14 DAY TRIAL // Apple is believed to have struck a deal with all major music labels to remove copy protection from the music on iTunes and even cut prices on content. Moreover, direct song downloads to iPhones over cellular networks are also in the scope, sources claim.
For those not very familiar with DRM (digital rights management), Apple slapped this system on regular AAC files, which locks tracks into Apple software and hardware. As such, content purchased and downloaded from the iTunes Store only works on Apple devices (the iPod, iPhone, and Apple TV). To achieve this, the company created its own proprietary AAC file format. While iTunes customers can also pay to download the open MP3 format, extra fees apply to the already expensive content.
CNet Networks claims to have heard from some pretty reliable sources that the DRM-free announcement is to be made at Apple's Macworld 2009 keynote presentation delivered by Phil Schiller, Apple's senior vice president of Worldwide Product Marketing. Reportedly, the deal was struck just last week.
The featured content on the iTunes Store is undergoing some radical changes, on the terms of the agreement. First off, Apple has set out to lift DRM off all musical content, while also improving the quality of the tracks by doubling the bit-rate, the report reveals. While many songs are likely to stay at the 99-cent level, customer rating will now influence the cost of some tracks, bringing down the price for less popular content. Back catalog songs will drop to as low as 79 cents, for example. On the same basis, any new additions to iTunes will be DRM-free.
In a similar report, AppleInsider points out that, while iPhone iTunes downloads are currently limited to Wi-Fi, Apple has additional plans to let users download songs over EDGE, but most likely 3G. It remains to be seen how the company will convince carriers that traffic will be kept under control. Nevertheless, mobile operators going along with such an agreement are sure to charge extra for the cellular downloads.