So where's the DRM-Free Music Explosion?

Posted by: Peter Burrows on November 27

So it’s been over seven months since EMI announced it would start selling its music without anti-piracy “digital rights management” software. On that same day, April 2, Apple announced it would sell the DRM-less tracks, at higher bit rates for better sound, for a $.30 cent premium. In October—possibly in reaction to the launch of Amazon.com’s DRM-free music store—Apple removed that premium so that the better-sounding, DRM-free songs from EMI now can be had for the standard $.99 rate.

But here’s my question: does anyone care? For years, most pundits felt that DRM was holding back digital music sales—which would take off once consumers could buy songs knowing they could play them whenever, wherever and however they felt like it. And there’s little doubt this the industry is moving away from this unpopular, largely ineffective technology. Universal Music is selling DRM-free tracks in what it calls a marketing test with various retailers (with the notable exception of Apple). Just today, UMG announced it would launch a new online store that will sell 24,000 classical music albums from its its Deutsche Grammaphon label with no DRM (and at even higher bit rates, to appeal to those discerning classical fans). What’s mroe, a number of my sources expect both of the other major labels, Warner Music and Sony BMG, to go DRM-free by the middle of next year.

But back to my question. Where’s the evidence that removing DRM is in fact turbocharging digital music sales? One would think EMI, which clearly could have used all the good press it could get before its acquisition by a private equity firm a few weeks ago, would have released some data about skyrocketing downloads. Why hasn’t Apple, which is never shy about shouting about its successes, had anything to say?

The critical piece of data is likely to come when Amazon announces initial results from its new digital music store. Industry insiders say all the labels are anxiously awaiting these numbers, which are expected to be impressive. But in the meantime, tell us about your views on the topic? Are you buying more music because its DRM-free? Will you? Why or why not?

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