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06 Sep 2006
Plans by social networking site MySpace to offer music downloads from unsigned bands will have only limited success without digital rights management (DRM), according to a supplier of DRM technology to mobile network operators.
Michael Bornhaeusser, chief executive at SDC, told vnunet.com: "The major labels will be happy to license their catalogues to MySpace, but only with DRM.
"The independent music to be sold over MySpace without DRM is a good way for unsigned and niche interest bands to generate some revenue, but as soon as they become successful they will sign with a major label to ensure global distribution and marketing support."
This will mean that the music available on MySpace will be of limited interest to the vast majority of its members, according to Bornhaeusser.
"The concept of using unsigned artists as business revenue was tried during the dotcom era by companies such as Peoplesound.com, iCrunch and MusicUnsigned, " he said.
"None of these companies exists today. High quality music will remain protected by DRM to secure its value and grant the return of investment for artists, labels and publishers."
MySpace's decision not use DRM to protect music will enable consumers freely to upload tracks to their iPods. Apple currently refuses to license its FairPlay restriction system to third parties.
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Do you agree?
Myspace is scaring Apple to death!
The problem with those other non-DRM sites you listed are that they didn't have the original popularity base that Myspace has. Myspace is the 3rd most popular site in the U.S. and the sixth-most-popular website in the WORLD. Did any of those other sites you listed have 106 MILLION people already signed up before they started offering music downloads? See...that is the difference. Myspace users are loyal and spend LARGE amounts of time on the site. This business will do well, regardless of the non-protected files.
Posted by: Samuel Van Eerden 09 Sep 2006
What a tool
Michael Bornhaeusser doesn't get it. Three million bands, viral marketing, no DRM. Of course it's going to be huge and guess what? Every sale directly to an indy band is going to be one less sale to the label dreck that Michael Bornhaeusser's pathetic product "protects." It should spell the end of DRM (which is going down anyway) and hopefully, will hasten the end of the major labels as well. Michael Bornhaeusser, your shift is up.
Posted by: Paul 08 Sep 2006
DRM 'doomed' without whole rights to the user!
As a music lover in both listening and playing. I have purchased 1 or 2 tracks from Microsoft's Windows Media which also use DRM. After a year my system needs updating with a new one... lo and behold the DRM stops me playing tracks I have purchased from these sites without 'downloading' the licence. AAAAAHHHHH!!! NO NO NO to DRM!!! I WANT MUSIC TO LIVE FOREVER!!! A great idea is the approach allofmp3.com took. It is logical to purchase a track according to file size and compression!! A very consumer friendly site. DRM has no interest in protecting the consumer which would turn me away from using DRM approach when choosing a format to send to listeners.
Posted by: Houston 06 Sep 2006
Not all non-DRM music sites are gone
You can get non-DRM music from Calabash Music which has been in business since 2001, selling world music by many unsigned artists (along with some major label acts). Once MySpace paves the way, even Apple may have to release their DRM death-grip of their music
Posted by: JR Rayan 06 Sep 2006
Bias is a wonderful thing
of course the CEO of a DRM vendor is going to try and protect DRM . But he had better talk with insiders at Yahoo Mashboxx and many other services that are considering Higher priced Mp3s and watermanrking .DRM only works for rental content and then it is really only affective if you embed it into hardware like a TiVO or Xbox and even then determined individuals will find the "key's" .Giving customers the lock and key does not work. The biggest retalier of online music behind iTunes is eMusic a comapny that sells unemcumbered MP3s.
Posted by: Matt 06 Sep 2006
drm
this person is full of s**t regardless of what he does. He is basically saying that unsigned music has not qaulity
Posted by: george hess 06 Sep 2006