All the rumors were true – at least the ones about EMI dropping DRM. The stories are everywhere, but here’s a good piece from TechCrunch and here’s the WSJ (subscription required).
Cliff Notes version:
* The entire EMI digital catalog will be DRM free on iTunes
* Songs will sell for $1.29 apiece, $.30 more than the DRM versions
* DRM-free songs will be encoded at 256 kbps, compared to 128 kbps for DRM versions
* The price of entire albums will remain unchanged, even though they will be DRM free, and available in the higher quality
WSJ digs into the story a bit:
Privately, most labels rejected the idea out of hand, but EMI, the world’s third-largest music company by sales after Universal Music Group and Sony BMG Music Entertainment, already was quietly exploring dropping DRM. EMI has struggled to overcome poor results and a laggard digital strategy, potentially contributing to its willingness to take a bold stance on DRM.
EMI temporarily shelved plans to drop DRM after various iTunes competitors declined to guarantee significant “risk insurance” payments designed to offset potential losses from the move. It is unclear whether Apple has guaranteed any such fee.
So… will you culling your iTunes collection to replace purchased EMI tracks with the new DRM-free versions? I might…
