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The Economist, DVD Jon On Apple's DRM Stand

Posted by kdawson on Thu Feb 08, 2007 08:35 AM
from the yea-and-nay dept.
We have two followups this morning to Tuesday's story on Steve Jobs's call to do away with DRM for music. The first is an editorial in The Economist sent in by reader redelm, who notes that as "arguably the world's leading business newspaper/magazine" that publication is in a position to influence legal and political decision-makers who may never have heard of DRM. The Economist says: "Mr Jobs's argument, in short, is transparently self-serving. It also happens to be right." Next, Whiney Mac Fanboy sends pointers to two blog entries by "DVD Jon" Johansen. In the first Johansen questions Jobs's misuse of statistics in attempting to prove that consumers aren't tied to iPods through ITMS: "Many iPod owners have never bought anything from the iTunes Store. Some have bought hundreds of songs. Some have bought thousands. At the 2004 Macworld Expo, Steve revealed that one customer had bought $29,500 worth of music." Johansen's second post questions Jobs's "DRM-free in a heartbeat" claim: "There are... many Indie artists who would love to sell DRM-free music on iTunes, but Apple will not allow them... It should not take Apple's iTunes team more than 2-3 days to implement a solution for not wrapping content with FairPlay when the content owner does not mandate DRM. This could be done in a completely transparent way and would not be confusing to the users."
Update: 02/08 16:28 GMT by KD : Added missing links.
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[+] News: Jobs Favors DRM-Free Music Distribution 755 comments
Another anonymous reader tips an essay by Steve Jobs on the Apple site about DRM, iTunes, and the iPod. Perhaps it was prompted by the uncomfortable pressure the EU has been putting on Apple to open up the iPod. Jobs places the blame for the existence and continuing reliance on DRM squarely on the music companies. Quoting: "Much of the concern over DRM systems has arisen in European countries. Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. For Europeans, two and a half of the big four music companies are located right in their backyard. The largest, Universal, is 100% owned by Vivendi, a French company. EMI is a British company, and Sony BMG is 50% owned by Bertelsmann, a German company. Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace. Apple will embrace this wholeheartedly."
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  • All-or-Nothing (Score:5, Insightful)

    by ZachPruckowski (918562) <zachary.pruckowski@gmail.com> on Thursday February 08 2007, @08:46AM (#17933230)
    It's very possible that Apple's contract bans them from selling non-DRMed music alongside DRMed music. This explains why groups like Nettwerk haven't been given the option to sell their music DRM-free. Apple's got the best deal of all the music stores, they must have given up something to get it, and "all music must be DRMed" sounds very cartel-ish and would fit getting the good prices.
    • Re: (Score:3, Insightful)

      by elrous0 (869638) *
      It's also possible that Apple doesn't really WANT to sell DRM-free music because that would mean people could play those songs on MP3 players that didn't have "iPod" on the front of them.

      -Eric

      • Re:All-or-Nothing (Score:5, Interesting)

        by ZachPruckowski (918562) <zachary.pruckowski@gmail.com> on Thursday February 08 2007, @08:59AM (#17933374)
        See, but that would only be a major concern if the iPod wasn't the most popular DAP already. The iPod can now survive without the iTMS because there's just so much built around it, from the "coolness factor" to the fact that about half of all DAP peripherals use the iPod dock. And iPods are still the easiest to use with iTunes, especially since you get niceties like lyrics and album art transferred over as well. DRM certainly helped Apple get where it is, but it doesn't need it to stay there.
        • Re:All-or-Nothing (Score:5, Insightful)

          by deboli (199358) on Thursday February 08 2007, @09:30AM (#17933730) Homepage
          The iPod was first, the store came later. The iPod was successful because of an elegant hardware-software integration and not because you can buy and legally download music.

          On top of this iPods are sold worldwide while the store can only be accessed from a few select countries, further skewing the "average" calculation...
        • Re:All-or-Nothing (Score:5, Insightful)

          by AndersOSU (873247) on Thursday February 08 2007, @12:45PM (#17936132)
          Apparently the argument isn't as transparent as the Economist says, (or maybe I'm just a bit tin-foilly today) but Jobs is a PR genius. If comes out against DRM, maybe he gets the French off his back, knowing full well that the RIAA will never allow him to sell non-DRM music. He's counting on not having to switch in a heart-beat. This way, he not only gets to look like "a champion of consumer rights," but also gets to maintain his lock in.

          Apple would be fine without DRM, but the are better off with it - and even better with it while saying the don't want it.
      • Re: (Score:3, Insightful)

        by daviddennis (10926)
        I don't think they really care about that.

        What I do think they care about is consistency of user experience. They believe, and I think they are right to do so, that having different types of music with different usage rights confuses customers. One reason I hear for the failure of WMA is that you don't know what you can do with the file unless you read the specific license agreement for it. That alienates customers, and I think not alienating customers is what really separates iTunes from the other servi
    • Re: (Score:3, Insightful)

      From what others have written, the issue seems to be more that Apple stores the songs without DRM in its database, encrypting them only when the customer downloads. Apple probably instead refuses to invest the programming hours to come up with a solution that flags whether encryption is required or not, since it also means ensuring that there are no mistakes (songs unencrypted where the distributor demands DRM, or DRM added to a song that was supposed to be free, or retroactive release from DRM).

      I think App
    • Re: (Score:3, Interesting)

      by rho (6063)

      This is almost certainly the case. Jobs, as I recall, had to do a lot of talking to get major labels online with the iTMS. Just being able to put the same song on more than one computer probably took months of begging, threatening and deal-making. I know it's fun to whale on Jobs, but he really is interested in making his customers happy, and I imagine he's fully aware of how annoying the iTMS DRM is for non-technical people.

      Me, I just burn a CD-RW as an audio CD of purchased music and re-import as MP3. S

        • Re:All-or-Nothing (Score:4, Insightful)

          by conigs (866121) on Thursday February 08 2007, @09:32AM (#17933742) Homepage
          The thing about podcasts on the iTMS is that they are not stored on Apple's servers, but instead on the podcast owner's server of choice. The only thing that runs though the store is the XML file, if I understand this correctly.
  • by AaronLawrence (600990) * on Thursday February 08 2007, @08:46AM (#17933232)
  • Missing links? (Score:4, Insightful)

    by ziggamon2.0 (796017) on Thursday February 08 2007, @08:46AM (#17933234) Homepage
    Maybe I'm new here, but shouldn't there be links to both the Economist article and DVD Jon's second article?
  • Long Tail (Score:4, Insightful)

    by wombatmobile (623057) on Thursday February 08 2007, @08:47AM (#17933244)

    Why doesn't Steve open up the iTunes store to indies?

    Chris Anderson's Long Tail [wikipedia.org] research makes it clear that more tunes means more iPod usage, even when those tunes are from the most obscure artists.

    Anderson's thesis arises because "digital music is no longer subject to the artificial barrier of finite shelf space."

    Or at least, that would be the case if stores like iTunes were more accessible.

    C'mon Steve, open wide. Let the long tail wag.

    • Jobs' big charade (Score:3, Insightful)

      by elrous0 (869638) *
      Why would Apple want to lose DRM, even if they could? That would potentially break their iTunes-iPod monopoly (since you could play non-DRM'ed songs on other players besides the iPod).

      Steve Jobs may SAY he hates DRM, but only because he has nothing to lose by saying that. He knows the studios aren't going to cave on DRM, so he gets to keep DRM (and, hence, his iTunes-iPod monopoly) while simultaneously portraying himself as some sort of anti-DRM crusader.

      If you want to see how Jobs *REALLY* feels about

      • Re:Jobs' big charade (Score:5, Interesting)

        by Saint Fnordius (456567) on Thursday February 08 2007, @09:27AM (#17933674) Homepage Journal
        Apple hates DRM because it's an arms race that sucks up resources. Programmers that could be working on cool code are stuck ensuring that FairPlay doesn't get cracked, and that they get a patch up within the time framed dictated by their contract. Without DRM, the iPod and iTunes codebases could be trimmed to run faster and possibly even allow for the API to be published.
      • repeat after me (Score:3, Insightful)

        by geekoid (135745)
        Apple isa hardware company, Apple is a hardware company, APlle is a HARD-Fucking-WARE company.

        They compete on the HARDWARE not the music.
        Otherwise it wouldn't be trivial to get around the DRM by design.

        I can put any mp3 I wan't on the iPod no matter where I got it from. If they wanet lockin it would only play AAC files. Guess what? that wouldn't sell many iPods, which is what they want because they are a hardware company.

        • Re:repeat after me (Score:5, Insightful)

          by ben there... (946946) on Thursday February 08 2007, @10:00AM (#17934114) Journal

          Apple isa hardware company, Apple is a hardware company, APlle is a HARD-Fucking-WARE company.

          They compete on the HARDWARE not the music.

          You said the same thing here [slashdot.org].

          I can put any mp3 I wan't on the iPod no matter where I got it from. If they wanet lockin it would only play AAC files. Guess what? that wouldn't sell many iPods, which is what they want because they are a hardware company.

          But you're looking at that backwards. It's not about preventing you from playing non-aac formats and locking you into the store. It's about selling you music that only plays on an iPod, and locking you into the iPod. Once you have a $500 collection of iTMS music, it becomes too much of a waste of money to make your next purchase *not* an iPod. Protects their revenue stream. The hardware.
      • by squiggleslash (241428) on Thursday February 08 2007, @11:04AM (#17934874) Homepage Journal

        I covered this in my journal [slashdot.org] but I'll say it here too:

        The issue is that the landscape has changed. The iTS and iPod exist in a symbiotic relationship where the strength of one strengthens the other. But that's about to come to an end. MP3 playing mobile phones are becoming more and more viable, with flash memory plummeting in price and the carriers themselves seeing OTA music sales as a great way to make use of their under-utilized Internet services. People don't like having to carry multiple devices around, and the convenience factor of a device that is a music store and mobile music player in one is going to, ultimately, trump the iPod. Right now, Apple's saving grace is the relative incompetence of most of the mobile phone makers, they can't rely upon that forever.

        This is one side of the deal. They could have dealt with that by producing a viable mobile iTunes player and licensing it, or by dominating the mobile phone market, but what they've actually decided to do is enter the mobile phone market as a niche player. This makes them a competitor to all the other manufacturers, who are unlikely to license any kind of "mobile iTunes", and also means they'll never get a substantial market share of the new market in the same way that they did the iPod. One can make all kinds of guesses as to why they've decided to do this, but the bottom line is that Apple's days as the #1 seller of MP3 playing hardware are numbered.

        The other is Vista. Vista has upped the ante in terms of DRM available. Mac users will be locked out of the content that will be available under Vista's DRM, and those chosing to publish content under a DRM scheme will see Vista's, as the one available to the most number of people, as being the one to go for.

        It is no longer in Apple's best long term interests to promote DRM. In fact, DRM is likely to bite it to a point that its own platform may well no longer be viable within a few years.

        Apple has, at least, dealt with that in one way: their computers, if push comes to shove, are capable of running Windows, and if it becomes a really serious issue, Apple could migrate to a Windows based platform. This would be the end of them as a company with control over their own platform, and would make them another Boutique computer maker like Lenovo and Sony. So naturally it's not where they want to go.

        So I honestly believe Jobs is sincere when he claims to dislike DRM. He does... now that it's looking like it'll be a serious problem for Apple in the future. A successful DRM scheme from a competitor could well destroy Apple's position as an independent computer maker, making them beholden to that competitor and its interests. Such a situation has not been as realistic in the past as it is today.

        One more thing: If Vista's DRM starts to take off, it may be time for Apple to take the gloves off with respect to Mac OS X market share. I'll leave you to speculate as to what they could do to make that happen.

  • Confusion free? (Score:5, Interesting)

    by XxtraLarGe (551297) on Thursday February 08 2007, @08:51AM (#17933290) Journal
    "It should not take Apple's iTunes team more than 2-3 days to implement a solution for not wrapping content with FairPlay when the content owner does not mandate DRM. This could be done in a completely transparent way and would not be confusing to the users."

    Yeah, right. Tell that to the vast majority of non-tech savvy iTunes users, who don't understand why they can't make an MP3 CD of their purchased music. I have a friend who likes to make "Mix" CD's for other friends, and they keep getting frustrated when iTunes tells them some of their tracks can't be converted to MP3. I've tried explaining DRM to them, but for the typical layperson, it goes right over their heads.
      • Re: (Score:3, Informative)

        by Halo1 (136547)
        That indeed doesn't work for purchased songs.
      • Re: (Score:3, Informative)

        by geekoid (135745)
        For songs purchased through iTunes, you need to burn to disk(or virtual disk) and then rip from the disk.
        Right clicking and choosing 'Convert to mp3' gives you a pop up telling you you can't convert purchased songs.

      • by AusIV (950840) on Thursday February 08 2007, @10:06AM (#17934198)

        They are not confused, DRM simply sucks.

        You're incredibly naive if your really believe that. I've had to explain to my girlfriend on three separate occasions that her music will only work on iTunes or an iPod, and that I can't play it on my Linux computer. I had to convince her sister that if she bought a Creative mp3 player, her music from iTunes wouldn't work on it. Apple makes it easy for people to play their music and transfer it to their iPod. Unless somebody has bought a music player other than an iPod and tried to transfer music, tried to burn an mp3 cd, or tried to use Linux, most likely they're only loosely aware that there are some things they can't do with their iTunes music. Apple's DRM is not nearly as restrictive as it could be. If nothing else just burn a regular CD and rip it back. You may care about quality, but the difference isn't enough for most users to care.

        The greed of the artist, the publisher and the listener are all played to create a dishonest deal in which none have real choices.

        Again, you have no idea what you're talking about. The artist often gets a very minimal cut of sales on iTunes, and only complies because otherwise they could lose other contracts. I'd hardly call it greedy to try and keep your job. The listener has a choice between driving to the store and buying a CD, downloading something illegally (the greediest option), or downloading it from iTunes. Then they have as many choices as they have with a CD, because they can in fact burn the music to a CD. There are two groups that could be construed as particularly greedy. The publisher, who chose DRM in an attempt to prevent piracy, would go under if everyone shared digital music freely. Then there's Apple, the distributor, who seems to have the most to gain by locking people to a platform. But Apple is saying that decision lies with the distributors.

        As far as why Apple doesn't sell some tracks without DRM, I don't think its so much a matter of confusion as not wanting to advertise DRM. As I've stated, there are iTunes users out there who don't realize there are restrictions on their music. If the music store didn't distinguish between DRM free tracks and tracks with DRM, users would never know for sure what they're getting until they'd bought it. But if they put anything to indicate that some tracks have DRM and some tracks don't, it would call attention to DRM, and users would begin to realize their music had restrictions on them. Whether you'll admit it or not, right now most iTMS customers are blissfully ignorant towards DRM, and the only way Apple is going to make sure every user knows about DRM is going to be in the context that the iTMS is now DRM Free.

  • by Anonymous Coward on Thursday February 08 2007, @08:55AM (#17933336)
    Getting distribution on iTunes is not as hard as was suggested.

    If you produce a CD and follow the instructions to have your disc sold on CDBaby.com, they will submit your music to iTunes. In the case of music I've submitted, there was a delay of about six weeks; then we got word that we were live on iTunes.

    This is not the full ticket to Hollywood. It's not a huge hurdle either. It's one of many small cumulative things that you do to get your music out there.

    Notably there was no contractual lock-in with CDBaby or with iTunes. They own nothing, we retain our copyrights and our ability to distribute in any other channel we like. The whole thing has been artist-friendly.

    Our R&B artist on iTunes:

    http://phobos.apple.com/WebObjects/MZStore.woa/wa/ viewAlbum?playListId=202470955 [apple.com]

    Our other music (ambient & progressive rock) http://www.workshopmusic.com/streams.html [workshopmusic.com]
  • by Anonymous Coward on Thursday February 08 2007, @08:57AM (#17933358)
    Jobs also came out strongly in favor of:

    * Ponies for everyone - who doesn't love ponies?

    * Rainbows everyday - wouldn't the world be just that much better?

    * Love - it doesn't have to be just for dirty hippies

    You gotta hand it to Jobs and his bold stance of anti-DRM and pro ponies, love, and rainbows. Let's all go out and buy incremental upgrades to our iPods!

  • by DoctorPepper (92269) on Thursday February 08 2007, @09:10AM (#17933464)
    We each own an iPod (30 GB Video), and we both have quite a lot of music on them. We each ripped the CD's out of our collection that we wanted to our respective computer, using iTunes (we both have Macs, although I use my Linux computer more), and we independently sync our iPods with that music. Neither of us has even one song that we didn't either purchase on CD or through iTMS, and neither one of us would even think of "borrowing" a CD from someone else, with the intent to rip the tracks for our own use.

    I really don't get the piracy thing. If you are going to listen to the music, then you should pay for it, whether that be from purchasing the CDs, or through a legitimate on-line music service. I also don't care to hear arguments against this, because those that argue the loudest are usually the ones with the most non-purchased music in their library. They are being just as self-serving as Mr. Jobs.

    Personally, I wish we could do away with DRM, because it is quite difficult to play the songs I legally purchased off of iTMS on my Linux computer. I think that is a load of crap, and that it severely cuts into my fair-use rights, which nobody seems to care about.
    • "...those that argue the loudest are usually the ones with the most non-purchased music in their library."

      yeah, because you get to check their computers.

      Nice assumption.

      I suppose you also believe that people who believe Pot should be legal also smoke it?

    • by aralin (107264) on Thursday February 08 2007, @10:43AM (#17934614)
      So do you have CDs that you both listen to? Do you feel that is ok? Did you rip those CDs to both of your computers? Do you feel that is ok? If you share your iTunes library over network, can you put unprotected songs from the shared library directly on your iPod? Do you feel that is ok?

      Somewhere in there the CDs and MP3s are being treated differently. Why is it ok if you buy a CD to let your wife listen to it, to let her rip it to her iTunes library and put it on her iPOd. Why do you think it is ok for her to listen to the song on her iPod while you can listen to it on your iPod as well? And at the same time? And why when you buy a song from iTunes Store, why don't you have the same liberty? Which one of those is right?

      So do you get it now?
  • A Major Injustice (Score:5, Interesting)

    by roughtrader (1061478) on Thursday February 08 2007, @09:20AM (#17933576) Homepage
    When devising our digital store (www.roughtrade.com), we didn't for one moment consider having DRM catalogue included. Contrary to it being a marketing issue of differentiation against would-be digital competitors, us opting to sell only DRM-free MP3's has been moral stance informed by three decades of selling music. We consider it morally wrong to impose one set of ownership rights (on the same album) to those customers preferring to buy one format and not another - instead, we treat all our customers the same, whatever format they decide to purchase. To do otherwise would be disrespectful to our customers accrued over thirty years. As it currently stands, major labels have ignored our long-standing retail support and that of our customers (arguably the roots of their prosperity) in favour of imposing DRM and thereby propagating an uncompetitive digital retail market, whereby retailers such as ourselves are unfairly discriminated against to the continued advantage of an effective monopoly. For Rough Trade, music is not a content driver, music is a passion shared with like-minded people over a counter or website. The more music retailers that uphold this value, the more prosperous our industry would surely become. The sooner DRM is scrapped by major labels, the sooner we can present our long-established customer base a consistent offer, whether they visit our London stores, buy online at our mail-order website, or download MP3 from our digital store website. The end result being we can compete on a level playing field, allowing music lovers to choose their digital retailer based on 'music lover' factors such as the retailers ability to recommend exciting new music, and not uncompetitive, discriminating terms of format availability.
  • apple (Score:4, Funny)

    by jjeffries (17675) on Thursday February 08 2007, @09:22AM (#17933606)
    >It should not take Apple's iTunes team more than 2-3 days to implement a solution for not wrapping content with FairPlay...

    Yes, but that doesn't include the six months needed to design the new icons...
  • by circletimessquare (444983) <circletimessquareNO@SPAMgmail.com> on Thursday February 08 2007, @09:38AM (#17933812) Homepage
    between hardware manufacturers and content creators

    just this morning, i read this (Hollywood Takes Its Concerns About Piracy and Taxes to Washington [nytimes.com]):

    In a rare moment of newsmaking, Barry M. Meyer, the chairman of Warner Brothers, issued a sharp rebuke to the president of the Consumer Electronics Association, Gary Shapiro, who warned in January that antipiracy efforts could "smother" technological progress and said that "private conduct may be unauthorized, but that does not mean it is piracy."

    Mr. Meyer took issue with calling the theft of intellectual property merely unauthorized rather than illegal, and said that Hollywood's promotion of so-called digital rights management technology had made it possible for consumers to rent or buy movies and TV programs at a variety of prices.

    "It's easy to demonize it, but without some level of control and order, things don't work," he said. "The only choice we're not offering is free."

    He added: "Unlike the technology industry, which can outrun pirates by upgrading their product, there is no 'Gone With the Wind 2.0.' "


    i have a feeling that the prime mover and shaker in the wars for/ against drm will be fought mainly along this battlefront. so either hardware manufacturers, by ignoring content creators, will drag content creators kicking and screaming into reality, or content creators will probably, as a mode of attack, simply buy hardware manufacturers, and silence them via business channels

    some, like sony, are both hardware and content creators. internal battles on the issue within sony might be revelatory for what our future holds

    i'm actually pretty upbeat about the future in this regard though. people like jobs show that hardware manufacturers are just as willing to dream about bullying around content creators as visa versa. it was the content creators dithering and denial on the subject of downloadability that allowed jobs to create iTunes and lead us into the future, so to say. from an obvious business perspective in terms of natural fit, content creators should have been the ones offering a download storefront on the internet, but they didn't out of their fear and panic about what the internet meant to their existence. along came a hardware manufacturer, with nothing to lose on the content front, and therefore no fear, and filled the natural void of consumer want/ need that wasn't being filled as it should have naturally been filled by the content creators. and for dithering as they did, now content creators are in a deeper hole because they have to deal with a formidable opponent, jobs, with nothing to lose and no reason not to defy content creators. he is now in charge of the largest growing revenue stream for the content creators, not one of their own stooges. good for the consumer

    and besides, even if all of american hardware and content creators were consolidated business-wise against the interests of us, the consumers, there is always hardware manufacturers in china, or russia, or india, or europe, who would be all too happy to steal the lions share of the marketplace from consumers sick of the ridiculous 1984-style limitations on their hardware that would obviously result from collusion between hardware and content creators

    in other words, i don't think content creators have enough business muscle AND international clout to completely limit the range of drm-free options we as consumers will be able to access hardware-wise. and therefore, content creators and their dreams of completely controlling how we access our own culture is doomed ;-)

    an odious intrusion, simply because they want to preserve their antiquated pre-internet business model. no, i have a better option: why don't you just fade away and die, movie/ music conglomerates? you need us. we don't need you. welcome to the future: the internet has rendered old style media distribution models, where you could easily put up your tolls, archaic. in the future, artists will reach consumers directly

    in short, you're history
  • by Biff98 (633281) on Thursday February 08 2007, @09:42AM (#17933858)
    I applaud Jon for his words. TheRegister.com also ran a story about the Norwegian official complaining RE: Steve Job's "passing the buck" style attitude. It can be found here. [theregister.com]
  • Indie Music (Score:3, Insightful)

    by dcw3 (649211) on Thursday February 08 2007, @09:48AM (#17933938) Journal
    There are... many Indie artists who would love to sell DRM-free music on iTunes, but Apple will not allow them

    I'm all for allowing Indie artists access. My question is how would you implement this, and not end up with every American Idol reject? How would the typical user be able to sift through it all to find talent vs. a bunch of basement bands? Sure a rating system would be helpful, but if I'm searching by song names could still end up with long lists of remakes. There needs to be some sort of minimum standard, otherwise the system will get unwieldy.
  • by Lysol (11150) on Thursday February 08 2007, @10:07AM (#17934222)

    Why is this creating such a commotion, or better yet, why are people arguing against Jobs? I'm no apologist, but his stance made 100% perfect sense to me.

    DRM:
    Look, if you are required by some companies to use DRM, what are you going to do? 1., use it or 2., don't and don't sell their music. I think DRM is a sham, but it's pretty clear what the companies want that own the music they license out to iTunes.

    iPod:
    Again, I agree with Jobs here. The iPod plays MP3 and AAC, which can both be considered 'standards'. The only thing missing, of course, is Ogg. But this is pretty good. I don't see anyone bitching much about the Zune which has THE WORST DRM imaginable on a player. Not only is your DRM-free songs wrapped in DRM, but when you share (or squirt - jesus..) these with the social - this is ANY track mind you - it's wrapped in DRM and the receiver can only listen to it 3 times and/or it expires automagically in something like three days. I can't begin to say how unbelievably lame this is for the consumer, but makes perfect sense to the record companies. Where's the uproar against the worlds largest software company regarding that?

    iTS:
    Yes, it does not sell all indie labels (some tho) and yes, Apple probably could roll in something to allow non-DRM stuff to work perfectly with DRM stuff. But again, without having priviledged access to the project/source, who's to say how that could be done. I'm sure it could be though. I still think Apple does a pretty good job with the iTS. I mean how many other music stores out there fight with the record cartel to keep prices low? If it was Bill G or Ballmer or whoever else, you know they wouldn't give a shit about $.99 price and kowtow to the labels every wish. This is a FACT.

    Licensing FairPlay:
    I'm with Jobs on this one. M$ tried it with the 'Plays For Sure' and look where they are now, copying iTS/iPod. For a company providing a product, NOT a socially beneficial service, it makes sense to keep it small and in control. Doesn't mean I support FairPlay, but from a practical product standpoint, Jobs is right and the real goal is to get RID of FairPlay, not expand it to more vendors.

    In the end, again, I don't know what all the fuss is about. Of course the Microsoft club is gonna slam everything Jobs does - cuz they're not #1 in that area, so they'll naturally hate everything else. But the Econ calling the article 'self serving'? I dunno, I guess, but how is taking the labels to task so self serving? When did Ballmer last call for the labels to drop DRM? Or any other big computer/electronics exec? I think Gates went as far as mentioning at one point that DRM "won't work" but, that falls very short compared to Jobs speech.

    I also don't look at the iPod as some big monopolistic, lock in mechanism. I can play all the formats I use on it except, again, Ogg. And for indie artists, there's always eMusic or CDs. The Econ article, and many others, cite lock-in as a argument the EU is using, but seriously, why would someone jump ship to a player from M$ or Sony? Plus, what does Jobs really have to lose if the EU rules iTS/iPod illegal? Fine, worst case, don't sell to them. And then what DRM will the EU run to? M$? Sony? Or will they spend years and years coming up with some 'standard' that then fades away when the labels finally cave in to unprotected tracks, but only because consumers demanded it from them? The EU may sue or whatever, but Apple dropping FairPlay is not going to happen and again, music players are not computers, so the 'lock-in' will fade.

    I think, if anything, more people should be backing Jobs. What other high profile hardware maker is saying the same? M$? Sony? Creative? Sandisk? His stance on having the EU look at EMI and Universal is dead on. I've been in the music industry and they ARE the culprit in this case. 100%. If anyone opened up an online music store tomorrow and wanted major label music, it w

  • by argent (18001) <peterNO@SPAMslashdot.2006.taronga.com> on Thursday February 08 2007, @10:09AM (#17934250) Homepage Journal
    Jon's position reminds me of an old joke:

    A man is flying in a hot air balloon and realizes he is lost. He reduces height and spots a man down below. He lowers the balloon further and shouts, "Excuse me, can you tell me where I am?"

    The man below says, "Yes, you're in a hot air balloon, hovering 30 feet above this field."

    "You must be an engineer", says the balloonist.

    "I am", replies the man. "How did you know?"

    "Well", says the balloonist, "everything you have told me is technically correct, but it's of no use to anyone."


    Technically, since Apple doesn't do the encryption until after download, it would be trivial to implement.

    The problem isn't implementing it, the problem is that unless the Big Four labels go along with it there's a huge risk and no benefit. One of Apple's "lines in the sand" for the iTunes Music Store right from the start was that all music would be available on the same terms: you can play ALL the songs in the store on 5 computers, you can burn them ALL to disc, they ALL cost the same. Making an exception for a few small labels, or even a lot of them, may violate their existing contract with the big four and would certainly hurt them when they have to renegotiate.

    And there's no need: eMusic.com already fills that market, and it's cheaper than the iTunes store!

    But wait, there's more! Let's complete the joke:

    The man below says, "You must be in management."

    "I am", replies the balloonist, "but how did you know?"

    "Well", says the man, "you don't know where you are, or where you're going, but you expect me to be able to help. You're in the same position you were before we met, but now it's my fault. "


    Nah, Jon, I'm in the same position I was before, and it's not a problem, so it's nobody's fault. See, I'm one of the people who's supposed to be locked in to the iPod.

    I've bought 286 tracks from the iTunes Music Store, plus a dozen TV shows. That's over $300, and I'm not locked in at all. I've played this music on an iPod Shuffle, an HP Pocket PC, and a cheap Magic Star MP3 player. I have done this using nothing but Apple's own software, unmodified, using instructions provided by Apple on their website.

    Yes, technically, I've lost a fraction of the sound quality by remixing their old ad campaign into "mix, burn, rip", but who cares? Buying music where absolute fidelity matters from the iTMS is daft... you've accepted a loss in quality just by buying it in lossy-compressed format to begin with. I buy classical music on CD, and I don't listen to it in a noisy office through tiny earbuds.

    The real lock-in for iPods isn't the music, it's the accessories. Apple's changed the iPod form factor and connectors far less often than their competitors, so there's easily a dozen times as many accessories available for the iPod as for any other MP3 player... probably than all the others put together.

    Right now, I don't have an MP3 player. My daughter's iPod Mini broke, so I gave her my shuffle. I'm looking at new MP3 players now, and right now I'm inclined to get something other than an iPod. The new shuffle looks sweet, but I don't like the click-wheel on the higher end iPods. If I decide to stick with a flash based player I'll probably get an iPod Shuffle, but the Toshiba Gigabeat (the real thing, not Microsoft's rebadged "Zune") looks pretty good.
  • by mveloso (325617) on Thursday February 08 2007, @11:56AM (#17935554)
    Everyone in this debate, including the European governments in question, assumes that the reason the iPod was successful was its tie (or, as critics would say, lock-in) to the iTunes Music Store (iTMS) via FairPlay. Open iTMS or Fairplay, and you reduce the iPod's dominance. That's the theory.

    This, however, isn't necessarily the case.

    While the iPod and iTunes Music Store are promoted hand-in-hand, the technical (ie: you and me) know that you don't need to buy music from iTMS. The iPod is a wonderful music player; you can rip and/or load your music onto your pod in lossless or lossy formats, without DRM, if you so desire. The iTMS makes it easier to load music onto your iPod, but the iPod will play a whole bunch of formats, most of which are DRM-free.

    So why the focus on FairPlay and iTMS? Because Steve Jobs is a sneaky guy.

    The conventional wisdom is that the iTMS is a loss leader for iPods; its only reason for existence is to "trap" people into buying and keeping their iPods. It follows that if the people weren't locked into iTMS and Fairplay, they'd be free to buy other players. That's why everyone wants to force Apple to license FairPlay.

    But what if the iTMS sold music in the WMA format? What if Apple licensed FairPlay? What if Apple supported WMA on the iPod? Would that increase the sales of other music players? Would that increase the traffic to alternative music stores?

    When it's spelled out like this, the fallacy, and the answer is obvious: probably not.

    By keeping the focus on DRM, Jobs is keeping the iPod safe. The iPod isn't successful because of its tie to iTMS. It's successful because it's a good product that people want to buy. DRM is a red herring, a bargaining chip that can be pulled or offered when the need arises. By keeping the focus on FairPlay, Apple is making sure that nobody in the business is focusing on what they should be doing, namely, making a device that's better than an iPod. It's unbelievable that after 5 years, there are no players that are qualitatively equal to or better than the iPod. Likewise, in 3 years there are no music stores that are qualitatively as good as or better than iTMS.

    In the end, Apple may make more money from licensing FairPlay than from the iTMS. By being licensing FairPlay and charging a royalty per song and per device sold, Apple could take a piece of every device and song sold for the next decade or more...and they'd effectively be forced to do that by the music industry and the various misguided European governments. And as a bonus, there would be little to no impact on iPod sales. A serious win-win for Apple.

    Look for third-party Fairplay licensees after the upcoming negotiations, and watch Apple get thrown right into the briar patch.
    • Re: (Score:3, Interesting)

      by TheRaven64 (641858)
      I completely agree. There are a few tracks I've considered buying from iTMS, decided not to because of the DRM, and never got around to buying on CD. Occasionally I hear someone playing them and think 'Hmm, I should buy a copy of this,' but then never get around to it. iTMS is overpriced in the UK anyway, but expensive and DRM'd just makes it not an attractive option.

      If the indie artists who don't want DRM were able to offer their music without it (and maybe have an 'unencumbered' badge next to the trac

      • Re:excellent thought (Score:4, Interesting)

        by aaza (635147) on Thursday February 08 2007, @06:02PM (#17940888)
        How about:

        You can have DRM protecting your content, or you can have copyright enforced on your content.

        This leads to any DRM'ed content with the DRM broken (which only takes time) being copyright free, and tradeable as you wish, with no recourse for the "owner", since they gave up the copyright on the notion that the DRM would protect them.

        Plus have it legal to try to break DRM, of course.

    • Re: (Score:3, Informative)

      by 91degrees (207121)
      He knows what average means. His point is that using an average is misleading, because of the extremes.
      • Re:Law of Averages (Score:4, Insightful)

        by Anonymous Coward on Thursday February 08 2007, @08:52AM (#17933300)
        But the extremes just don't matter that much. The argument Jobs is trying to refute is this idea that there's a huge mass of iPod owners out there who are locked in due to iTMS DRM. The extreme cases certainly exist, but that doesn't demonstrate that this lock-in actually affects most users.
        • Re:Law of Averages (Score:5, Insightful)

          by Zenaku (821866) on Thursday February 08 2007, @10:05AM (#17934182)
          Nor does the average matter. The statistic that would matter is this. . . what percentage of iPod owners have at least one track on their iPod that they purchased through the iTunes store? Because any iPod owner who has a single song from iTunes is "locked in" in the sense that they can't switch to a different device without giving up music they have already paid for.

          Everything else is just a measure of how severely they are locked in, how much already-paid-for music it would cost them to switch. But even if the switching cost is to give up just one track that you already paid for -- lock in is lock in.
            • Re:Law of Averages (Score:5, Interesting)

              by Zenaku (821866) on Thursday February 08 2007, @11:04AM (#17934876)
              That's a half-good point, and I'm gonna tip my hat (half way) and give you half of a "touche'" for it.

              But it still isn't quite the same situation. When we used cassette tapes, we could play them in any cassette player we wanted, regardless of who manufactured it. A cassette was a cassette was a cassette. Our tapes became obsolete because technology changed, and offered us benefits that convinced us to switch to something newer -- cds gave us track by track access and an order of magnitude better quality -- and for a time the manufacturers all put out stereos that could play your cassettes or cds.

              In the case of digital audio, the iTunes DRM songs can only be played in the player(s) produced by a single manufacturer, and are incompatible with any other. There is no fundamental difference in technology between a protected iTunes track and a track encoded with mp3, ogg, or whatever. The issue of whose device you can play it on is the only significant difference between a DRMed track and a non-DRMed one).

              In short, your point about cassettes has to do with format lock-in. The issue with Apple's DRM is more about vendor lock in.
          • Re: (Score:3, Funny)

            by walt-sjc (145127)
            if you are one of those extremes who's spent $30k on iTunes music, you probably don't care that it locks you into the iPod as your portable player.

            Such wealthy people include Apple executives... Hmm.
        • Re: (Score:3, Informative)

          by simm1701 (835424)
          Which average do you want? mean mode or median?

          The 22 per ipod is the mean - often the most useful and the one that is frequently implies with the more ambiguous word "average" however in this case its the most useless.

          The mode usually requires wider boundries than single elements to be useful (eg 0, 1-5, 6-10, etc) but I would tend to say that the mode or perhaps the median would be the more useful average when tailoring a service to your main user base.

          Despite these figures not being announced you can bet
    • Re:Law of Averages (Score:4, Informative)

      by ZachPruckowski (918562) <zachary.pruckowski@gmail.com> on Thursday February 08 2007, @08:53AM (#17933316)
      He knows what average means, he's just saying that average is not the right figure. The distribution is very important. A 22-song average would imply at first glance that only 1-2% of people are locked in, but if the distribution was a third the listeners with 66 songs and two thirds with none, then it would follow that a third are rather locked in (they take a $60 hit by going elsewhere for their DAP needs)

      Also, DVD Jon was pointing out that Jobs's iPod figure reflected all iPods sold, not all that are functional or in use (a number that no one knows). People have been replacing iPods as they break, and have been upgrading as new ones get released. Additionally, music might be on more than one iPod, as a family might authorize everyone's computers to play everyone else's music, so that Bro and Sis can share songs on their iPods.
    • Re:Law of Averages (Score:4, Insightful)

      by uradu (10768) on Thursday February 08 2007, @08:56AM (#17933346)
      Wow, it's pretty obvious who the idiot is, especially when Jon makes such an excellent point. Another thing that makes Jobs' "we'd welcome openness" comment appear so facetious is the fact that they have done everything in their power to tie iTunes and the iPod closely together, and never the twain shall part. That has nothing to do with DRM but everything with tying the user to a specific (delivery/music/etc.) platform.
    • Re:Law of Averages (Score:5, Informative)

      by Rob the Bold (788862) on Thursday February 08 2007, @08:58AM (#17933360)

      Here, Jon, if you're reading this - learn what "average" means in the mathematical sense: http://en.wikipedia.org/wiki/Average [wikipedia.org]

      He knows what average means, and he knows that Steve was specifically referring to the arithmetic mean, because 20 billion songs/ 90 million ipods is the ~22 songs/ipod in question.

      He's just saying that using this figure is misleading. Like talking about average fuel economy by dividing all the car miles ever by total gasoline production for the last 110 years. Sure it's the average, but it doesn't really tell you anything about current mileage. Most of those cars are scrap by now, just like many of the ipods sold in the last few years.

    • Re:Law of Averages (Score:5, Insightful)

      by skibaa (995295) on Thursday February 08 2007, @09:01AM (#17933396)
      On everage, every human has one testicle and one breast. You have to learn when the average is meaningless (hint: start with http://en.wikipedia.org/wiki/Standard_deviation [wikipedia.org])
      • Re:Law of Averages (Score:5, Insightful)

        by MightyYar (622222) on Thursday February 08 2007, @09:33AM (#17933750)
        Mod parent up! DVD Jon may be a cult-hero around here (I know I like him), but he certainly isn't privy to the negotiations that Apple has had with the major labels. He's smart, not omnipotent. It would not surprise me in the least to find out that Apple's agreement with at least one of the major labels includes a prohibition on Apple selling any unprotected music.

        Jon is not an idiot, though, Mr. Parent. :)
    • by cowscows (103644) on Thursday February 08 2007, @09:29AM (#17933702) Journal
      I think that a few anecdotal cases are no more useful, and possibly less useful than statistics in this case. Sure, some guy may have bought 30k worth of music, but it hardly seems reasonable for any company to base any sort of business decision on the actions of one guy like that, when the averages are closer to $2-3 per person.

      Are there people with investments in iTMS who probably feel locked in? Undoubtedly yes. I'd guess that if you asked Steve Jobs that question flat-out, he'd likely say yes as well. But does that mean that that's Apple's motivation for including DRM? According to Jobs, it's not. Would both the iPod and iTMS store continue to do well with DRM removed? Jobs seems to think so.

      I'm not naive enough to automatically believe word for word anything that someone I don't even know says, but Steve Jobs has felt comfortable putting himself into a position where Apple may have the opportunity to drop the DRM, and the PR that would form around that opportunity would almost force Apple to do it.

      Here's a guy who's one of the big names in the industry, and he's publicly announcing the position of Apple Inc., and it just so happens that this position includes a whole lot of what the anti-DRM people have been saying all along. What is the problem with that? If you're expecting Apple to suddenly just drop all the DRM and tell the record labels to go screw themselves, then your mind is wandering outside the realm of reality, which doesn't help your cause.
    • by Chode2235 (866375) on Thursday February 08 2007, @09:37AM (#17933808)
      Maybe DVD Jon is just worried he will be out of a job. Didn't he work for months and even years to break Fairplay just so he could sell it to rival music stores? Regradless he also has his own interests that must be recognized, he is not simply a champion of free information.