As we reported three weeks ago, reverse-engineering specialist “DVD” Jon Johansen has decoded the encryption that locks down iTunes-purchased music – and he’s formed a company to license this to all-comers. Now Johansen has reverse-engineered rival DRM formats, permitting encrypted songs purchased from Apple rivals to play on iPods.
The music business is likely to be rejoicing – it blames a market divided into incompatible DRM silos for the less-than-spectacular adoption of digital downloads. Despite all the hype, digital sales won’t surpass CD sales until 2014, based on linear growth rates. And despite claims that they’re being robbed into penury by “pirates”, the music industry finds unexpected ways of profiting from its assets. The ringtone business, for example, grossed $75bn for operators last year – double the global revenue of the music industry.
And just in time for Christmas, Microsoft has added another new major DRM system that’s incompatible with all the others, with Zune. The confusion might be minor, but so long as it remains, potential consumers will stay away.
So there’s plenty of goodwill from everyone involved: from stores that sell MP3 players, manufacturers who make them (particularly mobile handset vendors), from current and potential retailers, and everyone else in the music value chain. All stand to profit from consumers knowing they can play music acquired anywhere on any device.
