Nick Race08 February 2007, 1:05 AM
Steve Jobs's reality distortion field has done it again: people have swallowed his self-serving statement about freeing the world from DRM hook, line and sinker. Here's why the ball is squarely in Jobs' court.
Yesterday my colleague Tim Gaden reported that Steve Jobs wishes iTunes
could be DRM-free, allowing the 2 billion songs downloaded annually on the service to be played on any device.
Many have taken it as a bold step forward for the venerable download service and Apple in general - a move toward a more logical, easy to use, open player market of cuddles and happiness.
Of course, it's all just hot air and ‘what ifs' designed to make Apple look better in its current European DRM legal battles. A carefully worded statement directed not at you and me, but at the legal eagles in the far northern climes who will soon be deciding whether to sue iTunes into oblivion.
The last paragraph from Jobs' self-serving statement is an amazing "don't sue us, sue the music companies" plea simply designed to pass the legal buck.
Much of the concern over DRM systems has arisen in European countries. Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. For Europeans, two and a half of the big four music companies are located right in their backyard.
If Mr. Jobs was serious about this new world of DRM free downloads, and making the iTunes service work just like the 90% of music sold in the US market at the moment, then this is what he has to do...
The ball is in Apple's court
iTunes has become a success story like we never imaged, Apple HAS created a new way of distributing music and it's working.
Ten percent of the annual revenue from the "big four" Sony BMG, Universal, Warner and EMI comes from this single venture, and my guess this would be on par with some of their biggest retail customers (like Wal-mart et al).
Any of these ‘big four' companies would be utterly wrecked at the thought of losing 10% of their revenue - especially considering the costs (near none) of distributing product to iTunes. There's no CD to manufacturer, covers to print or boxes to ship, or returns to process. Apple and the consumer bear the internet distribution costs.
There is no way known that any of these ‘big four' would pull out of iTunes at the moment - their shareholders would absolutely not allow it. Their bottom lines wouldn't allow it, and their music would be consumed less. It's a lose-lose situation for them.
If Steve Jobs hates DRM so much, then, as the operator of iTunes, he needs to make a decision and not allow DRM infected music to be sold through the service.
At this stage in the game, the ‘big four' will agree. And hell, if he loses one or two, or even ALL of them, there's still a movie download service and music from other labels which don't have this draconian agreement locking up your purchases. iTunes will continue in one form or another.
Mr. Jobs - don't give us rambling diatribes on how bad you think DRM is. iTunes forged a new market.
Be a leader in this field again.
Put your money where your mouth is.
Lose the DRM, or shut up.