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January 10, 2008 1:44 PM PST

Sony BMG signs onto Amazon's DRM-free music store

Posted by Caroline McCarthy
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It's a full hand of cards for Amazon: the Web's mega-retailer announced Thursday that it will be selling music from Sony BMG Music Entertainment in its Amazon MP3 store. This means that Amazon MP3, which only sells "naked" tracks without any digital rights management (DRM) protection, now has deals with all four major music labels. Because of the lack of copy protection, any song from Amazon MP3 can play on virtually any media-playing device, from PCs to music players to cell phones and PDAs.

The DRM-free songs from Sony BMG will be available for purchase on Amazon MP3 later this month.

Sony BMG announced earlier this week its intent to drop DRM from its music, making it the last major label to do so. Amazon MP3, which launched in September, already sells music from the other three major labels--EMI, the Vivendi-owned Universal Music Group, and Warner Music Group--as well as over 33,000 independent labels. Currently, there are 3.1 million songs for purchase.

A full catalog of DRM-free music files means that Amazon is legitimately poised to take on Apple's iTunes Store, the industry leader by far in digital music sales. Most of Amazon's songs, which range largely from 89 to 99 cents, outprice Apple's 99-cent standard. And as the result of disagreements with Apple, Universal Music Group has not licensed its DRM-free catalog to the iTunes Store.

In the meantime, Apple dropped the prices of its DRM-free songs from a premium $1.29 to the regular 99 cents, a sign that it was starting to feel the pressure from Amazon.

Amazon doesn't yet have the market share to start boasting, but it finally has the upper hand in a culture that has increasingly turned against digital rights management. User experience reviews of Amazon MP3 have been mixed, but there's little doubt that this poses the most formidable threat to the iTunes monopoly yet.

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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Add a Comment (Log in or register) 14 comments
Does Apple have any chance?
by bommai January 10, 2008 2:35 PM PST
I wonder what prevents the labels from licensing the same songs to Apple in DRM-free format. I think they don't want widespread DRM-free songs. If Amazon becomes big, may be they will license to Apple also or yank Amazon's license.
Reply to this comment
re: does apple have any chance
by rocketjam--2008 January 10, 2008 4:34 PM PST
Nothing prevents the labels from letting Apple sell their songs
DRM-free. They don't want to because Apple won't negotiate with
them on price.

After they think they've got enough traction with Amazon sales,
they'll start upping the price on the DRM-free music. It's a ploy to
force Apple to let them raise prices at the iTunes Music Store.
Why buy music at all?
by napacab January 10, 2008 2:43 PM PST
With subscription services like Rhapsody, I'm buying nothing DRM free or not. Why would anyone pay$.99 for a single song when they can have access to millions of songs for less than the cost of one CD per month, listen to them from multiple devices including portable ones?

Yes I know not everything is available but there's enough I can do without those songs that the artists or music conglomerates don't want to make available.
Reply to this comment
I prefer to own, not rent.
by technewsjunkie January 11, 2008 2:49 AM PST
n/t
Why?
by ifiredmyboss.com January 13, 2008 2:42 PM PST
Because I want to own them and want to move them to other devices that I want. Just like I own my house and not rent.
Amazon.com: Best Legal Music Source, CDs & MP3s
by john55440 January 10, 2008 2:59 PM PST
Offering customers the choice of CDs or DRM-free MP3s, Amazon.com is clearly the best legal source of music.
Reply to this comment
Restrain the hyperbole..
by cfkane January 10, 2008 3:27 PM PST
It seems that everyone forgets that iTunes itself can strip off the DRM from any iTunes download - simply by burning a CD which can then be imported into any other computer (which you should do irregardless). It's really a non-issue.
Reply to this comment
On the same lines
by DrtyDogg January 10, 2008 4:59 PM PST
you can do that with any purchased music from any store.
The big 4 are morons
by Maclover1 January 10, 2008 3:37 PM PST
The iPod and iTunes right now sell more digital music than every other re-seller put together. Cutting them out of the equation directly has got to be the most moronic business decision ever! Especially considering their business is going down the tubes.

Maybe its Apple and Jobs that are demanding certain terms they dont want to give into?

Its simple IMHO. All music should be DRM free. The music companies should get together and set a price across the board for everyone. The the USER chooses whom to buy it from.

I have no problem buying music from Amazon and then using iTunes and my iPod to listen to it.
Reply to this comment
Secret tracking of "unprotected" files?
by M C January 10, 2008 4:35 PM PST
So, what's the lure to the majors? You know there's GOT to be a catch, and that catch is most likely file-tracking code.

Your purchase that you "lent" to a friend ends up on Limewire? Welcome to lawsuitville!
Reply to this comment
Apple pushing DRM?
by tballard--2008 January 10, 2008 4:58 PM PST
Why do all these CNET articles make it sound like Apple is the
one who instituted DRM when Steve Jobs has been fighting for
DRM-free music for quite some time. This article makes it
sound like DRM-free music is an invention of Amazon.com. This
whole thing is just a ploy by the record labels to weaken the
iTunes Music Store.

I can't imagine that Amazon is making much of anything on
$0.89 a song music downloads unless they have gotten some
pricing breaks from the various music labels. That, in itself,
would only make sense in light of the music labels yanking
Apple's chain. Why else would they lower prices for Amazon
when their main beef with Apple was that they should be
allowed MORE for some songs.

So what we have is the music labels foregoing revenue, just to
prove a point with Apple. Look out, if this strategy succeeds,
you can look forward to paying a lot more for your music down
the road. Jobs understands the consumer pricing model a lot
better than the record labels do, it appears. But then, greed is a
powerful motivating force for the record labels, that's for sure.
Reply to this comment
more?
by DrtyDogg January 10, 2008 5:04 PM PST
The record labels said they wanted flexibility in pricing not necessarily more money. Apple played the victim in the press, and we are starting to see it now. We are seeing this with TV shows and music now from Amazon.
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