Microsoft is seeking DRM-free music

Music label EMI made waves Monday when it revealed plans to sell songs on Apple's iTunes online store with no digital copy protection.

On Wednesday, Microsoft rode the waves, spreading word that it, too, is negotiating with EMI and other labels to lift copy protection from music sold on its rival Zune Marketplace.

Consumers have railed against anti-piracy measures known as digital- rights management (DRM) that limit where and how they can play music legally purchased online.

"A primary objective for us within Zune is to figure out how to give consumers what they want while still balancing the rights of the content owner," said Jason Reindorp, Zune marketing director. "Those kinds of discussions have been happening behind closed doors for some time with EMI as much as any other label."

He also described an upcoming marketing push for Zune that will include the introduction of two new colors, pink and "watermelon red."

Monday's announcement "at first glance looks like a deal exclusive to Apple, when in actual fact it isn't," Reindorp said, adding that nothing has been finalized between Zune and EMI or any other labels.

Matt Rosoff, an analyst at Directions on Microsoft, said Microsoft talked about addressing consumer concerns with DRM when it launched Zune in November.

"I don't see any reason why Microsoft shouldn't get the same deal as Apple did," Rosoff said.

EMI's songs will be sold on iTunes, the online store that complements Apple's market dominating iPod, for $1.39 each without DRM. Songs with DRM cost 99 cents.

The deal does not include EMI's biggest act, The Beatles, whose music remains absent from iTunes with or without DRM.

The prospect of legally purchased DRM-free music could unchain consumers from the closed systems offered by Apple and Microsoft.

"If [EMI] leads, some of the other record companies will probably follow," Rosoff said. "In the long run, it's good for consumers and good for digital downloads in general."

It probably won't be a big competitive boost for Microsoft in its effort to win market share away from Apple, he said. Zune sales in February represented about 8.7 percent of hard-drive portable music players, according to data from market researcher NPD, released by Microsoft.

Microsoft plans a new marketing campaign to begin in May that will highlight key differences between the Zune and the iPod, including its wireless capabilities, larger display screen and FM tuner.

Along with the campaign, Microsoft is releasing a new light-pink Zune — about 40,000 units will be available; Amazon.com is already taking pre-orders — to be followed later by a "watermelon red" device, Reindorp said. He said Microsoft aims to highlight Zune as a fashion brand as well as an entertainment brand.

Microsoft also is preparing to broaden the Zune product line to offer music players with different capacities and prices.

The current 30-gigabyte hard drive player sells for $250. Reindorp said Microsoft will also focus on adding features to Zune Marketplace to get "to parity with our biggest competitor."

Finally, the company is exploring expansion into international markets.

Benjamin J. Romano: 206-464-2149 or bromano@seattletimes.com