Major Labels Abandoning DRM

Wow. The world really has flipped (in the right direction). It's beginning to feel a lot like Christmas - first the Library of Congress gives new rights, then the ban on FM transmitters is lifted in the UK... and now, I hear (late) that DRM is dead. From 'Major labels to abandon DRM':

...Yesterday’s post about Digital Rights Management prompted an email conversation with Paul Birch, who is a member of the exec committee and main board of the International Federation of Phonographic Institutes (IFPI) as well as the BPI Council and Chairs International.

According to Birch, the major labels have decided to abandon Digital Rights Management. They haven’t announced it yet — but it’s coming soon. In the wake of the Sony BMG Rootkit debacle, and in the light of the competitive advantage logic, it makes perfect sense.

Birch writes:

DRM as we know it is over. There may be Son of DRM but that’s another matter. Right now its dead, the majors are moving towards the new model. The one thing you can be sure of is they will still be at the centre of the world music industry whatever happens. The independents are another matter. As our sector’s share has fallen by almost half in just over twelve months, the new model for us is partnership. It always was, I’m just not sure we got it.

While Birch himself runs an independent record label (Revolver Records) and I have no cause to doubt the sincerity of his pledge of allegiance to the majors, I’m not sure all independent labels would jump on board the partnership model ‘major labels are our future’ sentiment, and nor am I as optimistic as Birch about their continued centrality...

...While it’s good news that the majors have abandoned DRM as a bad job, it’s too soon to say that they’ve attained digital enlightenment. They are still under serious threat because they have not been quick to evaluate and accommodate new practices...

Seems like the RIAA may actually be starting to grok things. And given that this came on November 12th, and that the Library of Congress gave new rights, it would seem that there is a connection.

The question: what will be next? A retreat from these large corporations usually means an attack in a different direction. After all, they do like suing consumers.