Source: Apple to offer DRM-free songs, new pricing

January 5th, 2009

Apple has cut deals that will finally enable iTunes to offer songs free of digital rights management software from the three largest music labels, according to a source close to the negotiations. In exchange for DRM-free music, Apple has agreed to become more flexible on pricing, the source said.

Under the terms of the deal, song prices will be broken down into three categories--older songs from the catalog, midline songs (newer songs that aren't big hits), and current hits--said the source. Apple could announce the agreements as early as Tuesday at the Macworld Conference and Expo in San Francisco.

Apple and the music labels have also apparently come to terms on over-the-air downloads, according to the source. That would allow iPhone owners to download songs to their mobile devices via cell networks and without the aid of Wi-Fi.

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