Well, well, well… are we witnessing DRM’s last stand?

Amazon, one of America’s largest music retailers, is opening a digital store without downloads from Sony, Universal, or Warner Music Group. EMI is the lone major label to sell MP3s at Amazon.

Wonder why? Because Amazon insists, to their credit, that they sell DRM-free MP3s. The Lunatics wonder how long before all the labels provide their music at Amazon. Universal has already agreed to sell MP3s elsewhere, so they’re obviously holding out for $ reasons. The Lunatics predict this will be solved shortly with negotiation.

Sony has always been a split personality about encryption. Sony manufactures MP3 players. Sony also sells music. Butt like Doug Morris, Sony doesn’t enjoy their future being dictated by Steve Jobs and ITunes.

The Lunatics predict Sony will start selling DRM-free MP3s sooner rather than later. And Warner Music Group will be forced to re-think its love of DRM. If these companies maintain their hardline stance and their music remains encrypted, sales will decline, and their stock price will drop even further.

This will be DRM’s Last Stand. Edgar Bronfman would assume the role of George Armstrong Custer at the battle of the Little Big Horn. Just like Custer, Edgar will be surrounded. UMG, EMI, Sony, thousands of independent labels, and millions of artists will all be using the open source format MP3 at Amazon. And WMG will miss out on sales from this new MP3 format.

The Lunatics know you can’t afford to miss a format change in the music industry and survive. The Lunatics suggest to WMG: Don’t be the Last Stand!

Let’s allow DRM to just vanish into cyberspace and not bloody the landscape any further.