Piper Jaffray: ‘less than a 25% chance’ music labels will heed Apple CEO Jobs’ call to drop DRM

“Piper Jaffray analyst Gene Munster on Wednesday estimated there is ‘less than a 25% chance’ the major music companies will drop their online, anti-copying software requirements, as suggested by Apple Inc. Chief Executive Steve Jobs,” Rex Crum reports for MarketWatch.

“On Tuesday, Jobs issued an open letter, calling upon the music industry to stop requiring the use of so-called Digital Rights Managmement technology,” Crum reports.

Crum reports, “Jobs said that Apple would embrace a DRM-free online marketplace “wholeheartedly,” and that the music companies would actually sell more music without the use of DRM.”

Full article here.

Related articles:
Apple’s Jobs jolts music industry; Zune exec calls Jobs’ call for DRM-free music ‘irresponsible’ – February 07, 2007
Dvorak: Apple CEO Steve Jobs is dead right about DRM – February 07, 2007
Apple CEO Steve Jobs’ posts rare open letter: ‘Thoughts on Music’ – calls for DRM-free music – February 06, 2007

23 Comments

  1. But, the important thing is Jobs made this statement which puts him in the position of defender of the masses and let’s iTunes off the hook. It’s a perfect PR move.
    “I’d give ’em away, but my wife won’t let me!”

  2. i’m sorry, but what’s stopping me from starting my own “record label” now that the Apple Corps problems are gone?

    I mean, if i want to sign up the next American Idol to an iTunes contract? Sell mechandise and videos and songs exclusively on iTunes in mp4/AAC format that can be played on any player in the world?

    Nothing. And when i start doing this, it will make the current music companies shit in their pants.

  3. Here is the trick to the monopoly:
    1. Create it.
    2. Exploit it.
    3. When others complain, point the finger at a third party and say it´s not my fault I have a monopoly, I would change it but all the people I lined up to help set up my monopoly won´t let me change it. Gosh-er-roo I just want to do what´s right for the people but my hands sooooooo tied.

  4. Okay big 4, here’s your chance!
    You claim Apple/Steve has too much power over you? Here’s your chance to put an end to that.

    The balls in your court. — If you have them ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  5. Perhaps Steve has a plan…

    More radical surgery for the industry? Perhaps a top-to-bottom rethink of the way in which artists and the industry are remunerated for their work.

    I can’t imagine what it might be, but it would not surprise me if Apple comes up with something creative which will seem obvious to all of us after the event… An announcement of something radical in conjunction with a Beatles tie-in – well that could be fun!

    As an aside, does anyone else see that iTunes and Apple TV marks the beginning of the end for cable TV companies – and perhaps free-to-air TV as well?

  6. Apple is fully positioned to take the advantage which ever way the music industry chooses to go.

    If the music industry wants to write the code for DRM, let them. Even auto companies sell vehicles with locks. I think that the music labels should develop their own impervous DRM if they’re so set on it. Funny thing, locks on cars haven’t stopped thefts either. I wonder what can be learned from this? Then again, most citizens don’t steal cars, too, right?

  7. Apple, just go ahead and license FairPlay already, but at terms that are profitable for you. Then in another five years, when the iPod and iTunes Store have an even bigger market share, you can say “see, an open DRM system didn’t do squat”, and we’ll at least have the benefit making AAC the de-facto standard instead of WMA. Wouldn’t it be great if Microsoft and it’s partners started selling FairPlay AAC audio files instead of PlaysForSure WMA?

    The truth of the matter is, regardless of which way Apple goes (removing DRM, or licensing FairPlay), it will only lead to the iPod and iTunes store dominating their markets even further.

  8. Oh yeah, and after Apple licenses FairPlay and wins the format war, they can drop support for Windows and force people to buy Macs if they want to remain compatible with current and future music. Ah, wouldn’t that be sweet irony!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.