EMI, the third largest record company with acts such as the Beastie Boys and the Beatles, has been considering scrapping its use of DRM on downloaded music tracks. EMI has been in talks with more than one online music store. Despite Steve Jobs recent plea to anyone that would listen to end DRM, EMIA and Apple have not spoken yet, but that could change as a result of their now publicly mutual interest in moving away from DRM.
It would appear according to a Wall Street Journal article today that Steve Jobs was not aware that EMI was shopping around. The article goes on to elaborate that Jobs started his letter as a result of European Union pressure for Apple to make its products work on other devices.
CD sales fell this year by 20%. They account for 85% of US sales of music and such a big drop in sales has music companies working hard to catch up and get their cash flows back on track. The new question for the music companies will be, “Is it too little too late?’