Wal-Mart to Offer DRM-Free MP3 Tracks

As more and more and digital music customers are revolting against the restrictions inherent in DRM-protected downloads, Wal-Mart announced today that DRM-free MP3 tracks are available on the Walmart.com online music store. Individual tracks sell for 94 cents, while complete albums retail for $9.22.

Previously, Wal-Mart only offered DRM-protected WMA files for 88 cents a track. The file format restricted the number of times the tracks could be burned to a CD, the number of computers the track could be stored on and the types of players the tracks were compatible with. The industry leading iPod can't play WMA files. By offering DRM-free MP3 tracks, Wal-Mart will have access to the 80 percent of media player owners who have an iPod.

"As we consistently strive to help our customers shop smart at Wal-Mart, our new 'DRM-free' MP3 digital tracks give them the ease and flexibility to play music on virtually any device at a great value," said Kevin Swint, Wal-Mart's senior director and divisional manager for digital media.

Wal-Mart is also experimenting with varied pricing on special CDs. CDs from Norah Jones, Keith Urban and Daddy Yankee are $7.88 each, and older albums from 50 Cent and Bon Jovi are available for $5.88.

The DRM-free tracks are available at 256 kbps, a higher quality rate than the current WMA format's 128 kbps. Wal-Mart will still offer the WMA format tracks for 88 cents each.

Wal-Mart isn't the first online music retailer to offer DRM-free MP3 tracks. In May, Apple iTunes announced a partnership with Universal to offer the DRM-free MP3 tracks for $1.29. Wal-Mart's DRM-free MP3 tracks retail for less than the standard 99 cent DRM-protected tracks from iTunes. The pricing strategy may work to make a dent in iTunes dominance of the online music industry.

In an era of declining CD sales, digital music downloads are rising. In 2006, sales of digital music soared 190 percent. Sales at online music stores rose to $1.1billion dollars in 2006, up from $400 million the year before.

DRM-protected files were introduced as a way to fight online music piracy, but the technology limited the users choice of devices, and after a slight dip in file sharing numbers, music lovers again turned to peer-to-peer networks for portable MP3 files. The music industry hopes to discourage music piracy by offering customers a file format that can be used on any player or computer.

Source: Press Release: (http://media.prnewswire.com/en/jsp/main.jsp?resourceid=3539900)