In addition to announcing that they would start to sell digital songs with no DRM for $1.29, EMI and Steve Jobs also promoted the additional benefit that these songs would play in the "AAC" format. AAC provides better sound quality than MP3. But the real benefit of the enhanced sound may accrue to Jobs more than consumers.  Although the iPod can play AAC, less than 10% of all other MP3 players currently for sale can. 

 

The result is that although the higher priced EMI songs will not be hindered by DRM, you still won't be able to play them in most players, except the iPod of course. So if consumers want to hear the better quality sound they may be encouraged to buy an iPod, or at least not switch to another player. Steve Jobs succeeded in getting the major labels to agree to license music to him that won't play in other MP3 players. Now he can say he is the champion of selling digital music without DRM, while once again getting the labels to agree sell music that wont play in other MP3 players.  

 

Moreover, at least with current iTunes sales, you can rip the DRM off and download to any MP3 player. Most people dont like this additional step, but you can still do it. With AAC, it may well be impossible to use in any player not appropriately equipped to play this format. So this development actually exacerbates the interoperability problem. Which once again actually benefits the iPod.

 

Meanwhile it is doubtful that this will result in a huge spike in sales for EMI. 

 

So how brilliant is Steve Jobs?