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The Ugliness of Privacy Notices
And yes, I realize that it's possible to burn the music to CD and then convert it to an open format. However, that's a hassle, and since it's illegal for third parties to distribute tools to help users do that, it's unlikely that very many of them will. So I think most of Apple's iTunes customers are effectively locked into Apple's platform.
I don't have any particular opinion about how music should be priced. Certainly, there are some songs that could be sold for substantially more than 99 cents, but on the other hand, the simplicity of the 99-cent pricing scheme is a major selling point. My guess is that Steve knows most of any price increase would go into the labels' pockets, and so he prefers to hold the price down in order to help build market share.
My point was simply that the labels are already finding themselves in a weak position at the negotiating table, and that their position will get even weaker as the digital download market grows. They desperately need to find a way to sell music that doesn't lock them into any one vendor's proprietary technology so they can retain their ability to play one vendor off another. So far, they seem to be failing to do that.