Future of DRM - is Apple buying EMI?
Tue, 20 February 2007
Ever since Steve Jobs posted his thoughts on future of DRM on apple.com, there’s been a fierce discussion anywhere you look. The ivestment gurus, company executives, musicians, bloggers, critics, even a few totally drunk old ladies at the local retirement village have been debating it to the death. OK, only kidding, they weren’t that drunk after all.
The time line is what makes things very interesting. Firstly, there is Apple vs Apple settlement, which we don’t know very much about. Then Steve Jobs comes out with ‘no-DRM future’ suggestion. A day or so later, EMI suggest they are thinking of going mp3.
Isn’t that weird? Apple Records, that has specific ties to EMI, settles with Apple Computer Inc, and then Apple Inc. CEO goes on to attack DRM with ‘backing’ of EMI. Oh, yes, Apple has just dropped that ‘Computer” part from its name, hardly a month ago. Hmmmm …
I was doing my laps around the lake earlier today and I was asking myself “Is Apple Inc. buying EMI?” I am not completely sure about the Apple Records relationship with EMI, but is the settlement maybe something that would make one Apple eat another Apple? After all, it could make some sense with Apple Inc. running recording business and selling non-DRM music.
I was close to thinking that there might be something real in it, but then tonight I came across this article claiming:
Music group EMI says it has received an approach from US rival Warner Music that could lead to a takeover bid…
What the …? Is this EMI trying to ‘muscle up’ before being taken by Apple, or is Warner Music getting desperate to protect DRM, even if that means finally buying the ‘traitor’? Go figure.
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Jon said: Tue, 20 February 2007 at 23:02
The take over bid from Warners has nothing to do with Warners protecting DRM. Both Warners and EMI are seriously flagging, therefore its better for them to join together, consolidate, and save on their costs and increase their profits.
You only need to read the latest news pieces to confirm this.
Also, how would a takeover by Warners ‘muscle up’ EMI for purchase by Apple. As I said, EMI and Warners would not co-exist if this takeover happened, they would join forces as one company. That said, I cannot see Apple being anywhere close to being able to purchase such a merged company as its new value would be much higher than EMI currently is on its own.
Webomatica said: Wed, 21 February 2007 at 03:10
Interesting thought - would it make more sense for Disney to buy EMI? And then Jobs obviously has ties to Disney which would parlay into more iTunes content.
bobster said: Mon, 2 April 2007 at 09:54
i guess you are going to find out at one helluva press conference in London tomorrow (2nd April). Steve Jobs flying in to give a joint press conference with Eric Nicoli tomorrow. Just to announce some Beatles stuff?