Apple does not want to license FairPlay because if it gets out into the open, it will be reverse-engineered and hacked. Now for audio content that is no longer important because the music industry is moving to DRM-free music.
See to me that argrument to me is just a bunch of BS. I have not seen Microsoft DRM being hack yet. The way around it is the same way you get around apple's DRM. It is not hacking at all but instead changing the computer to output the video music to a file. Slow since it just caputuring the sound and the video off the screen but it gets around it.
I think the real reason is it means OMG apple has to give up some control and they are afraid of having to compete. Instead it choices to use its power to break others. This marketing method works find when one is small in a market but since apple is the major player it not a good system to use. But at the same time the problem is pretty clear.
I think apple way of doing this will come back to bit them. At some point the industry is going to one one standard DRM and the way apple is being they can kiss any hope of having part of it good bye.