The last time Apple Chief Executive Steve Jobs took on major recording companies, he refused to budge on his 99-cent price for a song on iTunes.
As a new round of talks ramp up this month, however, Jobs has opened the door to higher prices -- as long as music companies let Apple Inc. sell their songs without technology designed to stop unauthorized copying.
Jobs contends that would "tear down the walls" by allowing consumers to play music they buy at Apple's iTunes store on any digital music player, not just the company's iPods.
Although most of the major labels insist that safeguards are still needed to stave off online piracy and make other digital music business models work, one company has already struck a deal with Apple.
Last month, Britain's EMI Music Group PLC, home to artists such as Coldplay, Norah Jones and Joss Stone, agreed to let iTunes sell tracks without the copy-protection technology known as digital-rights management. The DRM-free tracks cost 30 cents more than copy-restricted versions of EMI songs and feature enhanced sound quality.
The other major labels -- Warner Music Group Corp., Vivendi's Universal Music Group, and Sony BMG Music Entertainment, a joint venture of Sony Corp. and Bertelsmann AG -- will be watching closely to see how the unrestricted EMI tracks sell.
"At this point, no one can ignore Apple or what Apple wants, given its position in the marketplace," said Michael Gartenberg, an analyst with Jupiter Research. "The fact that they were able to do this deal with EMI puts more pressure on some of the other labels to follow suit."
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