Apple and EMI abandon Digital Rights Management (DRM) protection

The iPod is one of the largest selling personal music player ever. When linked with the iTunes store, this is a combination that has become a major business for Apple, and brought in increasing proportion of total revenue. However, the DRM locks on iPods ensured that content bought through iTunes and transferred to an iPod could not be transferred to music players manufactured by other companies, and this was an oft-repeated complaint.
Now, in a collaboration with EMI, Apple will start providing songs and albums via the iTunes store that is not content protected by DRM, but will be transferrable to other players. The concept is that this is a customer friendly move, and is not really about relaxing any of the fight against piracy.
This does not actually come free. Songs that currently cost 99 cents will now cost $1.29 for a 'premium' version; this premium version is DRM free and also doubles the quality level from 128 kbps to 256 kbps. Albums will be available at no extra charge. And, in the neatest part, users who already have bought songs will be able to exchange these for the new premium version by paying an extra 30 cents. This is free money for Apple. These new premium songs will start to be available in April.
This is a sweet deal for Apple any which way. EMI was willing to do this deal with everyone, but Apple is the one who is the first on the starting block, and will be able to appear to customers as more concerned about their choices. This deal also has the potential of adding to the revenue that Apple currently generates. This deal also hits Microsoft by showcasing Apple as the better service, and Microsoft only struggling to play catch up. If this deal becomes a hit, Microsoft will be under great pressure to respond.