Microsoft plans to drop DRM

Microsoft has been talking to record companies, such as EMI, about selling downloads for its Zune portable media player without DRM (Digital Rights Management).

DRM aims to prevent unauthorised person to person file sharing, but has not proved to be very effective and can prevent users from making back up copies of DVDs and music downloaded from online stores.

Microsoft’s announcement follows EMI’s recent deal to sell tracks through Apple’s iTunes without DRM protection. Apple will begin selling DRM-free EMI tracks this May. The tracks will be of a higher quality than DRM protected tracks, but will also be around 30% more expensive.

If DRM-free downloading is adopted by all the major labels, portable player manufacturers will no longer need to provide support for Microsoft’s Windows Media DRM, and pay the necessary licensing fees.

This could present a significant challenge to Microsoft’s aspirations to replace Apple as the dominating player in the digital music market.

Instead of supporting Windows Media DRM, music player manufacturers could integrate support for Apple’s AAC format, and advertise their products as compatible with iTunes and iPod.