Apple iTunes Changes Song Pricing And Removes DRM

iTunes says good bye to DRM (Digital Rights Management)

Two big things happened at iTunes on April 9th, 2009.

First iTunes unveiled three-tier pricing and ended their practice of selling individual songs for $0.99 each. Now customers will pay $0.69, $0.99 and $1.29 for songs. The price change is due to pressure from the record labels to increase their profit share and Apple’s firm stand on collecting a 30% revenue share on each song. The new structure adds 20 cents to top rated songs for the record labels.

The game-changing news is that Apple has done away with copy protection technology known as digital-rights management or DRM. “DRM-free” means music can be copied an unlimited number of times, to any device. It remains to be seen if this change in business model drives net new paying customers to iTunes (or those previously known as the pirates).

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