So is DRM dead?
Here's what we have. For roughly 30% more, you get tracks at much higher quality with no DRM. Good. Or, you can buy the same tracks at lower quality for the original price with no DRM. Or you can subscribe (rent) those tracks for an incalcuable price with DRM. Or you can still buy lower quality tracks at the original price with DRM.
Some of those models are going to work. Others will drag on with some sembalance of life. Others will die a painful death. But one thing is certain. In the short run EMI and Apple have a revenue stream. You can bet that EMI isn't getting all of that 30%.
Will DRM free cuts be pirated? It depends on the ethos of the buyer. CDs are ripped and shared, in my personal opinion, partly as a way to "put it to the man". I don't buy CDs because there are one or possibly two good tracks and 8 or 10 crap tracks. So I'll buy the cuts off of iTunes, as I've done for the last three years. At a cost of $2.15 (with tax), I'm saving anywhere from $11 to $13. Will I pay $2.80 for those two EMI tracks? You bet. Will I share. Hell no, spend your own money for those two tracks. Or blow $15 for a CD you'll throw away in an hour.
Will there still be pirates? Look at the Horn of Africa. Of course there will still be people willing to take chances, but as the grow up, get out of school, get a job and have more to lose (the RIAA will always get the ISPs to rollover and play dead) they'll start buying. And a new generation will grow up rejecting the album concept altogether.
iTunes started a process that will take another 5 or 6 years to come to fruition. The record companies just need to see that DRM is a dead concept, and the CD is just as dead.
dillon in Tejas, who is trying to decide between spending $100 to replace the battery on his 20GB iPod and buying a new one.