EMI/Apple Deal and its Consequences

Aram Sinnreich presents an interesting analysis of the EMI/Apple deal established to allow for the exercise of "fair use" rights of their own libraries. Digital rights management (DRM) seems to have contributed to the monopoly Apple holds over any potential competitors. The positive externalities of the iPod guarantees it a place not held by any other MP3 or music playing device on the market; by obtaining a slice of the market early on, and by utilizing stylish and slick marketing ploys and designs, the iPod has easily surpassed its competition in terms of desirability.

This effect is even further enhanced when more and more people are eager for the iPod. Since it has staked its terrain as the dominant device in its field, it automatically has become the preeminent device; few bother to investigate alternatives to the iPod, and as its popularity increases exponentially, the likelihood of salient alternatives drops exponentially.

Since Sinnreich's article was released on April 17, 2007, the iPhone has been released. It has certainly revolutionized cell phones; possessing the hybrid functions of cell phone utility, equipped with myriad cool internal gadgets, and perfectly amalgamating the insatiable appetite for music craved by the American public. AT&T/Cingular is the only service provider to have the exclusive rights to selling the iPhone, and it seems that rival companies (e.g. Verizon), are simply left in the dust. Sure, companies like Verizon may offer better service, but without comparable technogadgets, it seems likely that they will lose out on a huge audience of individuals who are keen to sample the "latest trend" and "newest thing."

These technophiles are the same kinds of individuals who will continue to purchase the iPhone in each of its newly revised (albeit only minimally altered) editions. They will presumably disregard the fact that the quality of service (and after all, isn't that what a cell phone is supposed to do? Provide service to its users?) is inferior, and instead opt for the ostentatious appeal and variety of techno-tricks the iPhone guarantees.

EMI likely recognized the depth of power wielded by Apple via its new technologies, and in its new deal sought to quell some of the monopoly power of Apple, and instead promote a more healthy competition among companies and providers. Hopefully EMI's innovations at limiting DRM-distribution will influence other companies to adopt similar policies.

It seems that in the 21st century, most technologies are easily duplicable (unless blockaded by such disadvantages as lacking the legal foundations for drafting contracts, as was the case with the iPhone/AT&T) and that one new technology spurs an onslaught of similar technologies. We can only hope this trend will be the case with regard to a rejection of DRM and a promotion of healthy corporate competition.