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BusinessWeek Columnist: Apple Should Press Universal Music Download Format

The time will soon come for Apple to lead the effort for interoperability in the online music download business, according to BusinessWeek's Arik Hesseldahl. In a column titled, "Apple, Tear Down This Wall," Mr. Hesseldahl said that consumers will eventually want to be able to play their downloads anywhere they want, and that Apple should lead the way in developing such a format it could then license to other companies.

Triggering the column was the recent news that Jon "DVD Jon" Johansen has started a new company called DoubleTwist Ventures, whose business is bypassing Apple's FairPlay technology. FairPlay governs the DRM restrictons on iTunes downloads, keeping them from being played outside of iTunes or an iPod, and DoubleTwist will allow other companies to sell downloadable songs with a non-Apple DRM that FairPlay will nonetheless recognize and play.

Mr. Hesseldahl sees this as a harbinger of things to come, following the traditional wisdom that most digital locks will eventually be broken. At the same time, other companies are following Apple's lead of developing closed systems that tie download services and digital media devices together. His premise is that all these closed systems will eventually encourage consumers to bypass them and be pirates (again).

"Now may not be the time," he said. "iPod sales still account for 40% or so of Apple's revenue, and let's face it, the iTunes Store exists to sell iPods. But the time for a universal format is soon coming, because millions of frustrated digital music consumers, including some iPod owners, will demand that a downloaded song be as universally playable as a CD is today."

The solution, he said, is for Apple to be the Sony/Philips of the digital download market , and provide a universally-licensable format similar to the CD format those two companies developed and licensed.

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Bosco said:

member since 03 Jun 2002 with 1002 posts, unranked, send him a message or view his profile

OK, it's time for an economics lesson... Arik, you have a total net worth of $300,000 because you are a magazine columnist and the housing market has been good to you over the past 10 years. Steve Jobs has a net worth of $4.6 Billion because (a) he has made a ton of these kinds of decisions in his career, and (b) he is a far bigger asshole than you could ever hope to be. Does that make sense?

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Biff said:

member since 08 Apr 2004 with 1479 posts, unranked, send him a message or view his profile

I couldn't have said it better myself. And you didn't even use the phrase "armchair CEO." Kudos.

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A guest said: (hide)

Yes, that makes sense. Apple should monkey with the formula that has given it over seventy percent of both the US Digitial music player market and download market. You know the formula that has been increasing its sales. Funny, I do not see people crying that Microsoft should open up its Office format.

People act like Apple cannot open its format if the time comes for it to do so. Jobs has already said he is open to supporting other formats if it makes sense to do so. Currently, it does not make sense. People forget, Apple originally was againt DRm all together. It only created it to appease the record companies. It is poetic justice that now Apple is using the DRM against the record companies that want Apple to license it.

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LaurieF said:

member since 15 Jun 2001 with 3547 posts, TMO Forum Mod, send him a message or view his profile

Anonymous wrote:
Funny, I do not see people crying that Microsoft should open up its Office format.

Bollocks, I cry, and again I cry, Bollocks. There have been attempts for years to get Microsoft to open up its Office format.

A case has been won against Microsoft recently (with Microsoft unsurprisingly appealing) by the European Commission with Microsoft being forced to pay substantial sums because it has not complied with an order to share and licence protocol information with rivals.

The US government is complicit in this case, in that it tried to influence the competition commissioner Neelie Kroes to be "nicer" on Microsoft.

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