Warner Music terminates DRM-free service

Billboard reported yesterday that Warner Music Corp. (NYSE: WMG) has sent termination notices to DRM-free online music service AnywhereCD.

According to the report, AnywhereCD sells DRM-free albums (not single tracks) in addition to CD albums, with the first of those two platforms apparently violating its agreement with Warner Music. Although I am sure that Warner is merely reacting to some form of violation of the contract between the two parties (or I hope at least), I find this interesting and humorous because of Warner's ties to EMI, which last week ended its use of DRM technology.

Warner and EMI have been in an on-again off-again purchasing relationship since at least 2000. Every few months it comes out that one or the other is trying to buy one or the other (rumors, eh). This report is certainly not a rumor that either is interested in the other at this time, but it is still interesting that Warner would terminate a service like this within a week of EMI terminating the use of DRM. It was Warner last who was interested in EMI in late February.

If we (music fans/consumers) were hopeful that EMI's decision with Apple Inc. (NASDAQ: AAPL) would usher in the era of the DRM-free downloads, this is just another step backwards. Perhaps the American situation is too different from the British (or European) to stimulate such a radical change, especially one that makes music more available. If I had known more about AnywhereCD before this report came out I would have certainly checked it out. The premise of selling DRM-free albums alongside physical CD albums speaks to my constant discussion about the demise of physical formats and the rise of digital ones.

Warner closed at 16.79 yesterday and has not risen much above that figure in trading today.