A letter from Steve Jobs on DRM: let's get rid of it

iTunes, as we well know, is the world's largest online music distribution system; the iPod, of course, is the best selling line of portable audio players; and the pair are at the center of a very heated conversation, one finding numerous European nations sizing up laws to abolish practices that put DRM at the center of Apple's digital media business model. So Steve did what any good citizen would do: he wrote a letter. In it he reviews the three possible roads ahead for DRM: what we're doing now (using it), what happens if Apple licenses FairPlay (not much good), and what happens if DRM vanishes entirely ("clearly the best alternative for consumers, and Apple would embrace it in a heartbeat."). It's pretty easy to tell where Steve stands on the matter:

"Why would the big four music companies [ever] agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven't worked, and may never work, to halt music piracy. ... Much of the concern over DRM systems has arisen in European countries. Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. ... Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace. Apple will embrace this wholeheartedly."

Well, that's nice to know -- but is it enough for the head of Apple, possibly the single most important company in digital media right now, to just decry DRM and point the finger when under legal pressure from Europe? Steve, listen, we're glad someone such as yourself has come out and said what needed to be said, written the anti-DRM manifesto, as it were. But don't just leave it to the consumer to pressure the record industry, you need to lead the way -- that's why we wrote Microsoft that open letter. You and Bill have more power over this ecosystem than any two people in the world, and the big four knows it. Perhaps The Mac and The PC need to rally the troops (i.e. us) and lead this charge together.

[Thanks, Pete]

[Mills @ Feb 6th 2007 3:08PM]

I will fight till the death. Hell Yeah!

[Yayaja @ Feb 6th 2007 3:12PM]

Wow, I never thought that some good would ever come from Steve's rampant megalomania.

[Andy @ Feb 6th 2007 3:14PM]

What Mills said.

[Kurt @ Feb 6th 2007 3:17PM]

I can't believe MSFT would think DRM is a bad thing. Legit Check, Validation, and Activiation are the biggest pain in the asses ever.

[Kev50027 @ Feb 6th 2007 8:21PM]

That's not Digital Rights Management. That has nothing to do with it.

[jollyllama @ Feb 6th 2007 3:17PM]

I think you over estimate the relative power of Apple vs. the record industry. The record companies would just love to get a nice war going between the online distributers so that Apple doesn't have hegemonic control over DRM negotiations, and playing hardball on iTunes DRM is the best way for them to do this. Slimy bastards...

[pixelbender @ Feb 6th 2007 3:20PM]

This is Engadget, shouldn't the title read, "A letter from Stevsie, he sez let's get rid of DRM?"

[Arno @ Feb 6th 2007 3:21PM]

Steve is a tool.

[Karl @ Feb 6th 2007 3:22PM]

I wrote an email to Steve a while ago (It's probably not his personal email account, but it's probably monitored by somebody at apple).

In it, I told him how Apple had become a company that I was ashamed of. Many people say Apple never lost their vision, bringing innovative things like the iPod and iPhone to the world. I don't think so. I think Apple lost their vision more than most.

In the 1997 Macworld, Jobs promoted interop and partnership with Microsoft. He said they were going to become better partners, and agree on standards together. However, since that, Apple have taken a road bashing Microsoft every step of the way, and competing with them based on proprietary technologies. How does that satisfy the stage-rattling cheers that Jobs got back in '97?

Anyway, I emailed him and told him that I was ashamed of Apple for losing its vision. We haven't seen a speech like the one in 97 before ever in this industry.

I'm proud of Jobs for that letter. It takes a lot of guts to publically chide your partners for your most profitable products, and shift the blame of the DRM era to them. From somebody as high up as Jobs, this carries a lot of weight. It's a risky move, but I'm proud he took the first step.

But I would like to see a little more than words. Because Jobs can bemoan the partners for not going DRM-free, but what about Disney? They have hundreds of films up on iTunes. All wrapped in that lovely DRM-tasting stuff.

Karl

[Cupajo @ Feb 6th 2007 3:23PM]

"Apple, possibly the single most important company in digital media"

*chuckle*

[mkwilson @ Feb 6th 2007 3:30PM]

"Apple, possibly the single most important company in digital media"

What, you think there's someone else out there who's more influential right now??? Let's not make this a Mac/PC thing - Apple dominates digital music and right now, digital movie sales too. So this is not an opinion, it's a fact, whether we like it or not.

This was brave of Steve, and totally right.

[mkwilson @ Feb 6th 2007 4:28PM]

"Apple, possibly the single most important company in digital media"

What, you think there's someone else out there who's more influential right now??? Let's not make this a Mac/PC thing - Apple dominates digital music and right now, digital movie sales too. So this is not an opinion, it's a fact, whether we like it or not.

This was brave of Steve, and totally right.

[tf @ Feb 6th 2007 3:24PM]

Somehow you put the onus back on Jobs? Apple has to do everything because no one else can do anything?

Jobs actually has less power in this situation because he has all the power.

The Music industry ended up ceding power to him by hoping he'd remain a niche. Now they are the only player with any success.

How does he have the power to say: "This is unsuccessful." when he's the only one who is successful?

"I know I've been selling you hundreds of millions of songs and it's made us all money, but it doesn't work for me..." That's not going to work. He can say: "Europe is crazy because they are blaming the wrong person." He can say: "We prefer this model and would embrace it... It might even make others successes as well (hint, hint to studios afraid of me)."

But how do you fault the guy for taking the appropriate, consumer-friendly stance that strongly argues his own corporate interests, the studios, the competition, and the governments of Europe in one go while recognizing this is a complex battle involving market strength, successful strategies, consumer acceptance, studio acceptance, legal battles, technological issues, and many other complex factors?

[Matt Conover @ Feb 6th 2007 3:25PM]

You know this is a great statement by jobs, and I hope DRM is done away with. I find it funny though, because apple's own foray into the music industry wouldn't have been quite as successful had it not been for the DRM which allowed only iPods to play music from the new, very popular iTunes store. I personally don't think that there is any way Jobs would have made this same statement right after the launch of the iTunes store.

[moma @ Feb 6th 2007 5:54PM]

I don't agree it was DRM that made the iPod. As Job's stated, the amount of protected music on iPods is a tiny fraction of all music. In fact, that's his main point!

[cs32 @ Feb 6th 2007 3:29PM]

Jobs is such a visionary, I mean, it only took him 2 months to repeat what BillG said back in December (http://www.engadget.com/2006/12/14/ce-oh-no-he-didnt-part-xxi-gates-tells-consumers-to-ditch-dr/).

[Justin Young @ Feb 6th 2007 3:53PM]

"Apple, possibly the single most important company in digital media

What, you think there's someone else out there who's more influential right now??? "

Say it with me (or pick one rather)... Sony -- Disney -- Google -- Walmart -- Viacom -- Microsoft

I'd go with Sony or Microsoft

Without Sony, iTunes wouldn't be worth much.

Without Microsoft support for the iPod the iPod would have been DOA.

[Mat @ Feb 6th 2007 3:31PM]

Steve Jobs can do what Chuck Norris couldn't with his eyes closed...

[zeekeorage @ Feb 6th 2007 3:32PM]

music is a right not a privelage

[p-diddy @ Feb 6th 2007 4:33PM]

Music is a right? Ummm, no. You have the right to free speech and free assembly. You do NOT have a right to be entertained.

-p-

[helio9000 @ Feb 6th 2007 3:32PM]

So curious that Steve feels this way when iTunes DRM's the exact same files that are DRM free on Emusic. The head of Nettwerk Records whose albums are on both is on record saying the iTunes DRM does nothing for him and is only to Apple's benefit. This is to say nothing of the fact allowing users to only install your OS on a machine they bought from you is among the most powerful DRM there is.

[sedated @ Feb 6th 2007 4:22PM]

I think the reasoning for this is that it will complicate the purchasing model. It is the same thinking as keeping the pricing as similar as possible. Although there are variations when it comes to content pricing on iTunes, they aren't as prevalent as other online stores. Now if you factor in another variable (DRM vs. Non-DRM media), it adds another level of complexity to the purchasing process. Obviously the iPod has an impact on people purchasing content from the iTunes store, but I think the pricing model for iTunes being as simple as it is, has helped it as well.

[Geoffrey Sperl @ Feb 6th 2007 5:15PM]

@helio9000: Apple DRMs that music because that is in their agreement with the labels, whereas Emusic has different agreement.

And you can clearly tell which one the labels prefer because the iTunes library dwarfs the Emusic one. This is not to knock Emusic - I like them a lot and I have found some things on their service that I have not found on iTunes. But their selection is rather paltry in comparison.

[nikster @ Feb 8th 2007 12:53PM]

I found Steve's letter interesting because of the contracts perspective. There might very well be clauses with the majors that prevent Apple from selling un-DRM'd music from minor labels.

If not then expect that the iTunes store will shortly sell mp3s from everyone who allows them to do so.

I also found it interesting that he would apparently much rather compete with all other music stores on their own grounds than play the lock-in game with the iPod. That's smart because it will sell more iPods and he knows it.

Another very interesting tidbit is that the labels have the right to remove all their content from the ITMS if cracks/hacks of the DRM are not addressed within a short period of time. That would indeed be unworkable with licensees. In fact, competitors that license Apple's FairPlay could intentionally lag behind with security upgrades to cause the Apple store to lose a label - if said label wants to get out, or the competitor just wants to hurt the ITMS. No company would take such a risk - it would be plain stupid. Apple is paranoid about legal issues because they get sued for everything and anything, and constantly.

[tf @ Feb 6th 2007 3:34PM]

"Jobs is such a visionary, I mean, it only took him 2 months to repeat what BillG said back in December"

It's a completely different message when one's been the biggest proponent and failure at DRM and is conceding that his own store/device offering is miniscule.

When a similar, but more expansive, message comes from the only major success in digital music, the only player being attacked at the legislative and judicial level in numerous countries, it actually means something more than "I admit the Zune Marketplace is pathetic."

[Mike @ Feb 6th 2007 3:35PM]

DRM or no DRM. Media would still be restricted by proprietary codecs built for the sole purpose of side profit. End result is it's less a pain in the ass to find out most (or all) of your stuff won't play on it.

[Grizz @ Feb 6th 2007 3:38PM]

I want a bumper sticker that says "DRM Failed". I believe everyone (not me) who formatted their computer hoping to copy their music back off of their iPod should have one.

[Mat @ Feb 6th 2007 5:11PM]

well that's a fucking fail of a human right there, mate.


Whatever is in your itunes app can go into your ipod, your ipod can't put into your itunes.

... A fucking fail...

[netposer @ Feb 6th 2007 3:40PM]

Even Steve knows it only takes one person to un-drm an audio/video file to break ALL of drm. So by this logic DRM will never work. Go Steve Go!

[Javaflash @ Feb 6th 2007 3:42PM]

Wow... simply... Wow.

We just marched into a new era of digital content distribution.

[GT fan @ Feb 6th 2007 3:43PM]

Steve is my hero. I hope the music industry learns from his business model: figure out what the consumer wants and give it to them.

PS Steve, don't leave us high quality freaks out-----How about some DSD recordings or 24bit & 96/192 kHz recordings, PLEASE!?!?!?!?!?!?!?!

I would love to have my digital collection compete with my vinyl collection!

[Aron Trimble @ Feb 6th 2007 3:43PM]

Personally, I don't mind burning 3% of my music collection to CD and re-ripping it to an open state if it means I find a new music player I love MORE than my iPod.

[Jonathan Sundy @ Feb 6th 2007 3:44PM]

This is just smoke and mirrors.

It was less than 2 months ago that apple said they saw no reason to get rid of DRM. I can't be the only one that remembers that statement.

Apple's DRM makes them money, it means that when your iPod breaks you buy another iPod. They have no interest in abandoning that at all.

This is a bunch of PR bs.


And seeing as iTunes is the fastest growing digital distribution channel for music when the physical music world is declining quickly, Steve has lots of power. They make nothing selling the music, all of the money goes to the music industry. If he wanted to say "Look, here's the deal, no drm, or I won't put your music on iTunes." the music industry would have to give it a heavy and serious consideration.


DRM locks you into your iPod, Steve has no intention of abandoning it. The only thing I could see changing that is if iPod sales started declining because of it, but that won't be happening anytime soon.

[rip @ Feb 6th 2007 8:57PM]

If my iPod breaks, I am not locked in. Then again I only have a few songs off of the iTunes store. And most of them were free downloads. However, you do have a point about being locked in. Then again, if your stupid enough to pay cd prices for less than cd quality, you deserve it.

As for Apple telling the music labels to remove drm or else. We know exactly what the labels would do, they would walk. They already hate that iTunes is a success. They made Microsoft pay them a royalty for every Zune sold, whether or not you put a single song on it. The labels are greedy scumbags, don't forget it. Their avarice knows no bounds.

I applaud Steve Jobs recent statement. However, remember that Apple has generally been anti-drm. They ran the Rip. Mix. Burn. ads years ago. Jobs stated when they launched ITMS that they would have preferred it drm-free, but it was the only way to get the labels to sign on, and even then they only did it because it was (at the time) Mac-only, so they figured inpact would be minimal.

And don't forget that Apple makes virtually nothing off of music sales. Apple makes its money from iPods, not the store.

[Donald Dorson @ Feb 8th 2007 8:29PM]

"Without MS support the iPod would've been DOA"... uh, what Microsoft support? Just because Apple wrote iTunes for Mac and Windows doesn't mean MS "supports" the iPod.

[Dilbert @ Feb 6th 2007 6:06PM]

Market share for online music retailers:
Apple iTunes: 67%
eMusic: 11%
Real Rhapsody: 4%
Napster: 4%
MSN Music: 3%
(Source: The NPD Group, January to May 2006)

< ironic>Wow! you're right! Apple is completely pwned by Sony, Microsoft, Wallmart,...!

[rip @ Feb 6th 2007 8:10PM]

wow, Justin, your a moron.

[R2B2 @ Feb 7th 2007 4:47AM]

Can I please have some of what you're smokin?

[dave smith @ Feb 6th 2007 4:00PM]

"iTunes, as we well know, is the world's largest online music distribution system"... um, no. That would likely be Bittorrent. Maybe iTunes is the biggest legal distribution system...

[tekdroid @ Feb 6th 2007 4:09PM]

now if we could kill overpriced lossy audio...
http://en.wikipedia.org/wiki/Lossy_data_compression
http://en.wikipedia.org/wiki/FairPlay

[tf @ Feb 6th 2007 4:19PM]

"In the 1997 Macworld, Jobs promoted interop and partnership with Microsoft. He said they were going to become better partners, and agree on standards together. However, since that, Apple have taken a road bashing Microsoft every step of the way, and competing with them based on proprietary technologies."

Huh? TextEdit supports word, Pages supports Word, Keynote supports PowerPoint, Apple has maintained the Office on Mac relationship, ported iTunes/iPod to Windows... Microsoft conversely has closed some doors.

So I guess you only care about marketing and not technology/reality.

[helio9000 @ Feb 6th 2007 4:21PM]

>Microsoft conversely has closed some doors.

Uh, you mean ones like allowing windows to run on Macs?

[p-didday @ Feb 6th 2007 4:30PM]

MS allowed Windows to run on Macs? Ummm, no. Apple allowed Windows to run on Macs. MS has absolutely zero say in the matter. To MS it's just another OS license sold, which is all they care about. kthnxbye.

-p-

[rip @ Feb 6th 2007 8:53PM]

actually yes. Microsoft bought Connectix, which created virtual PC for the Mac. Then they proceeded to kill it on the Mac.

[SubGenius @ Feb 6th 2007 4:22PM]

Since legal issues with Apple Corps have been dealt with, whats to stop Apple from bypassing the big 5 and becoming the big 6th?
Were Apple to become it's own label and sell it's own music sans DRM...I wonder how that would change the playing field?

[AlBeRtO @ Feb 6th 2007 4:27PM]

Jesus Jobs is going to save the world!

[scottjl @ Feb 6th 2007 4:31PM]

very well written (by steve, or whoever wrote it) and he's completely right.

now as to getting "the big four" to actually agree to abolish their failed DRM. good luck.

[F3 @ Feb 6th 2007 4:48PM]

Out of all the commenters here, Jonathan Sundy seems to be the only one who understands the situation. Apple's iPod+iTunes model is designed to lock-in customers. Without DRM, that proprietary model simply wouldn't exist, and the dominance of both the iPod and iTunes Music Store may begin to erode over time. They will not be doing away with it.

I suppose Jobs' comments are supposed to make you feel all warm inside as you go out to buy a replacement iPod.

[edgore @ Feb 6th 2007 5:52PM]

Did you actually read the article? Jobs points out that only 3% of music on IPods is Fairplay DRMed, which is not enough to lock someone into buying an IPod.

People don't buy Ipods because of ITunes, they buy Ipods because they work pretty well, have a "cool factor", and there is a huge selection of aftermarket accessories that only work with the IPod. Getting rid of DRM is not going to change that, which is the real lock in.

[h0mi @ Feb 6th 2007 5:11PM]

"Without DRM, that proprietary model simply wouldn't exist,"

DRM has a lot less to do with it than you think. I can't use WMP11 or winamp to put DRM-less mp3s on my ipod... i cannot use itunes to put drm-less mp3s on my PSP. DRMless podcasts (video or audio) can be loaded onto my ipod or my PSP but I can't use the same method (itunes, other software) for both pieces of hardware.