Macworld Coverage: iTunes

After working with various music studios, Apple took advantage of Macworld to announce that it has reached agreement with the four major music labels to offer DRM-free songs on iTunes. This will greatly expand the offering currently known as iTunes Plus. Starting today, eight million songs will be DRM-free; by the end of the quarter, Apple expects an additional two million songs to be DRM-free.

A new pricing structure accompanies the new DRM-free catalog. Starting today, the iTunes Store will offer tiered pricing for music. Songs will be available at three different prices: .69, .99, and $1.29. Most likely, the top price will be reserved for the most popular new releases. The majority of songs will probably occupy the .99 price point, with the .69 price point a comfortable niche for older music that has long since earned its keep for the studios.

Apple will also offer to upgrade your current library, or individual songs, to DRM-free status. Upgrade prices are .30 per song, .60 per music video, and 30% of the original iTunes price for albums.

Apple also announced that the iTunes Store is now available over cellular networks as well as WiFi, which will allow iPhone users to purchase music no matter where or how they connect to the Internet. Carrier fees may apply when downloading via a cellular network.