Wal-Mart Ends DRM On Its MP3 Download Sales – What Now iTunes?

WalMart DRM-free MP3 PampelmooseWalMart DRM-free MP3 PampelmooseWalMart DRM-free MP3 Pampelmoose

Boing Boing posted a story about Wal-Mart ending its use of DRM wrappers on its MP3 download service and how, for its customers, there is now the inconvenience of backing up those MP3s by burning them to disc. If the files are not saved that way they will no longer be available via the Wal-Mart DRM servers – the customers will lose access to their purchased music in other words.

That’s not the big story though. More interesting to me is what will Apple do now that the world’s largest retailer and the world’s largest online retailer, Amazon.com, are selling MP3 files to their customers without DRM? I can’t believe that Steve Jobs will stick to keeping DRM on iTunes files even though the DRM means that files purchased on iTunes are then not transferable and can only be played on iPods not other MP3 players. The money is in the hardware not the content.

And then there’s the Android G1 phone that has the Amazon DRM-free MP3 store built in. The clock is ticking.

And the moral to this story, as one comment left on Boing Boing says -”You know you have a horrible business plan when the only rational thing for your customers to do is break the law.”

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