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Amazon finds Universal love - August 10, 2007

Amazon's decision not to use DRM in its online music store is looking shreweder than ever in light of today's annoucement from Universal Music.

The retailer's No-DRM Declaration won it some love from consumers and consumer rights groups frustrated by the limitations that Apple places on iTunes tracks. But many wondered at the time whether Amazon would ever be able to license enough music from the major labels to compete effectively with Apple. Especially so after Universal Music reached an impass in its license renewal negotiations with Apple, reportedly over Apple's pressuring the label to drop DRM.

But perhaps the impass had less to do with DRM per se than with Universal chairman Doug Morris not liking to be told what to do by Steve Jobs. In an effort to turn the tables, the world's largest music distributor has now embraced Amazon's DRM-free status as a point of leverage over Apple. The company said it would sell DRM-free music through Amazon, Best Buy and Walmart.com, but not through iTunes, where it will continue to be restricted.

Officially, according to the LATimes Universal says iTunes will serve as "a control group" to measure the impact of going DRM-free on piracy rates. But of course the real point is to see how much business the label can divert from iTunes to other retailers.

I'm sure Steve Jobs enjoyed seeing iTunes referred to an experimental control parameter, too. A nice little FU from his buddy, Doug.
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