This week, Virgin talked up the latest phase of that cozy relationship, announcing a new unlimited music plan backed by Universal Music Group, and a firm commitment to “educate” file sharers through a temporary suspension of service.

The Carrot

The new service will offer unlimited, DRM-free music downloads, claimed to be a world first. And although pricing hasn’t been revealed, reports suggest the cost will be about the same as two albums per month, which I’d peg at between 10 and 15 pounds. So far only Universal is on-board, unsurprising as they have historically been the most keen on pushing subcription-based services — remember Total Music? — although Virgin is hopeful of the other three major labels and a number of independents signing up in time for the planned Christmas launch.

If the service is truly unlimited and DRM-free, though it’s hard to see how there won’t be some “fair use” restrictions (otherwise, what’s stopping a subscriber downloading all the tracks they want in the first month and then leaving?), then this is a pretty big deal, and marketed right, I can see parents adding the music plan to their already bulging cable bill. Whether or not it will appeal to illegal file sharers directly, however, will depend a lot on price, the size of Virgin’s music catalog, and what, if any, inconvenience if plastered on top. Which brings us to The Sick…

See also: Will 2008 be the year of the music tax?

The Stick

Working with the music industry, Virgin says it will continue to “educate” its customers over the issue of illegal file sharing. Measures will include sending letters out to offenders and “as a last resort for persistent offenders, a temporary suspension of Internet access. No customers will be permanently disconnected and the process will not depend on network monitoring or interception of customer traffic by Virgin Media.” (The Register)

In other words, Virgin will continue to rely on the labels themselves or their third-party agents, to snoop on their customers. That’s a better PR position but in reality is still means the ISP is a willing accomplice. That said, with the UK government threatening to legislate if ISPs and the content industry can’t come to a voluntary agreement to fight piracy, this maybe the best we can hope for.

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Related Articles at last100:

• Pirate Bay offering file sharers their own encrypted private network
• Another reason to hate DRM: Virgin Digital to close
• Sky offers subscription-based music service
• Weekly wrapup: the full Nokia N97 review (and lots more)
• Yahoo! exits music subscriptions, Rhapsody to pick up the pieces

Major League Baseball

In June last year, MLB.com decided to change DRM systems, resulting in any videos of games purchased prior to 2006, even if burnt to CD, becoming unplayable. This is because each time a video is played, the DRM software is required to ‘phone home’ and verify the content with the corresponding DRM server. If the server is no longer in operation the content becomes void. Following complaints from users and a wait of over seven months, MLB rectified the situation, claiming they “didn’t anticipate the problems”, and offered to replace any content where available, like for like, using the newly implemented DRM scheme.

Google

Last August, Google announced that it was closing its video download store, informing existing customers in an email that “after August 15, 2007, you will no longer be able to view your purchased or rented videos.” That’s because, like MLB.com, Google was switching off its DRM verification servers. Compensation was initially offered via a Google Checkout “bonus” credit, but following a user and media backlash, Google eventually relented, offering full credit card refunds to affected customers, in addition to the bonus credit.

Sony

In August last year, Sony announced that it was ditching its proprietary audio format, ATRAC, in favor of a variety of more popular formats. At the same time, the company said it planned to close down its Sony Connect music store no earlier than March 2008. While existing libraries of purchased music from the Connect store were not at risk, according to Sony’s official closure FAQ, the company still recommends that customers burn their music libraries to an audio CD — indicating that Sony may not support Connect DRM indefinitely.

Virgin Digital

Last September, Virgin announced that it would be shutting down its Virgin Digital music store and subscription service in one month’s time. The service allowed customers to download tracks up to four times to replace lost or damaged purchases, such as that caused by a hard drive failure or PC upgrade. Since that option would no longer be available with the store closing, and with it the shutdown of Virgin Digital’s DRM verification server, the company advised customers who’d purchased tracks to back them up on CDs and re-import them as MP3s, if needed. In other words, like Sony, Virgin’s long term response was to encourage their customers to circumvent the existing copy protection.

Microsoft

Just last week, Microsoft sent out an email to customers of its defunct MSN Music store informing them that by August 31, 2008 they need to make a choice: “commit to which computers (and OS) they want to authorize forever, or give up access to the music they paid for”, reports Ars Technica. That’s because Microsoft will be turning off the MSN Music DRM servers by the end of this summer. Once again, customers are left with the only real option of “burning all of their music to audio CD and then re-ripping them back to the computer as MP3s, sans DRM”.

Image credit: DefectiveByDesign.org

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Related Articles at last100:

• MSN Music DRM servers get three year stay of execution
• Weekly wrapup, 28 Apr – 2 May 2008
• NewTeeVee Live: VCs predict an uncertain future for Internet TV startups
• Report: 100,000 Roku Netflix set-top boxes sold
• NewTeeVee Live: How traditional media companies approach new media