February 9, 2007 at 10:28:00 AM | more stories by this author
RIAA, label execs blast Apple chief's call to remove restrictions on digital downloads; EMI reportedly eyeing opening up whole catalog for MP3 sales.
When the 800-pound gorilla speaks, there's bound to be some fallout.
Following Apple CEO Steve Jobs' online manifesto this week in opposition to the use of antipiracy technology, the music industry is abuzz, with some blasting Jobs and his motives, others agreeing with him, and UK label giant EMI reportedly on the verge of opening up its entire catalog for MP3 sales.
In a conference call announcing his company's earnings this week, Warner Music Group CEO Edgar Bronfman Jr. called Jobs' proposal "completely without logic or merit" and said his company was committed to the continued use of DRM in the same way that software makers and film studios safeguard their intellectual property.
Bronfman added that he hoped the record labels and Apple could negotiate a compromise on the matter but added: "Frankly, manifestos in advance of those discussions are counterproductive."
The Recording Industry Association of America (RIAA), which represents the interests of the four major labels, also lambasted Jobs' screed. In a statement, RIAA Chairman Mitch Bainwol suggested that Jobs was being disingenuous about the problem.
Apple has faced mounting pressure in recent months to open up its own proprietary FairPlay DRM to its competitors, improving interoperability among digital stores and MP3 players. As it stands now, music bought on iTunes won't play on anything but an iPod, and music bought on non-iTunes stores won't play on an iPod.
Jobs said that opening up FairPlay would put Apple's technology at risk of leaks, and that the best way to combat the problem of interoperability would be to get rid of DRM.
"One way to achieve [interoperability] was outlined by Steve Jobs in his post--for Apple to license its DRM to other technology companies," Bainwol said. "We think that's a great solution."
But one label is reportedly on the verge of heading down the open-format road. The Wall Street Journal and Reuters reported today that UK label giant EMI is considering selling its entire catalog in the DRM-free MP3 format.
The label, home to popular artists like Coldplay, Gorillaz, and Lily Allen, has asked digital retailers like iTunes and Zune to submit proposed advanced payments they would be prepared to make in exchange for the right to sell EMI's music as MP3s, the Journal reported.
EMI declined to comment on the reports.
The MP3 format, which can be freely copied and played on virtually any device, would allow consumers to play music purchased from any online store on any digital music device.
Of the four major labels, EMI has done the most testing of MP3 sales, having released MP3 versions of songs by Norah Jones and the band Relient K in recent months. But the company has declined to cite sales figures for those MP3 tests, and Larry Kenswil, an executive at rival Universal Music Group, suggested last week that sales were paltry.
"The results have been positive," an EMI spokeswoman told Reuters, adding, "lack of operability between a proliferating range of devices and hardware and the digital platforms for delivering music is more and more becoming an issue for music consumers, and EMI has been engaging with our various partners to find a solution."
Stay tuned...



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