Another DRM Defeat: Amazon Signs Sony

LOS ANGELES – In another public defeat for Digital Rights Management (DRM), Amazon.com has obtained the right to offer DRM-free music from Sony BMG.

The move allows the e-tailing powerhouse to market DRM-free tracks from all of the major recording labels.

Earlier this week, Sony BMG released its Platinum MusicPass program; a gift card-based service offering DRM-free music download clips compatible with all MP-3 players.

"The MP3 files delivered through MusicPass play on computers, as well as on all MP3 players, including iPods," Thomas Hesse, president, global digital business and U.S. sales, Sony BMG Music Entertainment, said. "This makes them a simple, easy to use solution that will appeal to fans who already access their music on the Internet, as well as to consumers who are just getting into the digital realm."

The cards are available from Best Buy, Target, Coconuts, FYE and other retail channels.

"The cards themselves are high-quality collectibles featuring artist images and album information, Hesse said."

Amazon, however, wanted to be able to offer the DRM-free music downloads without the necessity of using the intermediary MusicPass cards, and scored the deal which may spell the death of DRM for downloadable music.

"We are excited to offer Amazon MP3 customers DRM-free MP3s from Sony BMG, which represents many of the most popular musicians from the past and present," Bill Carr, Amazon.com vice president for digital music, said. "Our Amazon MP3 customers will be able to choose from a full selection of DRM-free music downloads from all four major labels and over 33,000 independents that they can play on virtually any music-capable device."

This deal gives Amazon a competitive edge over Apple's iTunes, which use a DRM scheme only playable by iPods/iPhones and Rhapsody, which relies on Windows DRM.

DRM, once popular as a means of marketing and fighting piracy of adult content has been overwhelmingly rejected by consumers that find it difficult to work with – and even more difficult to work around.

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