iTunes Store

Main articles: iTunes and iTunes Store
The iTunes Store is an online media store run by Apple and accessed via iTunes. It was introduced on April 29, 2003 and it sells individual songs, with typical prices being US $0.99, AU $1.69 (inc. GST), NZ $1.79 (inc. GST), €0.99 (inc. VAT), or £0.79 (inc. VAT) per song. Since no other portable player supports the DRM used, only iPods can play protected content from the iTunes store. The store became the market leader soon after its launch[4] and Apple announced the sale of videos through the store on October 12, 2005. Full-length movies became available on September 12, 2006.[5]
Purchased audio files use the AAC format with added encryption. The encryption is based on the FairPlay DRM system. Up to five authorized computers and an unlimited number of iPods can play the files. Burning the files onto an audio CD, then re-compressing can create music files without the DRM, although this results in reduced quality. The DRM can also be removed using third-party software. However, in a deal with Apple, EMI began selling DRM-free, higher-quality songs on the iTunes Stores, in a category called "iTunes Plus." While individual songs were made available at a cost of US$1.29, 30¢ more than the cost of a regular DRM song, entire albums were available for the same price, US$9.99, as DRM encoded albums. On October 17, 2007, Apple lowered the cost of individual iTunes Plus songs to US$.99 per song, the same as DRM encoded tracks.
iPods cannot play music files from competing music stores that use rival-DRM technologies like Microsoft's protected WMA or RealNetworks' Helix DRM. Example stores include Napster and MSN Music. RealNetworks claims that Apple is creating problems for itself[6] by using FairPlay to lock users into using the iTunes Store. Steve Jobs has stated that Apple makes little profit from song sales, although Apple uses the store to promote iPod sales.[7] However, iPods can also play music files from online stores that do not use DRM, such as eMusic or Amie Street.
On July 3, 2007, Universal Music Group decided not to renew their contract with the iTunes music store. Universal will now supply iTunes in an 'at will' capacity.[8]
On September 5, 2007, at Apple's Media Event entitled "The Beat Goes On...", the company debuted the iTunes Wi-Fi Music Store which allows one to access the Music Store from either iPhone or the new WiFi-enabled iPod Touch and download songs directly to the device. When you next sync the device with iTunes, any purchased music is copied onto your iTunes Library.