• Business Week, Friday, January 4, 2008 10:48 AM

It's a move that marks the end of a digital music era, as Sony BMG Music Entertainment becomes the last of music's Big Four to free its music from digital rights management software during the first quarter. Long the scourge of music lovers and device makers alike, DRM protection restricts song distribution across multiple platforms and devices. The idea is to guard against illegal duplication.

But it also ties record labels to exclusive contracts with music sellers and distributors, which keeps reach and revenues down, as third parties take their cut. Sony BMG would be the last to ditch the copy protection software, after Universal Music Group, Warner Music Group and EMI Group all announced plans to sell DRM-free songs earlier in 2007.

The shift from DRM could spark a sea change in the way music is sold and distributed, allowing the labels to bypass Apple's market-dominating one-price-fits-all iTunes music store. Songs could be sold for whatever price they choose or even to distribute them in exchange for ad revenue.

Read the whole story at Business Week »