Simply Audiobooks to Abandon DRM

Following last month’s announcement that eMusic is selling downloadable audiobooks without DRM, Simply Audiobooks is joining the DRM-free movement. The Oakville, Ontario, company, which began offering audiobooks for rent—similar to the Netflix model—in 2003, will make its downloads DRM-free in 2008. Currently, downloads account for about 20% of Simply Audiobooks’ revenue, and the format is the fastest-growing part of the company’s business, said Vitaly Petritchkovitch, director of Simply Audiobooks’ digital division.

Simply Audiobooks has more than 37,000 audiobook titles that it rents and/or sells via its Web site, with about 6,000 of those available as downloads. Petritchkovitch hopes to have 2,000–3,000 titles without DRM ready to go by the start of 2008, and he plans to convert the company’s entire library by the end of that year. Petritchkovitch said Simply Audiobooks is in discussions with publishers about making the change, including HarperCollins and Simon & Schuster, which have balked at letting their titles be sold unprotected. Petritchkovitch is hopeful that all publishers will be on the DRM-free train by the end of 2008, and said the company will probably not sell any downloadable titles that come with DRM. Petritchkovitch said Simply Audiobooks is making the switch because the top request from its customers is to be able to buy DRM-free titles. None of Simply Audiobooks’ titles can be downloaded to an Apple iPod, which require DRM; Apple has an exclusive deal with Audible.

The move to DRM-free is not the only initiative Simply Audiobooks is undertaking to boost sales, which were approximately C$7 million last year. The company, which is opening a 1,200-sq.-ft. retail store in downtown Toronto this week, plans to open an outlet in New York City near Grand Central Terminal in time for Christmas. More Simply Audiobooks stores may be opened in other major U.S. cities in 2008, Petritchkovitch said. The stores will sell a range of audiobooks and will also offer the company’s monthly subscription rental plan. Under the plan, customers can rent one audiobook at a time for $11.95 per month and, like Netflix, there are no late fees or due dates. The stores will offer some digital download services and at some point may offer audio on demand.