The success of the iTunes Store is undeniable (it’s the #1 music store in the US). It has proven that people are willing to pay for digital music, movies, TV shows, and games, as long as the content is priced fairly, and the purchase process is fast and easy. I appreciate the iTunes Store and make purchases there almost weekly.
Effective today, iTunes is even better, as the record labels have finally allowed Apple to drop DRM (digital rights management) from all music tracks offered in the store. From now on, there are no DRM restrictions on any music purchased from the iTunes Store. Other content (movies, TV shows) may still have DRM protection in place.
Also, from now on, all tracks are available in 256kbps AAC encoding, which Apple claims to be virtually indistinguishable from the original recordings. In my own testing experience, 256kbps AAC encoded-tracks sound great and truly are virtually indistinguishable from CD quality-tracks. 256kbps AAC encoded-tracks strike the right balance between sound quality and digital file size.
Also, the iTunes Store is abandoning the fixed 99 cents price-per-song in place since its inception in 2005. Apple has adopted a new pricing scheme that includes offering songs for 69 cents, 99 cents or $1.29, depending on factors including popularity. Apple has announced that there would be more 69 cent songs than $1.29 songs.
I’ve read several opinions that the new pricing means that the iTunes Store will loose sales. I don’t think it’s possible to know this until we know how many 69 cent songs are available. Also, without DRM, tracks purchased from iTunes can be played on non-iPod music players, potentially expanding the iTunes Store’s reach.