Apple to expand DRM-free iTunes content, revise pricing

Apple to expand DRM-free iTunes content, revise pricing

(Source: Free Mobile Content)
Macworld rumor du jour: Apple will announce a series of new licensing deals that will expand its catalog of DRM-free iTunes downloads across all four major record labels--in addition, the computing giant will also embrace a more flexible iTunes pricing structure. CNet reports that Apple has inked deals with Sony BMG, Universal Music Group and Warner Music Group to offer iTunes downloads free of digital rights management protections--the agreements follow close to two years after Apple announced a similar deal with the fourth major, EMI Music. Per terms of that agreement, iTunes introduced DRM-free EMI content at a higher-quality 256 kbps AAC encoding for a premium $1.29 per-song price tag, but as CNet points out, the EMI catalog accounts for less than 10 percent of all music sold in the U.S.

In conjunction with the new label agreements, Apple will reportedly trim the cost of catalog music to 79 cents per song, down from the current 99 cents for each DRM-encoded track. CNet adds labels will now be given the flexibility to price some current chart blockbusters for more than 99 cents, but as those songs lose steam at radio and retail, their prices will fall back to the new 79 cents standard as well. The report adds Apple will also confirm the availability of over-the-air iTunes downloads, an announcement rumored since version 2.2 of the iPhone software appeared in late 2008: Citing leaked screenshots depicting an iPhone user downloading a podcast from iTunes via 3G connection, pundits have speculated that Apple would sooner or later activate an iTunes premium music download application as well