je ne sais quoi writes:
The New York Times recently posted an article describing what really happened between Apple and the Record labels that culminated with the January 6th Macworld Keynote by Apple Senior VP Phil Schiller:The announcement seemed to signal a rapprochement between the music industry and its biggest distributor: record companies gave up their demand for copyright protection (called digital rights management) and Apple allowed flexible pricing, so the labels could charge more for new or popular tracks. Behind the scenes, however, the relationship remains as tense and antagonistic as ever.
But according to one music industry executive involved in the negotiations, Apple's primary goal was securing distribution of music over its iPhone, as mobile phones are expected to become an increasingly important outlet for music. Disagreements over the timing of the changes also resulted in a particularly tense conversation on Christmas Eve between Steven P. Jobs, the chairman and chief executive of Apple, and Rolf Schmidt-Holtz, the chairman of Sony Music.
Apparently, as some of us here on slashdot speculated earlier, there was an quid pro quo between Apple and the Music Industry. The article further details just how much power Apple still has over the Music Industry:
Even if Mr. Jobs does not get personally involved in future negotiations, music executives still fear dealing with Apple. One chit the company holds is the power of the iTunes home page, where it promotes music. They also say that the entire Apple staff, including Eddie Cue, the vice president in charge of iTunes who handles the relationships with the record labels, do their best to follow Mr. Jobs's style in their own negotiating.