Earlier this month, rumors began swirling around EMI’s supposed efforts to extend the olive branch to online music retailers by considering the prospect of making the company’s audio catalog available in a non-DRM hindered format.
When the Los Angeles Times has more on the true motivation behind EMI’s anti-DRM initiative:
EMI demanded an upfront payment to compensate for its risk in releasing the music without software that prevents copying, the people said. The retailers countered with a lower offer, which London-based EMI rejected, and negotiations are now on hold, the people said.
I should’ve known it was too good to be true. In a moves that reflects EMI’s complete misunderstanding of economics, the company wants some sort of monetary collateral to ensure a profit should the inception of non-DRM’d music lead to a decrease in overall profits. Nevermind the fact that all figures point to an exponential increase in music sales without the dead weight of DRM hanging around the necks of the popular online music retailers.
Up front balloon payments also have a negative effect on the consumers themselves, as it could lead to an increase in music prices as a whole.
Ken Fisher at
So it appears that EMIs efforts to spur talks aimed at pulling the plug on DRM were motivated from less than idealistic intentions, and as such have passed away into the digital abyss – at least for now.
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