Apple dumps DRM but majors force new pricing
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| 06 Jan, 2009 | Share |
Apple has cut deals that will finally enable iTunes to offer songs free of copy protection software from the three largest music labels. These new deals will expand iTunes' DRM-free library to include songs from the other three major labels (Sony BMG, Universal, and Warner Music) apart from Emi which already offered songs free of digital rights management protections for more than a year.
In exchange, Apple has agreed to become more flexible on pricing. Song prices will be broken down into three categories: older songs from the catalog, midline songs (newer songs that aren't big hits), and current hits. As far as the pricing is concerned, the price of catalog music will be falling to 79 cents per song. The labels will get an opportunity to price some hit songs for more than 99 cents but eventually those songs will drop to 79 cents.
Apple and the labels will also begin removing DRM from music already available in the iTunes Store. It's unclear what will happen to songs that have already been purchased. Time to get you some cheap iPods and iPhones !
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