The Electronic Frontier Foundation says that Microsoft has "betrayed" MSN Music customers and wants the company to make things right by issuing an apology, refunds, and eliminate digital rights management technology from the Zune music player.
Microsoft stirred some controversy last week by announcing that it would no longer issue DRM keys for defunct MSN Music after August 31. This effectively will prevent former customers from transferring their songs to new devices after the deadline. Customers could potentially lose their music if they get a new computer or if the hard drive crashes on their current one.
EFF, an advocacy group for Internet users, said in a statement that it sent a letter to Microsoft Chief Executive Officer Steve Ballmer on Tuesday outlining steps the company should take, such as issuing refunds and launching a publicity campaign to educate former MSN Music customers about their options.
"MSN Music customers trusted Microsoft when it said that this was a safe way to buy music, and that trust has been betrayed," Corynne McSherry, an EFF attorney, said in a statement. "If Microsoft is prepared to treat MSN Music customers like this, is there any reason to suppose that future customers won't get the same treatment?"
In an interview last week with CNET News.com, Microsoft's Rob Bennett said that continuing to support the DRM keys was impractical, that the issue only affects a small number of people, and focusing exclusively on Zune was the best way to go. He also noted that it wasn't Microsoft's decision to wrap music into digital rights management.
A Microsoft spokeswoman declined to comment.
Microsoft has suggested that customers should back up their music libraries by burning them to CDs; this way, they can always transfer them to a new computer.
"Microsoft is asking its customers to spend more time, labor, and money to make degraded copies of music that was purchased in good faith," said EFF Executive Director Shari Steele.
Like many in the blogosphere, EFF said the situation proves that DRM doesn't work.
"With MSN Music, Microsoft has admitted just how expensive, clumsy, and unfair DRM is," McSherry said in the statement. "It's time for Microsoft to reject this sloppy technology, and for customers to demand something better."
Rob Bennett knew people were going to be angry.
Bennett is the Microsoft executive who notified former customers of the now defunct MSN Music service on Tuesday that the company would no longer issue DRM keys for their songs after August 31. This means that, while former customers can listen to their music on authorized computers for as long as the hardware lasts, they won't be able to transfer songs to a new PC after that deadline.
In an interview with CNET News.com, Bennett said that continuing to support the DRM keys was impractical, that the issue only affects a "small number" of people and that focusing exclusively on Zune was the best way to go. He also noted that it wasn't Microsoft's decision to wrap music into digital rights management.
The reason for shutting down the DRM-licensing servers was "every time there is an OS upgrade, the DRM equation gets complex very quickly," said Bennett, general manager of entertainment, video, and sports for MSN. "Every time, you saw support issues. People would call in because they couldn't download licenses. We had to write new code, new configurations each time...We really believe that, going forward, the best thing to do is focus exclusively on Zune."
Microsoft shut down MSN Music in November 2006, following a failed effort to turn the site into a legitimate iTunes challenger. Redmond threw its resources behind the Zune digital music player and its music store, Marketplace.
For the past 18 months, Microsoft has continued to enable former customers of MSN Music to move their song libraries to new computers. Discontinuing that service has been widely criticized. Critics have long said that DRM was a means to control legally purchased music at the expense of consumers. To them, the current situation with MSN proves it.
Bennett defended Microsoft. He said the company never wanted DRM on its songs.
"Had we had the ability to deliver DRM-free tracks at the time, we absolutely would have done that," Bennett said. "We talked to the labels at the time about that. As a company, we have continued to push for this. Zune has a subset in their catalog of DRM-free MP3s. Now, the industry is making progress. The labels are understanding the downside of DRM when its used the way they wanted to use it, they end up punishing the users who bought music legally more than those who want to circumvent the system."
Bennett added that Microsoft believes in protecting intellectual property, but the company also wants people to enjoy their media without unreasonable restrictions.
"No one ever foresaw being in this situation," Bennett said. "It's not something we like to do. We want to make it easy and as painless for our customers as possible. We really feel, in the long term, what's best for people who want to buy music from Microsoft is to move to Zune."
Bennett said that former MSN Music customers can back up their songs by burning them to CDs. But what about the loss of sound quality should they decide to rerip the music?
"We (delivered) music at 160 kbps," Bennett said. "In my personal (experience), you're not going to lose that much fidelity."
Microsoft handed plenty of ammunition to the anti-DRM crowd on Tuesday by announcing it will no longer furnish authorization keys for songs purchased from the defunct MSN Music service.
For former customers of MSN Music--the service Microsoft operated before closing it in late 2006 and opening Zune Marketplace--August 31 will be the last day that they can move music to different computers. After that, Microsoft will no longer "support the retrieval of license keys for the songs you purchased on MSN Music or the authorization of additional computers," the company said in an e-mail to former MSN Music customers.
It's important to note that the music won't disappear after the deadline. Songs will continue to play on authorized computers. What the announcement means is that former MSN Music customers will risk losing their music libraries if they try to transfer songs to unauthorized computers or swap operating systems after Aug. 31.
There are a couple of ways to safeguard the music but they aren't pretty. Before the deadline, those affected can move songs to computers they plan to own for a while (the songs can be authorized to play on five different PCs). Another alternative is to burn songs to CDs and rerip. This means the loss of sound quality but offers more peace of mind.
Bloggers pounced on the news, writing that the situation illustrated just how anti-consumer that digital rights management is. The point most of them made: whatever hardware the songs are stored on will malfunction eventually, and the owner's music (in a high quality form at least) will be gone forever.
"Ultimately, this serves as a reminder of what DRM really is," wrote Justin Mann at TechSpot.com. It's a "way for companies to control your use of their content. Rather than purchasing, you are renting."
Microsoft said in the e-mail that it is shutting down the servers that operated the music's DRM but didn't specify why. A call to a Microsoft representative was not returned Tuesday night.
This is only the latest sign that DRM is apparently on its way out. The music industry appears to be drifting away from copy-protection schemes and has enabled several retailers, including Amazon.com, to sell DRM-free music files.
MSN Music was a failed effort by Microsoft to compete against Apple's iTunes. In November 2006, two years after opening it's doors, the service stopped selling downloads. Microsoft began redirecting customers to Zune's Marketplace music store or RealNetworks' Rhapsody subscription service.
One of the first things Microsoft did when launching the new Zune was kill the 2-year-old MSN Music download service.
The business reasons were plain: MSN Music was a PlaysForSure service, but the Zune wasn't PlaysForSure-compatible, and it came with its own music download service, integrated into the Zune software.
Sure, there's still something with the brand name MSN Music, but it's basically a shell--a few music videos, some promotional tie-ins with Zune (through a program called Ignition), and a radio station powered by Pandora.
If Microsoft's smart, it'll keep LaunchCast around.
(Credit: Yahoo)So what might that mean for Yahoo Music, if Microsoft's proposed acquisition of Yahoo clears? Probably not much, at first.
Microsoft's Kevin Johnson, who leads the group responsible for online services and Windows, mentioned in a conference call that the company would get the quickest benefits from combining their advertising platforms, particularly paid search: "scale economics can kick in fairly rapidly when you just look at the simple step of just combining the search-related ad inventory on a single ad platform."
Translation: as soon as the acquisition closes, Yahoo Search would be folded into Microsoft's Live Search, and Panama would be folded into AdCenter.
Eventually, though, Microsoft would go through all the other Yahoo divisions, looking for overlap or strategic misfits. Here's where Yahoo Music could feel the heat. Selling PlaysForSure-protected files does nothing for the Zune, and even if Yahoo goes with DRM-free MP3 files, it would seem to be redundant with the Zune Marketplace.
Now, if Microsoft were smart, it would recognize the popularity of the combined Yahoo Music and LaunchCast (see Aribtron's online-radio ratings). But often, decisions in acquisitions are driven by politics and emotion rather than actual business logic.
Editors' note: Yahoo on Monday announced that it is discontinuing its Yahoo Music Unlimited subscription service, transferring its customers to RealNetworks' Rhapsody service.
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