Digital music shakeout

Participants at the music industry's annual MIDEM conference are warning that a shakeout could be in the works among Apple's many competitors. With roughly 355 online music retailers, there are concerns that some of Apple's smaller competitors might be forced to consolidate, according to a report from Reuters. "I don't imagine all these services can last. Some will go out of business or be consolidated," said Gabriel Levy, head of music in Europe for RealNetworks. The future of Napster was heavily discussed at the conference, which recently denied rumors of layoffs and liquidation. While many in the digital music industry would like to see a more powerful competitor to Apple, thus far the company has demanded and received its own pricing and kept its FairPlay DRM closed to other manufacturers. "Apple is going to listen to their customers before they listen to the industry," IFPI Chief Executive John Kennedy said. "They have a commercial advantage."

by MacNN Staff