If the Business Week report will prove to be true, Sony BMG
will be the latest music company to join the DRM-Free movement initiated last
year in April by EMI.
EMI announcement has followed an open letter wrote by Apple’s
CEO, Steve Jobs, who said that iTunes was born with the DRM stigma because the music
companies wanted to drive customers away from piracy. Apparently they failed.
Since the tunes will be stripped off their DRM software,
they will be compatible wit almost any MP3-player and music-phone sold out
there, including of course the iPod.
Quoting unnamed sources, Business Week announced that Sony
BMG’s plans will be announced in the coming weeks after the SuperBowl promotion
announced by Pepsi and Amazon will kick off on February 3.
Last month Pepsi announced that starting with Super Bowl
Sunday, it will allow customers to download one free MP3 track after collection
five song codes from soda bottles’ caps. The company said the promotion will
include up to 5 billion bottles and that customers would have to visit a
specific redemption store on Amazon’s web site.
The last SuperBowl promotion from Pepsi had taken place four
years ago, when the company has joined its forces with Apple’s iTunes. Sony has
been experimenting with DRM-free songs for about six months and as the studies
have revealed that a growing number of music fans are downloading their
favorite songs rather than buying CDs, the music companies are forced to find
new channels to promote and sell their music.
Last month after Christmas Amazon announced that it would
begin offering downloads from Warner Music Group Corp.'s song catalog. Universal
Music Group joined EMI in the DRM-free revolution in August.
Also, Sony BMG’s move follows after in August last year, Sony
has unplugged its proprietary format for music files,
ATRAC, during their press event at IFA 2007 in Berlin.
ATRAC (the sort for Adaptive Transform Acoustic Coding)
standard was adopted by Sony in 1992 for MiniDisc and the latest version, ATRAC
Advanced Lossless was introduced in 2006. Sony claimed that ATRAC Advanced
Lossless can provide compression for a CD music source at approximately 30-80%
that of the original size without any quality loss.
Still ATRAC standard failed to become popular despite Sony’s
efforts and it was considered as the main reason behind poor Walkman sales.
Also during the same event in Berlin it was announced that by March 2008
Sony will close its Connect music store, which was launched in 2004 as a
response to iTunes Music Store.
As some analysts noted it’s unclear if Sony BMG’s catalog of
DRM-Free tracks will be available on iTunes or Amazon. Currently Amazon's
"MP3 Store" is one of the biggest collection of DRM-free music on the
Web, with over 2 million songs from more than 180,000 artists.
Also, it’s very possible that Sony BMG will open it own
music store or it will sign a distribution deal a social networking site as other
music companies have done in the past. With Sony BMG dropping the DRM the
pressure on iTunes is increasing, and there were rumors that Universal Music is
trying to take on iTunes with a new music service.
In October, BusinessWeek reported that Universal chief Doug
Morris is enlisting other big music players for an online service, called Total
Music. Among those mentioned is heavyweight Sony BMG Music Entertainment and
Warner Music Group, another potential partner.