It Has Begun

Steve Jobs and the major record label EMI have agreed to release almost the entire EMI music catalogue on iTunes free of DRM (Digital Rights Management). As of today, the digital music world has shifted. There is , in essence, a revolution that is just beginning; a revolution against conventional corporate thought and the way traditional record companies have been run for decades. This is a landmark deal that goes against the very foundation of what the major record companies have established for their digital music: protected files. Mainly due to the rampant illegal downloading that has characterized online music, record labels have been extremely opposed to releasing unprotected music (even though CDs have always been unprotected). They wanted to ensure that it would be as difficult as possible to download and share music for free, although most of us know how easy it is to download almost anything we want...for free. So what does this mean for the record industry, and the music industry as a whole?

For one, pertaining to iTunes, customers that download from the music store will be able to play the downloaded unprotected files on any MP3 player, not just an iPod. This could spur the popularity of iTunes, though the point of the music store is not to sell music, but rather to sell iPods. Nonetheless, it gives music consumers one more outlet from which to buy music. Furthermore, the unprotected files will be of a higher quality than most MP3 files on iTunes (LA Times). This benefit, however, could have one of two effects: in a world where the iPod w/earbuds is king, audio fidelity is of little concern. This may not be a major selling point for a lot of people. On the other hand, people may realize that music CAN actually sound good. This may spark a demand for high quality headphones and computer/home loudspeakers, and perhaps a shift back to buying CDs until a better sounding format is adopted, creating a growth in CD sales, causing label execs to wipe their brow in relief and revert to their old, stubborn thinking. Like the McDonald's commercials, it could happen. Right? I digress.

Probably the most important point to this whole adventure is the ability to share. While DRM severely limited sharing of purchased online music, the EMI catalogue (minus The Beatles, who have not allowed any of their music to be sold online to date) will now be free for the consumer to do anything and everything with. One can purchase a track and give it to the whole family if one so chooses with no limit. Ever have trouble with e-mailing a certain song to someone, only to have it not work because it needs a password? I know I have. It is a great thing to share music that you love with people who have never heard it, and this makes it that much easier to do (and more legal).

However, all of this goodness comes at a price. This will all be available at the figure of $1.29, or one can update previously downloaded EMI songs for 30 cents. This may seem high, but dig this: albums of this unprotected, higher quality content still cost the standard $9.99! I like!! It seems like this may be a subtle gesture back to the album. It has been a singles world since the beginning of online music, and this pricing option may push buyers into purchasing full-length albums again. While $1.29 per single track may seem expensive, $9.99 for a full album does not. And, I predict that soon enough the price for higher quality, unprotected tracks will fall in line with the standard 99 cent rate.

What is exciting to me is that, quoting my Music Industry professor Jerry Del Colliano, "Leaders in the record industry follow." Of course this wasn't sound advice aimed at an eager and aspiring young lad like myself, rather a bleak but true analysis of how the record industry has always worked. They are reluctant to change, reluctant to fix a system that, to them, wasn't broken. Well it's broken for a little while now and EMI has taken one of the first steps towards repair. Now that they have taken the leap of faith the other majors will follow. Pretty soon, all online music will be DRM-free. We all expected this to happen, but maybe not as fast as it did. Only two months after Steve Job's infamous "Thoughts On Music" and the music world is already starting to change. He is running the digital music show. Do you think that he had this deal with EMI worked out long ago, and released that statement as a ploy? Sneaky. Very sneaky. Enticement for all other labels to follow suit is that sharing music can lead to buying it. There is evidence of this being true. When someone introduces me to an artist by playing a song or two and I like it, there is a strong probability that I will do further research on said artist and more than likely buy some music, whether it be at a record store or on iTunes (usually on iTunes for me). Especially coupled with same-price albums for higher quality files, this could mean a major spike legal downloading.

What does this mean for music promotion? It means that songs can be passed around like hot potatoes. Word of mouth. Of course this exists with illegal file sharing, but this is legal, and people love obeying the law! On top of that, the high audio quality is attractive, and those interested will be prompted to buy the whole album and share that with others as well. This type of grass-roots promotion can be huge for bands. Take 311 for instance. There is a good chance you have not heard of them, for they have had little mainstream success, but they have been around since the late 80s and possess a massive grassroots network of fans. A huge, loyal, rabid following. They make enough money to live comfortably, pursue entrepreneurial enterprises, and tour nationally every summer. Watch the following video to gauge the crowd response and see how big bands that receive little spotlight can be.

311 - "Freak Out" live in New Orleans on 311 Day


While the decimation of DRM may be frightening to some, it is inevitable. As Dale Carnegie wisely suggested, cooperate with the inevitable. Music without DRM is inevitable. It is the future, and resisting change and worrying about what could happen will only debilitate the chances of success. Props to Steve Jobs and EMI. Let's hope this deal sparks a fire under everyone else!