in hopes of breaking Apple's death-grip on digital music sales. The deal comes a day after reports surfaced that Apple (APPL) is set to announce a movie rental deal with News Corp.'s 20th Century Fox.
WMG's deal with Amazon leaves only Sony-BMG holding the line against DRM-free music. Yet reports indicate even Sony-BMG is planning to capitulate to the anti-DRM crowd, though details remain sketchy. Billboard reports Sony-BMG will offer "artist-specific digital download album cards" in MP3 format in mid-January.
Plus mp3 is definitely a more universal and arguably better format than iTunes' AAC. Even the DRM-free iTunes files have your name and account info on them unlike mp3s.
iTunes is also pressuring record labels to give them bonus tracks that consumers can only purchase if they buy the whole album on iTunes. Anybody who buys the CD or uses another online store cannot get these tracks. Like any greedy business, iTunes have been trying to become the monopoly in the industry for a long time. Don't let them become one. I would never buy a song/album on iTunes if I can buy the same thing in the same or better format elsewhere.
Hollywood is trying to avoid this outcome as well. NBC U pulled its TV library from iTunes over pricing. ABC/Disney is less concerned as Steve Jobs is its largest shareholder.
But there's a more serious problem with your piece. You have our ticker symbol as APPL. Wrong, it's AAPL. How are your readers going to know how to buy the BEST STOCK in the world? Trading a few pennies shy of $200!
dogcow...you're the man. Free iTunes card in the mail.
Jack...I see you are afraid to give up your email address. Smart but not smart enough. We know where you live.
To all SAI readers, peace out, Namaste and have a Happy.
Steve