Copy-protected CDs iPod-incompatible but sell well
Reuters
Thu Aug 4, 2005 2:03 PM ET
By Sue Zeidler
http://today.reuters.com/PrinterFriendlyPopup.aspx?type=technologyNews&storyID=uri:2005-08-04T180245Z_01_N04701239_RTRIDST_0_TECH-MEDIA-COPYPROTECTION-DC.XML
LOS ANGELES (Reuters) - Recent CDs by Foo Fighters and Dave Matthews Band
containing new anti-piracy technology are selling well despite a backlash
among some fans angry that the discs are incompatible with iPods, experts
said on Thursday.
Aiming to curb piracy, labels like Sony BMG, which released both records,
are rolling out copy-protected albums in the United States, which let users
make three exact duplicates of a CD, and store files on a PC in Microsoft
Corp.'s Windows Media format.
But the copy-protection bars users from importing music onto iPods since
Apple's Fairplay software is incompatible with Windows.
"This (Foo Fighters) CD has a copy protection scheme that makes it totally
useless to 30 million iPod owners," wrote C. Anderson of Plano, Texas on
Amazon.com's customer review link. "How could a band be so stupid as to
alienate such a huge percentage of their fans?"
About one-third of the 252 customer reviews of the Foo Fighter CD this week
on Amazon, which prominently displays the fact the album is a
copy-protected CD, complained about the copy protection.
Record executives said they were continuing talks with Apple Computer Inc.
to make these CDs compatible with iPods. In the meantime, Sony BMG also
released versions of each album to Apple's iTunes service.
That appeased some iPod users, but others are still angry because they like
to physically own a disc before importing it to iPods.
American Technology Research analyst Shaw Wu said it would benefit both
Apple and record labels to resolve the issue.
"Apple's the leader in digital music. It doesn't make sense to release too
many copy-protected CDs if they're incompatible with iPods. But Apple could
also be at risk if these CDs keep selling well," he said.
"It's up to Apple to flip the switch," said one record label executive.
Apple declined to comment on such talks. "We have not announced any plans
to license Fairplay technology," said Apple spokeswoman Natalie Kerris.
Meanwhile, record industry officials said the Dave Matthews and Foo
Fighters CDs are selling well. "I haven't noticed them selling off par with
their past albums. In fact the Foo Fighters' first week was the best week
they've ever had," said Geoff Mayfield, director of charts at Billboard.
Since its mid-June release, the Foo Fighters' "In Your Honor, has sold more
than 736,000 units, including 23,000 digital copies, consistently ranking
at the top of the charts, according to Nielsen SoundScan.
Dave Matthews' "Stand Up" has sold 1.1 million units since its May release,
including 56,000 digitally.
Other copy-protected albums recently released in the United States include
EMI's latest Jermaine Dupri album.
EMI Group Plc spokeswoman Jeanne Meyer cited success with earlier such
efforts overseas. "Out of 127 million copy protected CDs we've shipped into
the market outside of the U.S. and U.K., we've had 0.02 percent inquiries
of any kind," she said.
Sony BMG, a joint venture between Japan's Sony Corp. and Germany's
Bertelsmann, said users can get the music onto iPods by transferring files
to a PC, burning them to a CD, ripping those and transferring them into
iTunes.
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923 Fax: 713-743-3927
antunes at uh dot edu
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