Is iTunes Killing the Music?

Feb. 16, 2007 — -- Steve Jobs dropped another of his bombshells this month, writing that he would like to abolish the copyright protection technology shackling the music files sold on iTunes.

He suggested that doing so would lead to more diversity in the types of music stores and players available to consumers.

While some critics believe his action might be a posture to thwart a lawsuit targeting Apple's use of this technology as anticompetitive, Jobs' vision of the encryption-free future is already coming to pass in certain niche markets.

In my profession -- DJing events for clients who pride themselves on being ahead of the curve -- online stores that sell music without "digital rights management" are a necessity. And, as Jobs suggested, these stores have developed alternative forms of distribution that do more for music lovers and music professionals than free up their usage rights.

The Drawbacks of iTunes

First, a primer on the shortfalls of the current model of digital music distribution:

The biggest sting to mainstream consumers is that iTunes files will play only on iPods -- not other music players. This particular restriction on what is called interoperability is at the heart of the lawsuit against Apple.

Other aspects of DRM are more pernicious: The protected file format restricts the number of copies you can make, the number of computers you can use, and the number of times you can customize CDs. If you're a DJ, these restrictions are more than just pebbles in your shoe. When you need multiple copies of music to burn, blend and blast -- all within the bounds of copyright law -- keeping track of these numbers can be encumbering, to say the least.

There's another, less publicized, shortfall of digital music distribution. The one-size-fits-all model Apple and other mainstream sites have embraced also dilutes the quality of the music itself.

To keep file sizes low, sites like iTunes and Napster sell songs in formats that we audiophiles call low-resolution. Even the best set of speakers could not squeeze the full audio dimensions out of these files. As a performing DJ, you don't want to play a tinny MP3 recording at a major event as if it were a dorm room party.

ABC News contributor Michael Smith is a DJ, and has a music-services business. He works with a variety of national brands www.smitheventmusic.com or info@smitheventmusic.com.

The diversity of the selection on these sites can also be disappointing, especially in light of the fact that artists can stream (but not sell) their newest music on MySpace every day. It can take months for artists and labels to negotiate distribution deals through the main download sites outlets. DJs need music that was recorded last week, not last year -- and many music lovers clamor for the same.

Not the Only Game in Town

So, what can change, and what's already changing? Though the average consumer may simply learn to cope, music aficionados may want to check out alternative Web sites.

Independent music labels, for example, have sought out eMusic.com to sell their files DRM-free. The arrangement is a winner for smaller bands who rely on touring, more than sales, to make money.

In niche markets, the site Beatport.com may provide a successful model. Now in its third redesign, this house and electronic music site has the user-friendly look and feel of a Web browser -- you won't even know you've entered the musical underground.

Here, the music is more expensive ($1.99 to $2.49, compared with the 99 cents iTunes charges), but purchasers have a choice of higher-resolution file formats and can preview songs in 60 seconds instead of the standard 30. The files have no DRM to prevent tinkering, mixing and remixing.

In addition to Beatport, download outlets like Calabash (for international music) and Crooklyn Clan's Vault (for hip-hop) can provide access to music that would never be on iTunes.

Online record labels like DigStation also serve as a common merchant for indie bands who want to put that "Download Now" link on their Web sites and MySpace pages. Even classical music lovers have benefited: They have discovered eMusic's 33-cent DRM-free downloads.

Reinventing Digital Music

Even before Steve Jobs spoke, the big players in new media were taking an interest in reinventing this side of the music business. Yahoo, for example, offered tracks from major artists such as Norah Jones and Jessica Simpson without DRM. It was part of an experiment to see if removing copyright protection technology could revitalize stagnating digital download sales.

ABC News contributor Michael Smith is a DJ, and has a music-services business. He works with a variety of national brands www.smitheventmusic.com or info@smitheventmusic.com.

This is a big issue. According to Jobs' "Thoughts on Music" letter, posted on the Apple Web site, his company has sold only 22 iTunes for every iPod it has ever sold.

Curiously, with statistics like these, it appears that music lovers appear to be nostalgic about CDs as a medium, even as they grab new technology with a vengeance.

Perhaps they believe only physical media can offer genuine quality and permanence. Or perhaps, as Jobs suggested, they want the freedom to do whatever they want with the music they buy. The future he envisions, where a thousand online music flowers bloom, may not be now, but the seeds have certainly been planted.

ABC News contributor Michael Smith is a DJ, and has a music-services business. He works with a variety of national brands www.smitheventmusic.com or info@smitheventmusic.com.