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View Full Version : iTunes Japan and DRM


James Fee
09-09-2004, 12:00 AM
<div class='os_post_top_link'><a href='http://www.theregister.co.uk/2004/09/08/apple_itunes_japan_hitch/' target='_blank'>http://www.theregister.co.uk/2004/09/08/apple_itunes_japan_hitch/</a><br /><br /></div>"<i>Apple's plan to open a Japanese version of its iTunes Music Store could be scuppered on local music companies' fears that its DRM technology, FairPlay, simply isn't restrictive enough. Pricing is also an issue, it seems, with labels fearing the cannibalisation of CD sales, a report in Japan's Asahi Shimbun newspaper claims. According to the report, ITMS Japan has met with opposition from a number of local music labels who claim that FairPlay is "inadequate" and are thus refusing to license their songs to Apple. At issue is the Mac maker's insistence that consumer should be allowed to burn downloaded songs to CD, a facility offered by the US, UK, German and France versions of ITMS. Existing Japanese digital music services do not support CD burning. They also charge from ¥200 ($1.83) a song - rather more than the Yen equivalent of the US store's $0.99 (¥108) download fee. "If we go lower than [¥200], CD sales will suffer," an official of a major record company told the paper. Yet at the same time, the industry needs a price that will compete with low-cost CD rental companies, he admitted.</i>"<br /><br />Wow, talk about harsh. 8O Now we can all see where Sony gets their ideas for their <a href="http://www.sony.net/Products/ATRAC3/">ATRAC</a> service. Apple seems to be betting on the popularity of the iPod to force the Japanese record companies to change their ways, but it doesn't seem like they are going to be rolling over for Steve.

Jason Dunn
09-09-2004, 12:10 AM
CD rental companies? Interesting concept - rent, rip, give back. :?

Mojo Jojo
09-09-2004, 12:25 AM
I was just going to say... they don't like the price for selling, but they allow people to rent and get easy access to make copies?...

Okay...

James Fee
09-09-2004, 12:51 AM
It would appear that they collect royalties on the rentals...

http://www.jasrac.or.jp/ejhp/operation/licensing_activities.html

In Japan, the rental of commercial CDs is a thriving business. Extremely popular among the young, the nationwide total number of CD rental shops in Japan was approximately 3,590 as of November 30, 2002. Based on the clear recognition of "lending rights" under Japanese copyright law, JASRAC has been collecting royalties from CD rental businesses. With the cooperation of CDV-Japan (Compact Disc & Video Rental Commerce Trade Association of Japan), JASRAC has concluded blanket annual licensing contracts with all CD rental establishments. In fiscal year 2001, actual royalties collected from CD rental shops totaled 3.6 billion yen.

Well that and "Copy Control Compact Discs" that can't be copied in computers...

Felix Torres
09-09-2004, 01:22 AM
It's worth remembering that the size of the japanese music market, like most non-(english/spanish) markets is much smaller than the big two in dollar terms so the kind of pilferrage that gets lost in the noise here could put a company out of business in other countries.
I also seem to remember that japanese CDs retail for considerably more than in NorthAm, which provides a higher ceiling for the rental business to slide under. And with a robust rental business in place, there are *two* revenue streams at risk.
(I wonder, do they have digital radio in Japan? Or music streaming through the phones? That might have a bearing on the issue, too.)

I do wonder what has the labels spooked about Fairplay, though.
I now its been hacked and reverse-engineered easily, but the western labels haven't reacted to that...
Could it be that Mr Jobs hasn't met with the japanese executives in person? The reality-distortion zone does need personal contact to work...
Or maybe the japanese are immune to it? :wink:

dean_shan
09-09-2004, 05:42 AM
Well that and "Copy Control Compact Discs" that can't be copied in computers...

Yeah well we all know how well that works *cough*hold shift*cough*.

James Fee
09-09-2004, 05:59 AM
Well that and "Copy Control Compact Discs" that can't be copied in computers...

Yeah well we all know how well that works *cough*hold shift*cough*.
From what I've read about the Japanese versions, they are much more involved than that to the point where you can't even listen to some on your computers. Sure there is always a way around, but it would appear at least in Japan, people are not doing what they have done here in the US or Europe.

Mojo Jojo
09-09-2004, 01:02 PM
The reality-distortion zone does need personal contact to work...

...Or perhaps the view Apple is the next big music monopoly force. Could also be that they are trying to give preference to local business like Sony first.

(Holds up plastic ring)

You know as a junior Apple advocate they give you these rings that have a small lock of hair from Steve placed inside. Gives you portable distortion fields. Very handy.

Felix Torres
09-09-2004, 02:30 PM
The reality-distortion zone does need personal contact to work...

...Or perhaps the view Apple is the next big music monopoly force. Could also be that they are trying to give preference to local business like Sony first.

(Holds up plastic ring)

You know as a junior Apple advocate they give you these rings that have a small lock of hair from Steve placed inside. Gives you portable distortion fields. Very handy.

So that's how they keep you in the fold!
Explains a lot...
You guys *do* live in a world of your own! :wink: