Imagine a world where every online store sells DRM-free music encoded in open licensable formats. In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat. If the big four music companies would license Apple their music without the requirement that it be protected with a DRM, we would switch to selling only DRM-free music on our iTunes store.
However, the most intetersting part to me was this:
A key provision of our agreements with the music companies [to keep FairPlay’s imposed limitations so liberal —Ed.] is that if our DRM system is compromised and their music becomes playable on unauthorized devices, we have only a small number of weeks to fix the problem or they can withdraw their entire music catalog from our iTunes store.
Oh, you can just imagine how hard and fast they played to get the music industry to that point.
Also interesting is his peculiar use of “DRM” as a countable noun (“using a DRM”, “DRMs haven’t worked”).