EMI Provides Apple With Opportunity To Fortify Its Position As Leading Digital Content Distributor
London, UK (rushprnews) April 16, 2007- A report from Strategy Analytics’ newly launched Digital Media Strategies service, in conjunction with its Wireless Media Strategies service, concludes that EMI’s decision to drop Digital Rights Management (DRM), positions Apple to sell into the rapidly expanding base of converged mobile phone/music player devices, the majority of which support the Apple favored AAC encoding standard.
This report, “EMI Drops DRM with iTunes: Digital Music Market Impact,” notes that while 16% of new mobile phone handsets coming onto the market in the last quarter of 2006 supported Microsoft’s WMA encoding, over 60% supported the AAC encoding standard.
Without DRM attached to the music, Apple is able to leverage its industry-leading iTunes Store to sell music to any AAC compatible device.
“Previously, Apple has been perceived as a company that only uses iTunes-like services in order to drive sales of its hardware products,” comments Martin Olausson, Director of the Strategy Analytics Digital Media Strategies (DMS) service. “This move by EMI offers Apple the chance to position iTunes into the wider content delivery market, and to sell content not only for its own devices but for all connected devices – both in the online and wireless domains.”
“The combined multi-trillion dollar industries of telecommunications, media and entertainment are making huge bets on the transition to digital content delivery,” adds Phil Taylor, Director of Strategy Analytics Wireless Media Strategies (WMS) service. “Any company that can position itself to dominate part of that emerging delivery chain will likely reap the benefits for decades to come.”