British download store opens against iTunes and anti-piracy technology
Posted by: in Products and ServicesFiled under: Products and services, Launches, Consumer experience, Competitive strategy, Apple Inc (AAPL), Amazon.com (AMZN), Marketing and advertising
British-based Play.com, a privately-based retailer, has launched a new download store in direct competition with Apple Inc.’s (NASDAQ: AAPL) iTunes Store in the United Kingdom. PlayDigitial will offer tracks without digital rights management (DRM) technology from privately-held EMI Group and independent labels, in a move that looks similar to iTunes current offering of DRM-free tracks at lower prices. The store will still offer DRM tracks at higher prices than the DRM-free tracks and is in talks with other labels to bring more DRM-free tracks into the store.
Play.com’s new store comes in advance of Amazon.com Inc.’s (NASDAQ: AMZN) sister store in the UK, Amazon.co.uk, opening a similar store with DRM-free tracks. The U.S. store recently opened its own MP3 store in full with DRM-free tracks from all the major labels, not simply limited to one major and independents. According to Billboard, the UK version of iTunes controls 70% of the market there and the store is also being forced to bring prices down to common prices with other European nations. PlayDigital and the eventual Amazon download store in the UK will work against that control and price drops.
It seems odd that the “fight” against digital rights management continues, taking into account that it has essentially been over in the United Says since last month when Amazon’s MP3 store gained access to tracks from all the major labels without the technology. Obviously different laws exist for agreements with companies in different countries, but until DRM is dropped totally, moves like this are going to continue to occur. Unfortunately for Apple and the iTunes Store, the drive against DRM technology that was started about a year ago is no longer under the company’s control, with stores like Play.com and Amazon.com taking the lead and gaining superior deals with the music labels.
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