Ecommerce Times: Apple’s iTMS ‘a DRM watershed event’

“Apple’s iTunes service does use DRM technology — for example, users may not e-mail downloaded music files to one another, although they may burn unlimited copies of files to CDs. Still, the company’s approach is far less restrictive than that of its competitors,” writes Alan S. Horowitz for

“Last April, an event occurred that may prove seminal in hindsight. ‘If I had to pick a DRM watershed event, it’s the iPod with iTunes,’ VeriSign principal scientist Thomas Hardjono told the E-Commerce Times, referring to Apple’s move to sell songs over the Internet for 99 U.S. cents each, and $9.99 for most albums. ‘It’s a watershed because it has shown the record labels, who are used to making a lot of money out of a CD, there’s an alternative business model,’ Hardjono said. ‘The labels used to accuse the peer-to-peer networks of killing the legitimate music business. Apple has shown there’s a middle way. If you make it easy enough and cheap enough, it will sell,” Horowitz writes.

“Many of [Apple’s iTunes Music Store’s] rivals charge monthly subscription fees, restrict the number of times a downloaded file can be burned to CD, or make downloaded files inaccessible if a user’s subscription expires. Apple does none of those things,” Horowitz reports.

Full article here.


  1. how about the music business owning up to the fact that the music that is out now SUCKS? On top of that, Also, I heard they shipped 25% less cd’s in 2001 than previous years. geee, I don’t think it’s file sharing that is the only problem.

    On the flipside, yes, file sharing is illegal and peeps do have to pay for something. But if the record companies were smart, they would realize they could sell MUCH MORE if they just lowered their prices.

  2. How can opinion be fact?

    I like lots of new music. You’re entitled to your opinion, but sheesh. Fact?

    I bought a CD at Best Buy today, a recent release. $9.99. Ripped it with iTunes when I got home. No difference in cost as compared to iTMS, plus I get superior sound quality, I can listen to it in the car (I don’t have a burner yet), and I get the CD booklet.

    Doesn’t sound that bad to me.


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