Jobs: the future is DRM-free music, not rental
iTunes will not be offering music by subscription anytime soon, despite calls from the music industry to do so, according to Apple CEO, and computer industry pinup boy, Steve Jobs.
“Never say never, but customers don’t seem to be interested in it. The subscription model has failed so far,” Jobs told Reuters.
Steve Jobs also reaffirmed his commitment to DRM-free music, stating that he expects that more than half the songs offered on iTunes will be available in DRM-free versions by the end of 2007.
This if of course not what the big music labels want to hear. Since a subscription music business model, would provide them with an ongoing revenue stream.
In February Jobs started lobbying the big four music labels to offer DRM-free music.
“Though the big four music companies require that all their music sold online be protected with DRMs, these same music companies continue to sell billions of CDs a year which contain completely unprotected music,” Jobs wrote at the time.
“That’s right! No DRM system was ever developed for the CD, so all the music distributed on CDs can be easily uploaded to the Internet, then (illegally) downloaded and played on any computer or player.”
So far, Apple has managed to negotiate a deal with EMI to sell DRM-free music.
What makes this whole thing so interesting is how poorly Apple has managed its DRM strategy, despite Jobs now portraying himself as a champion of DRM free.
Apple has been under attack by European countries for forcing iPod owners to use iTunes (regulators have even complained that Apple doesn’t offer refunds). Other commentators have attacked Apple for refusing to license its Fairplay DRM system, which means that songs bought from Apple can only be played on PCs and Macs running iTunes.
So is Jobs a cynical politician, using the DRM-free crusade to posture for the EU regulators, as well as to appear to be a champion of the people in the face of the backward-looking music industry? Or is Jobs simply a shrewd business man, who has simply come to see that the future of music is DRM-free?
It’s hard to know for sure — and maybe both scenarios are true – but with iTunes capturing 70% of legal-music-download market, Steve Jobs is going to have a massive influence on how the industry develops.
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