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EMI To Release Restriction Free Music
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Posted by Sandy White on: Monday 2 April 2007
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EMI Group PLC. announced a deal with Apple Inc.'s iTunes Monday
To see its music catalog without the anti-piracy protection known as DRM restrictions.
During a press conference Monday in London, Eric Nicoli, the CEO of EMI Group, said that he expected music sales for his company to increase because the DRM-free tracks will have better sound quality and will be easier to transfer from one device to another.
"Many consumers find it frustrating that they don't have interoperability," Nicoli said. Tracks without DRM will cost consumers extra however - songs without DRM will sell for $1.29 a download on iTunes versus standard prices of 99 cents per download.
James McQuivey, a media technology analyst with Forrester Research, said Apple's agreement to charge more than 99 cents for a track is significant because Jobs has been extremely critical of the music companies' efforts to increase the price for digital downloads and has rebuked the labels' attempts to increase prices in the past.
McQuivey added that this deal makes perfect sense for Apple since it should allow Apple to sell more downloads on iTunes because it will be easier for consumers using any music device, not just the iPod, to use iTunes. And EMI should benefit, McQuivey said, from higher prices as well as the perception that is a more technologically savvy and consumer friendly company.
"This is a perfect marriage of interests," McQuivey said. "It satisfies everybody's needs."
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