Tweet
Beginning this month, Universal Music Group (UMG) will test market thousands of tracks free of digital rights management software (DRM) - a technology used to restrict the usage of digital media.
According to the New York Post, the industry's largest label -- UMG, which composes of Def Jam, Interscope, and Motown Records, among others -- plans to announce the move today (August 10). Testing will begin this month and continue throughout January 2008.
Universal hopes this will give them further insight into the music industry's current digital marketplace; testing song price sensitivity, consumer demand, and the effect, if any, on piracy.
EMI has been distributing tracks without DRM via their deal with Apple since May 30, however Universal has not permanently committed to making DRM-free songs. Universal's testing will cut Apple's iTunes store out of the test marketing.
UMG's move to sidestep iTunes follows terse contact renegotiations with Apple last month, which concluded with Universal opting not to sign a long-term rights deal.
Retailers enlisted for UMG's test marketing include Amazon.com, Best Buy, Wal-Mart, Google, Real Networks' Rhapsody, Transworld, Passalong Networks and PureTracks - a list that signals iTunes may be losing ground with record labels.
Previously, iTunes' music store dominated mp3 sales because tracks purchased from other retailers were not compatible with the iPod, however sources say the move to DRM-free tracks may change that since they can be played on any mp3 player.
While EMI's DRM-free tracks are recorded at a higher sound quality and sell for $1.29, the songs selected for the Universal test will likely cost 99 cents, the same price that iTunes charges.
EMI has not released any performance results for their DRM-free music, but in June, Lauren Berkowitz, a senior vice president at EMI, said initial results were "good."
Berkowitz said early results indicated songs without copy protection may boost revenue from digital albums and individual songs, and pointed to increased sales of Pink Floyd's Dark Side of Moon since it became available in DRM-free form.
Source: sohh.com
According to the New York Post, the industry's largest label -- UMG, which composes of Def Jam, Interscope, and Motown Records, among others -- plans to announce the move today (August 10). Testing will begin this month and continue throughout January 2008.
Universal hopes this will give them further insight into the music industry's current digital marketplace; testing song price sensitivity, consumer demand, and the effect, if any, on piracy.
EMI has been distributing tracks without DRM via their deal with Apple since May 30, however Universal has not permanently committed to making DRM-free songs. Universal's testing will cut Apple's iTunes store out of the test marketing.
UMG's move to sidestep iTunes follows terse contact renegotiations with Apple last month, which concluded with Universal opting not to sign a long-term rights deal.
Retailers enlisted for UMG's test marketing include Amazon.com, Best Buy, Wal-Mart, Google, Real Networks' Rhapsody, Transworld, Passalong Networks and PureTracks - a list that signals iTunes may be losing ground with record labels.
Previously, iTunes' music store dominated mp3 sales because tracks purchased from other retailers were not compatible with the iPod, however sources say the move to DRM-free tracks may change that since they can be played on any mp3 player.
While EMI's DRM-free tracks are recorded at a higher sound quality and sell for $1.29, the songs selected for the Universal test will likely cost 99 cents, the same price that iTunes charges.
EMI has not released any performance results for their DRM-free music, but in June, Lauren Berkowitz, a senior vice president at EMI, said initial results were "good."
Berkowitz said early results indicated songs without copy protection may boost revenue from digital albums and individual songs, and pointed to increased sales of Pink Floyd's Dark Side of Moon since it became available in DRM-free form.
Source: sohh.com