Also funny thing about that is that the big difference between iTunes and another online music distributor (Amazon for example)
WAS price and
DRM or no DRM. For the most part Amazon was .89 and Apple was .99. This was
so Amazon could undercut Apple (good strategy). And Amazon was DRM Free while as Apple was not. Apple wanted to go DRM-Free and finally, after being coerced got permission from the music companies. To go DRM-free Apple had to raise the price of popular music 30%!, this could have been a big win for Amazon because then they would have had a 66% cost advantage. But instead they dumbly raised their prices also, so now all the people that would have bought the cheaper music from Amazon (like me) are just going to either go illegal again or keep going with Apple.
The choice to go with another company is based on
price ad convenience, if there is no or an insignificant price difference then people with go with convenience.
Thus Apple scored a major win with this but customers suffered a major loss. And we ca convince enough people to go with illegal services then the prices might lower again as sales drop.
Which reminds me, which is now the best P2P network for music, I have not done illegal downloading since Kazaa