A Twist in the Tale of DRM

It can certainly be argued that Steve Jobs kicked off a flurry of anti-DRM sentiment with his open letter on music last year. Since then we’ve seen a sharp rise in the availability of DRM free music. All four major labels are now selling music without DRM in some form. However, the letter is not the real reason for the demise of DRM, it was just a catalyst. Steve Jobs is still responsible though, just for two very different reasons. It’s these reasons that have ensured that the last company to benefit from the demise of DRM will be Apple, the very company responsible for causing it!

[tags]Apple, Music, DRM[/tags]

The two fatal shots to DRM came in the form of Apple’s rigid and unbending pricing strategy on iTunes, and Apple’s refusal to license their FailPlay DRM technology. By concentrating on the user experience through inspired design Apple have become the dominant force in both the production of digital music players and the sale of digital music. Exactly how Apple managed to sneak up to a position of dominance without ever really bending to will of the record companies is somewhat of a mystery to me. I just have to put it down to good management by Apple bosses, that or a total lack of understanding of anything technical by music executives. Actually, it’s probably a bit of both. How they got there is irrelevant though, what matters is that Apple are the big cheese in digital music distribution and as such they have the big labels by the sort and curlies.

The music industry are none to happy about finding themselves so dependent on Apple, a company that does things their own way and won’t give in to record label demands easily. Clearly, something has to be done to dislodge Apple’s dominance. The only way to do that is to foster a competitor and if possible give them an advantage over Apple to help them grow to be a real challenge to iTunes. However, Apple also sell the dominant player. That player plays un-DRMed music in two popular and standardised formats, MP3, and Dolby’s Advanced Audio Codec (AAC). When it comes to DRM though, the player supports just one type, Apple’s FairPlay, which Apple insist they cannot license for security reasons. Some people argue that that’s not so but the fact remains, Apple will not license their DRM to others. This leaves the record labels in a bind. They know that for any challenger to iTunes to succeed the music it sells must play on the iPod, and they know it’s not possible for them to sell DRMed music that will play on the iPod. The only choice left to them is to let the iTunes competitors sell music without DRM, and that’s exactly what’s happening. Hence, Apple have killed DRM!

Now for the ironic twist. All four major labels are selling DRM free music in some form, only one of the four is selling it on iTunes. The others are using DRM-free music as a stick to beat Apple with. They are letting others sell it while still forcing Apple to sell DRM encumbered tracks. Apple may have caused the demise of DRM in the music business but they will be the last to be freed from it.

Was all this some form of master plan by Steve Jobs? Maybe, or maybe not. I’m certainly not claiming it is. I just find it very interesting that Apple caused and triggered the end of DRM yet they will be the last to benefit. I’m pretty sure that counts as ironic, or does it? Maybe I’ve been listening to too much Alanis Morisette?!