Plans by social networking site
MySpace
to offer music
downloads from unsigned bands will have only limited success without digital
rights management (DRM), according to a supplier of DRM technology to mobile
network operators.
Michael Bornhaeusser, chief executive at
SDC, told
vnunet.com: "The
major labels will be happy to license their catalogues to MySpace, but only with
DRM.
"The independent music to be sold over MySpace without DRM is a good way for
unsigned and niche interest bands to generate some revenue, but as soon as they
become successful they will sign with a major label to ensure global
distribution and marketing support."
This will mean that the music available on MySpace will be of limited
interest to the vast majority of its members, according to Bornhaeusser.
"The concept of using unsigned artists as business revenue was tried during
the dotcom era by companies such as Peoplesound.com, iCrunch and MusicUnsigned,
" he said.
"None of these companies exists today. High quality music will remain
protected by DRM to secure its value and grant the return of investment for
artists, labels and publishers."
MySpace's decision not use DRM to protect music will enable consumers freely
to upload tracks to their iPods.
Apple
currently refuses to license its
FairPlay
restriction system to third parties.
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