Amazon jumps on DRM free bandawagon

DRM (Digital Rights Management) was the ultimate solution to prevent piracy and trading through the torrent network and others, you could have a way to ensure that everybody is getting their songs legally. It was the solution recommended by the recording industry; but there is a contrary position pushed by a number of people. This position states that there is a large section of people put off by copy protection schemes (such as DRM) and would purchase songs if they were DRM free.
A start was made in this direction when Apple signed a deal with EMI a few weeks back when Apple announced that they would make DRM free songs available on iTunes (slightly more expensive than regular DRM restricted songs). Now Amazon has jumped on this same platform, announcing that Amazon will make DRM free songs available that will be playable on a wide variety of portable music players, including Apple's iPod and Microsoft's Zune.
If it turns out that this strategy starts to sell more songs, then a lot of other retailers will jump onto this effort, and start to sell DRM free music. More such successes will start to hurt the basic claim that DRM is necessary, after all, money and sales count. Refer this article:

Apple's iTunes and e-tailer Amazon.com are in position to test this hypothesis in the coming months. On Wednesday, Amazon announced that it plans to sell digital songs from record label EMI Group that will be DRM-free. Amazon's unprotected music, which will be sold from the retailer's upcoming download store, can be played on a wide variety of portable music players, including Apple's iPod and Microsoft's Zune. Amazon's announcement follows one last month from Apple, which is also due to begin selling unprotected music from EMI.
"DRM is the only thing that has given the industry any kind of control," said one record executive, who requested anonymity. "Amazon is a strong endorsement for this (unprotected music) strategy," Card said. "The question of whether it's enough to tilt the tables away from DRM remains to be seen. The sales would have to be huge to bring the others on board."
Sales of traditional CDs are in a free fall. The industry reported a 17 percent decline in album sales so far this year. Ipsos Insight, a Chicago-based market research firm, issued a report recently that showed a 15 percent drop from 2002 in the number of U.S. consumers who had bought a CD within the past six months. The music industry is waiting for music downloads to make up these losses, but that hasn't happened yet.

A lot of people are pushed off by the restrictions on purchased music, where the music can only play on one player, and not others. However, by offering both DRM protected songs, and non DRM protected songs, they could end up confusing users, large sections of which cannot be expected to understand the reasoning and basis for copy-protection.
Another possible outcome is that users do not buy these songs just because they are priced higher than protected songs. If such a thing happens, it is not going to be far-fetched for music industry executives to claim that consumers have rejected DRM free songs, while the reasoning could be a matter of simple economics.