Wednesday, February 7, 2007

But As A Business Model, It's Scary....


Steve Jobs has replied to European regulators, investigating whether Apple should be ordered to license its digital rights management software to its competitors, by suggesting that record companies "should consider dropping the anti-piracy restrictions they impose on music downloads."
"If the big four music companies would license Apple their music without the requirement that it be protected with a DRM, we would switch to selling only DRM-free music on our iTunes store. Every iPod ever made will play this DRM-free music.
I suspect that he's correct, and that sales of DRM-free music would significantly exceed current music sales levels. While some would abuse the system, I would expect music industry profits to nonetheless increase due to the higher levels of sales.

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