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Vipin V. Nair

Consumers buying music from the Internet can download it only from select online stores for now. But Real Networks is seeking to change this with some new software, a note that isn't well-received. More on the scene.

EVERY time we buy a CD, do we really worry about whether it will work on our music systems? We don't. Globally-accepted standards in digital storage of music CDs and DVDs make sure that regardless of the make of our music systems, they will work.

But those who buy music from the Internet don't enjoy such peace of mind yet, since each service provider has his own choice of audio compression format that runs only on a particular music device. So a user is, in a way, tied down to a particular online music store.

Take the instance of iPod, the most popular portable music device from Apple Computers. It plays only songs downloaded from the company's online music store iTunes. Apple uses a format called Advance Audio Coding (AAC), fortified by its Fairplay digital rights management (DRM) system, to encrypt songs in the iTunes store.

Now, a new software announced by RealNetworks seeks to do away with the incompatibilities that exist in the world of digital music. RealNetworks claimed recently that its Harmony Technology is the world's `first DRM translation system' that enables users to play music purchased from anywhere on more than 70 devices, including Apple's iPod.

"Now anyone can buy music, move it to their favourite portable device, and it will just work, just like the way DVD and CDs work," said Rob Glaser, Founder and Chief Executive Officer, RealNetworks, after unveiling the software. "Before Harmony, consumers buying digital music got locked into a specific kind of portable player. Harmony changes all that."

The attempt by Real to bring about compatibility in the music world by getting around technology issues is bound to be contentious as Apple has already come out with strong statements against the company. Apple has accused RealNetworks of adopting "the tactics and ethics of a hacker to break into the iPod," while developing the Harmony.

Apple has said it is investigating whether RealNetworks violated the Digital Millennium Copyright Act and other intellectual property rules and has also indicated it will make the future versions of iPod incompatible with Harmony. So another battle is brewing in the digital world.

Online music has now evolved to the status of an industry in itself from the days of files `popularised' by Napster. And this explains why Apple is so cut up over the move by RealNetworks. According to a study by Jupiter Research, digital music sales will reach $270 million in 2004, and by 2009, will reach the size of $1.7 billion, accounting for 12 per cent of consumer spending on music.

Jupiter also expects revenues from digital subscription to outpace the same from digital downloads. As for devices, it is estimated that MP3 players will grow at over 50 per cent in this year to more than five million units in the US alone.

Apple, the most successful company in the digital music business so far, has sold four million iPods and over 100 million tracks from iTunes. The company recently entered into a deal with mobile phone maker, Motorola to make iTunes compatible with Motorola handsets.

RealNetworks has boosted its revenues thanks to its growing subscriber base.

In the second quarter of this year, it added one lakh new subscribers to take the total user base to over 5.50 lakh. New players such as eBay too are testing out its own digital music store, realising the business potential.

Naturally, nobody wants to be relaxed in the business of music.

vipin@thehindu.co.in

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