The financial times this morning (no link, I read it on real paper) reports that though singles from EMI on iTunes will cost 30% more, whole albumms will cost exactly the same for non-DRM, high bit rate songs. This is quite clever from EMI. One of the big issues for all the record companies is that even when someone never pirates a thing, they buy less music because the buy just the songs they want and not the whole album. This is essentially a 30% discount on buying the full album in high quality. So if you were planning to buy a few songs, suddenly it might make sense to buy the whole album.
Even with volumes of digital sales rising, it’s not a like for like substitute. I’d guess that each single sold makes more money for the record company than an indentical product at the same price sold through retail – there has to be some 30-40% of margin and other costs in the retail chain. However when you’re only selling 2 songs where you would have sold a $15 album, you still loose. This is a smart move by EMI in so many ways. If they can convince Apple to stick with them on an exclusive basis for any period of time this will pay off handsomely.
Meanwhile in other news, Microsoft have annouced that the Zune will support the same DRM free music once EMI gets round to letting them. I tried to get some updated news on the Zune but the latest article I can find is dated last year – how is this player relevant even in the tiny alternative market? Does anyone even know a guy who knows a guy who owns one?

EMI and Apple have annouced that they will be selling DRM free music but it’s not that simple. The music will be vvery high quality (256bits instead of 128bit AAC) and cost 30% more ($1.29 – I’ve not seen UK pricing at this point).
Weirdly this is exactly what the DRM proponents have been saying DRM will bring up – greater choice in the way we’ll be able to buy music and video. There was supposed to be a $2.00 copy of ‘Mission Impossible’ that you could only watch on your television on weekends while the $20.00 copy allowed you to copy it to your iPod but not to your PSP.
Now the removal of DRM gives us these options. Very strange.
I’m very glad this happened but it does muddy the water somewhat – how are we supposed to compare DRM vs. non-DRM sales when they products are different and at different price points?
My thinking is that many people will just buy the restricted iPod versions anyway – I’m completely unable to tell the difference between songs at these quality levels and I own so much Apple hardware it’s irrelevant that I’m locked in – but audiophiles and a large percentage of regular people will buy the more expensive free version. I predict a 20% of people will find the extra value worth it.

More and more I’m struck by the growing disconnect between people in society and the structures we use to manage that society. A few examples are the massive surge of resentment against DRM and anti-copying technology in DVDs the increasing number of people who are labelled criminals. In the UK we also have the unique example of a society increasingly being monitored by ubiquitous CCTV and traffic enforcement cameras.
Speed cameras are a good example for the point I’m trying to make. Most people I know are unhappy being caught by them but no-one would label them criminal masterminds or speed demons. They’re people doing 40 in a 30 limit early one morning with no-one on the streets. On the one hand they have been speeding but sensible people would never think that this is a real issue as long as they’re being safe in their driving.
I think one of the problems is that the world never worked the way the law thought. People broke the law in minor ways all the time but it was at the stretchy legal edge: They speed a little when they’re late; They park for 5 minutes while they run into the store; 2 guys who’ve had a bit too much to drink have a scuffle outside the pub, a few blows are exchanged and their friends drag them apart and everyone goes home.
In years gone by these things would mostly have gone unnoticed by the police. I remember clearly about 7 years ago being pulled over by a policeman while zipping along about 10 miles over the speed limit one evening. He pointed out an accident on the other side of the road, the damp road and gave me a stern talk about being sensible. I drove very carefully for months after that. He didn’t need to ticket or arrest me – the situation called for a stern talk. I didn’t feel any resentment or that I’d been ill treated and he slowed me down.
These days that kind of sensible reaction would never occur – I’d have been ticketed and probably asked if I’d been drinking and potentially tested. I’d feel resentment and annoyance, relations between the police and the community would be mildly worse off and no-one would have gained.
You see it’s becoming more and more possible to enforce the law to it’s letter. We can measure average speeds over 100 miles and fine you for going 1 mile over the limit. We can record everything you say for a year and construct a circumstantial case against you. If you shove someone outside a pub you will be seen and can be prosecuted.
The issue is that when you can run to the letter of the law society tends to do that and it doesn’t work. Unions had (probably still do) an option to ‘work to rule’ – they stayed at work but did exactly what the rulebook said and it generally caused everything to grind to a halt. Trains would be stopped 10 yards from a station as the driver would not work 30 seconds past the end of their mandated rest break.
I’m not recommending that we should all get to break the law all the time, but society needs the flexibility of work at the edges in sensible ways. And people need to interact to solve their problems instead of using the police everytime little Johnny trips little James in the playground.

A few months ago Steve Jobs wrote an open letter stating that Apple would be happy to sell DRM free tracks if the record labels would let them. Watching Channel 4 news now it seems EMI has folded. They’re expected to annouce that they will release their catalogue DRM free on iTunes. This is an incredible thing. I’ve always felt that underneath it all the record companies must have understood the subtleties of the arguments against DRM. Their war against consumers seemed doomed to fail but they continued nonetheless. Either they were incredibly stupid or there was something else going on. I find it difficult to believe that someone who runs a multi-billion dollar company is an idiot – even more difficult to think that all 4 leaders (and everyone who works for them) of 4 separate companies are idiots. Clearly they’re not.

This is a watershed in electronic rights. There is no way that the other record companies can continue to push DRM. EMI must show their shareholders that this did not hit sales. The other companies will not be able to continue an argument in the face of this kind of proof (of course I could be wrong and EMI sales tank but I’m confident they won’t).