August 13, 2007 - The largest record label in the world, Universal Music Group (UMG) has announced it will begin releasing thousands of music tracks free of digital rights management software.
The label which owns the likes of Def Jam, Interscope, and Motown Records, announced that testing will begin this month and continue throughout January 2008.
At a time when record labels are struggling to adapt to the post-Napster age of music, Universal hopes that giving out unrestricted music will give them new insight into the current digital marketplace. For instance, they would like to find out if song price sensitivity has any effect on piracy.
Universal has also opted not to sign a long-term rights deal with Apple. Many think that UMG’s refusal to make a deal with the online music sales giant signifies that iTunes may be falling out of favor with labels.
Instead, UMG has reported to opening distributing with companies like Amazon.com, Wal-Mart, Best Buy, Real Networks’ Rhapsody, and Google.
While iTunes’ music store has long dominated mp3 sales, however, the move to DRM-free tracks may change that as the songs can be played on any mp3 player. In addition, early reports suggest that Universal may charge the same 99 cent fee that iTunes carries, to purchase the un-protected tracks (which come in better sound quality). It should be noted that competing label EMI has been distributing tracks without DRM at an elevated price since May 30.
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