Apple calls the tune as labels allow copying of iTunes songs

APPLE, THE iPhone and iPod maker, shook up the music industry yesterday with the announcement that by the end of March all music sold via its iTunes service will be available without built-in restrictions on copying.

Delivering the keynote address at Macworld in San Francisco, Philip Schiller, Apple’s vice-president of marketing, said all 10 million songs would be available in iTunes Plus versions, which do not contain digital rights management (DRM) restrictions.

From yesterday major music labels Universal Music, Sony BMG, Warner Music and EMI as well as thousands of independent labels started selling DRM-free versions of songs. The move is a coup for Apple, as the major labels have long resisted selling music without restrictions, fearing it would prompt an upsurge in piracy as buyers would easily be able to share music with their friends.

Mr Schiller also announced an improved version of iTunes for its iPhone smartphone. Users can now download over 3G mobile phone networks and not just wi-fi, as currently supported. Music downloaded to an iPhone is the exact same version available from a PC and will be automatically copied to the user’s PC when they connect their phone. Competing mobile music services, such as those available from phone maker Nokia, its biggest rival, do not allow for seamless copying to computers with no restrictions.

From April, Apple will also introduce a three-tiered pricing plan for iTunes, with labels able to sell songs for $0.69, $0.99 or $1.29. Mr Schiller said he expected “many more songs priced at 69 cents than $1.29”.

Apple is now the largest music retailer in the US, surpassing retail giant Wal Mart and electronics specialist Best Buy, with more than six billion songs sold since iTunes debuted in April 2003. The move to DRM-free sales and an enhanced mobile service may put pressure on competing services from the likes of eMusic and Amazon, who do not embed DRM but have smaller collections.

The keynote was the first not to have been presented by Apple chief executive and co-founder Steve Jobs since he rejoined the company in 1997. Mr Jobs confirmed on Monday that he is suffering from a hormone imbalance which has caused him to lose weight, but the condition is treatable and he will not step down as chief executive.

In what was largely a low-key presentation, Mr Schiller used the event to refocus attention on Apple’s Macintosh personal computers, with the introduction of a notebook with an eight-hour battery life and new versions of the productivity and entertainment software that ships with the machines.

The 17in MacBook Pro notebook has a new battery which is not removable but can be recharged 1,000 times before performance degrades. GarageBand, the program in iLife which allows people to play and record music, now has a feature to learn guitar and keyboard skills from famous musicians. Artists participating include Sting, Norah Jones and John Fogerty of Creedence Clearwater Revival.

Apple’s share price was down almost 1 per cent at $93.75 shortly after the keynote ended.