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Steve Jobs Announces (some) DRM-free iTunes
Fjan11 writes "Steve Jobs just announced that starting next month on you can buy higher quality 256Kbps AAC encoded DRM-free versions of iTunes songs for $1.29. Upgrades to songs you've already bought will be available at the $0.30 price difference. Currently EMI is the only publisher participating, accounting for about 20% of the songs available." There's also reports from Reuters and ABC News. The deal excludes the Beatles. You can also read the official press release from Apple if you still think this a late joke; this story confirms earlier speculation.
I didn't see it mentioned in a brief look at the articles above, but albums will automatically be 256kbps and DRM free at the normal price. This should help encourage album sales. Ideally, they would offer the lower quality songs without DRM as well, but this is undoubtedly prevented by their current contracts with the other labels. Only by offering a new "product" were they able to remove the DRM. This is the same reason that they are unable to remove the DRM from songs released by indie labels that requested no DRM.
Actually, albums are the same price, DRM or not. Only individual songs have the surcharge. Can't understand the logic, but I prefer albums anyway.
There are other reasons why Apple would stick with AAC beyond lock-in. First, AAC was designed to provide better sound quality at the same bitrate-- whether it delivers on this seems to depend on a few things, particularly the encoders you're comparing, but AAC is an MPEG standard developed to be better than MP3. Also, MP3 has additional legal (patent) issues which might be important for someone running an online store. According to the Wikipedia article, AAC doesn't require royalty payments for distribution. In other words, using MP3 would force Apple to pay royalties on their music sales, and AAC doesn't.
Beyond that, Apple can't prevent anyone from making AAC encoders/decoders, so there really is no lock-in to complain of.