I think the 1.30 pricepoint was a clear strategic move on Apples part.
Now we have this:
128kbs Sony etc music @ 99
256kbs EMI music @ 130
Lets say a bigger pecentage of people buy non DRM EMI music than DRM EMI music, making EMI/Apple more money per sale. Clearly, the other record labels are losing out here and their insistance on DRM is proved wrong.
Im amazed though at people questioning Steves integrity on the DRM issue. Some choice quotes from 2003:
"When we first went to talk to these record companies -- you know, it was a while ago. It took us 18 months. And at first we said: None of this technology that you're talking about's gonna work. We have Ph.D.'s here, that know the stuff cold,
and we don't believe it's possible to protect digital content." ...
http://www.rollingstone.com/news/story/5939600/ste ve_jobs_the_rolling_stone_interview/ [rollingstone.com]
and no one's gonna shut down the Internet. And it only takes one stolen copy to be on the Internet. And the way we expressed it to them is: Pick one lock -- open every door. It only takes one person to pick a lock. Worst case: Somebody just takes the analog outputs of their CD player and rerecords it -- puts it on the Internet. You'll never stop that. So what you have to do is compete with it.
"If you legally acquire music, you need to have the right to manage it on all other devices that you own," said Jobs."
http://www.macworld.com/news/2002/03/04/jobs/ [macworld.com]
And then just yesterday:
Q: It's a pretty radical step, Eric. How did you reach the decision to do it? Was it Steve Jobs' letter that convinced you? Was it the internal surveys you've done? What was the moment in which you said, "Damn it, we're gonna go DRM-free?" And will the extra sales be enough to compensate for the declining physical sales?
A: We've always known Steve's view on the subject, long before his open letter.