Is iTunes A Dying Brand?
June 1st, 2007
Apple iTunes, the most popular online music store, is now offering higher quality tracks without DRM (Digital Rights Management).
On the other side of the Atlantic, however, a more attractive online music outlet has emerged; SpiralFrog started its legal free music download service in Canada last week.
So, which is likely to lead the industry?
Apple's new iTunes Plus service features DRM-free songs with high audio quality for 20 pence more than its original price of £0.79.
Without DRM, downloaded songs do not have any restrictions. They can move freely from computer to computer, i.e. iTunes users are now able to listen to tracks they download not only on their iPod, Apple's best selling portable player, but also on any other players, such as Microsoft's Zune.
Although DRM-free music on iTunes' store is only available on the digital catalogue of EMI, one of the four big music companies, no restriction on online music is likely to be common in the industry. The second biggest online music store eMusic has offered independent music without DRM since its inception, and amazon.com is scheduled to launch a new online music store with DRM-free later this year.
Steve Jobs, Apple's CEO said: "Our customers are very excited about the freedom of iTunes Plus. We expect more than half of the songs on iTunes will be offered in iTunes Plus versions by the end of this year."
But now another innovation is breaking the mould of the digital music industry.
SpiralFrog, the New York based company offers music catalogues including those by two of the big four -EMI and Universal Music- for entirely free by urging its users to
keep their eyes on a variety of advertisements while they are downloading music. It started with 3,000 users and is now getting at least two hundred new sign ups every day.
A spokesperson for SpiralFrog told London Project that it had received very positive feedbacks from users saying it had been working well and easy to use.
Besides SpiralFrog, other high-profiled ad-supported free online music stores are also ready to be launched soon. Qtrax, a peer-to-peer file sharing service has already signed deals with all the big four music giants, and Peter Gabriel, former frontman of Genesis plans to launch We7, an ad-supported DRM-free digital music service, in July.
The dream of free music is likely to come true. But there are some who do not see it that way.
Peter Ruppert, founder of the London-based music business firm Entertainment Media Research, is not convinced. "I believe the advertising business model does not work," he said. "People do not watch ads, and advertisers will realise that soon. It's not good enough momentum, simple as that?"
SpiralFrog, the front runner of ad-supported free music has in reality suffered from the complexity of making agreements with music labels, publishers and performing rights organisations. That is the reason why it has yet to start the service in the US as there is no organisation to manage all American publishers. It is alleged that after missing the proposed US launch date of December 2006, the firm fired its chief executive. Plans for a UK launch which was initially expected early 2007 have not yet begun.
Mr Ruppert adds: "People will not restrict the ways to purchase music. The Internet is not the only way to buy music. A lot of technologies are introduced; WiFi is already a popular alternative. Music will be available whenever and wherever you want in the future."
So the choice is simple. Will you pay more than seventy-five pence per track, or will you have the patience to watch ads for free music? Or, maybe you will decide to wait for further innovations.
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image: mac vegetarian and SpiralFrog
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