Rich Fiscus
11 Aug 2007 6:58
Universal Music Group's plans for DRM free downloads apparently don't include iTunes. The downloads will be offered through Rhapsody as well as digital download stores run by Wal-Mart, Best Buy, and Amazon.com, as well as directly from artist websites.
UMG's test also includes a partnership with Google, which will run an AdWords campaign pointing users searching for DRM-free music to the download site gBox, which rewards music buyers with points toward earning gifts.
Although Universal says the decision not to include the industry dominating service from Apple is intended to use it as a control group, it's more noteable because of their very public complaints about iTunes' control over pricing.
Industry analyst, and vice president of Gartner, Mike McGuire, speculated that UMG may feel it can help level the playing Field in the digital music space with this move.
"iTunes sells 5 million songs a day," McGuire noted. "Nothing else comes close yet. Labels would prefer a more competitive marketplace."
Although it surely isn't UMG's intention, this would appear to be a move that tends to favor consumers as well. While companies like Universal would no doubt prefer a model where prices, and therefore their cut, could be increased as well as decreased, a truly competitive marketplace would almost have to result in reduced prices in the long run.
Investors clearly felt the move could help RealNetworks, with the company's stock surging higher by more than 7 percent Friday to $6.05. The move is also helps Amazon, which has said that its digital music store will only sell DRM-free tunes.
Sources:
TechNewsWorld
Wired