Sony BMG to Drop Copy Protection For Downloads

This month Sony BMG Music Entertainment, the world’s second largest music company, will become the last of the big four major music companies to drop copy protection software on music downloads, also known as digital rights management (DRM).

Sony BMG said on Monday it will launch a gift card service on January 15 called Platinum MusicPass that will allow users to download digital albums in MP3 format without DRM protection. The gift cards will be available at U.S. retail outlets such as Target and Best Buy.

"The introduction of MusicPass is an important part of Sony BMG’s ongoing campaign to bring its artists’ music to fans in new and innovative ways, and to develop compelling new business models," said Thomas Hesse, Sony BMG president, global digital business & U.S. Sales.

Since the music industry lost 15% in sales in 2007, music companies have been exploring new ways to drive the business up and attract consumers. One of the biggest issues for music companies last year was whether dropping DRM would help drive digital sales.

Digital music buyers have been frustrated by the limitations imposed by DRM, prompting industry analysts to support the call to drop copy protection. Music companies had required DRM to prevent users from making multiple copies or sharing songs with friends for free.

EMI, the number four music company in market share became the first major to drop DRM in April and was later followed by Vivendi’s Universal Music Group. Last month, Warner Music Group said it would start selling its music in MP3 format through Amazon.com.