Music industry pushing Apple, Microsoft to make DRM ‘interoperable’

“The music industry is pushing bitter technology rivals — most notably Microsoft and Apple — to shake hands in the interest of promoting digital downloads, Billboard has learned. Hardware makers and digital format developers, including many traditional adversaries, are engaged in private talks aimed at meeting the music industry’s goal of compatibility among competing digital music devices by 2005,” Brian Garrity reports for Billboard.

“‘There’s a substantial discussion going on among these companies about interoperability,’ says Paul Vidich, executive VP of strategic planning and business development for Warner Music Group. Consumers are embracing commercial digital music in increasing numbers, and the trend is likely to be aided by a Pepsi-Apple promotion launching Feb. 1 during Super Bowl XXXVIII. But incompatibility among certain digital music services and portable players remains an obstacle,” Garrity reports.

“‘Consumers are going to demand that there be interoperability in devices and software players,” Vidich says. Executives with knowledge of the talks say much of the focus is on transcoding — the process of converting a file from one format to another,” Garrity reports. “It is impossible right now for consumers to directly convert a file protected by one type of digital rights management (DRM) into another type of secure file.”

Garrity reports, “While this is not specifically an Apple and Microsoft matter, many of the practical issues center on compatibility between the two tech giants. Music from Apple Computer’s iTunes Music Store — the leading seller of digital tracks — cannot be transferred directly to any portable device other than the iPod. Those who compete with iPod by and large support Microsoft’s Windows Media Audio (WMA) format. At the same time, tracks from every other legitimate service — a field that includes Napster, MusicMatch, RealNetworks, Wal-Mart and Sony — are incompatible with the iPod. To load iTunes tracks on a device other than iPod or to load songs from a rival onto Apple’s device, consumers must burn the tracks to a CD and then rip the tracks from the CD back to the computer in the MP3 format.”

“Executives at some device makers — such as Richard Bullwinkle, a senior product manager at Rio Audio — have complained that Apple has been resistant to overtures about making secure iTunes files compatible with other devices,” Garrity reports. “With Apple controlling much of the nascent legitimate digital music market, the onus for concessions in the compatibility debate largely falls on the company — a prospect one rival executive likens to ‘unilateral disarmament.’ “‘Increased operability is great for consumers. But if you’re in Apple’s situation, it’s not in your interest to do this,’ says a source.”

Full article here.

MacDailyNews Take: Apple has the number one legit online music download service with their iTunes Music Store. Apple also has the number one player, the iPod. Shouldn’t the rest of the industry embrace the Apple standard, just like every other standard that has come to the fore in other areas; or is Apple a special case to these people? Don’t change a thing Apple – you’re winning the war.

38 Comments

  1. Similar things have been said for Apple computers and clones, “Apple should license OS X to intel”, or “Apple should start offering G4s at $600 and laptops at $900, then they will truly see market share rise”

    Yeah, and Apple would be no different in quality than any other PC maker. This time with iPod and iTMS Apple has the quality AND the market share and everyone is screaminp: shame Apple, open up the market!

    Totally stupid. Want to listen to iTMS tracks in high quality? get iTunes. Want to carry with you? get an iPod. Monopoly? Are you kidding? There are hundreds of other products around, go ahead.

    Not the same quality with respect to Apple? Oh, and since when this is NEWS?

  2. dark, the problem is not about playing AAC format without DRM, that can be done already. iPod is not bound to play only music from iTMS. Fact is competitors have to convince RIAA that their DRM is valid, which is another issue entirely.

    AAC is not Apple property, the combo with Fairplay is (sole licensee).
    Apple supporting WMA is shooting their own foot at the moment. When iPod will have made all others competitor rust in a drawer (by simply comparing quality) then maybe but then, who will still need that?

  3. It’s too soon in the history of digital music to start calling anyone a monopoly.

    The music-seller’s don’t want iTMS to adopt WMA, they want to license Fairplay from Apple so that their music sites can be iPod compatible. Making iPods WMA compatible would serve the same purpose, but would do nothing for DRM interoperability. They want Fairplay/AAC. Apple is holding off for good, sound, business reasons.

    But Apple will capitulate soon. Licensing Fairplay will probably keep the power with Apple. Their competitors juke software will have to work with Apple’s DRM server to control restrictions, and that will give Apple the power to determine what the restrictions will be for everyone who uses Fairplay (Labels willing, of course).

    The player-makers also want AAC/Fairplay license because they want to be compatible with the bulk of the music files out there, and that will soon be AAC/Fairplay. (They are already the bulk of *legal* music files.) Forcing Apple to add WMA capability to iPod would only weaken their already weak position.

    The only company that wants Apple to adopt WMA, either on iPods or iTMS, is Microsoft. They would love to be the company deciding whether you can burn that playlist or not. They would probably institute a program whereby you could pay them for a license “upgrade” to get more burns or whatever.

    In any case, everyone but M$ wants Apple’s Fairplay/AAC combo–either to get at the huge iPod market or the huge iTMS market.

  4. Seahawk: Last I heard, we weren’t sure whether Apple was sole licensee of Fairplay, or bought it outright, or developed their own with the same name. (They might have worked a deal for the name). All we know is that Veridisc (??) Fairplay site looks dead and their parent company doesn’t mention them.

  5. One thing to keep in mind is, interoperability is coming. Apple cannot stop it. If Apple does not act on it, MS will eventually work out a deal with Record company, so they can write a code to transfer AAC/Fairplay DRM to WMA. MS won’t able to disable the right on AAC/Fairplay, but they will able to get agreement with record company, so users can transfer the music to WMA with its DRM in place.

    Apple should consider how to interoperate with other music format on their term, not on someone else. I don’t think making iTune compatible with WMA is the answer. This will only help WMA music stores. The answer is probably making WMA compatible with AAC/Fairplay. Then Apple will have control over what WMA player can do, not MS, like allowing WMA to play AAC/Fairplay and buy music from iTMS, but only allow download to iPod, hPod or any other third party company who wants to sell iPod.

  6. Kenny, I meant sole licensee as a matter of fact, not as owners of the license. It is pretty murky. They might have total rights for a specific amount of time but I guess that would be known by now.
    As you say, it seems no one could get first hand info from Veridisc.

  7. s: ” If Apple does not act on it, MS will eventually work out a deal with Record company, so they can write a code to transfer AAC/Fairplay DRM to WMA.”

    I seriously doubt this will be ever possible without signed accord from Apple. Moreover, if by that you imply Micros**t is willing to face a lawsuit from Apple, think again, it is not the right moment to act – again – as a monopoly.

  8. MS can license AAC from http://www.iis.fraunhofer.de/amm/legal/index.html

    I thought MS can license Fairplay from Veridisc, but I guess they sold Fairplay to Apple. MS can still go around Fairplay using same technique used by a programmer in Norway(?). As long as the record labels approve use of the technique, I don’t think Apple can prevent anyone from resampling the music. I doubt Fed will be problem either, since MS is not using its position as a monopolist to kill/prevent the competition, it is opening up the market to more competition.

  9. Here is some more idea on WMA player plug-in Apple should provide.
    1) Installing the plug-in will install QuickTime & iTune.
    2) The plug-in will allow WMA player to playback AAC/Fairplay tune using QuickTime.
    3) If downloading WMA tunes to iPod, the plug-in should ask the user if they want to convert WMA tune to AAC/Fairplay. The plug-in will convert the WMA to AAC and remove DRM record in WMA for that tune (iPod will only play back AAC, so the tunes need to be converted.). The record added to iTune library, so the converted tunes show up in iTune.
    4) The plug-in should add a button in WMA for iTMS. When user clicks the button, launch iTune.
    5) Allow WMA to access iTune library by clicking on import music from iTune (this can be done by allowing WMA player to list library in iTune).

    Note: The plug-in does not allow conversion from AAC/Fairplay back to WMA. I’m sure MS will be implementing that part.

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