Apple strikes DRM-free deal with big four music labels

 

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Posted on 6 Jan 2009 at 07:51

Apple has reportedly signed a deal with all four of the major music labels to sell DRM-free tracks via iTunes.

The deal will also see the end of Apple's one-price-fits-all policy, allowing the labels to charge more for chart hits and less for back-catalogue music.

Apple has been selling DRM-free tracks from EMI for more than a year, but according to a report on CNet.com, the company has now finally reached agreements with BMG, Universal and Warner Music.

Apple is expected to announce the new deals later today during Phil Schiller's keynote speech at MacWorld.

As part of the new deals, the music labels have convinced Apple to drop its uniform pricing policy, which sees every track charged at 99 cents in the US (or 79p here in the UK).

CNet claims that back-catalogue music will now be sold for 79 cents in the US, while the latest chart tracks will be more expensive. The labels have long complained that Apple's rigid pricing curtailed their earnings potential.

Apple and the labels have also agreed to allow over-the-air downloads to the iPhone for the first time.

The move could prove to be the final nail in the coffin for DRM-riddled music, which has long proved unpopular with users and Apple alike.

The labels are expected to replace their existing iTunes catalogues with DRM-free alternatives, although it's not clear whether people who have already purchased DRM-locked music will be offered the opportunity to replace their tracks with DRM-free versions without charge.

Author: Barry Collins