Do you think this could have any negative impact for Apple? I wouldn't think so.
Those who lived by DRM will die by DRM. Sic transit G-L-O-R-I-A!
I think you are wrong to assume that the move to DRM-free music files spells the death of subscription services. These services will remain niche but they fill a market need and they require DRM. DRM is also needed for free ad-supported downloads which, with the right model, will be quite successful. Check out: http://ad-supported-music.blogspot.com/
Let's not forget that Apple spent millions on DRM and is flushing those dollars down the toilet as well. I don't think this matters though because you could look at that as the price to build critical mass in the iTunes Store. The big losers in this battle are the ones who haven't recouped that investment the way Apple has.
Another nuance, Apple's DRM-free tracks will be in AAC format, not MP3. Technically AAC is a superior format to MP3 in terms of the quality to bitrate ratio but everyone knows what an MP3 is and you can't compete with the shear number of supported devices. (darn near 100%) The good news here is that you can convert AAC to MP3 from within iTunes. (Advanced -> Convert Selection to MP3)
Thanks for the comments.
I frankly am skeptical subscription services will ever reach critical mass to justify their draconian DRM requirements. While the value proposition sounds interesting, the need to protect those subscribed songs from being used past the point of subscription makes their implementation hugely problematical, requiring such otherwise unneeded features such as tamperproof platforms and secure real-time clocks. By the time you've implemented all the security features necessary, you've made your product costs uncompetitive with players that don't require such baggage.
Regarding MP3 versus AAC, I think it's important to recognize that AAC is simply MPEG4 audio, which is also the basis of Microsoft's Windows Media format as well. And I don't agree that Apple's DRM investments are wasted at this point, since they managed to create a dominant market position using them. Apple will undoubtedly continue to use Fairplay since they just work on the majority of music players in the world -- namely iPods -- and do create a barrier to entry for competitors. Fairplay DRM also allows some segmentation of the audio market, allowing Apple to offer a lower-cost product that doesn't permit as many rights as a DRM-free product.
Thanks again for the comments,
Carl
Behind the DRM question hides the goal of DRM. Apple's history suggests that it decided upon "just enough" DRM to satisfy music corps and sell iPods—not to make hay off the sales of music as such. And they are working to eliminate even this form of DRM. Admittedly Apple's motives factor in the iPod's remarkable success, affirming that it can hold its own against competitors on a level DRM field. So Amazon's music sales will serve to fuel iPod sales.
Commenting by HaloScan
