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The month of June is going to be a very busy month for Apple Inc. Just recently, they updated their flagship MacBook Pro lines and released more information about their upcoming OS X release, Leopard. In addition, June 29 will also mark the release of Apple’s first mobile communication device, the iPhone. So will the iPhone be successful? Only time will tell.

Apple’s current position in the industry has been a remarkable story. Just 10 years ago, Apple was struggling and very close to extinction. However, Steve Jobs was brought back and he went to work to revive the company and has brought it to its current glory. Since Apple’s inception, however, Apple has made many mistakes and has rectified those errors and recovered quite superbly. The Economist has a great article on the different lessons that Apple has learned, from Lisa to Newton.

This article is definitely worth the time to read because it talks about how Apple has come back from certain failure and is now considered one of the most influential companies of our time. It goes on to discuss Apple’s mistakes and how it overcame those faults. I was surprised to learn that Apple has definitely not succeeded on its first foray into new markets (e.g. their PDA, Newton) and that some of their prime products are not their original creation (e.g. Mac OS X and iPod).

I have also attached a PDF version of the article.

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Now that iTunes is offering DRM-free music from EMI’s catalog, I’m suspecting that many folks are willing to share their new music with their friends.

STOP!

I’m not telling you to shop because the sharing of digital music files might be illegal. I’m telling you to stop because those precious DRM-free files actually contain embedded information that could be used to identify who you are. This is actually news that was on Digg earlier in the week and is something that Apple has not publicly confirmed or commented on. Needless to say, privacy advocates are already criticizing Apple for implementing such actions. According to this C|Net article, it is possible that Apple is doing this to provide the industry with information about consumers who may be illegally sharing DRM-free music. In essence, if you share a DRM-free song that was purchased from iTunes, Apple and other music labels will be able to determine that the source of the “piracy” for the file was you.

I can understand Apple’s motive and I will also go further and suggest that this was part of the agreement between EMI and Apple. If you think about it, it makes perfect sense because once these music files are shared freely, it is not in the interests of EMI or the RIAA to sue each individual user. Therefore, by finding out which person the file belongs to, the industry will now have sufficient evidence to prosecute the guilty user. Essentially, this allows the RIAA to pursue the root cause of potential piracy rather than individual users. In retrospect, I can easily see this as part of an agreement between EMI and Apple and the exposure of this “bug” is definitely something Apple did not want anyone to find out about. This could also serve as an effective selling point for Apple to other labels to pursue DRM-free music. In either case, the fact of the matter is that you have no privacy in sharing those beloved DRM-free files from iTunes.

Source: C|Net Article

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Now that I have spent a few days with my new MacBook, I am quite pleased with it and am surprised at how easy it was to transition from a Windows environment to a Mac OS.  Interestingly, the learning curve is not as bad as some might be inclined to suggest.  However, there is a small learning curve and things do work differently in the Mac world than in the PC world.  For starters, installing and un-installing applications is extremely easy under a Mac.  To install, all you have to do is drag the application into the Applications folder and it is installed automatically.  To remove, simply drag the application to the Trash Bin and it’s gone.

Having used Linux for a few months last year, I can see some similarities between MacOS X and Ubuntu.  I won’t go into too much detail since I do not have an operating Linux machine nor do I want to overload you with needless information.  Apple does a great job of providing useful resources to ease your transition from Windows to Mac.  In addition, they also provide a web page that contains common keyboard shortcuts that many Windows users might use.  The trick to remember is that there is no longer a windows key.  Rather, the Macs come with an “Apple”/command key that functions frequently as the Windows and CTRL key.  I should point out that there is a CTRL key on a Mac keyboard, but many keyboard shortcuts won’t use the CTRL key like it is used in Windows.  

My only complaint, so far, is the price of this machine.  I spent roughly $1265 including the extended warranty and after my student discount.  Is the extended warranty worth it?  The warranty gives me three years of tech support via phone and protection for the machine.  I have heard that Apple machines are not very error prone, but can be subject to expensive repairs.  Hence, the $183 price tag is a small investment to ensure that my machine can enjoy three years of trouble-free service.  My machine is the base MacBook since I do not need a DVD burner as my desktop as a DVD burner already.  Before you buy a Mac, make sure that its specs meet your needs and wants.  There is not much you can upgrade on a MacBook once purchased.  In fact, I think you can only upgrade the RAM and hard drive but you will not be able to change the Combo Drive into a Super Drive.  

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Lately, Apple and Amazon have begun pursuing the sales of digital music without DRM. This move is being closely watched by all the major music labels as well as everyone else because success could spell the end of DRM. Thousands of pundits and consumers have voiced the shortcomings of DRM such as lack of interoperability and limited flexibility. Essentially, DRM-free music is designed to give the consumer maximum flexibility while ensuring a profitable business model. In other words, companies are trying to get customers to abandon “stealing” music from P2P networks and have them buy it legally. If you think about it, it’s a great idea since you get the music legally with the same flexibility that “stolen” music offers. However, there remains one BIG problem with DRM-free music, cost.

DRM-free music is not cheap. What the companies fail to realize is that piracy cannot be defeated without offering a product close to the price of piracy. Companies need to sell music at very low prices before they can expect piracy to decline. How can you expect piracy to decline when you are selling DRM-free music on iTunes for over a dollar? That same music, with the same quality, can be had on many P2P networks free of charge. This brings up two questions:

1. What about those lawsuits?
2. Why bother competing when you know the music is available free of charge?

Question 1 Answer

The lawsuits do nothing but to illustrate those who are naive and foolish enough to get caught. In fact, I would say that for every individual caught, there are over a thousand who get away. When it comes to staying safe from those legal eyes, many people are simply too stupid to take preventative measures to ensure their safety. By adding an IP-filter list or using private trackers, you can significantly reduce your chances of getting caught. I’m not advocating the theft of digital music, but the lawsuits are frivolous and serve no useful purpose other than to “scare” others.

Question 2 Answer

In most cases, you would be correct to assert that if a company is going to charge consumers and if the product is available for free, consumers will go the free route. However, when it comes to downloading music, consumers want ease of use. To download illegally, the smart consumer has to take preventative measures and work hard to find the music in a condition which meets their expectations. Generally, it is much easier now, but when you are stealing music, you still have to search. This is especially true if you are trying to locate works by an obscure artist that is not very popular. However, let’s say iTunes offered music that was DRM-free for only $0.10. Now you can download hundreds of tracks without regret for little cost. In fact, you can download 200 tracks for only $20 and you’re still within reason. Sure, you could download those tracks for free, but at least now, you have a convenient location to go to for all your music needs. However, the most important thing to understand is that you cannot eliminate piracy. It is, however, possible to reduce it if and only if you offer the consumer more value for extremely low cost. At least, that’s the way we all hope it would work.

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For the first time, a major music label, EMI Group, has begun offering DRM-free music across its entire library and available through iTunes. The only downside to this move is the fact that you will have to pay US$1.29 for the DRM free versions. Should you wish to pay less, you may still purchase tracks at $0.99, but they will be hampered by DRM. Although I do not see this move countering piracy significantly because of price, I do expect more people to migrate to iTunes.

Essentially, this allows you to purchase EMI music from iTunes and use your own digital music player. You still will not be able to synchronize any music device, other than the Apple branded music players, with iTunes. However, you can buy music through iTunes and use your current software to upload music to your audio player. The biggest question is whether the other major labels will follow suit. I expect them to follow a similar path, perhaps cautiously and to test the waters.

The main obstacle here will be the price of the new DRM-free songs. Since both Apple and EMI have agreed to a higher price structure, there won’t necessarily be a dip in piracy. In fact, what these companies will see is the fact that most consumers who purchase music will probably opt for the DRM-free version and continue to solidify iTunes market share. In a way, I think this is a great move for Apple because it now allows them to cater to consumers who are unwilling to purchase an iPod. Additionally, the iTunes brand itself can now become a self-sustained business unit without depending on iPod sales. Could we see the beginning of iTunes connecting to other non-Apple branded products? I highly doubt that, but now Apple does have a marketing tool to say that you can buy your music from one store and take it across a multitude of products.

Thankfully, EMI Group has opted for the AAC standard and not some other bogus standard. As more stores are authorized to resell DRM-free music, you can expect formats to be in WMA and MP3, or even other formats. In my opinion, I really don’t care whether it is in AAC or MP3 since most audio players on the market can handle both formats. The only difference is that AAC is something that Apple pushes in its digital audio players. By allowing the end consumer more flexibility, the EMI Group and Apple have opened doors to a brighter future where more people may be inclined to purchase their music rather than download them illegally. Hopefully both parties agree on the fact that prices must fall considerably before anyone is willing to ditch free music.

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