August 13, 2007 at 08:36:00 AM | more stories by this author
But unlike UK label giant, EMI, the world's largest music company won't be doing so through iTunes, with which it has declined to sign a long-term deal.
The world's largest music company--home to the likes of U2, 50 Cent, and Eminem--is set to begin testing sales of DRM-free downloads, a move that signals a continuing shift in the major record labels' antipiracy strategy in the face of anemic CD sales.
Universal Music Group said late Friday that it will begin selling "thousands" of albums and individual tracks without DRM (digital rights management) beginning Aug. 21 through January. The move means that Eminem fans will be able to buy his music online without having to wonder if it is laden with technology that limits how many times it can be burned onto a CD or transferred to an MP3 player, for instance.
But unlike EMI's decision to sell DRM-free music, Universal won't be using the dominant digital music retailer to see if consumers care if downloads come wrapped in technology that restricts its use.
Instead of Apple's iTunes, which won't be part of the tests, Universal has tapped Real's Rhapsody, the Rhapsody-powered Best Buy store, Wal-Mart, PureTracks, and Transworld, as well as the Amazon.com digital music service once it finally goes live. The test will also include sales conducted from all participating artist- and label-branded Web sites.
Universal said that in most cases, the DRM-free tracks will sell for the same cost as their protected counterparts, although in a variety of file sizes depending on the retailer. The DRM-free music from EMI is sold at high-fidelity rates and at 30 cents more per song.
The move was Universal's second decision not to put all its eggs in the iTunes basket. The label said last month that it was declining to enter into any long-term licensing deals with iTunes, limiting it instead to a month-to-month arrangement.
DRM has been a growing issue in the digital music space, primarily because different digital retailers use different forms of DRM, and music sold in one store doesn't play on an MP3 that it isn't aligned with that store. For instance, music purchased on iTunes won't play on anything but an iPod, a fact that dramatically limits the potential of the digital music market, many industry insiders have argued.
Universal's move runs counter to its expressed disdain for DRM-free sales earlier this year.
"Universal Music Group is committed to exploring new ways to expand the availability of our artists' music online, while offering consumers the most choice in how and where they purchase and enjoy our music," UMG chairman and CEO Doug Morris said in a statement. "This test, which is a continuation of a series of tests that UMG began conducting earlier in the year, will provide valuable insights into the implications of selling our music in an open format."



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