(Source - EFF)

Almost exactly one year ago, we predicted the beginning of
the end for DRM on digital music. Now EMI has announced the
release of the new Norah Jones single on Yahoo! Music in
DRM-free MP3 format (many will remember that Yahoo! has
been urging the major labels to give up DRM).

So let's pause to recap the year in music DRM's slow
demise, including:

* Rhapsody and Napster begin streaming to any browser;
* Major labels all give up on CD copy protection in US
market in the wake of the Sony-BMG rootkit debacle;
* Major labels abandon DRM-laden SACD and DVD-A
formats;
* Sony-BMG releases Jessica Simpson song in MP3;
* Disney's Hollywood Records releases Jesse McCartney
album as MP3s;
* EMI artist Lily Allen releases new track as MP3;
* EMI releases Norah Jones and Reliant K tracks as
MP3s;
* eMusic becomes the #2 online music store selling
nothing but MP3 files from independent labels.

Here's to more of the same in 2007. As we said in December
2005, "Once the DRM is gone, we can see what a real,
robust, competitive digital music marketplace looks like."

For this post and related links:
http://www.eff.org/deeplinks/archives/005039.php

Here's something that could go along with the above article:

Bill Gates On The Future Of DRM

Michael Arrington

Microsoft convened a small group of bloggers today at their Redmond headquarters to discuss the upcoming Mix Conference in Las Vegas. Highlights of the day included:

* The receipt of a Zune as a gift (the third I’ve received from Microsoft - I now have all three colors)
* Seeing the look on Gates’ face when he walked into the room and every single one of us had a Mac open on the desk in front of us - Niall Kennedy had also set up a makeshift wifi network using an Airport
* An hour-long anything goes Q&A session with Gates

One of the questions that I asked was his opinion on the long term viability of DRM. I don’t hide the fact that I think DRM isn’t workable, and actively support DRM-free music alternatives such as eMusic and Amie Street. The rise of illegal or quasi-legal options like AllofMP3 and BitTorrent ensure that users have plenty of options when it comes to DRM-free digital music.

Gates didn’t get into what could replace DRM, but he did give some reasonably candid insights suggesting that he thinks DRM is as lame as the rest of us.

Gates said that no one is satisfied with the current state of DRM, which “causes too much pain for legitmate buyers” while trying to distinguish between legal and illegal uses. He says no one has done it right, yet. There are “huge problems” with DRM, he says, and “we need more flexible models, such as the ability to “buy an artist out for life” (not sure what he means). He also criticized DRM schemes that try to install intelligence in each copy so that it is device specific.

His short term advice: “People should just buy a cd and rip it. You are legal then.”

He ended by saying “DRM is not where it should be, but you won’t get me to say that there should be usage models and different payment models for usage. At the end of the day, incentive systems do make a difference, but we don’t have it right with incentives or interoperability.”

These quotes are rough - I was typing fast but it was not an exact transcript. Still, it is interesting insight from a man who is in a position to shape the future of digital music models.

There’s lots of good coverage from other bloggers attending as well. See Steve Rubel, Molly Holzschlag, Ryan Stewart, Niall Kennedy and Liz Gannes. Todd Bishop also has a nice roundup.

1. Apple may be in trouble next year, if one of the newsletters I get is correct. I don't know how it will affect the digital music market, but it is possible that Steve Jobs could be indicted for some form of stock option shenanigans next year -- allegedly he has been getting stock options, and then they get backdated to the day of the month that had the most favorable price for him to exercise them. If this is true, and I have no personal knowledge one way or the other, it could put another dent in this company and all its products, including iPod and iTunes, evil DRM afflicted scams that they are.

Unfortunately for Microsoft, I don't think even a rotting Apple will help sell their klunky Zune player.

2. Is the industry really giving up on SACD? Sony, that is? I mean, I had that impression earlier in the year. But I've done a lot of online shopping in the past few weeks and I see many reissues of classic albums in SACD only. They used to be releasing a lot of hybrid product, with a CD layer and SACD layer on the same disc. Now I see pure SACD a lot. I don't know what it means.

The audiophile community is warming up to SACD because of the higher fidelity. It is almost as good as vinyl they say! LOL But there are probably a small number of people who hear the difference or even care. So who knows? Maybe the recent flurry of SACD releases is just beating a dead horse.

Just thought I'd mention my thanks for the info in your comments, guys. This was a great short article to read before gettin some sleep. Viva anti-DRM!

I suspect SACD will remain a niche market only, it will never replace the true-blue CD, (nor the prerecorded CD-R which I estimate DOES have a chance to out-shine the glass mastered discs. In fact, prerecorded CD-R's might already be outselling true CDs.)

I'm happy to say I received a turn-table for Christmas. (woo hoo!) And now this audiophile will be able to listen to all my old vinyl again.