The NY Times reports on the heated negotiations that led to the announcement at Macworld that Apple would be dropping Digital Rights Management (DRM) from all iTunes music. In exchange, the music labels were given their long-requested variable pricing model. In addition, Apple was able to secure over-the-air iTunes music downloads for the first time.
Apple, however, was said to have a strong upper hand in the negotiations according to music executives:Steve Jobs, himself, was reportedly responsible for a particularly heated exchange with Sony Music on Christmas eve.
Also interesting is that Apple holds another powerful bargaining chip with the control over the iTunes homepage itself as well as the popularity rankings.The influence of Apple's home page promotions and popularity charts has been the subject of much debate amongst App developers, but it seems Apple may be well aware of their impact.
Article Link:
Music Industry Fears Apple and are also Subject to iTunes Popularity Rankings