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.
MySpace music downloads 'doomed' without DRM
By Will Head on Sep 7, 2006 8:45AM