Commentary

Thomas Claburn
 

Steve Jobs And EMI End DRM And Start Price Gouging

The deal announced today between Apple and EMI to sell unprotected digital songs on iTunes for $1.29 isn't a deal. It's a 30% piracy tax, substantially more than the 3% tax levied on blank digital audio recording media in the United States. Never mind that Jobs is right and DRM should go. Charging a third more under the pretense of higher fidelity and greater freedom is just a rip-off.

The deal announced today between Apple and EMI to sell unprotected digital songs on iTunes for $1.29 isn't a deal. It's a 30% piracy tax, substantially more than the 3% tax levied on blank digital audio recording media in the United States.

Never mind that Jobs is right and DRM should go. Charging a third more under the pretense of higher fidelity and greater freedom is just a rip-off.It's not clear how Apple will price its DRM-free albums. They're $9.99 with DRM. Apple may decide that DRM-free music will be available only on a per-song basis, but let's say the company offers complete albums for $12.99. As has been pointed out, EMI says DRM-free albums will be available for $9.99. That's reasonable.


More Insights

White Papers

More >>

Reports

More >>

Webcasts

More >>

Well, that album is probably available at Amazon.com for $9.99 or less, without DRM. Included in that price is an archival backup -- the CD itself. There's the cost of shipping, and a wait of a day or three, but orders over $25 ship for free. Or you may have already paid for Amazon Prime (free shipping all year for $70).

That's the best-case scenario. More likely, Many iTunes customers will avail themselves of the "simple, one-click option to easily upgrade their entire library of all previously purchased EMI content to the higher quality DRM-free format for 30 cents a song." They will end up paying twice for their music.

Perversely, Apple's piracy tax represents an incentive to share iTunes music, since DRM-free songs will include the price of any future debt to society incurred for copyright violations.

Don't get me wrong. Jobs and EMI deserve praise for taking this step. But I'll stick to ripping DRM-free CDs when I want music for my iPod, at least until the price is right.


Related Reading




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

InformationWeek encourages readers to engage in spirited, healthy debate, including taking us to task. However, InformationWeek moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. InformationWeek further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
T-Shirt Giveaway T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting!
Subscribe to RSS

Resource Links