Tuesday, April 3, 2007

One Step Forward, One Step Back

Steve Jobs. He's really got a hold on this up and coming generation, doesn't he? We aren't willing to pay for DRM protected music? Fine, let's just do away with DRM. Moreover, they will be offering these DRM free songs in a better quality. Now that is a great plan, and EMI was smart to jump on the bandwagon; to be the first. In this way, the pressure is on the other major labels to either match such a deal or even do better. According to Del Colliano of Inside Music Industry, the deal can only be a good move in that it "cooperates with the inevitable -- the marketplace (next generation) is demanding free use of the music they buy just as if they bought a CD at Tower Records." This is a big deal--literally and figuratively.

However, before you go thinking that we have entered the future and its all up and up, there are some problems that need to be recognized. EMI and Apple will offer songs and albums encoded into 256Kbps, DRM-free MP3 files which will sell for a new more expensive price of $1.29 each. If you already own EMI songs, you’ll have the privilege to pay more for the songs you already own in order to “upgrade” them for 30 cents a song.

As far as the price hike, the extra money must be headed for the pockets of the record companies. Certainly, it won't cost Apple and EMI much to make MP3 files instead of AACs. Some people see the price hike as completely fair and necessary, while others remain unsatisfied. The price increase is absolutely counterproductive to the way the next generation thinks about acquiring its music. It wants to own it, and own it for less, not more. Del Colliano suggests that in the near future "it may take a number less than 99 cents to keep the legal downloading train on track."

Also, while the quality will be improved, consumers should be aware that there are lesser known music download services offering Lossless and WAV-encoded downloads, which Apple is yet to integrate into its program. If, as Jobs says, sound quality is one of the major issues troubling consumers, why not update the songs to the highest grade?

The consensus seems to be that the Apple/EMI deal is a nice step forward for dealing with digital music and the ways in which to monetize it. Let them experiment. Let them see the flaws in the plan, and let them fix them. Then we can all celebrate.

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