In Businessweek - iTunes has been accused of behaving like a monopoly by preventing iTunes songs from running on other media players. It was a huge frustration for consumers when some of the labels released CD's that couldn't be played or copied on a computer. More and more consumers are upset by DRM restrictions and the lack of interoperability with digital music and devices. In a recent digital music conference that I attended I was surprised to see that many of the industry players were still not seeking any solutions for this issue, which puts a strong focus on how out of touch they are with consumer needs.
The solution? Alternative models need to be explored - including the potential of getting rid of DRM altogether and creating associated models for the artists, labels and etailers to earn revenue will be key. eMusic is the #2 player in online music behind iTunes and they challenge the need for DRM, their files are unrestricted. It reminds me of the early days of open source (vs. closed) software. Today the labels have an opportunity to shape the direction of where DRM goes, eventually the consumer will vote with their wallet and that window will start to close.
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