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08/13/2007, 4:10pm, EDT

Monday, August 13th

gBox partners with Universal, Google

An as-yet unlaunched music site is aligning itself in a partnership designed to undermine the likes of Apple's iTunes Store, reports say. Called gBox, the startup is partnering itself with Universal Music, which has omitted Apple from the group of companies in its trial of DRM-free music. gBox will likewise offer DRM-free tracks from Universal, priced at 99 cents, the same cost as DRM-encoded tracks at the iTunes Store. Apple sells its DRM-free songs at an average price of $1.29.

Universal in turn has arranged a special deal with Google, paying for an advertising campaign which will refer potential customers to gBox. The ads will show up in association with Google searches related to Universal artists and albums, but should not override the results themselves.

gBox will launch on August 21st, the beginning of Universal's DRM-free trial period, which is set to end on January 31st except where the label has signed new agreements. Other companies participating in the trial include Amazon, Best Buy, Wal-Mart and RealNetworks.

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uhm
0
08/13, 5:14pm, EDT
Well, there is a refund so the customer didn't lose its money. In the end they payed $0 and watched the movies but don't own them.

Google has the cash to close shop like this, other services don't. There bailing out in time, others are hanging on and building up sales they can never refund like Google did.
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undermine iTunes?
0
08/13, 5:19pm, EDT
If it's DRM free, we can buy them, insert them into iTunes, and use them on our iPods. Apple has always claimed the iTMS was to support the iPod, so it sounds like a win-win for Apple and its customers.
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MP3 vs AAC
0
08/13, 6:07pm, EDT
It does not matter that the MP3s will be DRM-free. To many, this format is inferior to AAC.
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and....
0
08/13, 10:00pm, EDT
price wars aint a bad thing.

however - all of us know that the out-of-touch greedmongers at the record companies will screw this up - and come running back to Apple.
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