Winning over music industry, Apple launches online service

SAN FRANCISCO -- Apple Computer Inc. launched a commercial music service Monday that will offer more than 200,000 songs at 99 cents a download, winning over music industry leaders who have long shunned online file sharing.

The iTunes Music Store announced by Apple CEO Steve Jobs draws from all five major labels and includes some big-name artists who previously denounced online distribution.

Unlike its competitors, the service has virtually no copy-protection -- a major concession to consumer demand.

Apple lets customers keep songs indefinitely, share them on as many as three Macintosh computers and transfer them to any number of iPod portable music players. No subscriptions are necessary and buyers can burn unlimited copies of the songs onto CDs.

Doug Morris, the chairman and CEO of Universal Music Group who attended Monday's launch, called it "a defining moment in the music business."

By allowing people to do pretty much as they please with their digital copies, Apple and the music industry are acknowledging that, due to digital technology, online file-swapping can't be eradicated.

"You can't stop piracy, so you have to work with technology, and you have to get into the rhythm of it. That's what Apple has done here," said the musician Seal, who was at the announcement.

Even Hillary Rosen, who as CEO of the Recording Industry Association of America (RIAA) has led the fight against Napster and its free online music-swapping successors, called Apple's new service "cool, cutting edge" in a statement.

'Not stealing anymore'

"It's not stealing anymore. It's good karma," said Jobs, asserting that other industry-backed services' subscription-based models treat music fans as "criminals" with extra fees and restrictions.

Music Store already includes music by Bob Dylan, U2, Eminem, Sheryl Crow, Sting and other artists previously wary about music downloads.

Initially, Music Store only works on Macintosh computers, but by year's end, Apple plans to make it compatible with devices using the nearly ubiquitous Microsoft Windows platform -- as it did for the iPod.

The venture comes two years after Apple angered the recording industry with its "Rip. Mix. Burn" ad campaign, which opponents said promoted music piracy.

Industry efforts to crack down on the downloading of free copies of songs through file-sharing services suffered a major blow Friday when a federal judge in Los Angeles ruled that Grokster Ltd. and StreamCast Networks Inc. aren't to blame for any illegal copying that their customers do using their software. Industry leaders have vowed to appeal.