Universal goes DRM free... except for Apple - First Take


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Michael Gartenberg | August 09, 2007, 05:35 PM

Breaking news that universal is going to go DRM free with some of their music as a "test" over the next few months. Tracks will be avilable for various music services and WILL be compatible with the iPod, but they will NOT be sold through the iTunes music store.

Some implications.

1. The handwriting for DRM is on the wall
2. Universal is using this to clearly poke Apple with a sharp stick.

Bottom line, good news for other music stores that finally have some differentiated content that plays on iPods that Apple doesn't have. All things being equal, there's little reason for an iTunes customer to switch. The question is will Apple customers go through a little more effort to get their content in DRM free format and start dealing with other music vendors. DRM meant that music players would drive customers to the music store that works with it, DRM free content that everyone EXCEPT Apple has can potentially change that dynamic for the first time.



 
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