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7digital DRM free online music store planning U.S. store after signing major music labels

UK-based digital download store 7digital.com revealed yesterday that Sony BMG, a division of Sony Corporation (NYSE: SNE), had joined the other major music labels to offer high-quality MP3 files without anti-piracy technology from the store. The new deal brings 250,000 tracks to the format, making 7digital the largest digital rights management (anti-piracy technology)-free store in the UK with 4 million tracks offered. 7digital also launched new sites in other regions of Europe, and announced plans to launch a store in North America by the end of the year. CEO Ben Drury told Billboard that the U.S. store will be managed from an office in San Francisco.

Opening a store like 7digital, where music fans can purchase high-quality MP3 tracks from all the major labels would be a strong challenge to the dominance of Apple Inc. (NASDAQ: AAPL)'s iTunes Store in the United States. Drury told Billboard as well that consumers are more likely to buy MP3 formatted albums over the DRM albums generally offered in stores like iTunes and that the average "transaction" on 7digital' site is around $8. The CEO also welcomes the pending launch of a MP3 store by Amazon.com Inc. (NASDAQ: AMZN) in the United Kingdom, since it will promote and provide more choice to consumers looking at formats without DRM and stores without subscriptions.

High quality DRM-free MP3 files work on across all platforms and devices, meaning that consumers that do not own Apple's iPod can buy tracks for other devices. Overall a U.S. 7digital store would be a true competitor for iTunes and could boost the music labels if prices drop and more digital tracks are bought as the CD slowly declines.

Rolling Stones join DRM-free market

Rolling Stones tongue logoBillboard.biz announced this morning that the Rolling Stones are set to make their EMI (OTC: EMIPY) catalog available digitally without Digital Rights Management technology. 7digital, a London-based online store, will be the first to offer the catalog, which includes 24 albums between 1971 and 2005 at the "high-quality 320 kbps rate." The band's pre-1971 catalog is managed by Universal Music Group, and the same announcement cites that the company does not intend to offer its part despite the DRM-free testing the company has begun.

7digital will offer the albums for a lowered price for four weeks, before the price returns to normal and the exclusivity ends presumably, though a few of the albums are already available in Apple Inc.'s (NASDAQ: AAPL) iTunes Plus store. The tracks from 7digital will also be playable on a number of devices, not simply iPods, but other MP3 players, cell phones and even PDAs according to Billboard's report.

The catalog from EMI opens one of the largest the company holds, and the Rolling Stones will certainly find old and new listeners cheering as their successful Bigger Bang tour closes with three nights at London's 02 Arena. The tour has already sparked an exclusive DVD set from Best Buy (NYSE: BBY). All that is left to wonder now is whether a new live album is in the works, a la 2004's Live Licks, which peaked at #50 in the Billboard 200. Another deal with Starbucks Corporation (NASDAQ: SBUX) would certainly hit well; 2005's Rarities peaked at a nice #76.

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Last updated: November 27, 2009: 01:29 AM

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