Dan Sabbagh, Media Editor
Win tickets to the ATP finals
Universal Music, the world’s largest record company, is preparing to experiment with selling digital music without the existing levels of copy protection.
The company behind Snow Patrol, 50 Cent and Amy Winehouse wants to see if selling music without “digital rights management” protection is outweighed by the financial rewards. An announcement is expected in a few weeks.
The willingness of the Vivendi-owned Universal to experiment comes two months after EMI said that it would take the plunge in partnership with Apple. Some rivals, such as Warner Music, believe that such a move could reopen the floodgates for internet pirates.
A final decision from Universal is due later in the year, after the test programme is completed. Rivals such as the second-ranked SonyBMG acknowledge that if the market leader changes its stance, neither it nor fourth-ranked Warner Music will be able to persist with the same digital safeguards.
The issue remains contentious even inside Universal, with some executives, particularly in its French division, already testing the sale of music without copy protection. Others, including Doug Morris, the chief executive, are far more cautious.
Universal is also reluctant to work with Apple, the leading digital music retailer, despite reports to the contrary in the United States. Apple wants the music industry to give up both copy protection – theoretically permitting unrestricted, illegal copying – in return for charging higher prices.
Digital rights management technology has a range of purposes. Apple’s technology is often incompatible with others, meaning that songs bought from the iTunes store cannot be played on other music players. Other digital music stories, such as HMV’s, cannot sell downloads to iPod-owners.
It also incorporates copy protection that ensures it is not possible to pirate songs simply by e-mailing them to friends.
Other music companies, most notably Warner, would like to see Apple simply make its product compatible with all music stores, while retaining restrictions on copy protection – or develop alternatives elsewhere.
This week, Warner reached an agreement with Lala.com, which is allowing users to share music for free in return for the record company getting a radio-style per-play royalty.
EMI’s unprotected songs, priced at a premium 99p a track, went live on Apple’s iTunes last week. Pink Floyd’s Dark Side of the Moon reached No 10 in iTunes’s American chart and No 5 in Britain as a result, although no other sales figures have been released.
Universal also wants to protect the growing success of the emerging market for downloading music to mobile, which has taken off particularly with American urban music.
Universal’s Chamillionaire has well over three million ring-tones for his single Ridin’. On some estimates, not accepted by EMI, sales of trial unprotected songs reached only a few hundred thousand units. That has led the New York-based music company to wonder whether consumers are that interested in unprotected music.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
The UK's leading alternative to showroom finance.
Finance packages tailored to your needs.
Minimum loan of £15,000
Car Insurance
c£100,000 + car, bonus & bens
Lord Search & Selection
Midlands
Competitive
Barclaycard
Competitive
EVERSHEDS
London and Manchester
£80-95,000
Clay McGuire Executive Selection
Moments from Battersea Park.
For sale with Winkworth.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.