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Apple Gains Support of Major Labels With New, Simple Online Music Service Print E-mail
Wednesday, 05 March 2003
Major record label executives may have found their answer to online music services. However, this new technology is only for Macs.

This yet to be titled online music service was developed by Apple Computer Inc. and will offer Mac and iPod users the ability to download music similar to AOL's Music Net. Apple caught label attention with their simple downloading software.

Similar programs have complicated technology and pricing plans due to label security, making them much harder to use then free file sharing programs such as LimeWire and Kazaa.

No licensing deals have been announced but four of the five major labels have reportedly committed their music to the new Apple Service that may be launched as early as next month. Even with all of the positive aspects of this new service, the fact still remains that a relatively small percentage of the computers sold worldwide are Macintosh, leaving the majority of the market unable to take advantage of this service.

Steve Jobs personally demonstrated the new service to top label executives who were reportedly excited about the massive marketing plan designed by Jobs to educated consumers about the service.

Apple will make songs available for sale through a new version of iTunes. Consumers will be able to buy and download songs then transfer them into any iPod registered with Apple. The format will be a higher fidelity technology known as Advanced Audio Codec rather then MP3. This allows for the songs to be protected by electronic locks that prevent songs from being played on more then one computer. However, Apple still wants to enable buyers to burns the songs onto CDs which would remove the locks.

Pricing information is not yet available, but is expected to be similar to with other similar services current on the market, about $10/month for unlimited downloads and about $1 for each song that can be burned to CD or transferred to a portable device.

Source: Los Angeles Times

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