Let the hive mind of Engadget get that for you.
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Music drives iTunes, iTunes doesn't drive music. Think about it. If the labels cancelled their contracts with Apple-iTunes, iTunes would fail in a few weeks.
I've been waiting years for labels to release a replacement for iTunes and this sounds like the official start. Apple should be very afraid. So should everyone with an iPod when Apple decides to block importing of MP3's and CDs. Because when the labels finish with their new format, converting that format to MP3 or making a CD and then importing to iTunes will be the only way to get that music on your beloved, monopolizing iPod.
You realize more music is sold on Itunes than Walmart right? That they're the number one retailer of music in the US, if the labels pulled songs other labels wouldn't because it means they would get more market share and sales there. Also, don't underestimate how hard it is to make an itunes equivalent, Microsoft only recently got there with the latest zune software, and open source is kind of a moving target with things like songbird being good but sometimes flaky. Now I understand you meant as an industry they could get together and ban it, but I tihnk that might fall under legal issue along with the fact that apple probably has pretty tight contracts.
@ Nick
No.. Apple are the number one American seller of digital downloads. And how big is the gap between number one and number two?
Remember that iTunes only works with iPods and a few select players from Sony I think. So they are hardly looking to make as much money as possible from it. You like iTunes. great. But please don't be so daft as to think that Apple are able to tell the record labels what to do.
Reality is.. All music sales world wide are way way bigger than the iTunes sales. Bigger than all download sales actually.. And if Apple couldn't sell any of the major labels, do you really think that the iProduct users would not buy them elsewhere? So no. As Apple do not run the only music store, they can't dictate terms to the people they buy the music from.
1) Software other than iTunes can sync iPods.
2) iPods can play files from sources other iTunes.
3) Why would apple sabotage their own media player software?