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April 4, 2007

Zune to go DRM-free with EMI sometime

Posted by David Hunter at 10:26 PM ET.

Ina Fried at CNET has the word from Microsoft after the Apple/EMI announcement earlier this week:

Microsoft plans to follow Apple in selling unprotected songs from EMI, though the company won’t say just when such tracks will appear on the Zune Marketplace store.

When CEO Steve Jobs issued his open letter calling for an end to DRM, Microsoft said the total abolition of such protections would be irresponsible, since they are needed for subscription music and other new business models. However, the software maker said Wednesday that it does plan to offer DRM-free music from EMI and others.

“We’ve been saying for a while that we are aware that consumers want to have unprotected content,” said Zune marketing director Jason Reindorp. Reindorp said he did not have a time frame for when unprotected songs will be added to the store.

Since unlike Apple’s iTunes, Microsoft sells subscriptions to the Zune Marketplace where the music plays as long as you keep up the subscription, removing DRM rather puts a crimp in that business.

In other Zune news, Reindorp says Microsoft is planning new colors of “baby pink” and “watermelon red” plus a new ad blitz:

Reindorp said that the first ads were mostly about establishing the brand, while the new advertising, which includes a TV spot, focuses on features that make the Zune stand out from the iPod, such as its support for subscription music, larger screen and built-in FM tuner.

What, no social? And there’s that pesky subscription model again. Still, as we’ve observed before, just about any ads would be better than the Zune first wave.



Filed under Apple, Argo, Coopetition, DRM, General Business, Marketing, Microsoft, Technologies, Zune

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April 2, 2007

EMI drops DRM for music catalog, Apple has first dibs

Posted by David Hunter at 9:50 AM ET.

As had been rumored in February, Big Four music publisher EMI announced plans to offer its entire music catalog online without copy protection:

EMI Group CEO Eric Nicoli today hosted a press conference at EMI’s headquarters in London where he announced that EMI Music is launching DRM-free superior quality downloads across its entire digital repertoire and that Apple’s iTunes Store will be the first online music store to sell EMI’s new downloads. Nicoli was joined by Apple CEO Steve Jobs.

The hook appears to be the higher quality and at iTunes, a slightly higher price:

EMI Music today announced that it is launching new premium downloads for retail on a global basis, making all of its digital repertoire available at a much higher sound quality than existing downloads and free of digital rights management (DRM) restrictions.

The new higher quality DRM-free music will complement EMI’s existing range of standard DRM-protected downloads already available. From today, EMI’s retailers will be offered downloads of tracks and albums in the DRM-free audio format of their choice in a variety of bit rates up to CD quality. EMI is releasing the premium downloads in response to consumer demand for high fidelity digital music for use on home music systems, mobile phones and digital music players. EMI’s new DRM-free products will enable full interoperability of digital music across all devices and platforms.

Apple’s iTunes Store (www.itunes.com) is the first online music store to receive EMI’s new premium downloads. Apple has announced that iTunes will make individual AAC format tracks available from EMI artists at twice the sound quality of existing downloads, with their DRM removed, at a price of $1.29/€1.29/£0.99. iTunes will continue to offer consumers the ability to pay $0.99/€0.99/£0.79 for standard sound quality tracks with DRM still applied. Complete albums from EMI Music artists purchased on the iTunes Store will automatically be sold at the higher sound quality and DRM-free, with no change in the price. Consumers who have already purchased standard tracks or albums with DRM will be able to upgrade their digital music for $0.30/€0.30/£0.20 per track. All EMI music videos will also be available on the iTunes Store DRM-free with no change in price.

EMI is introducing a new wholesale price for premium single track downloads, while maintaining the existing wholesale price for complete albums. EMI expects that consumers will be able to purchase higher quality DRM-free downloads from a variety of digital music stores within the coming weeks, with each retailer choosing whether to sell downloads in AAC, WMA, MP3 or other unprotected formats of their choice.

Since most music on iPods doesn’t come from iTunes anyhow, it’ll be interesting to see whether the higher quality than MP3 rips of CDs coupled with lack of DRM results in more sales, but I am doubtful that it will be significant although it has to reduce the attractiveness of CDs. The biggest effect in the short term will be the positive PR for EMI and Apple and the pressure on the other players to get on board. C’mon Microsoft, don’t be shy! EMI would love to have you sign up and we won’t mention your prior affection for DRM.



Filed under Apple, Coopetition, DRM, Digital Media, EMI, Microsoft, Technologies

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February 12, 2007

Microsoft announces PlayReady mobile DRM technology

Posted by David Hunter at 1:07 PM ET.

Today, Microsoft solidified their credentials as a Digital Rights Management provider for downloadable media with the announcement at 3GSM07 of Microsoft PlayReady for mobile devices which they claim is a “Breakthrough Technology Enabling Simple Access to Broad Set of Digital Content, Including Music, Games, Video, Ring Tones and Pictures”:

Today at 3GSM World Congress 2007, Microsoft Corp. announced Microsoft PlayReady™ technology, a new multimedia content access technology optimized to meet the needs of mobile operators and handset manufacturers for digital entertainment and commerce. Supporting multiple content types, and flexible rights, Microsoft PlayReady enables operators to provide a range of new services tailored toward growing consumer interest in mobile digital media. Leading mobile operators worldwide, including Telefónica, O2, Verizon Wireless, Bouygues Telecom, and Cingular Wireless, now the new AT&T, are today indicating plans to implement Microsoft PlayReady technology.

The result of extended dialogue with the mobile industry, Microsoft PlayReady technology enables a broad spectrum of business models such as subscription, rental, pay-per-view, preview and super-distribution, which can be applied to many digital content types and a wide range of audio and video formats. Content types supported include music, video, games, ring tones and images. Audio/video formats supported include Windows Media Audio (WMA), AAC/AAC+/HE-AAC, Windows Media Video (WMV), and H.264. Microsoft PlayReady enhancements make it easier for consumers to move their content between their devices, giving them a new level of freedom with their digital content. This technology will be available in the first half of 2007 for handset and device implementation.

Wireless delivery of content to handsets continues to grow rapidly, underscoring the need for compatibility and interoperability. To address this requirement, Microsoft PlayReady has been designed to be fully backward compatible with Windows Media DRM 10, allowing devices that support Microsoft PlayReady to access content using Windows Media DRM. Microsoft will also provide an interoperability program so content may flow to qualifying DRM and content protection technologies.

I guess Microsoft isn’t joining Steve Jobs’ “no DRM” bandwagon any time soon, but that’s no surprise and in fact, the “interoperability program” mentioned in the press release seems to play up to the European governments that have Jobs so vexed.

Also interesting, but still forthcoming, will be the details on whether PlayReady actually plays nicely with the old Microsoft PlaysForSure DRM specification (based on Windows Media DRM 10) which some current mobile phones support, not to mention the new and incompatible Zune DRM (aka “Microsoft’s future“) which presumably will be on the rumored Zune Phone.



Filed under 3GSM07, AT&T, Argo, Cingular, Conferences, Coopetition, DRM, Digital Media, Media Player, Microsoft, PlayReady, PlaysForSure, Portable Media Center, Technologies, Verizon, Windows Mobile, Windows Mobile 6, Zune

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February 9, 2007

Microsoft Weekly Miscellany, February 9, 2007

Posted by David Hunter at 10:38 PM ET.

Some Microsoft news items from this week that did not find a post of their own.

Microsoft’s Ben Fathi says Vista’s “no public codename” successor (until recently called Vienna) is coming in 2 to 2.5 years and will have some “fundamental piece of enabling technology” although Microsoft isn’t exactly sure what it is. There’s always WinFS! Update: Microsoft backpedals on 2/13 in a statement from Kevin Kutz, Director, Windows Client:

We are not giving official guidance to the public yet about the next version of Windows, other than we’re working on it.

If you’re collecting Vista compatibility glitches there were some doozies reported this week including Apple’s iTunes (and more), Nvidia graphics drivers, and MIT tech staff warning professors and administrators at the school “not to upgrade desktops or laptops to Microsoft’s new Windows Vista operating system because the software isn’t yet ready for ‘productive and safe computing,’” due to incompatibilities with their standard commercial and internal applications.

Aside from Nvidia who should have been better prepared for the launch, these are actually pretty much par for the course despite the adverse press. Commercial application owners like Apple have bigger fish to fry than tracking the exact ship schedule of a Microsoft operating system, but will generally catch up within 90 days of shipment. Internal institutional applications like those at MIT and elsewhere are unfortunately often treated as merely expense items and developers are forced to take a even more leisurely approach.

Microsoft Says They Like DRM in response to Steve Job’s open letter. Meanwhile, big four music publisher EMI appears to be testing the DRM free download waters.

Paddles, CLEAR! ……………THUMP! MSFTextrememakeover waxes indignant over the recent decline in Microsoft’s share price.

EC rebuffs Microsoft over open-source report:

The European Commission has resisted efforts by Microsoft to make it abandon its report into open-source software, it was revealed this week. But the Commission was swayed into allowing a 10-day period for feedback before completing the report.

Previously mentioned here.

Microsoft Speaks Out on Russian Piracy Prosecution and frankly they need to work on their story. So far Microsoft had avoided the headlines like “RIAA sues grandma” but that can’t last forever.

Microsoft to Share Ad Revenue With Casual Game Developers. Good idea.

Windows Live OneCare fails VB100 test.

Microsoft bumps support prices for Windows, Office.



Filed under Apple, Argo, Coopetition, DRM, Digital Media, Financial, General Business, Governmental Relations, Investor Relations, Legal, Media Player, Microsoft, OS - Client, Office, Office 2003, Office 2007, Open Source, Piracy, Public Relations, Technologies, Windows 7, Windows Live, Windows Live OneCare, Windows Vista, Windows XP, Xbox, Zune

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