Changes Coming to the iTunes Store
* All Songs DRM-Free
* Users Can Download Songs Directly Onto iPhone 3G Over Their 3G Network
for the Same Price
* In April 2009, Songs on iTunes Will be Available at Three Price Points

SAN FRANCISCO–January 6, 2009–Apple today announced several changes to
the iTunes Store (www.itunes.com). Beginning today, all four major music
labels–Universal Music Group, Sony BMG, Warner Music Group and EMI, along
with thousands of independent labels, are now offering their music in
iTunes Plus, Apple’s DRM-free format with higher-quality 256 kbps AAC
encoding for audio quality virtually indistinguishable from the original
recordings. iTunes customers can also choose to download their favorite
songs from the world’s largest music catalog directly onto their iPhone 3G
over their 3G network just as they do with Wi-Fi today, for the same price
as downloading to their computer. And beginning in April, based on what the
music labels charge Apple, songs on iTunes will be available at one of
three price points: 69 cents, 99 cents and $1.29, with most albums still
priced at $9.99.

“We are thrilled to be able to offer our iTunes customers DRM-free iTunes
Plus songs in high quality audio and our iPhone 3G customers the ability to
download music from iTunes anytime, anywhere over their 3G network at the
same price as downloading to your computer or via Wi-Fi,” said Steve Jobs,
Apple’s CEO. “And in April, based on what the music labels charge Apple,
songs on iTunes will be available at one of three price points–69 cents,
99 cents and $1.29–with many more songs priced at 69 cents than $1.29.”

iTunes offers customers a simple, one-click option to easily upgrade their
entire library of previously purchased songs to the higher quality DRM-free
iTunes Plus format for just 30 cents per song or 30 percent of the album
price. The iTunes Store will begin offering eight million of its 10 million
songs in Apple’s DRM-free format, iTunes Plus, today with the remaining two
million songs offered in iTunes Plus by the end of March.

iPhone 3G users can now preview and purchase the entire iTunes Store music
catalog on their iPhone 3G over their 3G network, just as they do with
Wi-Fi today, for the same price and in the same high quality format. Songs
purchased on an iPhone will automatically sync to a user’s computer the
next time they sync their iPhone.

The iTunes Store is the world’s most popular online music, TV and movie
store with a catalog of over 10 million songs, over 30,000 TV episodes and
over 2,500 films including over 600 in stunning high definition video. With
Apple’s legendary ease of use, pioneering features such as iTunes Movie
Rentals, integrated podcasting support, the ability to turn previously
purchased tracks into complete albums at a reduced price, and seamless
integration with iPod and iPhone, the iTunes Store is the best way for Mac
and PC users to legally discover, purchase and download music and video
online.