After Steve Jobs earlier asking labels to offer DRM (Digital Rights Management) free music, EMI finally announced that they will be offering such to music fans.

However, instead of taking out the DRM protection from the existing catalog, they are actually charging a higher price ($1.29 compared to the standard $0.99) claiming that the quality is better at a higher bit-rate and because it is DRM-free.  I thought that is a bit disappointing.  AlLso, they are offering it through iTunes in AAC format so that means not all MP3 player is able to support playback.

I have shared my views on this on LinkedIn through their Answers and thought I could also post it up here:

How will that affect sales?

a) sales probably will have a slight positive increase, especially for those converted (like me) who owns ipods but also like to use my mobile phones (Windows mobile 5.0 or Symbian) to listen to music.  I think there will be minimal impact on piracy, those who won’t pay will continue refuse to pay.

Who are the winners?

b) winners will be those who have been or seriously thinking about legal music downloads.  EMI will also win as it seems to be more willing to listen to music fans.  Those major labels who are not following quick enough may be losers.  An of course Apple will be a winner too, since the files will be in AAC format and that could probably lead to more hardware sales … where the profit is.

Will other labels follow?

c) I’d say other majors should follow soon as it will be likely that the move will be positive to sales.  Plus DRM does not really help in combating priracy.
Will the public be convinced and start paying for music?

d) I have doubts if the move can win over those who have not considered paying for music, especially in this part of the world ( China and Asia ).  However, in the longer term and together with more education/legal threat, the removal of DRM should be a positive incentive for the public.