Nathan covers the discussion around Forrester research suggesting that while the iPod continues to do well, sales from the Apple iTunes store for music have been slowing down. One reporter, perhaps needing some attention, called it iTunes “collapse.”

Apple has understandably taken exception to the media jumping on this as bad news for iTunes, prompting Forrester analyst Josh Bernoff to try and clarify the report:

Forrester Research on Wednesday tried to set the record straight after some media companies reported that its study on iTunes showed that song sales fell 65% during the first six months of the year. “For the record, iTunes sales are not collapsing.”

Sidenote: It doesn’t surprise me that a certain Register reporter would get the story wrong, especially with Andrew Orlowski penning the piece (it still hasn’t been updated, BTW). Orlowski would be wrong about reporting it wasn’t raining in the middle of a downpour. I long ago stopped considering The Register as a source to rely upon. If you think Orlowski is reliable, just Google the story about him, an email exchange and Scoble. Don’t take my word for it, read what others who have directly dealt with the man think.

Update 4:43pm PST: read Josh’s sobering blog post here, reminding us why having a fast trigger finger with publishing can be perilous.

With that in mind, let’s go with the worst case Orlowski scenario (a common occurence) and consider that indeed this Forrester report shows iTunes having problems selling as much music as they once did. Would that be such a bad thing?

No.

One thing I find fascinating about conversations with various music fans who love Apple or Microsoft too much (and strangely I’ve been accused of being in the latter crowd) is how too many of these same people sidestep or condemn the whole DRM discussion but don’t seem to hold either of these companies responsible. If you run a store that sells DRM-laced tracks you are part of the problem.

And yes, I think when I bought the Zune and paid the Universal Music tax it was crazy. Why Microsoft ever gave into them is beyond reason. Roll over and avoid going to court on the poorly named Zune sharing “squirting” function, maybe? Bad move on Microsoft’s part being extorted, IMO.

DRM still sucks — bad
It’s too convenient ignoring the fact that DRM sucks for us — music lovers and fans — and Apple, love ‘em or hate ‘em, currently is the major contributor to this broken DRM strategy. By buying DRM-laced music we are fueling the beast.

Ironically I was thinking the same thing earlier about oil. How everywhere I drive I’m financing in some small way oil companies that are doing little good on this earth making the wrong people rich. Hypocrite on the gas, but when it comes to DRM music I have largely said no. Yes, I’ve bought a few DRM-infected tracks but you can count the number over the last few years on your fingers.

And no, I don’t pirate media or support those who do. At the same time I’m not in the business of lecturing other people on their own ethical and moral compasses and would appreciate if others don’t try to do the same to me. I still believe DRM is better than piracy.

For those who care, my own conscience says stay away from accessing music, videos and TV that I haven’t purchased from somewhere (or have been given permission by the copyright holder / publisher to view for free). I don’t think there should be any problem with copying media I’ve legally acquired for to formats I can use elsewhere which I think should be offered to every media customer.

I like renting music as a sampler service
We have used the DRM model to our advantage and rented music plans in the past from Napster, Rhapsody, Y! Music and Zune as of late. I still feel strongly that paying $175/year to be able to sample whole songs and in most cases complete albums is a bargain. I resent that Apple’s Steve Jobs doesn’t think I’d buy that option if it was available in iTunes and instead would rather have me try to make up my mind on a purchase over 30 seconds that somebody else picked out. I would at least try an Apple rental music plan because they have some unique music that other services don’t have. So by him insisting that nobody wants to rent music, he’s missing $$$ he could be getting from our household. When most his competition is doing this, that’s a stupid, arrogant move, not being cooler than everybody else.

Watch what happens if other services really start biting into iTunes and see if Jobs holds the line.

We’ve done a little more business in the video/movie DRM sector to date, both through iTunes video and on the Xbox 360, but I’m even a bit reluctant there since a little patience will turn into a DVD that has loads of features and is much more portable than being only able to play on ___ device/computer.

Whether or not the iTunes store is starting to lose music sales, I know one thing, I won’t cry at the DRM funeral. And it’s coming. I don’t know when or how far off it will be, but DRM is simply too restrictive for most people to continue going on supporting it forever. Here’s a small, but easy prediction: DRM will continue to break down. I’d put DRM as the 75 year old grandfather that has a bad ticker.

When I’ve written about this before, I’ve heard back from others who say regular people (uncle Fred and aunt Alice) — the non-techies and hardcore media fans — don’t even think about DRM. Some don’t even know what it is. I imagine there came a time when these same people didn’t think about email or the web either. Progression.

I’m looking forward to the DRM funeral. In fact I’ll be ordering pizza and cold drinks when I learn of the news. That is of course if my ticker is still ticking.

DRM doesn’t thwart the pirates, we need to stop believing that line of crap. Instead, it shackles legitimate customers. I prefer not to wear handcuffs when I buy something for entertainment, don’t you?

Did this post make you go hmm?

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