So that was EMI's MP3 moment...
It seems that EMI Group has ended its discussions with major online music sellers on the possibility of selling songs without DRM restrictions, as the parties were unable to agree on advance payments for songs sold as unprotected MP3s, according to Bloomberg News .
EMI asked retailers for a large advance payment for the rights to sell its artists' songs without copy-protection technology, which included a premium based on the risk involved. The retailers -- including Apple, Microsoft, RealNetworks, Yahoo and Amazon.com -- countered with a lower offer, which was rejected by EMI.
With Steve Jobs' open letter also urging the labels to drop copy protection, it looked as if we might see some movement on DRM. For the moment, though, it seems that MP3 files will continue to be used primarily for promotional purposes. That's for the majors - indie labels are actively embracing unprotected file distribution and perhaps it'll be how successful their business model is that will determine how far the majors go with this.