So much misinformation, assumptions, misunderstanding about what the iPod/iTunes combo allowed and didn't allow 9+ years ago. Understandable, I guess, but a bit disappointing.
For those who don't remember (or perhaps weren't using iPods and iTunes back then), here is what Apple sold and allowed:
- iTunes would rip standard audio CDs into standard MP3 or AAC files without any DRM.
- iTunes and iPods supported standard MP3 files without DRM.
- iTunes and iPods supported standard AAC files without DRM.
- iTunes and iPods supported Apple's FairPlay DRM on AAC files.
- The iTunes store sold AAC files with DRM on it until roughly sometime in 2009, without DRM after that.
- AAC files sold on the iTunes store without DRM would playback on any device that supports the AAC file format.
I don't think it's unreasonable that Apple would limit themselves to on DRM implementation on the iPod. They provided a number of ways to get media onto the iPod -- MP3, AAC, AAC w/DRM, WAV, Apple Lossless. They even supported unprotected WMA files when using iTunes on Windows.
What RealNetworks was doing was taking their music sold from their store with their DRM on it and stripping off the DRM and wrapping it in FairPlay using a reversed engineered method. This isn't about Apple being anti-consumer in any way -- this is about RealNetworks trying to keep the music they sold protected with some sort of DRM, despite the underlying device not actually supporting the DRM.
I wouldn't be surprised at all if Apple broke RealNetwork's hack, but in all honestly, there wasn't much upside for Apple in allowing this to work. For one, they would be the one to get the blame if a user suddenly couldn't play back their purchased tracks from this competing store. Plus if FairPlay DRM could be faked by a 3rd party, it's inherently flawed. Apple certainly knew they would eventually be using FairPlay on movies and TV shows, even if they didn't know yet they would be using it for applications. They couldn't go to the labels and tell them with a straight face that their DRM is secure if RealNetworks had broken it.
And in all honesty, I'm okay with whatever they did to keep this not working because in the end, Apple pushed for and eventually removed all DRM from their music tracks on their own store. In a world without DRM, there is much more potential for competition -- iPods can play any standard MP3/AAC file and people can take their AAC files from the iTunes store and play it on any device. Everyone wins.