As iTunes is now the #1 music store in the US, Apple has a lot of leverage (obviously) with the record labels. IMO, with Steve Jobs' dislike for DRM, along with most, if not all, consumers' dislike for it, I think at minimum, the following would happen:
iTunes
- 256kbps AAC
- No DRM
- Sells all tracks currently on iTunes
iTunes Plus
- Apple Lossless
- No DRM
- Sells tracks where record labels have agreed to provide lossless
What do you think? I should add that this information is just my own personal guess and is not based on any info from an Apple employee or something.
Record labels do not want to lose iTunes. As we all know, Apple makes very little money per song sold on iTMS. I'd probably go as far as saying that if Apple discontinued iTMS tomorrow, at least one record label would go out of business (considering the current economic conditions). However, Apple uses iTMS as a selling point for its hardware products. So...
Effect on Apple if iTMS lost a record label contract
- Less profit (Apple makes a few cents per song sold on iTMS.)
Effect on the record labels if they had no iTMS contract
- MUCH less profit
- Harder to get artists to sell their music under said label without an iTMS contract
iTunes
- 256kbps AAC
- No DRM
- Sells all tracks currently on iTunes
iTunes Plus
- Apple Lossless
- No DRM
- Sells tracks where record labels have agreed to provide lossless
What do you think? I should add that this information is just my own personal guess and is not based on any info from an Apple employee or something.
Record labels do not want to lose iTunes. As we all know, Apple makes very little money per song sold on iTMS. I'd probably go as far as saying that if Apple discontinued iTMS tomorrow, at least one record label would go out of business (considering the current economic conditions). However, Apple uses iTMS as a selling point for its hardware products. So...
Effect on Apple if iTMS lost a record label contract
- Less profit (Apple makes a few cents per song sold on iTMS.)
Effect on the record labels if they had no iTMS contract
- MUCH less profit
- Harder to get artists to sell their music under said label without an iTMS contract