On April 22nd, 2008, MSN Entertainment sent an email to customers advising that access to music licensing will be cut off at the end of the summer - August 31, 2008. This is a great example of the inherent weakness of digital rights management. For those new to the subject take a quick look at our Understanding DRM article.

Customers expected to have access to their MSN music downloads forever. Instead they have until August 31st to license up to five computers. It doesn't stop there. Not only do the licenses only apply to that hardware. They also only apply to the operating system currently loaded. That means your music lasts only as long as the current OS on your computer. Upgrading the OS requires a new license which will no longer be available.

The Electronic Frontier Foundation (EFF) released an open letter to Microsoft CEO Steve Ballmer on April 29th outlining steps Microsoft can take to help MSN Music customers. Here is a summary of their suggestions:

• Provide a public apology to all MSN Music customers
• Offer refunds for affected downloads or DRM-free replacements
• Offer permanent access to proof of purchase. Cover any copyright suits tied to songs purchased via MSN Music.
• Eliminate DRM from Zune Marketplace downloads to protect customers from a repeat of this problem.
• Publicize the steps taken to remedy the issue.

Negative impacts - Zune Marketplace customers could certainly feel uneasy wondering when the ball will drop on them. Beyond Microsoft, other services that use DRM including iTunes, Napster and Rhapsody could also see an impact.

Positive impacts - services like eMusic, Amazon Mp3 and Walmart Music could see increased sales for offering DRM-free music downloads. Former MSN Music customers and others reading about DRM issues like these could feel relief in knowing that their songs are free of DRM.

What does this mean for the industry? Hopefully it will drive the need to eliminate digital rights management (DRM) from music downloads. This is a clear example of the impact it can have on customers. While I'm sure Microsoft didn't intend for this to happen when they opened MSN Music they should have had some insight after closing the service to move forward with Zune Marketplace. Sony Connect had a similar affect on customers last year when they closed their online stores in the US and Europe.

References:

• MSN Music Email
• Electronic Frontier Foundation (EFF) Open Letter to Microsoft
• Sony Connect Article