October 18, 2003
Notes on Digital Music Services
In a prior post, I talked about some of the features of new digital music services that are making much closer to ideal. A couple things I didn’t talk about that have been coming up in my head recently:
1. Prices – as this article points out, the a la carte services could go lower if the record industry would take a smaller cut. A la carte services have really tough constraints in part because of credit card charges, so it’s going to be up to the record companies to decide how low to go. Subscription services also could go lower, particularly with their CD burning prices.
I don’t know exactly how low these prices can go, but, if the Jupiter Research report cited in that Business Week article is correct, then the services are going to have to try to go lower.
2. DRM as usage restraint – this one’s fairly obvious. I am still not sure how necessary DRM is, particularly to the a la carte services. You can get those songs out onto P2P via the analog hole or by recording the sound as it’s outputted to your soundcard, and those songs are probably on the P2P networks anyway from people who buy the CDs. So why annoy the customers? What is Apple really gaining from the DRM?
3. DRM and interop problems – as I said the other day, I think this is a big problem. Dave Haxton pointed out that iTunes Music Store is mainly a way to sell iPods, and that’s why using AAC/Fairplay and iPods’ not playing WMA is fine with Apple. For me, I have no interest in being locked into a given music store and portable player because of file formats. (I haven’t jumped on the iPod bandwagon yet. For now, MP3-CD players fit my budget much better.) Though many players support WMA, I don’t even like that lock-in.
I want selection and flexibility in my format. What happens when a better standard comes out? And what happens if I want to switch operating systems? How will I convert my files? On pho, Stephen Hill compared having to switch between formats to having to move from LP to CD. If bits are bits, there’s no reason why a new file format should force me to rebuy my entire song collection.
This doesn’t mean that everyone needs to use one type of DRM, but we do need some way of guaranteeing interoperability.
Filed by Derek Slater at 2:44 pm under General news
1 Comment

“You can get those songs on P2P via the analog hole or by recording the sound as it’s outputted to your soundcard, and those songs are probably on the P2P networks from people who buy the CDs. So why annoy the customers? What is Apple really gaining from the DRM?”
See… this is what I am talking about. DRM is a useless waste of bagillions of dollars. At least until papasony launches its insane “smart-cables-going-to-cpu-controled-speakers-containing-drm-technology”
Uhg.