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January 4, 2008 11:41 AM PST

DRM deathwatch: Sony capitulating soon

by Matt Rosoff
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Looks like the first (and easiest) of my 2008 predictions is more or less coming true by the end of March. According to a story in today's Business Week, unnamed sources at Sony BMG have said that the company will sell at least some songs without DRM by the end of the first quarter. We've heard this rumor before: apparently Sony BMG will participate in a promotion sponsored by Pepsi in which soda buyers get free MP3 downloads from Amazon's music store.

This would be a remarkable turnaround for a company that didn't even let its portable players play MP3s until Sept. 2004--helping Apple's iPod gain a huge lead--and once upon a time surreptitiously installed copy-protection software on users' computers (that incident was the beginning of the end of DRM, in my opinion).

So what changed Sony's mind? According to Business Week, the company has quietly been experimenting with DRM-free files for artists that sell less than 100,000 downloads, and at least one such artist got "mainstream exposure." In other words, as independent musicians have known for a long time, people who download and trade files are the biggest music fans and actually buy more music than non-file-traders. Make your music readily available to those people, and you have a better chance of building a career.

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995, and reviewed the first Rio MP3 player for CNET.com in 1998. He is a member of the CNET Blog Network. Disclosure. You can follow Matt on Twitter @mattrosoff.
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About Digital Noise: Music and Tech

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995 and reviewed the first Rio MP3 player for CNET.com in 1998. He's also a bass guitarist and an avid collector (and digitizer) of LP records. DISCLAIMER: This blog contains the personal opinions of the author and does not necessarily represent the opinions of his employers or of CNET Networks. As an IT industry analyst, the author occasionally agrees to nondisclosure agreements from Microsoft or other companies, and he will not violate the terms of such agreements on this blog.

He is a member of the CNET Blog Network and is not an employee of CNET.

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