Universal Music: DRM free music for all except Apple

Stan Beer
Friday, 10 August 2007 13:49

Your IT - Entertainment

The largest music recording company in the world Universal Music Group is going to trial sales of its music in a DRM free MP3 format but notably Apple's iTunes won't be part of the deal.

To the contrary, UMG has thrown out a challenge to Apple by offering DRM free music through iTunes' competitors for 99c US, the same price as its DRM music sells for on iTunes, and 30c cheaper than the DRM free EMI tracks sell for on the iTunes Plus service.

For the trial period which runs at least until the end of January 2008, a large portion of UMG's inventory will be available for download from online music download sites, such as Realnetworks Rhapsody and Amazon.com . In addition, the DRM free digital tracks will be available from two largest music retailers in the US, Wal-Mart and Best Buy

The UMG announcement follows signs of growing hostility between the recording company and Apple. In July, UMG decided not to renew its annual iTunes contract with Apple and now offers music to the store on a day by day basis. There were also reports that UMG wanted a cut of every iPod sold in the same way it gets a portion of Microsoft Zune sales.

UMG CEO Doug Morris has been an outspoken critic the portable music player business, of which iPod holds a dominant market share, describing the devices as repositories for stolen music.

The UMG announcement also follows a move in April by big 4 recording company EMI to offer higher quality DRM free music on iTunes for US$1.29, a 30c premium to its DRM tracks. EMI intends to offer DRM free music through other online stores and reported in June that its iTunes sales have been boosted by the DRM free move.

UMG is publicly pretending that it hasn't deliberately cut Apple out of the DRM free loop by saying that it wants to keep iTunes as a "control group" during its DRM free trial. However, the move is sure to cause Apple both anger and a measure of concern.iPod owners for the first time will be able to choose between UMG's DRM music from iTunes or DRM free MP3 music at the same price from an iTunes competitor.

UMG believes, with some justification, that given the choice, most iPod owners would choose to buy their music unshackled by DRM restrictions. A number of market watchers view the UMG move as a hardball tactic designed to bring Apple to the negotiating table in a weakened position.