The UK based record label EMI has had a 5.1% revenue drop as a result of what it calls "tough market conditions experienced in the recorded music market". This was not helped by a plunge of nearly 20% in physical media music sales. On the other hand, when it comes to digital music, it has reported a 26% sales increase in digital sales year-over-year.
So far, while EMI has not provided any figures for its DRM-free music sales, such as how its DRM-free track sales compares with its DRM infected track sales, it claims that its DRM-free music sold via iTunes is off to a promising fast start. The rest of the music industry is keeping a close eye on how well its DRM-free experiment is working out, to see if EMI can increase its market share of digital music downloads. The doubters will be looking out for signs of an increase in piracy, since consumers are not being restricted on what they can do with the EMI's DRM-free tracks. At present, it appears that those who fork out on the higher priced unlocked tracks do so for higher quality music and the ability to play the music on more devices.
Further information can be read in this E-Commerce Times article.
