Floppyhead – Digital Media and Streaming

Following on the heels of EMI, Universal Music Group has decided to test the DRM-free marketplace. Starting August 21, Universal will offer its most popular music DRM-free as MP3 files. Songs will sell for 99¢ each. This DRM-free music will be available at Amazon, RealNetworks, and retailers such as Best Buy and Wal-Mart.

One notable exception to this experiment is the lack of DRM-free music at the iTunes Music Store. There is no way this is an oversight. Universal has been looking to get out of their current contract with Apple and get more favorable terms, like a portion of iPod sales. Universal is definitely trying to get their point across to Steve Jobs. I think the music industry is beginning to realize that they only way to tame the iTunes juggernaut is to offer DRM-free music at lots of music e-tailers.
DRM-free music is gaining momentum. With the success of Emusic and the Barenaked Ladies, this should come as no surprise. Hopefully the bitrates will begin to increase as well.