For the major record labels, yesterday’s deal between EMI and Apple doesn’t herald a new beginning, but the beginning of the end.
From next month, EMI will distribute much of its repertoire without DRM through Apple’s iTunes store. Independent labels have been distributing DRM-free songs for three years, avoiding the lock-ins created by competing hardware manufacturers. But EMI is the first of the “Big Four” majors to recognise that artificially recreating the inconveniences of physical product in a digital form isn’t good business.
Let’s leave aside the many gotchas in the announcement, such as the price increase which takes the cost of an unencumbered song to almost $2 (that’s the UK price converted to US dollars, folks), the absence of the Beatles’ catalogue, and the continuation of DRM as “on by default”.
Let’s also leave aside the mutual panic which brought Apple and EMI together yesterday. EMI is in financial free-fall, it’s unsuccessfully tried to find a buyer for several years, and it’s now so desperate it will try anything. Apple is under regulatory pressure not only to modify its DRM consumer lock-in but, along with EMI and the labels, faces an EU anti-trust probe into its pricing. Both companies jumped before they were pushed.
Dear.