Original URL: http://www.reghardware.co.uk/2007/01/22/real_boss_drop_drm/
MidemNet Real Networks' CEO Rob Glaser summed up the music business' ambivalence towards DRM this weekend, and said digital music needed the shackles taken off.
Glaser predicted that the first year of DRM-free downloads would be the first year digital overtook physical. And only with DRM-free music would customers get the flexibility they deserved, he added.
"We need to move to a trust model," he said.
Glaser said he expected a "transactional watermark" to supersede DRM within "one to five years".
He still said DRM had a place on subscription services, such as...Real's Rhapsody service.
To get access to a "jukebox in the sky" said Glaser, DRM was reasonable, otherwise people would just pocket the jukebox and never come back.
But then he would say that, wouldn't he?
The tepid adoption of "legal" downloads hasn't matched the fall in physical sales. Illegal downloads still outnumber legals by 40 to 1, according to the big label representatives, although insiders put the figure as high as 100 to 1.
As an indication of how insignificant digital downloads really are to the music business today, Apple's four year slog with its iTunes store has grossed it less than $2bn.
Now check out Steve Gordon's report (http://www.theregister.co.uk/2007/01/08/steve_gordon_ringtones/) on the battle over ringtones royalties. Ringtones generated $6.6bn last year of which the labels keep between 20 and 40 per cent, and publishers another 10 per cent. In other words, ringtones in one year alone generated around 150 per cent more than iTunes has managed in four.
No wonder it's so hard to find anyone who thinks this model is the future of music. It probably isn't even the future of iTunes. ®
Indies unite to challenge Big Four digital deals (http://www.theregister.co.uk/2007/01/20/indie_labels_unite/)
Universal exec - say goodbye to the old record co. (http://www.theregister.co.uk/2007/01/20/kenswil_license_stuff/)
RIAA talks flat fees, and how they turned the French (http://www.theregister.co.uk/2007/01/21/riaa_reg_interview/)
Microsoft wants Wi-Fi 'filling stations' for Zune II (http://www.theregister.co.uk/2007/01/22/zune_update/)
Real and MTV in joint bid to be crushed by iTunes (22 August 2007)
http://www.theregister.co.uk/2007/08/22/real_and_mtv_merge_music_services/
RIAA tried to shake down 10-year-old daughter, suit claims (27 June 2007)
http://www.theregister.co.uk/2007/06/27/woman_sues_riaa/
Phew! Tila Tequila isn't the future of music (12 April 2007)
http://www.theregister.co.uk/2007/04/12/tila_tequila_itunes_flop/
RIAA invites students to settlement barn dance (26 March 2007)
http://www.theregister.co.uk/2007/03/26/riaa_letter_campaign/
University snubs RIAA (23 March 2007)
http://www.theregister.co.uk/2007/03/23/university_riaa_snub/
Copy-protection flummoxes German punters (20 March 2007)
http://www.theregister.co.uk/2007/03/20/musicload_drm_problems/
Prediction: one day you will reduce total storage (12 February 2007)
http://www.theregister.co.uk/2007/02/12/company_data_storage/
EMI set to drag majors into DRM-free future (9 February 2007)
http://www.theregister.co.uk/2007/02/09/emi_ditching_drm/
Dutch consumer chief puts Apple through the mill (25 January 2007)
http://www.theregister.co.uk/2007/01/25/dutch_out_of_tune_with_apple/
France and Germany join anti-iTunes crusade (23 January 2007)
http://www.reghardware.co.uk/2007/01/23/itunes_slagged_again/
Half the music on iPods stolen, alleges Real boss (11 May 2006)
http://www.reghardware.co.uk/2006/05/11/half_ipod_music_stolen_real_says/
Real rhapsodises over the net (6 December 2005)
http://www.theregister.co.uk/2005/12/06/real_networks_rapsody/
Microsoft gets Real for $761m (11 October 2005)
http://www.theregister.co.uk/2005/10/11/realnetworks_microsoft_settle/
Real to 'free' iPod from iTunes Music Store (26 July 2004)
http://www.theregister.co.uk/2004/07/26/real_drm_switcher/