Amazon to Offer DRM-Free MP3s?

[Damion Chaplin]

<div class='os_post_top_link'><a href='http://hypebot.typepad.com/hypebot/2006/12/amazon_to_enter.html' target='_blank'>http://hypebot.typepad.com/hypebot/2006/12/amazon_to_enter.html</a><br /><br /></div><i>"Late last week Amazon began circulating contracts to labels aiming for a late 1st Q '07 music download store launch. Rumors of an Amazon entry have been circulating all year, but died down as attention shifted first to the URGE launch and then to Microsoft's ZUNE. What is most surprising (and exciting) about Amazon's new store is that the online giant is apparently telling labels that they will only sell DRM free mp3's and will offer variable pricing. As the first major download store launch since Microsoft made it clear with ZUNE that it was not supporting it's own PlayForSure DRM, perhaps Amazon was left with no choice. Yahoo! Music, Napster, URGE and others based on PlayForSure are starting to look like forgotten step-children. Only eMusic has gained real momentum against the iTunes juggarnaut and eMusic sells mp3's. Plus by embracing mp3's, Amazon completely avoids all player compatibility issues by selling in the only format that plays on all devices including the ubiquitous iPod."</i><br /><br />DRM-Free MP3s from Amazon? I'm so there. 8) I sure hope this DRM-free trend we're seeing sticks around. Once Amazon starts selling it, it's likely to become a standard, or at least very popular. And I can finally start steering people towards music downloads that I can support. The biggest thing holding everyone I know back is DRM. They're not going to buy digital music that's tethered to one type of player or another (even PFS systems are too limiting). What do you think? Will you start buying digital music from Amazon, or are you happy with your current method?

[whydidnt]

It's going to be interesting to see if the labels actually agree to this model. In reality, selling of non-DRM'd music isn't' that much different than selling non-DRM'd CD's is it? Who doesn't know how to rip a CD these days? Those that don't probably won't be DL from Amazon anyway right?

I'm guessing if the labels agree to this, they are going to attach a premium price to it as well. We'll probably see new releases and very popular songs around $1.49 or something with others at a lower price.

If they don't jack up the price, I would definitely be interested in acquiring music this way. I still think that even at .99/song - DL's are over-priced, but that seems to be the "standard" these days.

[Chris Gohlke]

If the labels don't go for it right off, they could take baby steps into it. For example, you buy a CD, you can download all the MP3's off it right now. Even better would be if they made it retroactive and let you download the mp3's of any CD you have ever purchased from them. This might get the labels accustomed to the non-DRMd mp3 and ease them into the next step.

[whydidnt]

Even better would be if they made it retroactive and let you download the mp3's of any CD you have ever purchased from them. This might get the labels accustomed to the non-DRMd mp3 and ease them into the next step.

I agree that this would be a great idea. However, I have a hard time believing the labels will ever agree to do this. This was actually the model MP3.com used and the labels sued them out of existence. :(

[ale_ers]

I'm guessing if the labels agree to this, they are going to attach a premium price to it as well. We'll probably see new releases and very popular songs around $1.49 or something with others at a lower price.

If they don't jack up the price, I would definitely be interested in acquiring music this way. I still think that even at .99/song - DL's are over-priced, but that seems to be the "standard" these days.

I agree that the price will probably be higher and that $1.50 or $2 is probably too high for one song. But then again, it is cheaper than buying a CD at $15 (or more) and only getting one good song. It might also be more convenient then buying the 99 cent download then burning and ripping (and losing quality).

And the labels should be happier making more off of each song. If they are happy with $1 from each Zune, don't you think a few more cents off of each song would be better.

The more I think about it, the more I think it will work. Your target market is larger (iPod, Zune, PFS, Sony, Cell phones, et al). The labels could finally get their adjustable pricing that they have been fighting Jobs for. The consumers win because they are not locked into a player or store.

The two questions are: 1. Can the labels see the advantages? and 2. Will people be willing to pay more for DRM free (I think I would)?

[Damion Chaplin]

2. Will people be willing to pay more for DRM free (I think I would)?

Well, seeing as I'm currently spending zero on DRM'd music, I'd say yes, I'm willing to pay more than that for DRM-free music. :wink:

In other words, I might actually buy digital music if it was DRM-free.

[brianchris]

Personally, I don't think any major label will sign up for this, Amazon or not.

Assuming I'm wrong, I'll be all over it.

Assuming I'm right, I'll stick with what I've been doing: While its not perfect, I really think Microsoft's "Play for Sure" DRM was close to perfect....it offered variety in music stores AND players. Although it does seem that Play for Sure has been orphaned.

[Jason Dunn]

If it's a good, high-quality audio file (say, 256 kbps MP3), I'd be willing to pay a bit more for the music - about $1.50.

[sub_tex]

I already get music as MP3 via eMusic, so adding Amazon as another option would be welcome.