Rich Fiscus
1 Dec 2007 18:57
Perhaps the biggest divide between what customers want and what music labels provide in the way of downloaded music is in the area of file format. While most labels have eschewed the MP3 format for DRM reasons, if you ask the average consumer what format they'd like to buy that would probably be it. Thanks to a promotion between Pepsi and Amazon.com it looks like consumers may finally get what they want.
The promotion will allow Pepsi drinkers to redeem 5 bottle caps for a free MP3 from Amazon's music store. Pepsi is planning to distribute 5 billion bottles with the caps, meaning up to 1 billion songs could potentially be purchased this way. That could mean big money for any label in the MP3 business, which currently doesn't include either Warner Music Group (WMG) or Sony BMG Music Entertainment.
Both EMI and Universal Music Group (UMG) have been selling MP3s for some months now. EMI was the first major label to embrace them when they made the decision to drop DRM from downloadable music. UMG has been experimenting with removing DRM from their catalog as well, leading to their music being featured both at Amazon.com, and rival Wal-mart.com, both of whom sell only MP3 formatted music. Even Disney owned Hollywood Records is testing DRM free downloads from the two sites.
According to some sources within Sony BMG that label is considering testing the DRM-free waters themselves, although they'd have to act fast to get in on the Pepsi promotion, which is a tie-in with the Super Bowl, which is at the beginning of February.
Source: Billboard