May 1 2007

Will DRM-free music threaten iTunes?

  • Written by soulxtc
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Need proof that Apple’s iPod and iTunes Store has forever changed how people, particularly mobile people, acquire music? Here it is: The recording industry recently reported that nearly 13 percent fewer CDs were sold in 2006 than the previous year, while sales of downloaded digital songs increased by almost 60 percent.

The iPod/iTunes combination accounts for about 70 percent of all digital music sales and portable media devices, according to market studies. But some industry analysts believe that we’re only at the beginning of the digital media age and that changes are coming that could cut into Apple’s dominance.

For example, nobody is quite sure what the impact will be as DRM (digital rights management) for purchased music fades away. One major record company, EMI, has said it will allow online stores such as the iTunes Store to sell DRM-free downloadable music. Other major labels are expected to follow suit.

Another trend that could change the digital media scene — and Apple’s dominance of it — is new models for subscription music services. So far, subscription services such as Rhapsody and Napster, in which users pay a monthly rental fee for downloading as much music as they want, have not proved popular. However, some claim that subscription service business models are evolving and may yet attract lots of new users.

Related Posts

  1. Music Industry Threatens to Cut Off Apple iTunes
  2. iTunes Going DRM-Free
  3. Let’s Kill iPod and iTunes
  4. iTunes Music Store tops a million songs in US
  5. European Music Fans Go Mad for iTunes
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