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RealNetworks goes DRM-free

So RealNetwork announced this morning that it is just the latest online music service to offer DRM-free MP3 tracks. What's interesting about this is the press they're getting: Apparently no one realizes that the Rhapsody subscriptions still use DRM. Anyhoo, here are a few links:

Taking the Wraps off the New Rhapsody
BusinessWeek Online

Digital media concern RealNetworks will announce on June 30 a sweeping expansion of its music store, including the launch of its long-awaited partnership with Verizon Wireless that will bring its Rhapsody music subscription service to millions of Verizon Wireless customers.

Additionally, RealNetworks will join the ranks of online music sellers like Amazon in selling MP3 music files without copyright-protection lock technology known as digital rights management, or DRM. Amazon has been selling DRM-free MP3 songs since last year. RealNetworks will begin aggressively marketing its new offerings under the phrase "Music Without Limits."

Apple has been offering DRM-free songs via its iTunes store for some time, but as yet has only EMI in its corner. Rhapsody's songs, as MP3 files, will be compatible with practically every digital player on the market, including Apple's iPod and iPhone product families. Its catalog of DRM-free music will rival that of Apple's.

Until this point, Rhapsody has generally been known as a subscription service, where customers buy memberships for a monthly fee, usually $12.99, then check out music from the service and listen, mostly from their PCs.

The company says it delivers about 5 million songs a day to its subscribers. For $2 more per month, customers can put their music on portable digital players, including those from SanDisk.

Rhapsody to challenge iTunes by embracing the iPod
Reuters

Digital music seller Rhapsody is launching a $50 million marketing assault on Apple's iTunes, offering songs online and via partners including Yahoo Inc and Verizon Wireless, Rhapsody said on Monday.

The songs will be sold in MP3 format, which means users of the Rhapsody service will be able to play them on iPods.

"We're no longer competing with the iPod," Rhapsody Vice President Neil Smith said. "We're embracing it."

Yeah, sort of. Obviously, an iPod-compatible subscription service would be a much bigger deal. I still feel that Apple could make this work, though it would have to cost $9.99 a month or less. Maybe Apple's success with the iPhone 3G pricing model—where a price hike is disguised by a lower upfront cost and higher monthly fees—could be  applied to the iPod market as well.

The press release can be seen here.

Comments

 

RunTimeError said:

People still use Real?

June 30, 2008 10:09 AM
 

subzerohitman721 said:

I haven't used real player since 2002. So many of the worse functioning or non-functioning machines I had to fix were contaminated with that funky program known as Real. I do not recommend it to anyone.

None of the competing networks such as Rhapsody, Napster, or Zune has really done anything to switch off of iTunes. While I do hate the DRM, thats clearly the recording industry's problem. They were so worried about piracy, they screwed all intial offerings. Now that iTunes is a smash hit, now they want to choke iTunes off.

I really wish the U.S. would ban such restrictions and restore some of our copyright uses. We could copy and trade with tapes and CD's in the early days. Then the recording industry used that as an excuse for sagging sales and piracy. Even when they were ripping off consumers with inflated prices.

This is definitely not a game changer as Real says. I'm sticking with iTunes. Very happy with the service.

June 30, 2008 10:38 AM
 

dmccall said:

I don't understand this ubiquitous story, other than as a pub grab. Rhapsody has been offering DRM-free mp3s for many, many months now. It sounds like they have merely opened the catalog quite a bit.

I have to say that my inexpensive Sansa Rhapsody player + my $15/mo ToGo plan represent the first time I've ever been happy with my music setup. Not one to listen to the same songs 1000s of times, the ability to listen to much new music without risk is incredible.

June 30, 2008 11:42 AM
 

weedmonk said:

I treated Real like I treated Quicktime as virii and malware. AVG's head remarked about how one of their top requests was treat QT and Real as malware infections

June 30, 2008 1:55 PM
 

lotsamystuff said:

"RealNetworks goes DRM-free"

Really? You write that headline, and then follow it up with "Apparently no one realizes that the Rhapsody subscriptions still use DRM.". Come on...you can be provocative AND accurate at the same time, can't you?

Maybe the labels should get off their collective butts and quit trying to artificially create competition for Apple by offering other services DRM-free tracks while denying them to the market leader. Haven't they realized by now that no one uses these other services?

June 30, 2008 2:03 PM
 

DRWAM said:

I don't really care for iTunes, but truly loathe RealPlayer. Several months ago, a real player Browser helper was placed into my preferences. Unfortunately, it wanted to use the app on another networked Mac and I would get a perpetual spinning ball on several sites [Comcast for example] unless the other computer was on I gave permission. This did not happen with Safari, so Apple could not help me. See below. However, I don't like Safari either and had numerous Firefox bookmarks that I use daily. I knew that it had to be a preference problem, but did not know where or what caused it, as it occurred with FF and Netscape. I finally found it and deleted it, but only after I found an alias in when of the many preference folders. I did not even know it was RealPlayer until I saw an alias for it in preferences. I just got a perpetual spinning ball of unknown reason until I started open every preference folder that I could find, and looked for an icon for some alias. This went on for days BTW. Although Apple tried to help, I was told that they were not responsible for third party software, and since Safari worked, they would try to help, but would do nothing more if they were unsuccessful. I countered as that it must be a system preference since it happened with two different browser, but got the same reply. I finally looked in the preferences after reading about a similar problem from a googled search response.

June 30, 2008 3:37 PM
 

Waethorn said:

"We could copy and trade with tapes and CD's in the early days."

Not legally, you couldn't.  You know that clause in copyright law stating no public exhibition of content?  That covers trading.  You could never legally copy copyrighted content for distribution.

June 30, 2008 7:34 PM
 

CompactDstrxion said:

Paul, I've been a long reader of your SuperSite, and I'd like to make you aware that all these DRM-free MP3 music stores that are popping up are never available outside the US. For major-label artists, in the UK and elsewhere we are still crippled by DRM (with the exception of the iTunes Plus store which has a very limited selection), and I think its disgraceful :(

June 30, 2008 7:58 PM
 

subzerohitman721 said:

Waeth

In the United States, we have a fair use provision of the Copyright act of 1976 that is still on the books. If your not selling it or using it for commerical use, people can trade tapes and custom made CD's. Its been going on for years and no court has struck it down. Even court cases have upheld this.

Sony Corp. v. Universal City Studios for a case in which substantial copying—entire programs for private viewing—was upheld as fair use.

Also, the Audio Home Recording Act establishes that it is legal in some circumstances to make copies of audio recordings for non-commercial personal use.

So its very hard for the recording industry in the U.S. to prosecute individuals who trade tapes or CD's. Because it falls under fair use. No money is being made off of this and its being used privately.

Peace.

July 2, 2008 10:21 PM
Acceptable Use Policy

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Paul Thurrott is the guy behind the SuperSite for Windows. Way behind. :)
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