Six large technology and music companies have united to
develop interoperable digital rights management systems to protect
content such as music and movies.
HP, Sony, Philips, Matsushita, Samsung, InterTrust and Twentieth
Century Fox have joined the Coral Consortium, which will seek to
establish a framework - or, as the group describes it, a new
technology layer - within the next nine months to allow consumers
to play digital audio and video content regardless of the service
provider or the device used.
But notably absent from the list of Coral members are three of
the market's biggest players: Microsoft, RealNetworks and Apple,
which produces the iPod and iTunes Music Store, the market's
dominant digital music player and online music service.
Though establishing a group seeking interoperability is an
important first step, compatibility between DRM systems is not
going to happen any time soon, according to Mark Mulligan, senior
analyst with Jupiter Research in London.
"What could Apple have to gain by making iPod and iTunes
interoperable with other devices and content on the market? A
symbiotic relationship is absolutely essential for Apple to sell
its iPod device, which is very important to the company now.
Selling and organising music through iTunes is more of a value-add
for selling iPod," Mulligan said.
Apple's FairPlay system does not support the DRM technology used
by other services like Microsoft's Windows Media Audio and
RealNetworks' Helix.
In July, against Apple's wishes and amid threats of legal
action, RealNetworks released the beta version of its Harmony
technology to enable users to play tracks on 70 music player
devices, including iPod.
"On the supply side, there is widespread enthusiasm for
interoperability," Mulligan said. "But there is resistance from
Microsoft.
"I can understand that Microsoft and Apple do not want to
concede any ground. Apple is very strong in the market with iPod
but they do run the risk of becoming a trendy niche player - much
as Apple's operating system did against Windows and the PC - if
they don't pick the right time to become more open. Something will
have to move."
Mulligan believes that a big consumer backlash will come against
technology and music companies as the consumption of digital
content becomes more mainstream.
"Such a backlash could come as early as the beginning of next
year, when people start to try to use iPods and other digital
players they receive at Christmas as presents, only to realise, for
the first time, the constraints that exist. For example, that a lot
of the music and video they already have can't be played on their
new devices," he said.
The fact that Sony has joined Coral is a sign that changes are
coming in the industry, Mulligan said. "Sony has traditionally been
very closed, so this is quite a sea-change for [the company]. But
iPod has stolen a lot of Sony's traditional ground in the market,
and Sony has realised that if it is going to creep towards the
mainstream, it must have some interoperability."
When it comes to how interoperability comes into practice,
content providers will likely begin by relying on cross-licensing
agreements rather than a industry standard, followed by firmware
updates for devices, Mulligan said.
Until that process begins, groups like Coral are also pushing
for industry-wide standards.
Though Microsoft, Apple and RealNetworks have not yet joined
Coral, the door is open for them to do so, said Caroline Kamerbeek
of Philips' intellectual property and standards division.
"Philips hopes that as many companies as possible will join
Coral because it is important to have many partners. The key to
driving the market forward is interoperability. It is very
important to the end user," she said.
Laura Rohde writes for IDG News Service