Computing

DRM Under Siege: The Yahoo Music Experiment

(Page 2 of 3)

  • Thursday, July 27, 2006
  • By Wade Roush

That's what Yahoo Music is hoping for. "We've been publicly trying to convince record labels that they should be selling [unprotected] MP3s for a while now," wrote Ian Rogers, a director of product management at Yahoo Music, in an announcement about the Simpson song on the service's blog last week. "Our position is simple: DRM doesn't add any value for the artist, label (who are selling DRM-free music every day -- the compact disc), or consumer." David Goldberg, vice president and general manager for Yahoo Music, has also argued this case at industry gatherings, including the Music 2.0 summit in Los Angeles last February, saying DRM was holding back sales of digital media.

"Goldberg has been telling it to whomever will listen," says von Lohmann. "But people were taken aback last week by just how clear they were about it. They said, 'We think DRM is bad for consumers, bad for artists, and bad for everyone except Apple.'" (Yahoo did not respond this week to requests for further comment.)

The major labels have long held back on releasing their catalogs in unprotected formats, believing it would only add to the supply of MP3 files exchanged illegally over peer-to-peer file-sharing networks, such as the original Napster, Kazaa, and BitTorrent. The Recording Industry Association of America says this and other forms of digital piracy cost music publishers $4.2 billion a year.

But there's some evidence that artists, labels, and retailers can make money selling unprotected MP3 files. New York-based subscription service eMusic, founded in 1998, has quietly grown into the second-largest retailer of music downloads. It's the only major company aside from Apple that sells music customers can transfer directly to their iPods.

"We don't believe DRM is inherently bad," says David Pakman, CEO of eMusic. "iTunes does a good job of making it reasonably seamless, so it's not in-your-face. But the history of the music business reveals that the only successful formats, in the long run, are those that are entirely interoperable between vendors" -- such as CDs, a format pioneered by Sony and Phillips, but licensed to all comers. Most DRM-protected files, by contrast, play only on one type of software or device.

Pakman says eMusic has a catalog of 1.5 million unprotected MP3s, most of them from independent labels. The service's customers, who pay a monthly fee of $10, $15, or $20, download five million tracks per month -- more than all those sold by Yahoo Music, Microsoft MSN Music, Sony's SonyConnect, and the resurrected Napster combined.

"Just because something is sold in MP3 doesn't mean it's going to be pirated," Pakman argues. In fact, in an experiment several years ago, eMusic released digitally watermarked versions of some songs, then hired another company to search the major file-sharing networks for files bearing the watermark. "They had no problem finding the same songs all over the networks -- but they didn't come from us, they came from people ripping CDs," says Pakman.

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Guest (Amulek)

  • 2028 Days Ago
  • 07/27/2006

They're totally different markets

eMusic's customers are mostly indie and classical lovers. These are the kind of people who want to support their artists. They are totally different from the teenyboppers who would pirate mainstream pop. The examples of eMusic are totally inapplicable to pop.

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Guest (Teejay)

  • 2028 Days Ago
  • 07/27/2006

unprotected = asking for trouble

what is likely to happen is one person downloading a legal version and then 1000's of people leeching of that. Piracy is not easy to stop and its solution in the future will most likely be technical rather than legal. DRM is something that had actually worked.

Reply

Guest (shegeek)

  • 2028 Days Ago
  • 07/27/2006

music companies bring it on themselves

By over-pricing CDs. It costs about 3 - 5 cents to press a CD, add a jewel case, paper insert and other costs, including the seller's profit and a CD should cost around $7. Why are they priced twice that much or more? One word: Greed.

Reply

Guest (Greg)

  • 2028 Days Ago
  • 07/27/2006

DRM doesnt work

No it doesn't work. The solution is not technical.

Reply

Guest (clgoh)

  • 2028 Days Ago
  • 07/27/2006

DRM does not prevent that...

This is no different than a person buying a legal version on CD, ripping it and then 1000's of people leeching that.

Reply

Guest (Scott)

  • 2028 Days Ago
  • 07/27/2006

Worked??

How can you say something like this "worked"??  Even iTunes allows a user to burn a CD... you can then rip that CD to any sort of unprotected MP3 format you like.  How does that "work"?

Reply

Guest (Edward Lawford)

  • 2027 Days Ago
  • 07/28/2006

DRM worked??

"what is likely to happen is one person downloading a legal version and then 1000's of people leeching of that."

My question is: if DRM is so important to stopping piracy, why do they still sell Compact Discs?

The thing about piracy is that it only takes ONE COPY of the song to be obtained in DRM-free format (ie. from a CD) to make the whole exercise a complete waste of time.

I think the record companies are waking up to this and realising that if you make music instantly available, DRM-free, plays anywhere at a reasonable price, people will be less inclined to pirate it in the first place.

You will never stamp out piracy completely but as long we have CDs, piracy will be dead simple so people will continue to do it.

The idea is to make it almost as easy to buy the music legitimately.

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Guest (Mark)

  • 2028 Days Ago
  • 07/27/2006

DRM will be irrelevant

Its only a matter of time before someone cracks the DRM for Itunes or WMA files and then they'll be free to use on whatever players we like without limit.  The only reason I can choose to stream my video at home is because someone cracked the DRM to allow me to extract my property from DVD to a different format.  Do I now upload it?  No.  I just use it the way I want to.

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Guest (Scott)

  • 2028 Days Ago
  • 07/27/2006

No need to "crack" DRM iTunes

Just burn a CD from your album or song download from iTunes, then rip to unprotected MP3.

Not a very difficult "crack".

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Guest (Nils)

  • 2016 Days Ago
  • 08/08/2006

Not a real "crack"

music on iTunes is compressed into a lossy format, so burning a CD from it results in a lower-quality compared to the original CD. Then ripping to MP3 reduces the quality further. Some people can hear the difference between an original CD track and 128k MP3 - you will *definitely* hear the difference if you burn it to a CD and then re-rip. It will sound pretty bad - like an AM radio.

Reply

Guest (Firozali A.Mulla)

  • 2028 Days Ago
  • 07/27/2006

DRAM

Now we are entering the age og the MagneticRam that is better then the DRAM. This will be in the market in 2006 silicon-on-insulator (SOI)

Reply

Guest (Ronnie)

  • 2028 Days Ago
  • 07/27/2006

Free the music

Last year there was a grammy won in a Jazz catagory that was recorded promoted and sold all with out a lable by the artist on the internet.If the big 3 do not step away from DRM and free the music. The listening public will do it for them simply by not listening. The choices for free independant music are growing. With recording equipment getting cheaper, better and easier to use more artists are taking it to the net. Now if we can just keep the internet "Tubes" from getting blocked!

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Guest (Rolo Tomasi)

  • 2018 Days Ago
  • 08/06/2006

"Free" is too easy & tempting.

You can get any music on the net. Free. It aint legal but it's free. DRM trys to fight it and has SMALL success. The best minds in the industry can't come up with a viable solution and the band keeps on playing.

The latest chapter has State courts assuming juridiction nationwide. Due proccess and fair trial take a backseat to easy & cheap.

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